Pioneer Natural Resources Reports First Quarter 2013 Financial and Operating Results

Pioneer Natural Resources Company (NYSE:PXD) ('Pioneer? or 'the
Company?) today announced financial and operating results for the
quarter ended March 31, 2013.

Pioneer reported first quarter net income attributable to common
stockholders of $101 million, or $0.75 per diluted share (see attached
schedule for a description of the net income per diluted share
calculation). Without the effect of noncash derivative mark-to-market
losses and other unusual items, adjusted income for the first quarter
was $136 million after tax, or $1.02 per diluted share.

First quarter and other recent highlights included:

• 
  producing 171 thousand barrels oil equivalent per day (MBOEPD) in the
  first quarter, an increase from the fourth quarter of 2012 of 6
  MBOEPD, or 4%, as a result of continued strong production growth from
  the Company′s drilling programs in the liquids-rich Spraberry
  vertical, horizontal Wolfcamp Shale and Eagle Ford Shale areas;
  
• 
  continuing to deliver strong horizontal drilling results in the
  southern Wolfcamp joint interest area, including nine new Wolfcamp B
  wells placed on production during the first quarter with an average
  peak 24-hour initial production rate of 911 barrels oil equivalent per
  day (BOEPD);
  
• 
  pumping more cost-efficient slickwater fracture stimulations on five
  Wolfcamp B wells in the southern Wolfcamp joint interest area (saving
  up to an estimated $1 million per well) with encouraging results;
  
• 
  nearing the expected early June closing date for the Sinochem joint
  interest transaction;
  
• 
  progressing the northern horizontal Spraberry/Wolfcamp drilling
  program, with Pioneer′s first Wolfcamp B interval well in Martin
  County recently fracture stimulated;
  
• 
  increasing from one horizontal rig to five horizontal rigs in the
  northern Spraberry/Wolfcamp area during the second quarter; of the
  four-rig increase, three rigs were planned and one is being added to
  focus on developing the Hutt lease in Midland County (capital for the
  incremental rig is expected to be absorbed in the existing 2013
  drilling budget of $2.75 billion);
  
• 
  focusing three rigs of the five-rig northern horizontal program on the
  Wolfcamp Shales and two rigs on the Jo Mill and Spraberry Shales;
  
• 
  continuing to deliver significant incremental production from deeper
  vertical drilling in the Spraberry field;
  
• 
  delivering record Eagle Ford Shale net production of 37 MBOEPD, an
  increase of 7% from the fourth quarter of 2012;
  
• 
  completing the Company′s Alaska winter drilling program, including (i)
  the successful fracture stimulation of four horizontal wells from the
  Company′s island drill site; the wells are currently being placed on
  production with the first two wells having achieved peak gross
  production rates to date of approximately 3,500 barrels oil per day
  (BOPD) and 3,000 BOPD (both wells still unloading), and (ii) the
  drilling of an appraisal well in the Torok interval from an onshore
  drill site, which increases Pioneer′s original resource potential of
  50 million barrels of oil (MMBO) for this interval to 75 MMBO to 100
  MMBO; and
  
• 
  adding gas derivative positions for the 2013 through 2016 period.
  

Scott Sheffield, Chairman and CEO, stated, 'As the third largest driller
in the U.S., the Company delivered another strong quarter, with
production exceeding expectations. Our three liquids and resource-rich
core assets in Texas, the Spraberry vertical, the horizontal Wolfcamp
Shale and the Eagle Ford Shale, were the drivers of this significant
increase. Importantly, oil production grew 10% in the first quarter of
2013 compared to the fourth quarter of 2012.

'Our extensive geologic and engineering evaluation of the resource
potential of the Spraberry/Wolfcamp area ranks it as the largest oil
field in the United States. Pioneer′s 900,000-acre leasehold position in
the Spraberry/Wolfcamp holds multiple prospective horizontal targets
with an aggregate estimated resource potential of more than 4.6 billion
barrels oil equivalent (BBOE). Our joint interest agreement with
Sinochem is allowing the horizontal development of the Wolfcamp Shale
over our southern 200,000 acres to be accelerated, and we are now
ramping up our appraisal activity of the Wolfcamp, Jo Mill and Spraberry
Shales across our northern acreage. We are confident that Pioneer will
add substantial net asset value as these plays are developed.?

