Pioneer Natural Resources buys $107 million notes for $70 million

By Susanna Moon

Chicago, Feb. 3 - Pioneer Natural Resources Co. said it purchased $107 million face value of debt securities for $70 million in the fourth quarter.

The company recorded a gain on bond repurchases of $15 million, or $0.13 per share.

Pioneer said on Jan. 13 that it was looking for opportunities to purchase debt "significantly below carrying value."

The plan to shore up free cash flow includes capital-spending cuts and cost-reduction initiatives, and free cash flow will also be used for share repurchases and bolt-on acquisitions.

Pioneer is targeting a net debt level that is no more than 35% to 40% of its book capitalization.

The percentage was 44% as of Sept. 30, and the company's credit facility covenants require that debt be less than 60% of book capitalization.

Net long-term debt was $2.8 billion as of Sept. 30.

Pioneer is a Dallas-based oil and gas exploration and production company.

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