Pioneer Natural Resources Reports Second Quarter 2012 Financial and Operating Results

Pioneer Natural Resources Company (NYSE:PXD) ('Pioneer? or 'the
Company?) today announced financial and operating results for the
quarter ended June 30, 2012.

Pioneer reported a second quarter net loss attributable to common
stockholders of $70 million, or $0.57 per diluted share (see attached
schedule for a description of the net loss per diluted share
calculation). Without the effect of noncash derivative mark-to-market
gains and other unusual items, adjusted income for the second quarter
was $98 million after tax, or $0.78 per share.

Second quarter and other recent highlights included:

• 
  producing 150.5 thousand barrels oil equivalent per day (MBOEPD) from
  continuing operations, an increase from the first quarter of 2012 of 4
  MBOEPD, or 3%, as a result of continued production growth in the
  Company′s Spraberry, Eagle Ford Shale, Barnett Shale Combo and Alaska
  areas; this increase was delivered despite losing approximately 4,800
  barrels oil equivalent per day (BOEPD) of production from the
  Spraberry field due to unplanned third-party natural gas liquids (NGL)
  fractionation downtime at Mont Belvieu, Texas, combined with NGL
  fractionation capacity limitations at Mont Belvieu, resulting in
  ethane rejection; had these third-party processing shortfalls not
  occurred, Pioneer′s production would have been approximately 155
  MBOEPD, above the top of Pioneer′s guidance range for the second
  quarter of 149 MBOEPD to 154 MBOEPD,
  
• 
  increasing the Company′s annual production growth target range for
  2012 from 23% - 25% to 25% - 29%, as strong drilling and well
  performance is expected to outweigh continuing ethane rejection and a
  decrease in drilling activity over the remainder of 2012,
  
• 
  drilling five additional successful wells in the southern portion of
  the horizontal Wolfcamp Shale play in West Texas and increasing the
  estimated ultimate recovery (EUR) for wells in this area to 575
  thousand barrels oil equivalent (MBOE) for 7,000-foot laterals,
  
• 
  pursuing a joint venture partner to accelerate development of the
  horizontal Wolfcamp Shale play in the southern 200,000 acres of
  Pioneer′s total prospective acreage position,
  
• 
  delivering production outperformance from deeper vertical wells to the
  Strawn, Atoka and Mississippian intervals in the Spraberry field,
  
• 
  maintaining the Company′s 2012 drilling capital budget at $2.4 billion
  by reducing second half drilling activity in response to lower
  commodity prices,
  
• 
  liquidating gas derivatives in 2014 and 2015 for cash proceeds of $143
  million,
  
• 
  adding 8 thousand barrels of oil per day (MBPD) of oil derivative
  swaps for August through December 2012 at $93.09 per barrel,
  
• 
  completing a successful 10-year senior note offering of $600 million
  at an interest rate of 3.95%, and
  
• 
  being upgraded to investment grade by Moody′s.
  

Scott Sheffield, Chairman and CEO, stated, 'The Spraberry vertical play
continued to outperform in the second quarter, while the Eagle Ford
Shale and Barnett Shale Combo plays continued to deliver strong and
consistent production growth as expected. Our early drilling results
from the horizontal Wolfcamp Shale play are exceeding expectations and
we expect this asset to significantly contribute to our production
growth going forward. We estimate that the southern 200,000 acres of our
Spraberry acreage position has more than 4,000 horizontal drilling
locations with a gross resource potential of more than two billion
barrels oil equivalent. In order to accelerate development and enhance
the net asset value of this substantial oil resource, we will pursue a
joint venture partner during the second half of 2012. We also plan to
begin delineating horizontal Wolfcamp Shale potential on our northern
acreage in the fourth quarter. Based on our success to date in the
horizontal Wolfcamp Shale, we are increasing the Company′s net resource
potential from five billion barrels oil equivalent to more than seven
billion barrels oil equivalent.?

Mark-To-Market Derivative Gains and Unusual
Items Included in Second Quarter 2012 Earnings

Pioneer′s second quarter earnings included unrealized mark-to-market
gains on derivatives of $61 million after tax, or $0.49 per diluted
share.

