Pioneer Reports Strong Production Growth and Earnings for the Second Quarter 2007



    DALLAS, August 7 /CNW/ - Pioneer Natural Resources Company (NYSE:  PXD)
today announced financial and operating results for the quarter ended June 30,
2007. Net income for the second quarter was $36 million, or $.30 per diluted
share. Second quarter results included several items unrelated to ongoing
operations:

    --  A charge of $47 million related to incremental estimated costs for
reclamation of the Company's East Cameron 322 facility that was destroyed by
Hurricane Rita. The Company expects insurance to cover a substantial portion
of the incremental costs.

    --  Charges totaling $35 million for drilling and asset impairments
associated with exiting Nigeria, which were offset by a related tax benefit of
$40 million.

    --  A charge for a U.S. impairment of $6 million.

    In the aggregate, the above items represent a net after-tax charge of $29
million, or $.23 per diluted share.

    Pioneer also recorded the receipt of its first Alaskan Petroleum
Production Tax (PPT) refund. The Company earns PPT capital expenditure credits
for qualified capital expenditures that can be used to reduce future PPT
liabilities, sold to third parties or refunded by the State of Alaska. During
the second quarter of 2007, Pioneer monetized $25.0 million of PPT credits
through a refund from the State of Alaska ($16 MM or $.13 after-tax), that is
included in Interest and Other Income. The Company expects to monetize and
otherwise benefit from additional PPT credits in future quarters.

    Oil and gas sales reached the top end of Pioneer's forecasted range due
to continued growth in the Company's core areas and averaged 105,656 barrels
oil equivalent per day (BOEPD), up 7% as compared to the prior year quarter.

    2007 Drilling Program

    Pioneer's 2007 capital budget is being expanded by $150 million to $1.45
billion, excluding acquisitions, asset retirement obligations, capitalized
interest and G&G G&A. Approximately $100 million of the capital increase is
related to expansions of recent drilling success in the Raton Basin,
Mississippi and Tunisia and drilling associated with recent acquisitions in
the Fort Worth Barnett Shale play and the Raton Basin. Increased facilities
costs related to 2007 development activities on the Oooguruk project on the
North Slope of Alaska represent $50 million of the capital increase.

    The Raton Basin program is currently ahead of schedule as a result of
improved permitting and drilling and completion efficiencies. The Company is
currently running three rigs in the area and expects that its total wells
completed in Raton during 2007 will approach the top end of its 250 well to
300 well range.

    In the Spraberry field, Pioneer has drilled approximately 180 wells of
its 360 well program for 2007. In the Edwards Trend in South Texas, Pioneer's
drilling program is expected to achieve its forecasted production growth,
despite heavy rains that have persisted in the area. However, the severe
weather has hindered the pace of the Company's 3-D seismic program in the
trend.

    In Mississippi, Pioneer's two Cotton Valley exploration wells in the
Bolton field were successful, each testing at rates greater than 10 million
cubic feet per day (MMCFPD). As a result, the Company has invested additional
capital to install a treating facility and pipeline and has initiated
production which is limited to facility capacity of 10 MMCFPD. Pioneer holds
an 80% working interest in approximately 11,000 gross acres in the area and
has identified more than 10 additional prospects on other acreage in
Mississippi. The Company also expects to shoot additional 3-D seismic in the
Bolton area to better define the resource potential and identify 2008 drilling
plans.

    Pioneer also announced that it has entered the Fort Worth Barnett Shale
play and expects to invest approximately $60 million during 2007 to acquire
acreage and commence drilling and seismic activities. Approximately 13,000
gross acres have been acquired offering the potential for more than 175
drilling locations. During the remainder of 2007, Pioneer expects to drill 9
to 10 wells and acquire 3-D seismic data and will continue to pursue
acquisitions to expand its acreage position in the play.

    Having been designated a new core area for Pioneer earlier this year,
Tunisia continues to generate positive results. On its operated Jenein Nord
block, Pioneer has announced five discoveries and is constructing new
facilities with expectations for first production during the fourth quarter of
2007. The Company expects that at least six additional wells will be drilled
and additional 3-D seismic data will be acquired in Tunisia during the second
half of the year.

