Profile
Pioneer Southwest Energy Partners L.P. (NYSE: PSE) is a Delaware limited partnership formed by Pioneer Natural Resources Company (NYSE: PXD) to own and acquire oil and gas assets in Pioneer Southwest's area of operations, which consists of onshore Texas and eight counties in the southeast region of New Mexico. Pioneer Southwest's
assets currently consist of non-operated working interests in approximately 1,100 identified producing wells in the Spraberry field in the Permian Basin of West Texas, with
approximately 34 MMBOE of proved reserves as of December 31, 2007. Pioneer Southwest owns a 78% average working interest in
these wells, and Pioneer Natural Resources is the operator.
According to the Energy Information Administration, the Spraberry field is the fifth largest oil field in the United States and the only large onshore oil field that is growing. Recently published production information identifies Pioneer Natural Resources as the largest operator in the field, and Pioneer Southwest expects to benefit from that experience and scale of operations.
As a premier upstream MLP, Pioneer Southwest offers:
- Strong yield and growth opportunities
- Stable, predictable cash flow
- Low cost of capital
- Financial flexibility
- A strong E&P parent in Pioneer Natural Resources
- A focused, experienced management team
Because oil and gas properties are a depleting asset, Pioneer Southwest plans to maintain quarterly cash distributions at the initial distribution rate and, over time, increase its quarterly cash distributions by replacing and expanding its asset base through acquisitions of oil and gas assets in its area of operations. Maximizing distributions to unitholders will be an important consideration in determining the financing sources that will be utilized to fund future acquisitions.
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