Second quarter earnings also included a net loss of $229 million after
tax, or $1.84 per diluted share, related to unusual items. These unusual
items included:

• 
  a noncash impairment charge of $280 million after tax, or $2.28 per
  diluted share, as a result of the lower commodity price environment
  not supporting the Company′s carrying value of its legacy Barnett
  Shale dry gas properties in Texas,
  
• 
  Spraberry field drilling rig termination fees of $6 million after tax,
  or $0.05 per diluted share, (reflected in Other Expense),
  
• 
  a realized gain of $45 million after tax, or $0.37 per diluted share,
  for 2014 gas derivatives that were liquidated in June,
  
• 
  income associated with discontinued operations in South Africa of $12
  million after tax, or $0.10 per diluted share and
  
• 
  a $0.02 per diluted share impact of including two million incremental
  dilutive shares in computing adjusted income per share that, in
  accordance with GAAP, were not included in the net loss per diluted
  share computation because the Company reported a net loss for the
  second quarter of 2012.
  

Operations Update and Drilling Program

Pioneer is the largest acreage holder in the horizontal Wolfcamp Shale
play where the Company believes it has significant resource potential
based on its extensive geologic data covering the Wolfcamp A, B, C and D
intervals and its successful drilling results to date as described below.

Pioneer′s first two successful horizontal Wolfcamp Shale wells were
drilled in northern Upton County in the B interval to a depth of
approximately 9,500 feet with stimulated lateral lengths of
approximately 5,300 feet and 30 fracture stimulation stages each. The
XBC Giddings Estate #2041H and the XBC Giddings Estate #2073H had peak
30-day average natural flow rates of 643 BOEPD and 673 BOEPD,
respectively. Both wells continue to produce above expectations, with
cumulative production of 107 MBOE and 83 MBOE after being on production
for nine-and-one-half months and seven months, respectively. Of these
produced volumes, approximately 75% was oil, 20% NGLs and 5% gas. The
wells are currently producing at an average daily rate of 365 BOEPD per
well. The two wells each have EURs of approximately 650 MBOE. Future
wells drilled with longer lateral lengths in this area are expected to
have significantly higher EURs. Although both wells flowed naturally
until recently, the wells have recently been placed on artificial lift.

The Company placed five additional horizontal Wolfcamp wells on
production during the second quarter in southern Upton and Reagan
counties. These wells were drilled in the B interval at depths ranging
from 7,600 feet to 8,400 feet and have stimulated lateral lengths
ranging from 5,700 feet to 6,600 feet, with 32 to 37 fracture
stimulation stages. All of the wells have been on production for more
than 30 days and have delivered 30-day peak rates ranging from 332 BOEPD
to 597 BOEPD, with oil content ranging from 77% to 90%. Production from
these five wells has remained stable after the peak 30-day production
periods. The production results for each well are shown below:

The Company is very encouraged by the strong production rates and high
oil content from its early drilling activity in the horizontal Wolfcamp
Shale. Based on the strong production results to date and continuing
petrophysical analysis, Pioneer believes its wells in southern Upton,
Reagan and Irion counties, with a stimulated lateral length of 7,000
feet and 30 to 35 fracture stimulation stages, will have EURs of 575
MBOE, above the Company′s initial estimate of 350 MBOE to 500 MBOE. As
the stimulated lateral lengths of the Company′s wells are increased to
7,000 feet and longer, higher production rates are expected and EURs may
increase above 575 MBOE.

Pioneer′s drilling focus will continue to be the Company′s 200,000 acres
in the southern part of the play to hold expiring acreage totaling
50,000 acres. Pioneer is currently drilling 4 additional horizontal
Wolfcamp Shale wells and has 9 wells awaiting completion in this area.
For the remainder of 2012, the Company plans to continue drilling in the
B interval and to test the A interval in this area. Pioneer′s first two
A interval wells have been drilled and are awaiting completion.

