PIONEER SOUTHWEST ENERGY PARTNERS LP (PSE, Financial) filed Quarterly Report for the period ended 2010-09-30.
Pioneer Southwest Energy Partners Lp has a market cap of $927.5 million; its shares were traded at around $28.2 with a P/E ratio of 9.6 and P/S ratio of 5.5. The dividend yield of Pioneer Southwest Energy Partners Lp stocks is 7.1%.PSE is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Derivative gain (loss), net. The Partnership utilizes commodity swap contracts, collar contracts and collar contracts with short puts to reduce the impact of commodity price volatility on the Partnership's net cash provided by operating activities. Effective February 1, 2009, the Partnership discontinued hedge accounting on all existing commodity derivative instruments and from that date forward began accounting for all derivative instruments under the mark-to-market accounting rules. In accordance with the mark-to-market accounting rules, the Partnership has recognized changes in the fair values of its derivative contracts since February 1, 2009 as derivative gains or losses in the earnings of the periods in which they occurred. Fluctuations in commodity prices during 2010 have impacted the fair value of the Partnership's derivative contracts and resulted in net mark-to-market derivative losses of $20.0 million and net mark-to-market derivative gains of $20.3 million for the three and nine months ended September 30, 2010, respectively. For the three and nine months ended September 30, 2009, the Partnership recognized net mark-to-market losses of $2.5 million and $34.9 million, respectively. See Note G of Notes to the Consolidated Financial Statements included in "Item 1. Financial Statements" and "Item 3. Quantitative and Qualitative Disclosures About Market Risk" for additional information about the Partnership's commodity related derivative financial instruments.
Oil and gas production costs. The Partnership recognized oil and gas production costs of $10.0 million and $28.2 million during the three and nine months ended September 30, 2010, respectively, as compared to $8.8 million and $25.3 million for the same respective periods of 2009. During the three and nine months ended September 30, 2010, total oil and gas production costs per BOE increased by less than one percent and six percent, as compared to the three and nine months ended September 30, 2009, respectively.
Depletion, depreciation and amortization expense. The Partnership's DD&A expense was $3.3 million ($5.43 per BOE) and $9.4 million ($5.29 per BOE) for the three and nine months ended September 30, 2010, as compared to $2.9 million ($5.36 per BOE) and $10.1 million ($5.96 per BOE) for the same respective periods of 2009. The decrease in DD&A per BOE expense for the year-to-date comparisons was primarily due to positive price revisions to proved reserves since September 30, 2009. Effective December 31, 2009, the Partnership adopted the SEC's final rule on "Modernization of Oil and Gas Reporting" (the "Reserve Ruling") and the FASB's ASU 2010-03, which conforms ASC 932 to the Reserve Ruling. Among other items, the Reserve Ruling and ASU 2010-03 require companies to report oil and gas reserves using an average price based upon the prior 12-month period rather than a period-end price.
General and administrative expense. The Partnership's general and administrative expense was $1.6 million and $4.8 million for the three and nine months ended September 30, 2010, as compared to $1.1 million and $3.8 million for the same respective periods of 2009. The Partnership and Pioneer entered into an administrative services agreement in May 2008, pursuant to which Pioneer agreed to perform administrative services for the Partnership,
Interest expense. The Partnership's interest expense was $386 thousand and $1.2 million for the three and nine months ended September 30, 2010, respectively, as compared to $348 thousand and $728 thousand for the same respective periods of 2009. Interest expense increased during the three and nine months ended September 30, 2010, as compared to the same respective periods of 2009, because of borrowings under the credit facility in August 2009 to fund a portion of the cash consideration associated with the 2009 Acquisition. Prior to the 2009 Acquisition, the Partnership's interest expense related primarily to fees associated with maintaining its credit facility. Outstanding borrowings under the credit facility as of September 30, 2010 were $74.0 million.
