Pioneer Natural Resources Reports First 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 March 31, 2012.

Pioneer reported first quarter net income attributable to common
stockholders of $215 million, or $1.68 per diluted share (see attached
schedule for a description of the earnings per diluted share
calculation). Without the effect of noncash derivative mark-to-market
gains, other unusual items and the incremental share dilution impact
attributable to Pioneer′s convertible senior notes, adjusted income for
the first quarter was $153 million after tax, or $1.23 per share.

Scott Sheffield, Chairman and CEO, stated, 'As the third largest driller
in the U.S., the Company delivered another strong quarter, with
production of 147 thousand barrels oil equivalent per day (MBOEPD), an
increase of 10 MBOEPD, or 7%, from the fourth quarter of 2011 (excluding
discontinued operations). Our three core liquids-rich growth assets in
Texas, the Spraberry field, the Eagle Ford Shale and the Barnett Shale
Combo play, were the drivers of this significant increase. Importantly,
oil production increases accounted for 74% of the quarter-to-quarter
growth.

'We continue to expect the Company to deliver production growth of 23%
to 27% in 2012 compared to 2011. The capital program for 2012 totals
$2.8 billion, with $2.4 billion of the spending designated for drilling
and $0.4 billion for vertical integration. The capital program is
weighted towards the first half of 2012. Funding for the capital program
is expected to be provided by forecasted operating cash flow of $2.2
billion, proceeds of $0.5 billion from Pioneer′s equity offering during
the fourth quarter of 2011 and the utilization of $0.1 billion of pipe
and equipment inventory.

'We expect the Company to achieve a compound annual production growth
rate of 20+% through 2014, with liquids increasing from 58% of total
production currently to 65% in 2014. This strong, liquids-focused
production growth, coupled with our attractive derivatives position, is
forecasted to generate compound annual operating cash flow growth of
25+% over the 2012 through 2014 period. Revenue from liquids production
is expected to grow from 80% of Pioneer′s total revenue currently to 90%
by 2014, assuming commodity prices of $100 per barrel for oil and $3 per
thousand cubic feet (MCF) for gas in 2012 and $100 per barrel for oil
and $4 per MCF for gas in 2013 and 2014.

'Activity continues to ramp up in the horizontal Wolfcamp Shale play,
where Pioneer is the largest acreage holder with more than 400,000
prospective acres. We are currently running four rigs in the southern
part of the play. Our first two successful wells in Upton County have
been producing above expectations for more than six months and four
months, respectively, and continue to flow naturally. We recently put
two wells on production in Reagan County. These wells are in the early
days of unloading water after being fracture stimulated, with oil
production increasing daily. Plans call for increasing our rig count to
seven rigs and drilling 30 wells to 35 wells by year end.?

Sheffield continued, 'Our deeper vertical drilling program in the
Spraberry field continues to successfully add incremental production and
proved reserves from completions in the Strawn, Atoka and Mississippian
intervals. Production data continues to support an incremental estimated
ultimate recovery (EUR) of 30 thousand barrels oil equivalent (MBOE) for
wells completed in the Strawn. This data also suggests that Atoka and
Mississippian can potentially deliver incremental EURs of 50 MBOE to 70
MBOE and 15 MBOE to 40 MBOE, respectively.

'On the North Slope of Alaska, Pioneer drilled a successful onshore
appraisal well to test the southern extent of the Torok interval. The
well flowed at 2,000 barrels oil per day (BOPD) gross during the test
period and provided data which supports the addition of 50 million
barrels of oil (MMBO) to the Torok interval′s resource potential. We
also recently successfully tested a new fracture stimulation design on a
well completed in the Nuiqsut interval from the island, resulting in a
gross initial production rate of 4,000 BOPD.

'Owning fracture stimulation fleets continues to enhance the execution
of our drilling program and provide significant cash savings versus
contracting for these services at market rates. We added 25,000
horsepower in April and will add another 45,000 horsepower by mid-year,
bringing our total fleet capacity to 300,000 horsepower. We also
recently completed the acquisition of a U.S. industrial sands company
(now known as Premier Silica) which has allowed us to secure
high-quality, low-cost and logistically-advantaged brown sand supply to
cover a substantial portion of our fracture stimulation requirements.

