Pioneer Natural Resources Provides Production and Financial Update for the Second Quarter of 2012

Pioneer Natural Resources Company (NYSE:PXD) ('Pioneer? or 'the
Company?) today provided updates on the Company′s expected production
and commodity price realizations for the second quarter of 2012 and the
Company′s commodity derivative positions for 2014 and 2015.

Second Quarter 2012 Production Update

Pioneer′s production from continuing operations averaged 150,506 barrels
oil equivalent per day (BOEPD) in the second quarter of 2012. The
Company′s production guidance for the quarter was 149 thousand barrels
oil equivalent per day (MBOEPD) to 154 MBOEPD. Production from the
Spraberry field in West Texas was negatively impacted by approximately
4,800 BOEPD due to unplanned third-party natural gas liquids (NGL)
fractionation downtime and tight industry NGL fractionation capacity at
Mont Belvieu, Texas as described below. Had these third-party processing
issues not occurred during the second quarter and all of Pioneer′s NGL
volumes could have been fractionated and sold, Pioneer′s production
would have been above the top of the guidance range at approximately 155
MBOEPD.

• 
  The Spraberry field produces oil and associated liquids-rich gas. The
  gas includes NGLs, which are separated at the Midkiff/Benedum and Sale
  Ranch gas processing facilities in West Texas. These NGLs are then
  transported to third-party fractionation facilities at Mont Belvieu.
  During May, a significant third-party facility was shut down for
  planned maintenance. When it came back on line in late May, it had
  operating problems and was not able to achieve its pre-shutdown
  fractionation capacity. As a result of this problem and tight
  fractionation capacity across the Mont Belvieu complex, Pioneer built
  an NGL inventory of 256 thousand barrels that could not be processed
  for sale in June, thereby negatively impacting production for the
  second quarter by approximately 2,800 BOEPD. Within the next month,
  the fractionation facility is expected to increase processing rates to
  its pre-shutdown processing capacity, thereby allowing Pioneer′s NGL
  inventory and ongoing production to be fractionated and sold over the
  remainder of 2012. Based on the Company′s second quarter NGL price
  realization per barrel, the NGL inventory has a sales value of
  approximately $8 million.
  
• 
  The Midkiff/Benedum gas processing plants were also forced to reject
  ethane into the residue gas stream during the second quarter as a
  result of tight NGL capacity at Mont Belvieu. The net impact of this
  shift was a loss in production of approximately 2,000 BOEPD. Ethane
  rejection continues and is expected to impact Pioneer′s production
  over the remainder of 2012 based on the outlook for continuing tight
  fractionation capacity at Mont Belvieu. Due to low ethane prices,
  there is not a significant economic impact to rejecting ethane versus
  producing it. Pioneer estimates that its revenues are lower as a
  result of rejecting ethane by approximately $18 thousand per day at
  current gas and NGL prices.
  

Despite the unanticipated NGL inventory build in the second quarter and
the reduced production resulting from ethane rejection, Pioneer
continues to expect to deliver full-year 2012 production ranging from
148 MBOEPD to 153 MBOEPD, an increase of 23% to 27% compared to
full-year 2011.

Second Quarter 2012 Commodity Prices

In the second quarter of 2012, Pioneer′s oil sales averaged 61 thousand
barrels per day (MBPD), NGL sales averaged 27 MBPD and gas sales
averaged 373 million cubic feet per day. For the second quarter, Pioneer
expects to report an approximate before-tax net gain of $276 million on
mark-to-market derivative contracts, of which approximately $119 million
is a before-tax noncash net gain and $157 million is a before-tax cash
net gain. The Company's derivative mark-to-market results are outlined
on the attached schedule.

In the second quarter, the NYMEX West Texas Intermediate (WTI) oil price
averaged $93.49 per barrel. Pioneer's second quarter oil average
realized price per barrel before derivative transactions was $86.87 per
barrel. Including the impact of VPPs and all derivatives, the second
quarter average oil price was $87.94 per barrel. The NGL average
realized price per barrel before derivative transactions was $32.62, or
approximately 35% of WTI. Including the impact of all derivatives, the
average NGL price was $34.48 per barrel.

In the second quarter, the NYMEX gas price averaged $2.21 per thousand
cubic feet (MCF). Pioneer's second quarter average realized gas price
before derivative transactions was $2.00 per MCF. Including the impact
of all derivatives, the average gas price was $4.43 per MCF.

Commodity Derivative Positions For 2014 and 2015

Pioneer has a strong financial position and is committed to maintaining
this position. In June and July 2012, Pioneer liquidated swap, collar
and three-way collar derivatives for 250,000 million British thermal
units per day (MMBTUPD) of 2014 gas production and 80,000 MMBTUPD of
2015 gas production. These liquidated volumes represent 100% and 43% of
Pioneer′s gas derivative positions in 2014 and 2015, respectively. The
Company also liquidated 140,000 MMBTUPD of gas basis swaps for 2014. As
a result of these liquidations, the Company realized approximately $143
million of net cash proceeds, of which $72 million was realized during
June.

