Pioneer has achieved significant growth over the prior 5 years by strategically thinking through potential acquisitions, determining downside outcomes and identifying growth prospects within, and outside the specific project. As the Allison case illustrates, the company has the capacity to see a larger opportunity within smaller projects. Pioneer, largely Mr. Allard, is engaged daily in the process of interacting with industry participants, discussing potential opportunities and extending himself as a potential acquirer.

In negotiating acquisitions, the company maintains a nimbleness and perseverance to reach agreements that include conditional walk-away rights, provide ample time to ensure minimum throughput, and scout the potential to compound the scope of the project with neighboring opportunities. Pipeline dispositions of this scale are generally local and provide "locals" a distinct advantage.

Acquisitions are only as good as their eventual throughput. Pioneer prides itself on the ability to provide win-win solutions to producers. While this may take time to educate a customer on how, over the long term a particular solution may be more beneficial, it pays in spades once the light goes on. Providing cost-effective, long-term solutions and seamless service keeps producers flowing to the line and willing to add new wells to the system. Further, reputation attracts new producers to the company. And when there is a split in the seam? React deftly.

Pioneer has assembled a team of knowledgeable, dedicated field personnel who conduct daily inspections of assigned systems and are empowered to react to the needs of producers. Many of the field operators have been active on their systems predating Pioneer's acquisition and take pride in the high level of service they provide. This team is truly the face of Pioneer to the producer community, providing a positive reflection on Pioneer as a company.

The recent acquisition of Aquila systems has both required and afforded the company an opportunity to upgrade back office operations. Two key additions in the areas of Revenue Accounting and Contracts Administration have bolstered the back office efficiency and accountability. Pioneer has elevated its level of responsiveness, reporting and internal control.

Operating 10 systems may appear cumbersome. Certainly having one system generate $20 million in revenue is a much more efficient deployment of capital; on it's face. Pipes are land locked. New production is not. The system diversification the company currently maintains provides a portfolio affect on earnings streams over the long term. As development plays move about West Texas, Pioneer is not captive to one field or project, but can access new production in multiple areas.

Pioneer has evolved into a streamlined efficient operation with a deepening knowledge of its customers and profit center. This organizational growth tends both to the current needs of the company while establishing a path to overcome the challenges its growth strategy will present.