Pioneer Natural Resources

(PXD) - Get Report

expects to take a pretax charge of about $42 million, or $26 million after taxes, related to updated third party bids for its abandonment obligation for the East Cameron 322 field that was lost during Hurricane Rita.

The Dallas-based company expects insurance recoveries to cover most of this cost, which will be recognized as income in future quarters.

The company also expects its exploration and abandonment charges for the first quarter to be $80 million to $90 million including about $40 million attributable to drilling, acreage and seismic costs incurred in Nigeria.

Pioneer said that it is undertaking extensive drilling activity in Edwards Trend, Alaska and West Africa.

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