Pioneer Natural Resources Company (PXD)

[Timothy Smith]

PXD (-6%) sells Alaska Position in the North Slope for
$550 MM. PXD will sell 100% of the equity in its subsidiary,
Pioneer Natural Resources Alaska, Inc, to Caelus Energy
Alaska LLC.

The subsidiary produced an average of 4,000
Boe/d over the first 9 months of 2013. The assets had 44
MMBoe of proved reserves at YE-12. The sale is expected to
result in a noncash loss of ~$350 MM.

I believe this is an attractive transaction that will help PXD fund growth from its significant Permian inventory.