Pioneer Natural Resources Reports Fourth Quarter 2012 Financial and Operating Results and Announces 2013 Capital Budget

Pioneer Natural Resources Company (NYSE:PXD) ('Pioneer? or 'the
Company?) today announced financial and operating results for the
quarter ended December 31, 2012, and announced its 2013 capital budget.

Pioneer reported fourth quarter net income attributable to common
stockholders of $29 million, or $0.22 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
gains and other unusual items, adjusted income for the fourth quarter
was $107 million after tax, or $0.83 per diluted share.

Fourth quarter and other recent highlights included:

• 
  producing 165 thousand barrels oil equivalent per day (MBOEPD) in the
  fourth quarter, including Barnett Shale production (the Barnett Shale
  properties were reclassified from discontinued operations to
  continuing operations after the decision was made to discontinue
  efforts to divest of these properties),
  
• 
  producing 156 MBOEPD in the fourth quarter, excluding Barnett Shale
  production, which was in the middle of the Company′s fourth quarter
  guidance range of 154 MBOEPD to 158 MBOEPD (fourth quarter guidance
  excluded Barnett Shale production since it was classified as
  discontinued operations when the fourth quarter guidance was provided),
  
• 
  producing 156 MBOEPD from continuing operations in 2012 (includes
  Barnett Shale production), an increase of 29% compared to 2011 and at
  the top end of Pioneer′s full-year 2012 guidance; the strong
  production growth in 2012 was driven by the Company′s drilling
  programs in the Spraberry vertical, horizontal Wolfcamp Shale, Eagle
  Ford Shale and Barnett Shale Combo areas,
  
• 
  delivering 264% drillbit reserve replacement (161 million barrels oil
  equivalent) at a drillbit finding and development cost, excluding
  pricing revisions, of $17.72 per barrel oil equivalent (BOE),
  
• 
  placing on production Pioneer′s first horizontal Wolfcamp Shale well
  in the B interval in Midland County, Texas, (24-hour peak initial flow
  rate of 1,693 barrels oil equivalent per day (BOEPD) and peak 20-day
  average natural flow rate of 1,510 BOEPD with approximately 75% oil
  content), which demonstrates the prospectivity of Pioneer′s northern
  Wolfcamp/Spraberry acreage that encompasses more than 600,000 gross
  acres,
  
• 
  initiating a two-year $1.0 billion horizontal drilling appraisal
  program of Pioneer′s northern Wolfcamp/Spraberry acreage, of which
  $0.4 billion is included in the 2013 drilling budget of $2.75 billion
  and the remainder is expected to be spent in 2014,
  
• 
  forecasting annual production growth of 12% to 16% from 2012 to 2013,
  
• 
  targeting 13% to 18% compound annual production growth for 2013 to
  2015,
  
• 
  signing a $1.74 billion horizontal Wolfcamp Shale joint interest
  agreement with Sinochem, which equates to $21,000 per acre for
  approximately 10% of Pioneer′s aggregate Wolfcamp/Spraberry gross
  acreage position,
  
• 
  continuing to deliver improving horizontal Wolfcamp Shale results in
  the joint interest area, including:
  
  
  • 
    placing on production Pioneer′s first horizontal Wolfcamp Shale
    well with a 10,000-foot lateral in the Upper B interval in Reagan
    County (24-hour peak flow rate of 1,203 BOEPD and peak 20-day
    average flow rate of 1,022 BOEPD with approximately 80% oil
    content);
    
  • 
    placing on production Pioneer′s first Wolfcamp Shale Lower B
    interval well and a successful Wolfcamp Shale A interval well in
    Reagan County (both currently producing above type curve
    expectations);
    
  • 
    well performance from existing wells continuing to meet type curve
    expectations; and
    
  • 
    achieving targeted year-end 2012 horizontal Wolfcamp Shale
    production exit rate of 5 MBOEPD; and
    
• 
  increasing the Company′s estimated net resource potential from 6.7
  billion barrels oil equivalent (BBOE) to greater than 8.0 BBOE, which
  includes 1.6 BBOE from the southern horizontal Wolfcamp Shale joint
  interest area and 3.0 BBOE from Pioneer′s northern Wolfcamp/Spraberry
  acreage.
  