'Pioneer has a strong financial position, with a net debt-to-book
capitalization of 28% as of March 31, 2012, and is committed to
maintaining net debt-to-book capitalization below 35% and net debt to
operating cash flow at less than 1.75 times. Pioneer is rated investment
grade by Standard and Poor′s.

'The Company has agreed to sell its South Africa business to the
Petroleum Oil and Gas Corporation of South Africa (PetroSA) for net cash
proceeds of $52 million before tax, subject to normal closing
adjustments. The transaction is expected to close in mid-2012.?

Mark-To-Market Derivative Gains, Unusual Items
and Share Dilution Included in First Quarter 2012 Earnings

Pioneer′s first quarter earnings included unrealized mark-to-market
gains on derivatives of $20 million after tax, or $0.16 per diluted
share.

First quarter earnings also included a net gain of $42 million after
tax, or $0.32 per diluted share, related to unusual items. These unusual
items included:

• 
  a gain of $27 million after tax, or $0.21 per diluted share, from the
  sale of acreage in the Eagle Ford Shale play,
  
• 
  Alaska production tax credit recoveries of $8 million after tax, or
  $0.06 per diluted share,
  
• 
  income associated with discontinued operations in South Africa of $11
  million, or $0.08 per diluted share, and
  
• 
  an inventory valuation charge on dry gas assets of $4 million after
  tax, or $0.03 per diluted share.
  

First quarter earnings on a per diluted share basis were impacted by the
addition of 3.5 million shares to Pioneer′s diluted share count compared
to the fourth quarter of 2011. This increase reflects the dilutive
effect of incremental common shares of Pioneer that could be potentially
issued upon conversion of Pioneer′s outstanding convertible senior notes
due 2038, with first put/call in 2013. The incremental share dilution
equates to $0.03 per share.

Operations Update and Drilling Program

In the Spraberry oil field in West Texas, Pioneer is currently operating
44 rigs, of which 40 are drilling vertical wells (including 15
Company-owned rigs) and four are drilling horizontal wells. The Company
has continued to expand its integrated services to control drilling
costs and support the execution of its drilling program. Five
Company-owned fracture stimulation fleets totaling 100,000 horsepower
are currently operating in the Spraberry field supporting vertical
drilling operations. An additional 10,000 horsepower will be added to
these five fleets by midyear. The first of two additional fleets
(totaling 60,000 horsepower) to support Pioneer′s horizontal drilling
program in the Wolfcamp Shale was recently delivered, with the second
fleet scheduled to be delivered by midyear.

In early April, the Company completed the acquisition of a U.S.
industrial sands company (Premier Silica), which is expected to supply
Pioneer′s growing brown sand requirements for fracture stimulating wells
in the Spraberry vertical and horizontal Wolfcamp Shale plays along with
the Barnett Shale Combo play. In addition, the Company owns other oil
field service equipment to support its Spraberry operations, including
pulling units, fracture stimulation tanks, water transport trucks, hot
oilers, blowout preventers, construction equipment and fishing tools. It
has also contracted for tubular and pumping unit requirements through
2012 and well cementing services through 2016.

In the horizontal Wolfcamp Shale play, the Company believes it has
significant resource potential within its acreage based on its extensive
geologic data covering the Wolfcamp A, B, C and D intervals and its
drilling results to date. Pioneer is the largest acreage holder in the
play with more than 400,000 prospective acres.

The Company′s current focus is the Wolfcamp B interval in 200,000 acres
in the southern part of the field to hold expiring acreage. EURs in this
area are expected to range from 350 MBOE to 500 MBOE per well. Current
plans call for drilling 90 horizontal wells in this area by the end of
2013, with 30 to 35 horizontal wells being drilled in 2012. Four
horizontal rigs are currently operating, up from one horizontal rig at
the beginning of the year. Pioneer expects to increase to seven rigs by
the end of 2012 with a further increase to 10 rigs in early 2013. Well
costs are currently averaging $8 million to $9 million per well, which
includes the costs of coring, extra logging and micro seismic. Once
Pioneer switches from drilling these 'science? wells to development
wells, drilling costs are expected to range from $6 million to $7
million per well.

Pioneer′s first two successful wells in the play were drilled in Upton
County with 5,800-foot laterals and 30 fracture stimulation stages. Both
wells continue to produce above expectations and flow naturally at rates
greater than 215 barrels oil equivalent (BOEPD) and 350 BOEPD,
respectively, after being on production for more than six months and
four months, respectively.