The Company expects to drill approximately 90 horizontal wells in the
southern part of the play by the end of 2013 to hold expiring acreage,
with 30 to 35 horizontal wells being drilled in 2012. During the fourth
quarter of 2012, the Company plans to begin delineating the northern
portion of its Spraberry acreage position by drilling in Midland, Martin
and Gaines Counties. Wells drilled in these areas are expected to
benefit from greater original oil in place and higher reservoir
pressures associated with deeper drilling depths compared to the
southern part of the play. Pioneer believes a successful drilling
program in this area could substantially increase its prospective
horizontal Wolfcamp Shale acreage position.

Pioneer currently has four horizontal rigs running in the play and plans
to increase to seven rigs late in the fourth quarter of 2012. The
horizontal wells to date have been drilled and completed with extra
'science,? including coring, extensive logging and micro-seismic,
resulting in well costs of $8 million to $9 million per well. In the
second half of 2012, Pioneer is transitioning to 'development? drilling,
which is expected to lower well costs to $7 million per well for a
7,000-foot stimulated lateral with 35 to 40 fracture stimulation stages.
This will include increasing utilization of Brady Brown ^? sand
produced by the U.S. industrial sands business acquired by Pioneer in
early April. Pioneer′s first two 'development? wells are currently being
drilled.

Pioneer plans to pursue a joint venture partner to accelerate the
development of the horizontal Wolfcamp Shale in the southern 200,000
acres of the Company′s total prospective acreage position. Pioneer plans
to offer a 33% to 50% working interest in the southern acreage, or 8% to
12% of the Company′s total acreage position. The acreage position being
offered is estimated to have more than 4,000 potential horizontal
development locations, with downspacing upside, and a total gross
resource potential of more than two billion barrels oil equivalent.
Wells in this area are expected to have oil content of more than 70% and
EURs of 575 MBOE for 7,000-foot laterals.

Pioneer had originally planned to reduce the vertical drilling program
in the Spraberry field from 40 rigs to 30 rigs during the second half of
2012 as the Company increased its horizontal rig count in the Wolfcamp
Shale play. However, the recent decline in commodity prices has led to a
reduction in the Company′s forecasted cash flow for 2012. This caused
the Company to begin reducing its vertical drilling rig count to 30 rigs
in June, slightly earlier than originally anticipated. A further
reduction of up to 3 rigs is possible during the second half of 2012 if
commodity prices remain under pressure.

The Company continues to drill vertically to deeper intervals in the
Spraberry field below the Wolfcamp interval (vertical Wolfcamp 40-acre
type curve EUR of 140 MBOE with a 24-hour initial production ('IP?) rate
of 90 BOEPD). Production from this deeper drilling has exceeded
expectations and is the primary contributor to the production
outperformance by this asset in the first half of 2012. This deeper
drilling includes the Strawn, Atoka and Mississippian intervals. The
original 2012 drilling program called for the Wolfcamp to be the deepest
interval completed in approximately 50% of the wells. The remaining 50%
of the wells were to be deepened below the Wolfcamp interval. The latest
drilling program now calls for 65% of the wells to be deepened below the
Wolfcamp interval.

Pioneer placed 53 commingled vertical Strawn wells on production in the
second quarter, with an average 24-hour IP rate of 147 BOEPD. Production
data continues to support an incremental gross EUR per well from the
Strawn interval of 30 MBOE. Pioneer now estimates that 70% of its
Spraberry acreage position is prospective for the Strawn interval, at
the upper end of the prior estimated range of 60% to 70%.

The Company placed 54 commingled vertical Atoka wells on production
during the second quarter, with an average 24-hour IP rate of 163 BOEPD.
Results from well tests continue to support an incremental gross EUR of
50 MBOE to 70 MBOE for wells completed in the Atoka interval. Like the
Strawn, Pioneer has further refined the Spraberry acreage position it
believes is prospective for the Atoka interval to 40% to 50%, at the
upper end of the prior range of 25% to 50%.