Mark-To-Market Derivative Losses and Unusual
Items Included in First Quarter 2013 Earnings

Pioneer′s first quarter earnings included unrealized mark-to-market
losses on derivatives of $60 million after tax, or $0.45 per diluted
share.

First quarter earnings also included income of $25 million after tax, or
$0.18 per diluted share, related to the following unusual items:

• 
  Net gain on the sale of unproved properties of $14 million after tax,
  or $0.10 per diluted share,
  
• 
  Alaska production tax credit recoveries of $12 million after tax, or
  $0.09 per diluted share and
  
• 
  Rig contract termination fees of $1 million after tax, or $0.01 per
  diluted share.
  

Operations Update and Drilling Program

Pioneer′s successful horizontal Wolfcamp Shale and Jo Mill drilling
results in the Spraberry Trend Area field have led the Company to shift
a significant portion of its 2013 drilling activity from vertical
drilling to more capital-efficient horizontal drilling. Pioneer is the
largest acreage holder in the Spraberry Trend Area field, where the
Company believes it has greater than 4.6 BBOE of estimated resource
potential from horizontal drilling based on its extensive geologic data
and its successful drilling results to date.

The Company has signed an agreement with Sinochem to sell 40% of
Pioneer′s interest in 207,000 net acres leased by the Company in the
southern portion of the Spraberry Trend Area field for total
consideration of $1.74 billion. At closing, Sinochem will pay $522
million in cash to Pioneer, before normal closing adjustments, and will
pay the remaining $1.2 billion by carrying a portion of Pioneer′s share
of future drilling and facilities costs. The transaction is estimated to
close during June, subject to governmental approvals.

Under the agreement, Sinochem will acquire 82,800 net acres of Pioneer′s
leasehold in the Wolfcamp horizon. Pioneer retains 60% of its interest
in the Wolfcamp and deeper horizons, with Sinochem receiving 40% of
Pioneer′s interest. Pioneer will continue as operator and will conduct
all leasing, drilling, operations and marketing activities in the joint
interest area. The joint interest area covers defined portions of Upton,
Reagan, Irion, Crockett and Tom Green counties in Texas. Pioneer retains
its current working interests in all horizons shallower than the
Wolfcamp horizon.

In addition to funding its own drilling obligations for the horizontal
Wolfcamp Shale, Sinochem has agreed to fund 75% of Pioneer′s portion of
drilling and facilities costs after closing until the $1.2 billion of
drilling carry is fully utilized. At closing, Sinochem will pay its 40%
share of net expenditures in the joint interest area from the December
1, 2012 effective date of the transaction to the closing date. Pioneer
and Sinochem have agreed to a development plan which forecasts the
drilling of 86 horizontal Wolfcamp Shale wells during 2013, increasing
to 120 wells in 2014 and 165 wells in 2015.

The thickness of the Wolfcamp B interval in the southern joint interest
area provides the opportunity to complete two stacked laterals in this
interval (referred to as the Upper B and Lower B intervals). The Company
placed nine new horizontal wells on production in the Upper B interval
during the first quarter of 2013 with an average peak 24-hour initial
production rate of 911 BOEPD, with oil comprising 82% of the production.
Eight of the wells had an average lateral length of approximately 7,100
feet, while the ninth well was a longer lateral at approximately 9,600
feet. The performance of these nine wells coupled with the 28 horizontal
wells previously placed on production by Pioneer in the southern
Wolfcamp joint interest area reinforces the Company′s estimate that
wells in this area will deliver an average estimated ultimate recovery
(EUR) of at least 575 thousand barrels oil equivalent (MBOE) over the
life of the well.

Pioneer operated seven rigs in the southern Wolfcamp joint interest area
during the first quarter of 2013 and plans to continue at this level
through the end of the year. An increase of three rigs per year is
expected in 2014 and 2015. The 2013 drilling program will continue to
focus on delineating acreage and testing multiple Wolfcamp intervals,
while the program in 2014 and beyond will primarily focus on development
drilling and accelerating production growth. Approximately 70% of the
wells drilled in this area during 2013 will be from pads. The Company
has included 'science? expenditures of $20 million in the 2013 southern
Wolfcamp joint interest area drilling budget for coring, open-hole
logging, micro-seismic and 3-D seismic. The cost for horizontal
development wells is targeted at $7.5 million to $8.0 million for an
8,300-foot lateral well. The Company expects to drill more than 20
laterals that extend the lateral length to approximately 10,000 feet
during 2013. These longer lateral wells are expected to generate an EUR
increase of 40% to 60% at an incremental cost of 20%. Completion
techniques will continue to be optimized and downspacing opportunities
are being evaluated. In particular, slickwater fracture stimulations are
being tested. The Company has pumped five Wolfcamp B slickwater fracture
stimulations year-to-date in the southern Wolfcamp joint interest area
with encouraging results. Slickwater fracture stimulations are expected
to save up to $1 million per well compared to the hybrid fracture
stimulations that Pioneer has been utilizing in this area.