Pioneer drilled two wells in southern Reagan County and one well in
southern Upton County during the first quarter. All three wells are
testing longer 7,000-foot laterals and additional fracture stimulation
stages. The two wells in southern Reagan County have been fracture
stimulated and recently put on production. They are in the early days of
unloading water after being fracture stimulated, with oil production
rates increasing daily. The Company expects to drill 9 horizontal
Wolfcamp Shale wells in the second quarter and put two to three
additional wells on production by the end of the quarter.

Pioneer is continuing to acquire bolt-on acreage in the southern portion
of the play so that longer laterals can be drilled. Approximately 17,000
net acres have been added year-to-date. The Company is also acquiring
260 square miles of 3-D seismic during the first half of 2012 to help
optimize the placement of future drilling locations.

The Company continues to drill vertically to deeper intervals in the
Spraberry field below the Wolfcamp interval (40-acre type curve EUR of
140 MBOE). This deeper drilling includes the Strawn, Atoka and
Mississippian intervals.

Pioneer put 81 vertical wells on production in the Strawn interval in
the first quarter. Production data continues to support an incremental
gross EUR per well from the Strawn interval of 30 MBOE. Pioneer believes
this interval is prospective on 60% to 70% of its Spraberry acreage.

The Company put 27 vertical Atoka wells on production during the first
quarter. Two of these completions were zonal tests with initial
production rates ranging from 150 BOEPD to 250 BOEPD. The remaining 25
wells were commingled with upper intervals. Results from zonal tests and
commingled wells continue to support a potential incremental gross EUR
of 50 MBOE to 70 MBOE for wells completed in the Atoka interval. Pioneer
believes the Atoka interval is prospective on 25% to 50% of its
Spraberry acreage.

Eight vertical wells were also put on production in the Mississippian
interval during the first quarter. Data from all Mississippian wells
drilled to date continue to support a potential incremental gross EUR
per well of 15 MBOE to 40 MBOE from this interval. Pioneer believes the
Mississippian interval is prospective in 20% of its Spraberry acreage.

Pioneer′s vertical rig count is expected to decline from 40 rigs
currently to 30 rigs by year end as its horizontal rig count in the
Wolfcamp Shale increases. In approximately 50% of the vertical wells
scheduled to be drilled in 2012, the Wolfcamp will be the deepest
interval completed. Of the remaining 50% of the wells, 20% will be
deepened to the Strawn, 20% to the Atoka and 10% to the Mississippian.

First quarter production from the Spraberry field averaged 62 MBOEPD, an
increase of 9 MBOEPD from the fourth quarter of 2011. Production during
the quarter benefited from a reduction in the frac bank (vertical wells
drilled, but not yet completed) of 40 wells. This benefit is not
expected to recur over the remainder of 2012, as the Spraberry frac bank
is now at a normal level. Based on first quarter results and the
vertical and horizontal drilling programs described above, production is
forecasted to grow from an average of 45 MBOEPD in 2011 to 61 MBOEPD to
65 MBOEPD in 2012. Assuming the vertical rig count remains at 30 rigs in
2013 and 2014, and the horizontal rig count increases to 10 rigs during
this time period, production is forecasted to further increase to 81
MBOEPD to 87 MBOEPD in 2013 and 96 MBOEPD to 103 MBOEPD in 2014.

The 2012 blended Pioneer and third-party well cost for the vertical
drilling program averages $1.7 million to $1.8 million per well, ranging
from $1.6 million to $1.7 million for a well drilled to the Wolfcamp
interval, $1.65 million to $1.75 million to the Strawn interval and $1.9
million to $2.0 million to the Atoka or Mississippian intervals.
Pioneer′s internal rate of return on its 2012 Spraberry vertical
drilling program is expected to be 45% to 50% before tax, based on the
drilling program and gross EURs described above, and assuming flat
commodity prices of $100 per barrel for oil and $4 per MCF for gas.

The Company continues to test vertical downspacing in the Spraberry
field from 40 acres to 20 acres. Thirty-four 20-acre vertical wells have
been drilled since 2010. These 20-acre wells were mostly drilled to the
Lower Wolfcamp with a few completed in the Strawn interval. Results
continue to indicate that production from these wells is performing near
the type curve for a 40-acre Lower Wolfcamp well (EUR of 140 MBOE). The
Company expects to drill approximately fifty 20-acre wells in its 2012
drilling program.

