DALLAS–(BUSINESS WIRE)–Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced that it will close its sand mine located in Brady, Texas, and transition proppant supply to West Texas sand sources. The Company expects to wind down operations during the first quarter of 2019 and transition to 100% West Texas sand by May 2019. Pioneer anticipates sand savings of approximately $400,000 per well based upon full utilization of West Texas sand. Associated with the closing of the Brady sand mine, the Company expects to recognize a noncash after-tax charge of $350 million to $400 million in the fourth quarter of 2018.
Timothy L. Dove, Pioneer President and CEO stated, “Our Brady sand mine and other Brady sand sources have been an integral part of Pioneer’s success and were critical in our transition to horizontal shale development. However, new West Texas sand mines with their low cost of mining and proximity to our Permian acreage position have provided us a more cost-effective, long-term source of sand supply. This shift will decrease our costs, increase capital efficiencies and benefit corporate returns. We thank our Pioneer Sands employees for their dedication and many efforts over the years.”
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States. For more information, visit www.pxd.com.