During the fourth quarter of 2012, Pioneer completed two highly
successful horizontal Jo Mill wells in Upton County. The two wells had
an average 24-hour initial production rate of 503 BOEPD with short
laterals of approximately 2,500 feet. The peak 30-day rates for these
two wells averaged 434 BOEPD, with oil comprising 80% of the production,
and when normalized to 5,000 feet, the wells have continued to
outperform the 650 MBOE EUR type curve that reflects the performance of
the two horizontal Wolfcamp Shale B interval wells that were drilled in
the Giddings area of Upton County by Pioneer in 2011.

During the first quarter, Pioneer announced that it would be initiating
a $1 billion capital program for 2013 and 2014 to accelerate the
horizontal appraisal of the Company′s northern Spraberry/Wolfcamp
acreage. The 2013 drilling program, which is estimated to cost $400
million, is expected to drill a total of 30 to 40 wells targeting six
different 'stacked? intervals. The six 'stacked? intervals across the
Company′s 600,000 prospective gross acres equate to greater than 3
million prospective gross acres. Fifteen wells to 20 wells will be
completed in the Wolfcamp A, B and D intervals. Another 15 wells to 20
wells will be completed in the Jo Mill, Middle Spraberry and the Lower
Spraberry Shales. The cost for these wells is expected to range from
$7.5 million to $8.5 million per well assuming 7,000-foot laterals. This
cost excludes $80 million of estimated 'science? and infrastructure
costs.

Pioneer′s initial rig in the northern acreage has drilled the Company′s
first three horizontal Wolfcamp Shale wells in this area ? two in
Midland County and one in Martin County. The first well (DL Hutt C #1H)
was completed in the Wolfcamp B interval in Midland County during
January and had a lateral length of 7,380 feet. It has been the best
horizontal well drilled in the Wolfcamp Shale play to date, with an
initial peak 24-hour production rate of 1,693 BOEPD and an average peak
30-day rate flowing naturally of 1,402 BOEPD. The well has been on
production for a little more than one hundred days and has produced a
total of 100 MBOE, with an oil content of 75%. The performance of this
well is substantially above the 650 MBOE EUR type curve for the
previously discussed Giddings area wells.

The second horizontal well in Midland County was drilled in the Wolfcamp
A interval and is scheduled to be completed in late May/early June.
Since this well was drilled in close proximity to the DL Hutt C #1H, its
completion was intentionally delayed so that an extended production test
could be done on the DL Hutt C #1H well. This well will have to be shut
in during the fracture stimulation of the Wolfcamp A interval well to
avoid any possible interference.

The initial rig moved from Midland County and drilled the Company′s
first horizontal Wolfcamp B well in Martin County. This well was
recently fracture stimulated.

The Company is increasing its horizontal rig count in the northern
drilling area from one rig to five rigs during the second quarter. Of
the four additional rigs, three rigs were envisioned in the original
plan. The incremental rig is being added as a result of the three
planned rigs arriving later than originally anticipated. The cost for
this rig is expected to be absorbed in the 2013 drilling budget.

During the second quarter, the five-rig program will be focused in
Midland and Martin counties and consist of two rigs drilling Wolfcamp
Shale appraisal wells, two rigs drilling Jo Mill and Spraberry Shale
appraisal wells and one rig drilling Wolfcamp development wells on the
Hutt lease. All wells will be drilled on two-well pads to gain
efficiencies; therefore, the wells will not be completed until after the
second well on each pad is drilled.

Pioneer expects to increase the rig count on its northern
Spraberry/Wolfcamp acreage to six rigs to eight rigs in 2014 and invest
another $600 million to fund the remainder of the two-year appraisal
program. The 2014 program may also include testing horizontal drilling
in deeper intervals below the Wolfcamp Shale.