    The Oooguruk project is on schedule for first production during the first
half of 2008. Pioneer has expanded its 2007 budget for the project to account
for higher than expected facility costs. The Company has installed the
production modules, the support pipeline and the drilling rig in order to
commence Oooguruk drilling during late 2007. In the Cosmopolitan project,
Pioneer has increased its working interest to 100% and expects to spud an
appraisal well in September to test a zone discovered by a previous operator.

    The South Coast Gas project offshore South Africa is expected to have
first gas and condensate production from five new gas wells by the end of the
third quarter with net fourth quarter gas equivalent production expected to
average 20 MMCFPD to 25 MMCFPD.

    Financial Review

    Second quarter oil sales averaged 25,888 barrels per day (BPD) and
natural gas liquids sales averaged 18,140 BPD. Gas sales in the second quarter
averaged 370 MMCFPD. The reported price for oil was $60.38 per barrel and
included $11.65 per barrel related to deferred revenue from volumetric
production payments (VPPs) for which production was not recorded. The price
for natural gas liquids was $39.52 per barrel. The reported price for gas was
$7.45 per thousand cubic feet (MCF), including $.53 per MCF related to
deferred revenue from VPPs for which production was not recorded.

    Second quarter production costs averaged $12.53 per barrel oil equivalent
(BOE), and were impacted primarily by facilities and compression work in Raton
and an increase in workover activity, much of which having been postponed due
to first quarter weather disruptions.

    Exploration and abandonment costs were $70 million for the quarter and
included $44 million of acreage and unsuccessful drilling costs, including $23
million for Nigeria Block 256, and $26 million of geologic and geophysical
expenses, including seismic and personnel costs. As discussed above and
reported as net hurricane activity expense, the incremental estimated cost
associated with the abandonment of the East Cameron 322 facility resulted in a
decrease in after-tax earnings of $30 million.

    Pioneer invested $476 million during the second quarter 2007, bringing
total investments for the first half of 2007 to $984 million, including
acquisitions. Capital investments for 2007 were heavily front-end loaded with
$390 million of capital invested during the first half of the year in large
development projects (South Coast Gas project offshore South Africa and
Oooguruk field development on the North Slope of Alaska), high impact
exploration and winter-access drilling in Canada.

    Adjusted to exclude discontinued operations, total sales for the second
quarter 2006 averaged 98,893 BOEPD and included oil sales of 24,571 BPD,
natural gas liquids sales of 19,143 BPD and gas sales of 331 MMCFPD. Reported
prices for second quarter 2006 were $69.71 per barrel for oil, including
$13.00 per barrel related to deferred revenue from VPPs for which production
was not recorded, $36.32 per barrel for natural gas liquids and $6.25 per MCF
for gas, including $.62 per MCF related to deferred revenue from VPPs for
which production was not recorded.

    Financial Outlook

    Third quarter 2007 production is forecasted to average 105,000 to 110,000
BOEPD. Significant growth is expected during the second half of 2007,
primarily driven by increasing production from Spraberry, Raton, Edwards,
Mississippi, Tunisia and the South Coast Gas project in South Africa.
Pioneer's targeted average compounded annual production growth per share is
12+% for 2007 through 2010.

    Third quarter production costs (including production and ad valorem taxes
and transportation costs) are expected to average $11.50 to $12.50 per BOE
based on current NYMEX strip prices for oil and gas. Depreciation, depletion
and amortization expense is expected to average $10.50 to $11.50 per BOE.

    Total exploration and abandonment expense during the third quarter is
expected to be $30 million to $60 million and could include up to $32 million
associated with lower-risk resource plays in the Edwards Trend in South Texas,
the Rockies, Canada and Tunisia. In addition, exploration expense is expected
to include up to $28 million for seismic investments and personnel, primarily
related to the onshore resource plays that Pioneer is currently progressing.

    General and administrative expense is expected to be $30 million to $34
million. Interest expense is expected to be $34 million to $37 million.
Accretion of discount on asset retirement obligations is expected to be $2
million to $3 million.

    The Company's third quarter effective income tax rate is expected to
range from 40% to 45% based on current capital spending plans.

    The Company recently announced that it has entered into an agreement with
Petrogulf Corporation to acquire an interest in approximately 30,000 net acres
in the Raton Basin for $205 million. Pioneer expects the purchase to be
structured as part of a like-kind exchange to defer a majority of the
Company's tax liability on the expected sale of Spraberry assets to Pioneer
Southwest Energy Partners L.P.

