CLR - Pioneer closes deal with Continental - flags guidance adjustment

Pioneer (NYSE:PXD) closed it's divestiture of Delaware basin assets to Continental (NYSE:CLR) yesterday and flagged guidance adjustments. The Company received $3.10b in proceeds, compared to the announced transaction value of $3.25b, following normal closing adjustments. Presumably the largest closing adjustment was free cash flow generated by the assets between the effective date of October 1st, and the date of close, December 20th. Assuming 100% of the purchase price adjustment of $125m was generated in free cash flow from the asset over the ~11 week period, would indicate the asset is generating ~$600m a year in free cash flow annually at current commodity prices; or around 20% of the purchase price. Pioneer also flagged that the Company's full-year and fourth-quarter guidance was predicated on the assets being with the Company through year end; given the earlier-than-expected closing date, analysts will need to back out the production and financial impact of the

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Pioneer closes deal with Continental - flags guidance adjustment