Scott Sheffield, Chairman and CEO, stated, 'Pioneer had another great
year in 2012. We delivered strong production and reserve growth, while
continuing to be among the top performers in our peer group in total
shareholder return. Our extensive Midland Basin geologic analysis has
identified multiple prospective horizontal targets throughout Pioneer′s
extensive 900,000-acre Wolfcamp/Spraberry leasehold position with an
aggregate estimated resource potential of more than 4.6 BBOE. During
2012, we focused on appraising and developing the southern 200,000 acres
of the play. This culminated in the signing of the joint interest
agreement with Sinochem that will allow horizontal development of the
Wolfcamp Shale in this area to be accelerated. We were also able to
begin drilling horizontal wells on our northern acreage to appraise the
potential of the horizontal Wolfcamp Shale in this area. Early results
are extremely encouraging, and we are initiating a $1 billion dollar
appraisal program for 2013 and 2014 to confirm the estimated 3.0 BBOE of
resource potential we believe exists in our northern acreage, which
should add substantial net asset value to the Company.?

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

Pioneer′s fourth quarter earnings included unrealized mark-to-market
gains on derivatives of $14 million after tax, or $0.11 per diluted
share.

Fourth quarter earnings also included a net charge of $92 million after
tax, or $0.72 per diluted share, related to the following unusual items:

• 
  a noncash impairment charge of $101 million after tax, or $0.78 per
  diluted share, to reduce the proved and unproved property basis of the
  Company′s Barnett Shale assets in Texas that were previously held for
  sale, partially offset by
  
• 
  Alaska production tax credit recoveries of $9 million after tax, or
  $0.06 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 recently 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 by June 1, 2013, subject to governmental and third-party approvals.

Under the agreement, Sinochem will acquire 82,800 net acres of leasehold
held by Pioneer in the Wolfcamp horizon. Pioneer retains 60% of its
interest in the Wolfcamp depths 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.

Pioneer successfully drilled and completed 39 horizontal wells in the
Wolfcamp Shale joint interest area during 2012, of which 26 wells were
placed on production. Of the 26 wells on production, 22 wells were
completed in the B interval and 4 wells were completed in the A
interval. Pioneer′s net horizontal Wolfcamp Shale production in the
joint interest area averaged 2 MBOEPD in 2012, with a year-end exit rate
of 5 MBOEPD.

The thickness of the Wolfcamp B interval in the southern joint interest
area provides the opportunity to complete two stacked laterals in the
interval (referred to as Upper B interval and Lower B interval). The
Company placed its first Lower B interval well on production in the
fourth quarter, which had an initial 24-hour peak flow rate of 696
BOEPD. A Wolfcamp A interval well was also placed on production in the
fourth quarter with initial 24-hour peak flow rate of 442 BOEPD. Both
wells had an oil content of approximately 80% and continue to produce
above the 575 thousand barrel oil equivalent (MBOE) average estimated
ultimate recovery (EUR) type curve for horizontal Wolfcamp Shale wells
in the southern joint interest area.

Pioneer also placed its first horizontal Wolfcamp Shale well with a
10,000-foot lateral on production during January 2013. It had an initial
peak 24-hour production rate of 1,203 BOEPD and an average peak 20-day
flow rate of 1,022 BOEPD. The oil content of this well is approximately
80%. The performance of this well is substantially above 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.

Pioneer expects to run 7 rigs in the southern joint interest area during
2013, with an increase of 3 rigs per year expected in 2014 and 2015. The
2013 drilling program will continue to focus on delineating acreage and
testing the Wolfcamp A, Upper B, Lower B and D intervals, while the
program in 2014 and beyond will primarily focus on development drilling
and accelerating production growth. Approximately 50% of the wells
drilled in this area during 2013 will be from pads, increasing to
approximately 75% in 2014. The Company has included $20 million in the
2013 southern joint interest area drilling budget for coring, open-hole
logging, micro-seismic and 3-D seismic ('science?). The cost for
drilling development wells is targeted at $7.5 million to $8.0 million
for a 7,800-foot lateral well. The Company expects to continue testing
laterals as long as 10,000 feet at an additional cost of approximately
$1.5 million. Completion techniques will continue to be optimized and
downspacing opportunities will be evaluated. In particular, slickwater
fracture stimulations will be tested, which could save approximately
$1.0 million per well when compared to gel-conveyed fracture
stimulations.

During the fourth quarter of 2012, Pioneer completed two highly
successful horizontal Jo Mill wells. 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 approximately 80% oil content, and when
normalized to 5,000 feet, the wells have outperformed the 650 MBOE EUR
type curve since being placed on production.

Pioneer′s extensive Midland Basin geologic analysis, based upon data
from thousands of wells, has identified multiple prospective horizontal
targets with substantial oil in place throughout the Company′s northern
Wolfcamp/Spraberry acreage position of more than 600,000 gross acres.
These horizontal targets include the Jo Mill interval and the Wolfcamp
and Spraberry Shales. Prospectivity is defined by several geologic
properties, including original oil in place, kerogen content, thermal
maturity, porosity and brittle mineral fraction (increased fracability
due to reduced clay content). The depth of the targets is also important
as reservoir pressure increases with depth. Pioneer′s northern
Wolfcamp/Spraberry acreage is located in the deepest part of the Midland
Basin, which should make this area very prospective for horizontal
targets.

The Company is currently operating one horizontal rig focused on
delineating its northern acreage position. The rig recently drilled the
Company′s first two horizontal Wolfcamp Shale wells in Midland County.
The first well (DL Hutt C #1H) was completed in the Wolfcamp B interval
and had a lateral length of 7,380 feet. It had an initial peak 24-hour
production rate of 1,693 BOEPD and an average peak 20-day rate flowing
naturally of 1,510 BOEPD. The oil content of this well is approximately
75%. The performance of this well is substantially above the 650 MBOE
EUR type curve.

The second well in Midland County is scheduled to be completed in the
Wolfcamp A interval later in February. The rig is now drilling the first
of two horizontal Wolfcamp Shale delineation wells targeting the B
interval in Martin County.

To accelerate the delineation and appraisal of the northern
Wolfcamp/Spraberry acreage, the Company is initiating a $1 billion
capital program over the next two years to confirm the estimated 3.0
BBOE of resource potential that the Company believes exists in its
northern acreage, which has the potential to add substantial net asset
value. The 2013 drilling program, which is expected to cost $400
million, is scheduled to ramp up to four rigs early in the second
quarter and 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 equates 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 Shale and the Lower Spraberry
Shale. The drilling cost for these wells is expected to range from $7.5
million per well to $8.5 million per well assuming 7,000-foot laterals.
This cost excludes $80 million of estimated 'science? and infrastructure
costs. The 2013 horizontal drilling program is expected to deliver a
year-end exit rate for horizontal production from the northern acreage
ranging from 5 MBOEPD to 7 MBOEPD.

Pioneer expects to increase the rig count on its northern
Wolfcamp/Spraberry acreage to 6 rigs to 8 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 reduced its vertical drilling program in the Spraberry field
from 40 rigs in the first quarter of 2012 to 20 rigs at the end of the
year as horizontal drilling activity increased. The Company drilled 132
vertical wells in the fourth quarter and 631 wells over the entire year.
Over the second half of 2012, the number of vertical wells awaiting
completion increased by 57 wells as the Company shifted its expenditures
to more horizontal drilling.

Pioneer continued to successfully drill vertically to deeper intervals
in the Spraberry field below the Wolfcamp interval during 2012 (vertical
Wolfcamp 40-acre type curve EUR of 140 MBOE with typical 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 during 2012. The 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, with the remaining 50% of
the wells to be drilled deeper to intervals below the Wolfcamp interval.
Approximately 65% of the wells drilled in 2012 were actually deepened
below the Wolfcamp interval.

Pioneer placed 208 vertical commingled Strawn wells on production during
2012, with an average 24-hour IP rate of 145 BOEPD. Production data
continues to support an incremental gross EUR per well from the Strawn
interval of 30 MBOE. Pioneer estimates that 85% of its Spraberry acreage
position is prospective for the Strawn interval, up from the previous
estimate of 70%.

The Company placed 134 commingled vertical Atoka wells on production
during 2012, with an average 24-hour IP rate of 180 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. Pioneer continues to
believe the Atoka interval is prospective in 40% to 50% of its Spraberry
acreage position.

The Company also placed 55 commingled vertical wells on production
through the Mississippian interval during 2012, with an average initial
24-hour IP rate of 140 BOEPD. Data from 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.

Fourth quarter production from the Spraberry field averaged 69 MBOEPD.
This included production from the Strawn, Atoka and Mississippian
intervals in vertical Spraberry wells and horizontal production from the
Wolfcamp Shale and Jo Mill intervals. Fourth quarter production was
negatively impacted by 1,700 BOEPD due to reduced ethane recoveries
resulting from Spraberry gas processing facilities operating above
capacity due to greater-than-anticipated industry production growth.

Spraberry production for 2012 averaged 66 MBOEPD, an increase of 46%
compared to 2011. Horizontal production averaged 2 MBOEPD during 2012
and exited the year at 5 MBOEPD. For 2013, Spraberry 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 3 rigs in 2012 to
11 rigs in 2013. This shift to more horizontal 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 assumes that more than 4 MBOEPD of
horizontal production on an annualized basis will be conveyed to
Sinochem after the closing of the joint interest transaction which is
assumed to occur on June 1, 2013.

Pioneer′s 2013 production forecast assumes that the inventory of
vertical wells awaiting completion will be drawn down by 60 wells to 70
wells over the year. It also takes into account that the gas processing
capacity shortfall in the Spraberry area will continue into the second
quarter until the new Driver gas processing plant comes online in April
and provides an additional 200 million cubic feet per day of processing
capacity, thereby alleviating the current bottleneck that is impacting
ethane recoveries. Pioneer estimates that the ongoing processing
capacity limitations will continue to negatively impact ethane
recoveries and will decrease the Company′s first quarter production by 2
MBOEPD to 3 MBOEPD.

In the liquids-rich Eagle Ford Shale in South Texas, the Company drilled
30 wells in the fourth quarter and placed 37 wells on production.
Pioneer increased its Eagle Ford Shale production from 29 MBOEPD in the
third quarter of 2012 to 35 MBOEPD in the fourth quarter, achieving
another record production level. Strong well performance continues to
drive this growth. Full-year 2012 production averaged 28 MBOEPD. The
Company expects 2013 production to range from 38 MBOEPD to 42 MBOEPD, an
increase of 36% to 50% compared to 2012.

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 essentially the same 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 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
tested 97 wells with white sand proppant in 2011 and 2012, 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 expects that
greater than 50% of its 2013 drilling program will use the lower-cost
white sand proppant. The Company also expects to improve well
performance, EURs and well economics by increasing the average lateral
length of its wells from 5,700 feet in 2012 to 6,200 feet in 2013, which
will add approximately $500 thousand to the cost of drilling and
completing a well.

Eleven central gathering plants (CGPs) are now operational as part of
the joint venture′s Eagle Ford Shale midstream business. One additional
CGP is scheduled to be on line by the end of 2013. 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 8 wells in
the fourth quarter and placed 8 wells on production. Pioneer is
operating one rig in the play but plans to increase to two rigs in the
second quarter to hold acreage in the highest-return areas of the
Company′s 82 thousand net acreage position. These areas have been
identified from drilling data and petrophysical and seismic analysis.
Pioneer currently holds approximately 20% of its acreage position by
production, or 16 thousand net acres, and expects to hold an additional
45 thousand net acres by production over the next three years with a
two-rig drilling program.

Production in the fourth quarter for the Barnett Shale Combo play was 9
MBOEPD, up from 7 MBOEPD in the third quarter. The Company expects
production to increase from an average of 7 MBOEPD in 2012 to 9 MBOEPD
to 12 MBOEPD in 2013. Production is comprised of approximately 60%
liquids (oil and natural gas liquids) and 40% gas.

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 fourth quarter production was four
thousand barrels oil per day (BOPD). During the first quarter of 2012,
the Company completed its first successful mechanically diverted
fracture stimulation of a Nuiqsut interval well. Based on the success of
this mechanically diverted fracture stimulation, the Company has drilled
four more wells and is planning similar stimulations during the current
winter drilling season. Three of these wells will be in the Nuiqsut
interval and one will be in the Torok interval.

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 supported the addition of 50 million barrels of oil to the resource
potential of the Torok interval within Pioneer′s acreage. The well has
been flow tested for the second time and produced at a facility-limited
rate of 2,800 BOPD, significantly higher than the rates achieved in
2012. The well has been shut in until permanent onshore production
facilities are constructed for which an onshore development FEED study
is being progressed. Pioneer is currently drilling a second onshore
Torok well to further appraise this interval.

2013 Capital Budget

Pioneer′s capital program for 2013 of $3.0 billion (excludes
acquisitions, asset retirement obligations, capitalized interest and
geological and geophysical G&A) includes $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.

The following provides a breakdown of the drilling capital by asset:

• 
  Northern Wolfcamp/Spraberry area - $1,225 million (includes $400
  million for the horizontal drilling program, $625 million for the
  vertical drilling program and $200 million for infrastructure
  additions and automation projects)
  
• 
  Southern Wolfcamp joint interest area - $425 million
  
• 
  Eagle Ford Shale - $575 million
  
• 
  Barnett Shale Combo - $185 million
  
• 
  Alaska - $190 million
  
• 
  Other - $150 million, including land capital for existing assets
  

The 2013 capital budget is expected to be funded from forecasted
operating cash flow of $2.0 billion, assuming commodity prices of $85
per barrel for oil and $3.25 per thousand cubic feet (MCF) for gas,
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 $400 million from capital
market activities.

Pioneer′s year-end 2012 net debt was $3.5 billion and net debt-to-book
capitalization was 37%. The Company will continue to target a net
debt-to-book capitalization below 35% and net debt-to-operating cash
flow below 1.75 times.

Fourth Quarter 2012 Financial Review

The following financial results from continuing operations for the
fourth quarter of 2012 include the Barnett Shale assets that were
reclassified to continuing operations in the fourth quarter after the
decision was made to discontinue efforts to divest of these properties.

Liquids and gas sales averaged 165 MBOEPD, consisting of oil sales
averaging 67 thousand barrels per day (MBPD), natural gas liquids (NGL)
sales averaging 32 MBPD and gas sales averaging 395 million cubic feet
per day.

The average price for oil was $85.60 per barrel including $1.71 per
barrel related to deferred revenue from volumetric production payments
(VPPs) for which production was not recorded. The Company′s remaining
VPP expired on its own terms at the end of 2012. The average reported
price for NGLs was $30.69 per barrel and the average reported price for
gas was $3.20 per MCF.

Production costs from continuing operations averaged $14.62 per BOE.
Depreciation, depletion and amortization (DD&A) expense averaged $14.54
per BOE. An impairment charge of $88 million was recorded to reduce the
carrying value of the Barnett Shale proved properties to their estimated
fair value as part of the reclassification of the assets to continuing
operations. Exploration and abandonment costs were $89 million,
principally comprised of $72 million associated with the impairment of
unproved Barnett Shale acreage and $14 million for personnel costs.
General and administrative expense totaled $68 million, including
performance-based compensation awards for 2012. Interest expense was $54
million, and other expense was $27 million.

First Quarter 2013 Financial Outlook

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

Production is forecasted to average 165 MBOEPD to 170 MBOEPD. This
forecast assumes that first quarter production will be negatively
impacted by 2,000 BOEPD to 3,000 BOEPD as a result of continuing reduced
ethane recoveries associated with gas processing facilities in the
Spraberry field operating above capacity as described above. New gas
processing capacity of 200 million cubic feet per day is expected to
come on line during April and eliminate the reduced ethane recoveries
thereafter. The guidance for the first quarter excludes the effects of
potential ethane rejection to the extent the Company decides to do so in
the future.

Production costs are expected to average $14.00 to $16.00 per BOE. DD&A
expense is expected to average $13.50 to $15.50 per BOE. Total
exploration and abandonment expense is forecasted to be $25 million to
$35 million.

General and administrative expense is expected to be $60 million to $65
million, interest expense is expected to be $53 million to $58 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
$2 million to $7 million and are primarily attributable to 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, February 14, 2013, at 9:00 a.m. Central Time, Pioneer will
discuss its financial and operating results for the quarter ended
December 31, 2012, and its 2013 capital budget, with an accompanying
presentation. Instructions for listening to the call and viewing the
accompanying presentation are shown below.

A replay of the webcast will be archived on Pioneer′s website. A
telephone replay will be available through March 11, 2013, by dialing
(888) 203-1112 confirmation code: 7431932.

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

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 1-800-SEC-0330.

An audit of proved reserves follows the general principles set forth
in the standards pertaining to the estimating and auditing of oil and
gas reserve information promulgated by the Society of Petroleum
Engineers ('SPE').A reserve audit as defined by the
SPE is not the same as a financial audit. Please see the Company's
Annual Report on Form 10-K for a general description of the concepts
included in the SPE's definition of a reserve audit.

'Drillbit finding and development cost per BOE,' or 'drillbit F&D
cost per BOE,? means the summation of exploration and development costs
incurred divided by the summation of annual proved reserves, on a BOE
basis, attributable to technical revisions of previous estimates,
discoveries and extensions and improved recovery.Consistent with
industry practice, future capital costs to develop proved undeveloped
reserves are not included in costs incurred.

'Drillbit reserve replacement? is the summation of annual proved
reserves, on a BOE basis, attributable to technical revisions of
previous estimates, discoveries and extensions and improved recovery
divided by annual production of oil, NGLs and gas, on a BOE basis.

_____________

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') 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 twelve months
ended December 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 and twelve months ended December 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 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 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, are presented and
reconciled to Pioneer's net income 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 income attributable to common stockholders and diluted
shares outstanding for the three months ended December 31, 2012, as
determined in accordance with GAAP, to income adjusted for unrealized
MTM derivative gains and adjusted income excluding unrealized MTM
derivative gains and unusual items for that quarter.

_____________

Interest rate derivatives. ?As of February ?8, 2013, the
Company had interest rate derivative contracts that lock in a fixed
forward annual interest rate of 3.21 percent, for a 10-year period
ending in December 2025, on a notional amount of $250 million. These
derivative contracts mature and settle by their terms during December
2015.

Marketing and basis transfer derivatives. ?Periodically,
the Company enters into gas buy and sell marketing arrangements to
fulfill firm pipeline transportation commitments. Associated with these
gas marketing arrangements, the Company may enter into gas index swaps
to mitigate price risk. ?The following table presents Pioneer′s open
marketing derivative positions as of February ?8, 2013: