Pioneer Natural Resources Sells Its Assets in Alaska

Pioneer Natural Resources is getting out of the Alaska market.

Last week the company announced that it’s selling 100-percent of its Alaska subsidiary to Caelus Energy, which is headquartered in Dallas, Texas. The price-tag is $550 million and the deal is expected to close by the end of the year.

Pioneer Natural Resources announced that the sale is expected to result in a non-cash loss of about $350 million.

In a written statement the President and CEO of Caelus Energy-Alaska is quoted as saying that the company was attracted to Alaska because of the enormous geologic opportunity as well as the incentives, such as SB 21, that the state has put in place to encourage energy investment by independent oil and gas companies.

On Saturday Alaska Governor Sean Parnell issued a statement labeling the announcement as great news for Alaskans and the economy.