Pioneer is operating 15 vertical rigs in the Spraberry field during
2013, which are expected to drill approximately 300 wells. These rigs
are required to meet continuous drilling obligations. The Company
estimates that 15 rigs to 20 rigs are required to keep vertical
production flat. Approximately 90% of the 300 wells in the 2013 vertical
drilling program are expected to be completed in the deeper Strawn,
Atoka and Mississippian intervals.

Pioneer drilled 75 vertical wells in the first quarter and placed 130
vertical wells on production as a result of decreasing the Company′s
vertical frac bank by 55 wells. Production from deeper drilling
continues to exceed expectations and contribute to production growth.

First quarter production from the entire Spraberry/Wolfcamp area
averaged 75 MBOEPD, an increase of 6 MBOEPD, or 10%, from the fourth
quarter of 2012. This included horizontal production of 5 MBOEPD from
the Wolfcamp and Jo Mill intervals and vertical production of 70 MBOEPD
from the Spraberry, Wolfcamp and deeper Strawn, Atoka and Mississippian
intervals. First quarter production included the benefit of
approximately 2,000 BOEPD as a result of the reduction in the vertical
frac bank of 55 wells. This benefit was negatively impacted by the loss
of approximately 2,700 BOEPD during the first quarter due to reduced
ethane recoveries resulting from Spraberry gas processing facilities
operating above capacity as a result of greater-than-anticipated Pioneer
and industry production growth. This gas processing capacity shortfall
continued until mid-April when the new Driver gas processing plant came
online. The plant has a capacity of 200 million cubic feet per day
(MMCFPD), which is alleviating the bottleneck that was impacting ethane
recoveries.

For 2013, total Spraberry/Wolfcamp production is forecasted to grow to
75 MBOEPD to 80 MBOEPD, an increase of 14% to 21% compared to 2012. This
reflects the vertical rig count decreasing from an average of 32 rigs in
2012 to 15 rigs in 2013, while the horizontal rig count is expected to
increase from an average of three rigs in 2012 to 12 rigs in 2013. This
shift to more horizontal drilling and less vertical drilling is in
response to the capital efficiencies that Pioneer is gaining from
drilling more horizontal wells. Pioneer expects horizontal production to
increase from an average of 2 MBOEPD in 2012 to 11 MBOEPD to 14 MBOEPD
in 2013. This forecast takes into account that more than 4 MBOEPD of
horizontal production, on an annualized basis, is expected to be
conveyed to Sinochem at the time the joint interest transaction closes,
which is currently assumed to be on June 1, 2013.

In the liquids-rich Eagle Ford Shale play in South Texas, the Company
drilled 37 wells in the first quarter and placed 35 wells on production.
Pioneer increased its Eagle Ford Shale production by 7% from 35 MBOEPD
in the fourth quarter of 2012 to 37 MBOEPD in the first quarter,
achieving another record production level. Strong well performance
continues to drive this growth. The Company expects 2013 production to
range from 38 MBOEPD to 42 MBOEPD, an increase of 36% to 50% compared to
full-year 2012 production of 28 MBOEPD.

Pioneer expects to drill approximately 130 Eagle Ford Shale wells in
2013 at a cost of $7 million to $8 million per well. Essentially all of
these wells will be liquids-rich wells, with minimal dry gas drilling
expected during the year. Pioneer′s drilling operations in the Eagle
Ford Shale continue to become more efficient. The number of wells
drilled from pads, as opposed to single-well locations, is expected to
increase from 45% of the wells drilled in 2012 to 80% of the wells
drilled in 2013, reflecting that most of Pioneer′s acreage is now held
by production. Pad drilling saves $600 thousand to $700 thousand per
well and will result in Pioneer being able to drill 130 wells with 10
rigs in 2013 compared to drilling a similar number of wells in 2012 with
12 rigs.

Pioneer has been using lower-cost white sand instead of ceramic proppant
to fracture stimulate wells drilled in shallower areas of the Eagle Ford
Shale field. The Company is now expanding the use of white sand proppant
to deeper areas of the field to further assess its performance limits.
The Company fracture stimulated 22 wells with white sand proppant in the
first quarter, with a savings of approximately $700 thousand per well.
Early performance from wells fracture stimulated with white sand over
the past two years has been similar to direct offset ceramic-stimulated
wells. Pioneer is continuing to monitor the performance of these wells
and expects that approximately 70% of its 2013 drilling program will use
the lower-cost white sand proppant.