Read the The complete Report
Pioneer Southwest Energy Partners Lp has a market cap of $927.5 million; its shares were traded at around $28.2 with a P/E ratio of 9.6 and P/S ratio of 5.5. The dividend yield of Pioneer Southwest Energy Partners Lp stocks is 7.1%.PSE is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
General and administrative expense is expected to be $1 million to $2 million. Interest expense is expected to be $400 thousand to $600 thousand, and accretion of discount on asset retirement obligations is expected to be nominal.Derivative gain (loss), net. The Partnership utilizes commodity swap contracts, collar contracts and collar contracts with short puts to reduce the impact of commodity price volatility on the Partnership's net cash provided by operating activities. Effective February 1, 2009, the Partnership discontinued hedge accounting on all existing commodity derivative instruments and from that date forward began accounting for all derivative instruments under the mark-to-market accounting rules. In accordance with the mark-to-market accounting rules, the Partnership has recognized changes in the fair values of its derivative contracts since February 1, 2009 as derivative gains or losses in the earnings of the periods in which they occurred. Fluctuations in commodity prices during 2010 have impacted the fair value of the Partnership's derivative contracts and resulted in net mark-to-market derivative losses of $20.0 million and net mark-to-market derivative gains of $20.3 million for the three and nine months ended September 30, 2010, respectively. For the three and nine months ended September 30, 2009, the Partnership recognized net mark-to-market losses of $2.5 million and $34.9 million, respectively. See Note G of Notes to the Consolidated Financial Statements included in "Item 1. Financial Statements" and "Item 3. Quantitative and Qualitative Disclosures About Market Risk" for additional information about the Partnership's commodity related derivative financial instruments.
Oil and gas production costs. The Partnership recognized oil and gas production costs of $10.0 million and $28.2 million during the three and nine months ended September 30, 2010, respectively, as compared to $8.8 million and $25.3 million for the same respective periods of 2009. During the three and nine months ended September 30, 2010, total oil and gas production costs per BOE increased by less than one percent and six percent, as compared to the three and nine months ended September 30, 2009, respectively.
Depletion, depreciation and amortization expense. The Partnership's DD&A expense was $3.3 million ($5.43 per BOE) and $9.4 million ($5.29 per BOE) for the three and nine months ended September 30, 2010, as compared to $2.9 million ($5.36 per BOE) and $10.1 million ($5.96 per BOE) for the same respective periods of 2009. The decrease in DD&A per BOE expense for the year-to-date comparisons was primarily due to positive price revisions to proved reserves since September 30, 2009. Effective December 31, 2009, the Partnership adopted the SEC's final rule on "Modernization of Oil and Gas Reporting" (the "Reserve Ruling") and the FASB's ASU 2010-03, which conforms ASC 932 to the Reserve Ruling. Among other items, the Reserve Ruling and ASU 2010-03 require companies to report oil and gas reserves using an average price based upon the prior 12-month period rather than a period-end price.
General and administrative expense. The Partnership's general and administrative expense was $1.6 million and $4.8 million for the three and nine months ended September 30, 2010, as compared to $1.1 million and $3.8 million for the same respective periods of 2009. The Partnership and Pioneer entered into an administrative services agreement in May 2008, pursuant to which Pioneer agreed to perform administrative services for the Partnership,
Interest expense. The Partnership's interest expense was $386 thousand and $1.2 million for the three and nine months ended September 30, 2010, respectively, as compared to $348 thousand and $728 thousand for the same respective periods of 2009. Interest expense increased during the three and nine months ended September 30, 2010, as compared to the same respective periods of 2009, because of borrowings under the credit facility in August 2009 to fund a portion of the cash consideration associated with the 2009 Acquisition. Prior to the 2009 Acquisition, the Partnership's interest expense related primarily to fees associated with maintaining its credit facility. Outstanding borrowings under the credit facility as of September 30, 2010 were $74.0 million.
Read the The complete Report