    The percentage of total production hedged as of August 6, 2007, was 44%
for the remainder of 2007, 19% in 2008, 6% in 2009 and 3% in 2010. Third
quarter 2007 amortization of deferred losses on terminated oil and gas hedges
is expected to be $38 million. The Company's financial results and oil and gas
hedges are outlined on the attached schedules.

    Earnings Conference Call

    On Tuesday, August 7 at 10:00 a.m. Eastern Time, Pioneer will discuss its
quarterly financial and operating results with an accompanying presentation.
The call will be webcast on Pioneer's website, www.pxd.com. At the website,
select 'INVESTOR' at the top of the page. For those who cannot listen to the
live broadcast, a replay will be available shortly after the call. Or you may
choose to dial (800) 946-0742 (confirmation code: 5762074) to listen to the
call by telephone and view the accompanying visual presentation at the website
above. A telephone replay will be available by dialing (888) 203-1112
(confirmation code: 5762074).

    Pioneer is a large independent oil and gas exploration and production
company, headquartered in Dallas, with operations in the United States,
Canada, South Africa and Tunisia. 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, third party approvals, international
operations and associated international political and economic instability,
litigation, the costs and results of drilling and operations, availability of
drilling equipment, Pioneer's ability to replace reserves, implement its
business plans (including its plan to repurchase stock) or complete its
development projects as scheduled, access to and cost of capital, the
assumptions underlying production forecasts, uncertainties about estimates of
reserves, quality of technical data, environmental and weather risks, 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.
Pioneer undertakes no duty to publicly update these statements except as
required by law.

    A registration statement relating to the common units of Pioneer
Southwest Energy Partners L.P. has been filed with the Securities and Exchange
Commission but has not yet become effective. These securities may not be sold,
nor may offers to buy be accepted, prior to the time the registration
statement becomes effective. This communication does not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such state or jurisdiction.

    This offering of common units will be made only by means of a prospectus.
A copy of the prospectus, when available, may be obtained by submitting
requests to Citigroup Global Markets Inc., Attention: Prospectus Department,
Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220,
phone: 718-765-6732, fax: 718-765-6734; Deutsche Bank Securities Inc.,
Attention: Prospectus Department, 100 Plaza One, Jersey City, New Jersey
07311, phone: 800-503-4611, or email: prospectusrequest@list.db.com; or UBS
Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York,
New York 10171, phone: 212-821-3000.

    


                          PIONEER NATURAL RE

SOURCES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, 2007 2006 ------------ ------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 25,318 $ 7,033 Accounts receivable, net 199,378 199,371 Income taxes receivable 61,291 24,693 Inventories 108,483 95,131 Prepaid expenses 5,999 11,509 Deferred income taxes 90,549 82,927 Other current assets, net 106,204 115,894 ------------ ------------- Total current assets 597,222 536,558 ------------ ------------- Property, plant and equipment, at cost: Oil and gas properties, using the successful efforts method of accounting 9,109,645 8,178,052 Accumulated depletion, depreciation and amortization (2,099,722) (1,895,408) ------------ ------------- Total property, plant and equipment 7,009,923 6,282,644 ------------ ------------- Deferred income taxes 478 345 Goodwill 309,830 309,908 Other assets, net 220,410 225,944 ------------ ------------- $ 8,137,863 $ 7,355,399 ------------ ------------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 323,602 $ 349,820 Interest payable 41,274 31,008 Income taxes payable 15,765 12,865 Deferred revenue 169,812 181,232 Other current liabilities 329,738 312,054 ------------ ------------- Total current liabilities 880,191 886,979 ------------ ------------- Long-term debt 2,229,988 1,497,162 Deferred income taxes 1,264,590 1,172,507 Deferred revenue 404,343 483,279 Other liabilities and minority interests 268,529 330,801 Stockholders' equity 3,090,222 2,984,671 ------------ ------------- $ 8,137,863 $ 7,355,399 ------------ ------------- PIONEER NATURAL RE