Eleven central gathering plants (CGPs) are now operational as part of
the joint venture′s Eagle Ford Shale midstream business. One additional
CGP is expected to be added during 2014. Pioneer′s share of its Eagle
Ford Shale joint venture midstream activities is conducted through a
partially-owned, unconsolidated entity. Operating cash flow from the
midstream business is expected to be able to fund ongoing midstream
infrastructure build-out costs. 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 drilled eight
wells in the first quarter and placed four wells on production. Pioneer
operated one rig in the play during the first quarter and added a second
rig in April. The cost for a 5,000-foot lateral horizontal well has been
reduced to $2.9 million as a result of improved drilling and completion
performance. The Company plans to utilize two rigs going forward to hold
acreage in the highest-return areas of the Company′s 80 thousand net
acreage position. These areas have been identified from drilling data
and petrophysical and seismic analysis. Pioneer currently holds
approximately 25% of its acreage position by production, or 20 thousand
net acres, and expects to hold an additional 40 thousand net acres by
production over the next three years with a two-rig drilling program.

Production in the first quarter for the Barnett Shale Combo play was 9
MBOEPD. The Company expects production to increase from an average of 7
MBOEPD in 2012 to 9 MBOEPD to 12 MBOEPD in 2013.

On the North Slope of Alaska, Pioneer continues to operate one rig and
drill development wells from its island drill site targeting the Nuiqsut
and Torok intervals. The Company′s first quarter production was
approximately 4,000 BOPD. During the first quarter of 2012, the Company
completed its first successful mechanically diverted fracture
stimulation of a Nuiqsut interval well. The well has produced over 685
thousand barrels of oil during its first 12 months of production.

Based on the success of this mechanically diverted fracture stimulation,
the Company drilled four more wells over the remainder of 2012 and
fracture stimulated these wells during the first quarter of 2013 (winter
drilling season). Three of these wells were in the Nuiqsut interval and
one was in the Torok interval. The first two fracture stimulated Nuiqsut
interval wells have been placed on production with peak gross production
rates of approximately 3,500 BOPD and 3,000 BOPD to date (both wells
still unloading). The remaining two wells that were fracture stimulated
during the first quarter are expected to be placed on production by the
end of May.

During the first quarter of 2012, the Company also drilled a successful
appraisal well to test the southern extent of the Torok interval from an
onshore drill site. The subsurface data provided by this successful well
supported the addition of 50 MMBO to the resource potential of the Torok
interval within Pioneer′s acreage. The well was flow tested again during
the first quarter of 2013 and produced at a facility-limited rate of
2,800 BOPD before being shut in until permanent onshore production
facilities are constructed.

Pioneer drilled a second Torok appraisal well from the onshore drill
site during the first quarter of 2013. Logs from this well confirm the
high quality reservoir rock identified in the first onshore well. Based
on this result, Pioneer has increased the resource potential range for
the Torok interval to 75 MMBO to 100 MMBO. The well encountered a
mechanical problem and could not be flow tested before the end of the
winter drilling season.

2013 Capital Budget

Pioneer′s capital program for 2013 remains at $3 billion (excludes
acquisitions, asset retirement obligations, capitalized interest and
geological and geophysical G&A), including $2.75 billion for drilling,
$25 million for vertical integration, $70 million for the expansion of
the Brady, Texas, sand mine and $145 million for Pioneer′s new Midland
office building and several new field buildings. Drilling capital
expenditures in the first quarter of 2013 totaled $759 million.

The 2013 capital budget is expected to be funded from forecasted
operating cash flow of $2.2 billion, assuming commodity prices of $90
per barrel for oil and $4.25 per thousand cubic feet (MCF) for gas,
estimated proceeds of $600 million from Pioneer′s joint interest
transaction with Sinochem (includes reimbursement by Sinochem of capital
expenditures less operating cash flow from the December 1, 2012,
effective date to the estimated June 1, 2013 closing date) and $200
million from cash on the balance sheet.

Pioneer′s net debt as of March 31, 2013, was $2.6 billion and net
debt-to-book capitalization was 26%. The Company will continue to target
a net debt-to-book capitalization below 35% and net debt-to-operating
cash flow below 1.5 times.

