Shareholder approvals in hand, Dallas-based Pioneer Natural Resources Co. and Evergreen Resources Inc. last week completed their $2.1 billion merger. Evergreen, which will keep its Denver offices as a base of operations for Rocky Mountain operations, is now a Pioneer subsidiary.

“These new Rockies assets are a perfect fit for Pioneer,” said Scott D. Sheffield, Pioneer’s CEO. “The Raton Basin natural gas field expands our long-lived reserve foundation, provides significant low-risk opportunity to add both reserves and production and complements our growing exploration and international portfolios.”

The merger agreement, which was announced in May (see NGI, May 10), permitted Evergreen shareholders to elect one of three things in exchange for their shares: 1.16 shares of Pioneer common stock, subject to allocation and proration; $39.00 cash, subject to allocation and proration; or 0.58 shares of Pioneer common stock and $19.50 in cash. Evergreen stockholders who did not select which method they preferred before the merger was completed were give 0.58 shares of Pioneer stock and $19.50 in cash. In addition, Evergreen stockholders received 48 cents/share for each Evergreen common stock.

Two of Evergreen’s directors — Mark S. Sexton and Andrew D. Lundquist — will join Pioneer’s board of directors. Sexton will be a Class I director, whose term expires at the annual meeting in 2007. Lundquist will be a Class III director, whose term expires in 2006. Lundquist also will serve on the compensation committee.

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