The gas derivatives were unwound when gas prices were at low levels to
partially offset the reduction in cash flow the Company is now expecting
for 2012 resulting from lower price realizations on oil and NGL sales.
Despite the monetization of the gas derivatives for 2014 and a portion
for 2015, Pioneer continues to have one of the best commodity
derivatives positions in the industry. Derivative swap, collar and
three-way collar contracts cover approximately 90% of the Company′s oil
production over the remainder of 2012, 85% in 2013 and 40% in 2014. For
gas, swap, collar and three-way collar derivative contracts are in place
to cover 90% of Pioneer′s production over the remainder of 2012, 65% in
2013 and 20% in 2015.

The Company's open derivatives positions are outlined on the attached
schedule.

Pioneer is a large independent oil and gas exploration and production
company, headquartered in Dallas, Texas, with operations in the United
States. For more information, visit Pioneer′s website at www.pxd.com.

Except for historical information contained herein, the statements in
this news release are forward-looking statements that are made pursuant
to the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements and the business
prospects of Pioneer are subject to a number of risks and uncertainties
that may cause Pioneer's actual results in future periods to differ
materially from the forward-looking statements. These risks and
uncertainties include, among other things, volatility of commodity
prices, product supply and demand, competition, the ability to obtain
environmental and other permits and the timing thereof, other government
regulation or action, the ability to obtain approvals from third parties
and negotiate agreements with third parties on mutually acceptable
terms, litigation, the costs and results of drilling and operations,
availability of equipment, services and personnel required to complete
the Company′s operating activities, access to and availability of
transportation, processing and refining facilities, Pioneer's ability to
replace reserves, implement its business plans or complete its
development activities as scheduled, access to and cost of capital, the
financial strength of counterparties to Pioneer′s credit facility and
derivative contracts and the purchasers of Pioneer′s oil, NGL and gas
production, uncertainties about estimates of reserves and resource
potential and the ability to add proved reserves in the future, the
assumptions underlying production forecasts, quality of technical data,
environmental and weather risks, including the possible impacts of
climate change, the risks associated with the ownership and operation of
an industrial sand mining business, international operations and acts of
war or terrorism. These and other risks are described in Pioneer's 10-K
and 10-Q Reports and other filings with the Securities and Exchange
Commission. In addition, Pioneer may be subject to currently unforeseen
risks that may have a materially adverse impact on it. Pioneer
undertakes no duty to publicly update these statements except as
required by law.

PIONEER NATURAL RESOURCES COMPANY

UNAUDITED SUPPLEMENTAL INFORMATION

The following table summarizes net derivative gains and losses that
Pioneer expects to record in its earnings for the three and six months
ended June ?30, 2012:

_____________

(a) During June and July 2012, the Company liquidated swap, collar and
three-way collar derivative contracts for 250,000 million British
thermal units ('MMBtus') per day of 2014 gas production and 80,000
MMBtus per day of 2015 gas production. The Company also liquidated 2014
basis swap contracts for 70,000 MMBtus per day of Permian Basin gas
production, 40,000 MMBtus per day of Gulf Coast gas production and
30,000 MMBtus per day of Mid-Continent gas production. As a result of
these liquidations, the Company realized $72 million of proceeds during
the second quarter of 2012, which are included in 'Cash settled changes
in fair value: Gas derivative gains,' above, and $71 million of proceeds
during the third quarter of 2012. The liquidated derivative contracts
are not included in the accompanying open commodity derivative positions
table.

_____________

Diesel prices. As of June 30, 2012, the Company has diesel
derivative swap contracts for 250 notional Bbls per day for 2013 at an
average per Bbl fixed price of $111.30. The diesel derivative contracts
are priced at an index that is highly correlated to the prices that the
Company incurs to fuel its drilling rigs and fracture stimulation fleet
equipment. The Company purchases diesel derivative swap contracts to
mitigate fuel price risk.

Interest rate derivatives. ?As of June ?30, 2012, the Company
had interest rate derivative contracts that lock in a fixed forward
annual interest rate of 3.06%, for a 10-year period ending in August
2022, on a notional amount of $200 million. These derivative contracts
mature and settle by their terms during August 2012. The Company also
had interest rate derivative contracts that lock in a fixed forward
annual interest rate of 3.21%, for a 10-year period ending in December
2025, on a notional amount of $250 million. These derivative contracts
mature and settle by their terms during December 2015.

Marketing and basis transfer derivatives. ?Periodically,
the Company enters into gas buy and sell marketing arrangements to
fulfill firm pipeline transportation commitments. Associated with these
gas marketing arrangements, the Company may enter into gas index swaps
to mitigate price risk.

From time to time, the Company also enters into long and short gas swap
contracts that transfer gas basis risk from one sales index to another
sales index. The following table presents Pioneer′s open marketing and
basis transfer derivative positions as of July ?17, 2012:

Pioneer Natural Resources

Investors

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Hopkins, 972-969-4065

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Eric Pregler, 972-969-5756

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Edwards, 972-969-5759

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