First Quarter 2013 Financial Review

Sales volumes for the first quarter of 2013 averaged 171 MBOEPD. Oil
sales averaged 74 thousand barrels per day (MBPD), natural gas liquids
(NGL) sales averaged 33 MBPD and gas sales averaged 384 MMCFPD.

The average price for oil was $88.57 per barrel. The average price for
NGLs was $30.36 per barrel and the average price for gas was $3.14 per
MCF.

Production costs from continuing operations averaged $14.52 per barrel
oil equivalent (BOE). Depreciation, depletion and amortization (DD&A)
expense averaged $15.00 per BOE. Exploration and abandonment costs were
$28 million, principally comprised of $8 million associated with
drilling and acreage abandonments, $5 million for seismic data and $15
million for personnel costs. General and administrative expense totaled
$64 million. Interest expense was $51 million and other expense was $21
million.

Second Quarter 2013 Financial Outlook

The Company′s second quarter 2013 outlook for certain operating and
financial items is provided below.

Production is forecasted to average 174 MBOEPD to 179 MBOEPD. This
forecast assumes Pioneer will not experience any significant ethane
recovery losses in the Spraberry/Wolfcamp area in the second quarter as
a result of the new Driver gas processing plant, with a capacity of 200
MMCFPD, which came on line in mid-April. The guidance for the second
quarter also assumes that Pioneer does not reject ethane into the gas
stream in any of the Company′s operating areas due to low ethane prices.

Production costs are expected to average $14.00 to $16.00 per BOE. DD&A
expense is expected to average $14.00 to $16.00 per BOE. Total
exploration and abandonment expense is forecasted to be $25 million to
$35 million.

General and administrative expense is expected to be $62 million to $67
million, interest expense is expected to be $50 million to $55 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 $8
million to $11 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 federal
alternative minimum tax and state taxes.

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

Earnings Conference Call

On Thursday, May 2, 2013, at 9:00 a.m. Central Time, Pioneer will
discuss its financial and operating results for the quarter ended March
31, 2013, 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 & Webcasts? to listen to the discussion,
view the presentation and see other related material.

Telephone: Dial (888) 417-8533 confirmation code: 5954966 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 May 27, 2013, by dialing
(888) 203-1112 confirmation code: 5954966.

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, the receipt of approvals required to consummate the Company′s
Southern Wolfcamp joint venture transaction, litigation, the costs and
results of drilling and operations, availability of equipment, services,
resources and personnel required to complete the Company′s operating
activities, access to and availability of transportation, processing,
fractionation 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 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, generally acceptable accounting principles ('GAAP') provide
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 per share
attributable to common stockholders is computed as (i) ?net income
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 per share attributable to
common stockholders is computed as (i) ?basic net income 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
attributable to common stockholders to basic net income attributable to
common stockholders and to diluted net income attributable to common
stockholders for the three months ended March 31, 2013 and 2012:

The following table is a reconciliation of basic weighted average common
shares outstanding to diluted weighted average common shares outstanding
for the three months ended March 31, 2013 and 2012:

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 GAAP measures of net income 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 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 income excluding unrealized mark-to-market ('MTM') derivative
losses, and adjusted income excluding unrealized MTM derivative losses
and unusual items, as presented in this press release, are presented and
reconciled to Pioneer's net income attributable to common stockholders
(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 table below reconciles Pioneer's net income attributable to
common stockholders for the three months ended March 31, 2013, as
determined in accordance with GAAP, to income adjusted for unrealized
MTM derivative losses and adjusted income excluding unrealized MTM
derivative losses and unusual items for that quarter.

Interest rate derivatives. ?As of April ?29, 2013, the Company
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 buy and sell marketing arrangements to fulfill
firm pipeline transportation commitments. Associated with these
marketing arrangements, the Company may enter into index swaps to
mitigate price risk. The following table presents Pioneer′s open
marketing derivative positions as of April ?29, 2013:

Derivative Losses, Net

(in thousands)

The following table summarizes net derivative gains and losses that the
Company has recorded in it earnings for the three months ended March 31,
2013:

Pioneer Natural Resources

Investors

Frank
Hopkins, 972-969-4065

or

Josh Jones, 972-969-5822

or

Media
and Public Affairs

Susan Spratlen, 972-969-4018

or

Suzanne
Hicks, 972-969-4020