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Gold/Mining/Energy : PIONEER NATURAL RES. (PXD) -- Ignore unavailable to you. Want to Upgrade?

To: George Mc Geary who wrote (159)	4/30/1998 11:38:00 AM
From: K.Martin	Read Replies (1) \| Respond to of 233

Based on todays earning announcement I would say PXD is now on the right track. Following divesture, the way I have it figured, their total cost per barrel of oil equivalent will be $11.54 which compares to the current rate of $14.33 excluding the charge. They have stated that the divestures will reduce reserves by 12%. If that reduces currently daily production by 25% then PXD's EPS based on $15/BO should be about 0.35/quarter or $1.40 for 1999. Using 17.50/BO they earn 0.69/quarter or $2.76 for 1999. This does not take into account the reduction in the number of outstanding shares due to the buyback or the additional revenue from the divesture if they recieve more than projected. I would assume that they would use the lowest sales prices from the divestures for their calculations.