SOURCES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except for per share data) Three months ended Six months ended June 30, June 30, ------------------- ------------------- 2007 2006 2007 2006 --------- --------- --------- --------- Revenues and other income: Oil and gas $458,032 $407,570 $849,950 $787,038 Interest and other 27,690 9,741 41,606 22,852 Loss on disposition of assets, net (1,802) (3,403) (1,542) (3,476) --------- --------- --------- --------- 483,920 413,908 890,014 806,414 --------- --------- --------- --------- Costs and expenses: Oil and gas production 120,417 103,066 224,830 197,749 Depletion, depreciation and amortization 103,979 87,984 196,117 170,390 Impairment of long-lived assets 17,891 -- 17,891 -- Exploration and abandonments 69,790 41,618 146,162 124,260 General and administrative 30,811 29,468 65,255 61,715 Accretion of discount on asset retirement obligations 2,146 1,154 4,204 2,302 Interest 30,502 22,766 58,996 59,342 Hurricane activity, net 47,000 -- 60,548 38,000 Other 10,195 11,759 18,608 16,813 --------- --------- --------- --------- 432,731 297,815 792,611 670,571 --------- --------- --------- --------- Income from continuing operations before income taxes 51,189 116,093 97,403 135,843 Income tax provision (16,284) (50,207) (32,203) (70,924) --------- --------- --------- --------- Income from continuing operations 34,905 65,886 65,200 64,919 Income from discontinued operations, net of tax 1,575 22,153 873 566,327 --------- --------- --------- --------- Net income $ 36,480 $ 88,039 $ 66,073 $631,246 --------- --------- --------- --------- Basic earnings per share: Income from continuing operations $ 0.29 $ 0.52 $ 0.53 $ 0.52 Income from discontinued operations, net of tax 0.01 0.18 0.01 4.48 --------- --------- --------- --------- Net income $ 0.30 $ 0.70 $ 0.54 $ 5.00 --------- --------- --------- --------- Diluted earnings per share: Income from continuing operations $ 0.29 $ 0.52 $ 0.53 $ 0.52 Income from discontinued operations, net of tax 0.01 0.17 0.01 4.34 --------- -------- --------- --------- Net income $ 0.30 $ 0.69 $ 0.54 $ 4.86 --------- --------- --------- --------- Weighted average shares outstanding: Basic 121,226 125,629 121,374 126,282 --------- --------- --------- --------- Diluted 122,776 129,624 122,847 130,346 --------- --------- --------- --------- PIONEER NATURAL RE

SOURCES COMPANY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three months ended Six months ended June, 30 June, 30 -------------------- ----------------------- 2007 2006 2007 2006 ---------- --------- ---------- ------------ Cash flows from operating activities: Net income $ 36,480 $ 88,039 $ 66,073 $ 631,246 Adjustments to reconcile net income to net cash provided by operating activities: Depletion, depreciation and amortization 103,979 87,984 196,117 170,390 Impairment of long- lived assets 17,891 -- 17,891 -- Exploration expenses, including dry holes 42,921 17,354 89,886 69,936 Hurricane activity 47,000 -- 66,000 42,000 Deferred income taxes 52,628 50,223 63,394 67,184 Loss on disposition of assets, net 1,802 3,403 1,542 3,476 Loss on extinguishment of debt -- 8,076 -- 8,076 Accretion of discount on asset retirement obligations 2,146 1,154 4,204 2,302 Discontinued operations (61) (1,002) (2,167) (540,655) Interest expense 4,487 2,118 9,213 5,165 Commodity hedge related activity 4,734 (6,061) 10,633 (5,553) Amortization of stock-based compensation 8,617 10,824 16,355 18,310 Amortization of deferred revenue (45,322) (47,886) (90,356) (95,835) Other noncash items 3,125 4,892 (3,152) 7,591 Change in operating assets and liabilities, net of effects from acquisition and disposition: Accounts receivable, net 15,789 37,137 562 163,165 Income taxes receivable (49,156) 104 (36,598) (15) Inventories (11,393) (18,994) (9,404) (39,125) Prepaid expenses 4,064 14,228 5,219 1,964 Other current assets, net (399) (341) (187) 9,207 Accounts payable (7,996) (18,758) (32,586) (96,413) Interest payable 13,736 8,826 10,266 (10,274) Income taxes payable (3,915) (78,236) 2,900 55,815 Other current liabilities (23,795) (4,438) (38,446) 8,927 ---------- --------- ---------- ------------ Net cash provided by operating activities 217,362 158,646 347,359 476,884 Net cash provided by (used in) investing activities (538,982) 343,536 (986,437) 965,291 Net cash provided by (used in) financing activities 333,069 (90,261) 656,712 (1,005,735) ---------- --------- ---------- ------------ Net increase in cash and cash equivalents 11,449 411,921 17,634 436,440 Effect of exchange rate changes on cash and cash equivalents 519 2,139 651 1,800 Cash and cash equivalents, beginning of period 13,350 42,982 7,033 18,802 ---------- --------- ---------- ------------ Cash and cash equivalents, end of period $ 25,318 $457,042 $ 25,318 $ 457,042 ---------- --------- ---------- ------------ PIONEER NATURAL RE

