Pioneer Natural Resources is dropping the price of its Alaska subsidiary.
Under an amendment to a sale agreement announced last year, the Texas-based independent will now sell its Pioneer Natural Resources Alaska Inc. subsidiary to Caelus Energy Alaska LLC for some $300 million, the companies announced March 13.
The original deal announced last October called for the privately held Caelus to pay $550 million for the subsidiary, which operates the Oooguruk unit on the North Slope.
The amended deal is expected to close in the second quarter, retroactive to the start of the year, according to Pioneer. The original deal was supposed to close by the end of 2013.
Under the amendment, Pioneer expects to report a $30 million noncash loss in the first quarter of the year, in addition to the $350 million noncash loss expected last year.
Caelus said it will take on a $300 million second-lien term loan and a $115 million asset based loan facility to fund the purchase and to provide working capital for its operations.
See story in March 23 issue, available online Friday, March 21 at 11 a.m. at www.PetroleumNews.com