Pioneer sells Raton Basin assets in southeastern Colorado

By Patrick C. Miller | June 18, 2018

Pioneer Natural Resources Co. has signed an agreement with Evergreen Natural Resources LLC to sell all its assets in the Raton Basin of southeastern Colorado for $79 million.

Pioneer—an independent oil and gas E&P company headquartered in Dallas—announced in February its intention to become a Permian pure-play operator by divesting of its Colorado acreage and about 70,000 net acres of its Texas assets in the Eagle Ford. Net gas production from Raton assets averaged approximately 84 million cubic feet per day (14 thousand barrels of oil equivalent per day) during the first quarter of 2018.

The Raton assets represent all of the company’s interests in the field, including its producing gas wells and associated infrastructure. The west Texas Panhandle properties represent Pioneer’s 100 percent working interest in the field, including its producing wells and associated infrastructure.

The purchase and sale agreement is scheduled to close by the end of July 2018. The Raton assets sale is expected to result in a pretax noncash loss of $65 million to $75 million, which should be recorded during the second quarter of 2018.

“I want to personally thank all of our Raton employees for their strong efforts, dedication and the value they have created for our shareholders,” said Timothy Dove, president and CEO. “I am pleased that Evergreen plans to build on this success.”