Seven vertical commingled wells were also placed on production through
the Mississippian interval during the second quarter, with an average
initial 24-hour IP rate of 124 BOEPD. Data from all Mississippian wells
drilled to date continues to support an incremental gross EUR per well
of 15 MBOE to 40 MBOE from this interval. Pioneer continues to believe
the Mississippian interval is prospective in 20% of its Spraberry
acreage.

Second quarter production from the Spraberry field averaged 64 MBOEPD,
an increase of 2 MBOEPD from the first quarter of 2012. Production was
negatively impacted by approximately 4,800 BOEPD due to unplanned
third-party 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 Spraberry production would have been approximately
68,500 BOEPD.

• 
  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 fractionation capacity at Mont Belvieu. The net
  impact of rejecting ethane was primarily 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
  associated with rejecting ethane versus recovering and selling 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.
  

Based on production for the first half of 2012, the planned vertical and
horizontal drilling programs for the remainder of 2012 described above,
continued ethane rejection of up to 2,000 BOEPD through the end of 2012
and the sale of the NGL inventory during the second half of 2012,
production is forecasted to grow from an average of 45 MBOEPD in 2011 to
63 MBOEPD to 67 MBOEPD in 2012. This is an increase from the previous
production guidance range of 61 MBOEPD to 65 MBOEPD.

In the liquids-rich Eagle Ford Shale in South Texas, Pioneer is
currently running 12 rigs and plans to drill approximately 125 wells in
2012. The 2012 drilling program will continue to focus on liquids-rich
drilling, with only 10% of the wells designated to hold strategic dry
gas acreage in response to the current low gas price environment. The
Company drilled 34 wells in the second quarter and placed 37 wells on
production.

Pioneer increased its Eagle Ford Shale production from 23 MBOEPD in the
first quarter of 2012 to 24 MBOEPD in the second quarter. The Company
expects production to increase from an average of 12 MBOEPD in 2011 to
25 MBOEPD to 29 MBOEPD in 2012.

Pioneer′s gross well cost in the Eagle Ford Shale ranges from $7 million
to $8 million per well. Pioneer has been testing the use of lower-cost
white sand instead of ceramic proppant to fracture stimulate wells
drilled in shallower areas of the field. The Company is now expanding
the use of white sand proppant to deeper areas of the field to further
define its performance limits. The Company has tested 53 wells through
the second quarter, with a savings of approximately $700 thousand per
well. Early well performance has been similar to direct offset
ceramic-stimulated wells. Pioneer is continuing to monitor the
performance of these wells and plans to use white sand in 50% of its
2012 drilling program. The first dry gas well using white sand as
proppant was fracture stimulated in July. Four additional dry gas wells
using white sand as proppant are planned over the remainder of the year.

Three central gathering plants (CGPs) were added during the second
quarter as part of the joint venture′s Eagle Ford Shale midstream
business. Eleven CGPs are now operational. Pioneer′s share of its Eagle
Ford Shale joint-venture midstream activities is conducted through a
partially-owned, unconsolidated entity. Funding for ongoing midstream
infrastructure build-out costs that are in excess of operating cash flow
is provided from external debt sources. Cash flow from the services
provided by the midstream operations is not included in Pioneer′s
forecasted operating cash flow.

In the liquids-rich Barnett Shale Combo play, Pioneer has built a 93,000
gross acreage position, representing more than 1,000 drilling locations.
The Company drilled 12 wells in the second quarter and placed 10 wells
on production. Pioneer is operating two rigs in the play but plans to
reduce its activity to one rig in August in response to low gas and NGL
prices.

Production in the second quarter for the Barnett Shale Combo play was 7
MBOEPD, up from 6 MBOEPD in the first quarter. The Company expects
production to increase from an average of 4 MBOEPD in 2011 to 7 MBOEPD
to 9 MBOEPD in 2012. Production is comprised of 60% liquids (oil and
NGLs) and 40% gas.

The Company′s well results are continuing to improve. Peak 30-day rates
on seven recent wells have averaged 345 BOEPD, with an oil content of
60%. Drilling times have also been reduced from 16 days in 2011 to 10
days currently.