Water injection was initiated in the third quarter of 2010 on the
Company′s 7,000-acre waterflood project in the Upper Spraberry interval.
Results continue to be encouraging, as the production decline from 110
producing wells in the surveillance area has flattened and an increase
in production continues to be observed as additional wells respond to
water injection. Production from the area flooded in the Upper Spraberry
was greater than 25% higher in the first quarter than the forecasted
base production for the corresponding time period prior to the
waterflood project being implemented. Based on performance to date,
further production increases and reserve additions are expected.

In the liquids-rich Eagle Ford Shale in South Texas, Pioneer and its
joint venture partners are currently running 12 rigs. The Company
drilled 28 wells in the first quarter and placed 26 wells on production.
To improve the execution of its drilling and completions program and
reduce costs, Pioneer is operating two Company-owned fracture
stimulation fleets totaling 100,000 horsepower. The Company is also
utilizing a dedicated third-party fracture stimulation fleet, which
commenced operating in April 2011 under a two-year contract.

Pioneer plans to continue running 12 rigs in 2012 and drill
approximately 125 wells. The 2012 drilling program will continue to
focus on liquids-rich drilling, with only 15% of the wells designated to
hold strategic dry gas acreage in response to the current low gas price
environment. Future plans call for the rig count to increase to 14 rigs
in 2013, 16 rigs in 2014 and 19 rigs in 2015.

Pioneer increased its Eagle Ford Shale production from 20 MBOEPD in the
fourth quarter of 2011 to 23 MBOEPD in the first quarter. The Company
expects production to increase from an average of 12 MBOEPD in 2011 to
25 MBOEPD to 29 MBOEPD in 2012, 37 MBOEPD to 41 MBOEPD in 2013 and 47
MBOEPD to 53 MBOEPD in 2014.

Pioneer′s gross well cost in the Eagle Ford Shale ranges from $7 million
to $8 million per well. Using this well cost, estimated EURs, assumed
flat commodity prices of $100 per barrel for oil and $4 per MCF for gas
and excluding the benefit of the joint-venture drilling carry, the
before-tax internal rate of return for the 2012 drilling program is
estimated to be 70%.

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. Forty-five wells have been tested to date, with a savings
of approximately $700 thousand per well. Early well performance has been
similar to direct offset ceramic-stimulated wells. Pioneer plans to
continue to monitor the performance of these wells and plans to use
white sand in 50% of its 2012 drilling program.

The ninth central gathering plant (CGP) was added during the first
quarter as part of the joint venture′s Eagle Ford Shale midstream
business. Two additional CGPs are planned to start up by mid-year.
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 an
80,000 net acreage position, representing more than 1,000 drilling
locations. The Company drilled 9 wells in the first quarter and placed
10 wells on production. Pioneer is operating two rigs in the play and
plans to increase to four rigs in 2013.

Production in the first quarter for the Barnett Shale Combo play was 6
MBOEPD, up 7% from the fourth quarter of 2011. The Company expects
production to increase from an average of 4 MBOEPD in 2011 to 7 MBOEPD
to 9 MBOEPD in 2012. With the expected increase to four rigs in 2013,
production is forecasted to grow to 12 MBOEPD to 16 MBOEPD in 2013 and
18 MBOEPD to 23 MBOEPD in 2014. Production is comprised of 60% liquids
(oil and natural gas liquids) and 40% gas.

Pioneer′s internal rate of return in the Barnett Shale Combo play is
expected to be 30% before tax. This assumes a targeted per-well drilling
cost of $3.5 million for 5,000-foot lateral wells, a gross EUR of 460
MBOE and flat commodity prices of $100 per barrel for oil and $4 per MCF
for gas. The internal rate of return has been impacted by the low gas
price environment.

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 most recent Nuiqsut well was completed for the
first time with a mechanically diverted fracture stimulation, which
delivered a gross initial production rate of 4,000 BOPD. Pioneer also
drilled two exploration wells during the recent winter drilling season
using a second contracted rig. The first was a successful onshore
appraisal well to test the southern extent of the Torok interval. The
well flowed at 2,000 BOPD gross (Pioneer has a 100% working interest)
during the test period and provided data that supports the addition of
50 MMBO to the resource potential of the Torok interval within Pioneer′s
acreage. The well is now shut in awaiting permanent onshore production
facilities. The second well tested a deeper Ivishak prospect and was
unsuccessful.

