I recently obtained an early draft of the earnings report that contained an additional paragraph that provided further detail on any potential acquisitions by PSE.

"The Partnership is currently evaluating a potential acquisition of certain developed and undeveloped oil and gas properties from Pioneer Natural Resources Company. Additionally, the Partnership continues to evaluate the potential benefits of initiating a development drilling program in the Spraberry field with costs decreasing and margins improving. The Partnership also continues to evaluate third-party acquisition opportunities. The decision regarding whether to pursue these growth opportunities will be dependent on market conditions, among other items."

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These other items are as follows. Properties will be dropped down from Pioneer Natural Resources when it is determined to be most advantageous to the parent company on terms that benefit the parent company as much as possible without exposing management's total lack of concern for creating value at The Partnership. Despite many extremely attractive third-party acquisition opportunities available to any company with access to capital, The Partnership will only acquire assets from a third-party as part of a cooperative transaction with Pioneer Natural Resources designed to benefit Pioneer Natural Resources. As The Partnership is being operated solely for the benfit of Pioneer Natural Resources, unitholders should expect any transaction to be minimally accretive to unitholder value as The Partnership's assets and any available borrowing capacity on The Partnership's credit facility exist only the benefit the parent company. Infill drilling is The Partnership's best hope for growth as it is the only potential use of The Partnership's capital that doesn't involve Pioneer Natural Resources.

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After reading the missing paragraph, I can see why it was deleted from the final version of the document. PSE has great assets and an incredible balance sheet. It is unfortunate that management doesn't care about using PSE's untapped credit facility to create value for unitholders.