Aspects of Pioneer Natural Resources' Proposed Acquisition of Evergreen Resources

Background

On May 5, 2004, the Wall Street Journal reported that Pioneer Natural Resources Company had agreed to buy Evergreen Resources Inc. for about $1.9 billion of cash and stock. Pioneer reportedly will also assume about $300 million of Evergreen debt. The Wall Street Journal went on to say that, "... Evergreen is focused on producing natural gas from coal seams in the Rockies. Unlike conventional natural-gas deposits ... natural-gas wells in coal seams typically produce for a longer period of time and are considered low risk." The U.S.-based Pioneer reportedly is offering 0.58 shares in addition to $19.50 in cash per share, totaling about $38.47 for each share of Evergreen, which only has operations in the United States.

The following table provides company-level data and aggregate data from various public sources to inform discussions of this transaction. This data presentation is similar to data presentations that have been previously requested from EIA for other significant energy company mergers and/or corporate alliances.

U.S. Crude Oil and Natural Gas Reserves and Production of Pioneer Natural Resources' Proposed Acquisition of Evergreen Resources, 2002

	Pioneer Natural Resources	Evergreen Resources	Combined	U.S. Total	Share of U.S. Total
	Pioneer Natural Resources	Evergreen Resources	Combined	U.S. Total	Pioneer Natural Resources	Evergreen Resources	Combined
	(million barrels)				(percent)
U.S. oil and natural gas liquids production	16.0	0.0	16.0	2,759	0.6	0.0	0.6
U.S. oil and natural gas liquids reserves	337.6	0.0	337.6	30,671	1.1	0.0	1.1
	(billion cubic feet)				(percent)
U.S. dry natural gas production	84.8	39.0	123.8	19,353	0.4	0.2	0.6
U.S. dry natural gas reserves	1,484.0	1,238.8	2,722.8	186,946	0.8	0.7	1.4

Note: Reserves are at year-end. Shares are calculated from unrounded numbers.

Sources: Company information: John S. Herold and Company, Reserves Disclosure Database; Pioneer Resources, 2002 Annual Report; and Evergreen Resources Corporation, 2002 Annual Report; U.S. totals: Energy Information Administration, U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves 2002 Annual Report, Table 1.

Financial Analysis Team, Office of Energy Markets and End Use, Energy Information Administration, May 5, 2004

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