Pioneer Southwest Energy Partners LP said Monday it bought oil and natural gas properties in West Texas from Pioneer Natural Resources Company for $171.2 million.
The properties are estimated to have reserves of 18.9 million barrels of oil equivalent. Production is estimated to be 1,300 barrels of oil equivalent per day.
To pay for the properties, Pioneer Southwest used $30 million in cash and will borrow under its credit facility. The company also said it's considering a public offering of common units later this year of approximately $75 million to handle some debt associated with this transaction.
Irving, Texas-based Pioneer Southwest was formed by Pioneer Natural Resources to acquire and own oil and gas assets.