Pioneer Natural Resources Co. closed the previously announced sale of its Kansas assets in the Hugoton Field to Linn Energy LLC. Cash proceeds from the sale are $340 million, subject to normal adjustments at closing. Assets included in the sale represent all of Pioneer’s interests in the Hugoton Field, including its producing oil and gas wells, its interest in the Satanta gas processing plant and other associated infrastructure. The effective date of the transaction was July 1.
The sale is expected to result in a pretax, noncash loss of about $20 million. The loss will be recorded in the third quarter. Financial and operating results related to the company’s Hugoton activities for the third quarter and all prior periods presented in future filings will be reflected as discontinued operations.
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