On the North Slope of Alaska, Pioneer continues to operate one rig and
drill development wells from its island targeting the Kuparuk, Nuiqsut
and Torok intervals. The Company′s second quarter production was 5
MBOEPD, an increase of 1 MBOEPD from the first quarter of 2012. This
increase was primarily the result of the first successful mechanically
diverted fracture stimulation of a Nuiqsut interval well during the
first quarter. Based on the success of this mechanically diverted
fracture stimulation, the Company is planning four more wells using this
stimulation technique early next year during the winter drilling season.
During the first quarter of 2012, the Company also drilled a successful
onshore appraisal well to test the southern extent of the Torok
interval. The production and subsurface data provided by this successful
well supports the addition of 50 million barrels of oil to the resource
potential of the Torok interval within Pioneer′s acreage. The well is
now shut in awaiting permanent onshore production facilities for which
an onshore development FEED study has been initiated. Pioneer is
planning a second onshore Torok well for the first quarter of next year
(winter drilling season) to further test this interval.

2012 Capital Budget

Pioneer′s capital program for 2012 of $2.9 billion (excludes
acquisitions, asset retirement obligations, capitalized interest and
geological and geophysical G&A) includes drilling capital of $2.4
billion and capital for vertical integration of $0.5 billion.

The Company is maintaining its 2012 drilling budget at $2.4 billion and
is managing second half drilling activity in response to
lower-than-anticipated cash flow resulting from lower commodity prices.
Increased activity and higher costs during the first half of 2012 are
being offset by rig reductions in the Spraberry and Barnett Shale Combo
plays in the second half. The capital program for 2012 was weighted
towards the first half of year, with drilling expenditures totaling $1.4
billion. The first half capital included two exploration wells in Alaska
in which Pioneer had a 100% working interest, running 40 Spraberry
vertical rigs compared to 30 rigs in the second half, running two
Barnett Shale Combo rigs compared to one rig in the second half,
acquiring new seismic data in the horizontal Wolfcamp Shale and Barnett
Shale Combo plays and higher-cost 'science? wells in the horizontal
Wolfcamp Shale play. A further reduction of up to 3 rigs in the
Spraberry is also possible during the second half of 2012 if commodity
prices remain under pressure.

The capital for vertical integration of $500 million includes $300
million for the U.S. industrial sands business acquired by Pioneer in
early April, $100 million for pressure pumping and well service
equipment and $100 million for the accelerated construction of field
offices and facilities from 2013 into 2012.

The 2012 capital budget is expected to be funded from forecasted
operating cash flow of $1.8 billion, assuming commodity prices of $85
per barrel for oil and $3 per thousand cubic feet (MCF) for gas,
proceeds of $0.5 billion from Pioneer′s equity offering during the
fourth quarter of 2011, net proceeds from the liquidation of 2014 and
2015 gas derivatives of $143 million, proceeds from the divestiture of
South African and certain South Texas assets of $107 million, the
utilization of approximately $150 million of pipe and equipment
inventory and borrowings of $200 million under Pioneer′s credit facility.

Second Quarter 2012 Financial Review

The following financial results for the second quarter of 2012 reflect
continuing operations and exclude the results of operations attributable
to South Africa that are included in discontinued operations.

Liquids and gas sales averaged 150.5 MBOEPD, consisting of oil sales
averaging 61 MBPD, NGL sales averaging 27 MBPD and gas sales averaging
373 million cubic feet per day (MMCFPD).

The average price for oil was $88.32 per barrel including $1.87 per
barrel related to deferred revenue from volumetric production payments
(VPPs) for which production was not recorded. The average reported price
for NGLs was $32.62 per barrel and the average reported price for gas
was $2.00 per MCF.

Production costs averaged $14.70 per barrel oil equivalent (BOE).
Depreciation, depletion and amortization (DD&A) expense averaged $14.67
per BOE. Exploration and abandonment costs were $37 million for the
quarter. This included $13 million related to the drilling program and
$24 million for geologic and geophysical activities, including $11
million for new seismic data being acquired in the horizontal Wolfcamp
Shale and the Barnett Shale Combo plays and $13 million for personnel
costs. General and administrative expense totaled $55 million. Interest
expense was $49 million, and other expense was $31 million, including $9
million for non-recurring rig termination fees.

