Pioneer Natural to Acquire Pioneer SouthWest in All-Stock Deal

   By Melodie Warner 
 

Pioneer Natural Resources Co. (PXD) has agreed to acquire Pioneer SouthWest Energy Partners L.P. (PSE) in a boosted all-stock deal that values Pioneer SouthWest at roughly $1.46 billion.

Pioneer Natural first offered in May to buy the Pioneer Southwest interest it didn't already own in a stock-for-unit exchange that valued the company at about $1.1 billion. Pioneer USA owns 100% of the membership interests in the general partner of Pioneer Southwest and about 52% of Pioneer Southwest's units outstanding.

Both Pioneer Natural and Pioneer Southwest have horizontal drilling operations in the Midland Basin in West Texas.

Pioneer Natural on Monday said it will issue 0.2325 of a share for every Pioneer SouthWest unit, which values each unit at $40.83, a 1% premium to Pioneer SouthWest's closing stock price on Friday. Pioneer SouthWest units were inactive in premarket dealings and are up 78% so far this year.

Pioneer Natural expects the deal to result the issuance of an additional 3.95 million shares.

Pioneer Natural is a Dallas-based oil and gas exploration and production company with operations in the U.S.

Pioneer Southwest, also based in Dallas, has production and drilling operations in the Spraberry field in West Texas.

Pioneer Natural shares were recently down 22 cents to $175.40 premarket. The stock is up 65% through Friday's close.

Write to Melodie Warner at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires