Pioneer Natural (PXD) has released an update to notify the public and investors about a regulation fd disclosure.
The Company has outstanding long-term marketing derivatives for purchasing and selling specified quantities of oil daily at a Midland, Texas terminal, with contracts spanning from 2021 to 2027. The purchase price is based on the West Texas Intermediate price, while the sales price is tied to Brent oil prices. The Company treats these contracts as non-hedge derivatives. Additionally, after issuing $1.3 billion in convertible notes due 2025, certain note holders exercised their conversion options, which the Company chose to settle in cash, creating a forward contract accounted for as a derivative instrument not designated as a hedge.
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For a comprehensive understanding of the announcement, you can read the full document here.