Commodity Derivative Positions For 2014 and 2015

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 $143 million of net cash
proceeds, of which $72 million was realized during June. A before-tax
realized gain of $72 million was recorded in the second quarter related
to volumes liquidated in June. A before-tax realized gain of $71 million
related to the volumes liquidated in July will be recorded in the third
quarter.

The gas derivatives were unwound when gas prices were at low levels to
partially offset the reduction in cash flow the Company is forecasting
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 95% of the Company′s oil
production over the remainder of 2012, 85% in 2013 and 40% in 2014.
Swap, collar and three-way collar derivative contracts are in place to
cover 90% of Pioneer′s gas production over the remainder of 2012, 70% in
2013 and 25% in 2015.

Third Quarter 2012 Financial Outlook

The Company′s third quarter 2012 outlook for certain operating and
financial items (excluding discontinued operations in South Africa) is
provided below.

Production is forecasted to average 155 MBOEPD to 159 MBOEPD. Production
costs are expected to average $13.50 to $15.50 per BOE, based on current
NYMEX strip commodity prices. DD&A expense is expected to average $13.00
to $15.00 per BOE. Total exploration and abandonment expense is
forecasted to be $25 million to $40 million.

General and administrative expense is expected to be $55 million to $60
million, interest expense is expected to be $51 million to $56 million
and other expense is expected to be $25 million to $35 million.
Accretion of discount on asset retirement obligations is expected to be
$2 million to $4 million.

Noncontrolling interest in consolidated subsidiaries′ income, excluding
unrealized derivative mark-to-market adjustments, is expected to be $9
million to $12 million, primarily reflecting the public ownership in
Pioneer Southwest Energy Partners L.P.

The Company′s effective income tax rate is expected to range from 35% to
40% based on current capital spending plans and the assumption of no
significant unrealized derivative mark-to-market changes in the
Company′s derivative position. Current income taxes are expected to be
$5 million to $10 million and are primarily attributable to alternative
minimum tax and state taxes.

The Company's financial and derivative mark-to-market results, open
derivatives positions and future VPP amortization are outlined on the
attached schedules.

Earnings Conference Call

On Wednesday, August 1, 2012, at 9:00 a.m. Central Time, Pioneer will
discuss its financial and operating results for the quarter ended June
30, 2012, with an accompanying presentation. Instructions for listening
to the call and viewing the accompanying presentation are shown below.

Internet: www.pxd.com

Select
'Investors,? then 'Earnings Calls & Webcasts? to listen to the
discussion and view the presentation.

Telephone: Dial (888) 430-8690 confirmation code: 4778865 five minutes
before the call. View the presentation via Pioneer′s internet address
above.

A replay of the webcast will be archived on Pioneer′s website. A
telephone replay will be available through August 22 by dialing (888)
203-1112 confirmation code: 4778865.

Pioneer is a large independent oil and gas exploration and production
company, headquartered in Dallas, Texas, with operations primarily 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 (including joint venture 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 U.S. Securities and Exchange Commission (SEC). 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.

Cautionary Note to U.S. Investors --The SEC prohibits oil and gas
companies, in their filings with the SEC, from disclosing estimates of
oil or gas resources other than 'reserves,? as that term is defined by
the SEC. In this news release, Pioneer includes estimates of quantities
of oil and gas using certain terms, such as 'resource potential,?
'estimated ultimate recovery,? 'EUR? or other descriptions of volumes of
reserves, which terms include quantities of oil and gas that may not
meet the SEC′s definitions of proved, probable and possible reserves,
and which the SEC's guidelines strictly prohibit Pioneer from including
in filings with the SEC. These estimates are by their nature more
speculative than estimates of proved reserves and accordingly are
subject to substantially greater risk of being recovered by Pioneer.
U.S. investors are urged to consider closely the disclosures in the
Company′s periodic filings with the SEC.Such filings are
available from the Company at 5205 N. O'Connor Blvd., Suite 200, Irving,
Texas 75039, Attention: Investor Relations, and the Company′s website at www.pxd.com.These filings also can be obtained from the SEC by calling
1-800-SEC-0330.