2012 Capital Budget

Pioneer′s capital program for 2012 of $2.8 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 $0.4 billion. The
overall program continues to be focused on liquids-rich drilling.

The capital for vertical integration of $400 million includes $300
million for the U.S. industrial sands business acquired by Pioneer in
early April and $100 million for pressure pumping and well service
equipment.

The capital program for 2012 is weighted towards the first half of year.
During the first quarter, Pioneer′s drilling capital incurred was $742
million. The first quarter capital included two exploration wells in
Alaska and a significant frac bank reduction in the Spraberry field,
both of which will not be recurring during the remainder of 2012.
Additionally, the first quarter included higher-cost 'science? wells and
new seismic in the horizontal Wolfcamp Shale play that are expected to
decline during the remainder of the year. The Spraberry vertical
drilling program is expected to be reduced from 40 rigs in the first
half of the year to 30 rigs by the end of the year.

The 2012 capital budget is expected to be funded from forecasted
operating cash flow of $2.2 billion, assuming commodity prices of $100
per barrel for oil and $3 per MCF for gas, proceeds of $0.5 billion from
Pioneer′s equity offering during the fourth quarter of 2011 and the
utilization of $0.1 billion of pipe and equipment inventory.

First Quarter 2012 Financial Review

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

Sales averaged 147 MBOEPD, consisting of oil sales averaging 58 thousand
barrels per day (MBPD), NGL sales averaging 27 MBPD and gas sales
averaging 369 million cubic feet per day (MMCFPD).

The average reported price for oil was $100.99 per barrel and included
$1.99 per barrel related to deferred revenue from volumetric production
payments (VPPs) for which production was not recorded. The average
reported price for natural gas liquids (NGLs) was $41.81 per barrel and
the average reported price for gas was $2.51 per MCF.

Production costs averaged $13.79 per barrel oil equivalent (BOE).
Depreciation, depletion and amortization (DD&A) expense averaged $13.59
per BOE.

Exploration and abandonment costs were $53 million for the quarter. This
included $27 million of drilling costs, of which $19 million was
associated with the unsuccessful exploration well in Alaska, and $26
million was related to geologic and geophysical expenses, principally
related to new seismic being acquired in the horizontal Wolfcamp Shale
and Barnett Shale Combo plays, and personnel costs.

General and administrative expense, which totaled $63 million, included
the impacts of increased staffing, noncash share-based retention awards,
performance-based compensation and the timing of charitable
contributions.

Second Quarter 2012 Financial Outlook

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

Production is forecasted to average 149 MBOEPD to 154 MBOEPD. Production
costs are expected to average $13.25 to $15.25 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 $50 million.

General and administrative expense is expected to be $55 million to $60
million, interest expense is expected to be $47 million to $52 million
and other expense is expected to be $20 million to $30 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
$10 million to $15 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 Thursday, May 3, 2012, at 9:00 a.m. Central Time, Pioneer will
discuss its financial and operating results for the quarter ended March
31, 2012, with an accompanying presentation. Instructions for listening
to the call and viewing the accompanying presentation are shown below.

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

Telephone: Dial (888) 505-4378 confirmation code: 2847639 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 25 by dialing (888)
203-1112 confirmation code: 2847639.

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

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.

Cautionary Note to U.S. Investors -- The U.S. Securities and Exchange
Commission (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 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 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, 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 months ended March 31, 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 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 SUPPLEMENTARY NON-GAAP FINANCIAL MEASURES (continued)

(in
millions, except per share data)

Adjusted income 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, is presented and
reconciled to Pioneer's net income attributable to common stockholders
and diluted common shares outstanding that is 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 income attributable to common stockholders and diluted
shares outstanding for the three months ended March 31, 2012, as
determined in accordance with GAAP, to adjusted income excluding
unrealized MTM derivative gains and adjusted income excluding unrealized
MTM derivative gains, unusual items and the incremental share dilution
attributable to convertible senior notes for that quarter.

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PIONEER NATURAL RESOURCES COMPANY

SUPPLEMENTAL INFORMATION

Open Commodity Derivative Positions as of May 1, 2012

(Volumes
are average daily amounts)

Interest rates. As of March 31, 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.

During April 2012, the Company entered into 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 trading derivatives.The following table
presents Pioneer′s open marketing and trading derivative positions as of
May 1, 2012:

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