_____________

PIONEER NATURAL RESOURCES COMPANY

UNAUDITED SUPPLEMENTARY EARNINGS PER SHARE INFORMATION

The Company uses the two-class method of calculating basic and diluted
earnings per share. Under the two-class method of calculating earnings
per share, GAAP provides that share- and unit-based awards with
guaranteed dividend or distribution participation rights qualify as
'participating securities' during their vesting periods. The Company's
basic net income (loss) per share attributable to common stockholders is
computed as (i) ?net income (loss) attributable to common stockholders,
(ii) ?less participating share- and unit-based basic earnings
(iii) ?divided by weighted average basic shares outstanding. The
Company's diluted net income (loss) per share attributable to common
stockholders is computed as (i) ?basic net income (loss) attributable to
common stockholders, (ii) ?plus the reallocation of participating
earnings (iii) ?divided by weighted average diluted shares outstanding.
During periods in which the Company realizes a loss from continuing
operations attributable to common stockholders, securities or other
contracts to issue common stock would be dilutive to loss per share;
therefore, conversion into common stock is assumed not to occur.

The following table is a reconciliation of the Company's net income
(loss) attributable to common stockholders to basic net income (loss)
attributable to common stockholders and to diluted net income (loss)
attributable to common stockholders for the three and six months ended
June 30, 2012 and 2011:

The following table is a reconciliation of basic weighted average common
shares outstanding to diluted weighted average common shares outstanding
for the three and six months ended June 30, 2012 and 2011:

PIONEER NATURAL RESOURCES COMPANY

UNAUDITED SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES

(in
thousands)

EBITDAX and discretionary cash flow ('DCF') (as defined below) are
presented herein, and reconciled to the generally accepted accounting
principle ('GAAP') measures of net income (loss) and net cash provided
by operating activities because of their wide acceptance by the
investment community as financial indicators of a company's ability to
internally fund exploration and development activities and to service or
incur debt. The Company also views the non-GAAP measures of EBITDAX and
DCF as useful tools for comparisons of the Company's financial
indicators with those of peer companies that follow the full cost method
of accounting. EBITDAX and DCF should not be considered as alternatives
to net income (loss) or net cash provided by operating activities, as
defined by GAAP.

_____________

PIONEER NATURAL RESOURCES COMPANY

UNAUDITED SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (continued)

(in
thousands, except per share data)

Adjusted loss excluding unrealized mark-to-market ('MTM') derivative
gains, and adjusted income excluding unrealized MTM derivative gains and
unusual items, as presented in this press release, are presented and
reconciled to Pioneer's net loss attributable to common stockholders and
diluted common shares outstanding (determined in accordance with GAAP)
because Pioneer believes that these non-GAAP financial measures reflect
an additional way of viewing aspects of Pioneer's business that, when
viewed together with its financial results computed in accordance with
GAAP, provides a more complete understanding of factors and trends
affecting its historical financial performance and future operating
results, greater transparency of underlying trends and greater
comparability of results across periods. In addition, management
believes that these non-GAAP measures may enhance investors' ability to
assess Pioneer's historical and future financial performance. These
non-GAAP financial measures are not intended to be substitutes for the
comparable GAAP measure and should be read only in conjunction with
Pioneer's consolidated financial statements prepared in accordance with
GAAP. Unrealized MTM derivative gains and losses and unusual items will
recur in future periods; however, the amount and frequency can vary
significantly from period to period. The tables below reconcile
Pioneer's net loss attributable to common stockholders and diluted
shares outstanding for the three months ended June 30, 2012, as
determined in accordance with GAAP, to loss adjusted for unrealized MTM
derivative gains and adjusted income excluding unrealized MTM derivative
gains and unusual items for that quarter.