SOURCES COMPANY SUMMARY PRODUCTION AND PRICE DATA (Unaudited) Three months ended Six months ended June 30, June 30, ------------------ ----------------- 2007 2006 2007 2006 --------- -------- -------- -------- Average Daily Sales Volumes from Continuing Operations: Oil (Bbls) -- U.S. 18,753 17,671 18,779 17,320 Canada 292 307 326 292 South Africa 3,080 4,284 2,716 4,680 Tunisia 3,763 2,309 3,927 2,441 --------- -------- -------- -------- Worldwide 25,888 24,571 25,748 24,733 --------- -------- -------- -------- Natural gas liquids (Bbls) -- U.S. 17,685 18,731 17,272 18,455 Canada 455 412 397 415 --------- -------- -------- -------- Worldwide 18,140 19,143 17,669 18,870 --------- -------- -------- -------- Gas (Mcf) -- U.S. 308,342 286,270 295,540 280,553 Canada 54,176 44,801 50,962 40,317 Tunisia 7,250 -- 3,645 -- --------- -------- -------- -------- Worldwide 369,768 331,071 350,147 320,870 --------- -------- -------- -------- Average Daily Sales Volumes from Discontinued Operations: Oil (Bbls) -- U.S. -- -- -- 4,839 Argentina -- 2,982 -- 5,071 --------- -------- -------- -------- Worldwide -- 2,982 -- 9,910 --------- -------- -------- -------- Natural gas liquids (Bbls) -- Argentina -- 406 -- 849 --------- -------- -------- -------- Gas (Mcf) -- U.S. -- 1,317 -- 72,763 Argentina -- 42,538 -- 88,537 Canada -- 173 -- 87 --------- -------- -------- -------- Worldwide -- 44,028 -- 161,387 --------- -------- -------- -------- Average Reported Prices (a): Oil (per Bbl) -- U.S. $ 57.93 $ 69.43 $ 54.97 $ 64.82 Canada $ 60.79 $ 72.37 $ 51.94 $ 69.89 South Africa $ 69.73 $ 71.98 $ 66.59 $ 65.94 Tunisia $ 64.89 $ 67.30 $ 62.11 $ 62.41 Worldwide $ 60.38 $ 69.71 $ 57.25 $ 64.86 Natural gas liquids (per Bbl) -- U.S. $ 39.11 $ 35.84 $ 35.51 $ 34.81 Canada $ 55.17 $ 57.97 $ 56.87 $ 56.10 Worldwide $ 39.52 $ 36.32 $ 35.99 $ 35.28 Gas (per Mcf) -- U.S. $ 7.53 $ 6.08 $ 7.36 $ 6.33 Canada $ 6.96 $ 7.35 $ 7.53 $ 7.48 Tunisia $ 7.65 $ -- $ 7.65 $ -- Worldwide $ 7.45 $ 6.25 $ 7.39 $ 6.48 (a) Average prices are attributable to continuing operations and include the results of hedging activities and amortization of VPP deferred revenue. PIONEER NATURAL RE

SOURCES COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (in thousands) (Unaudited) 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. Three months ended Six months ended June 30, June 30, ------------------- -------------------- 2007 2006 2007 2006 --------- --------- --------- ---------- Net income $ 36,480 $ 88,039 $ 66,073 $ 631,246 Depletion, depreciation and amortization 103,979 87,984 196,117 170,390 Impairment of long-lived assets 17,891 -- 17,891 -- Exploration and abandonments 69,790 41,618 146,162 124,260 Hurricane activity 47,000 -- 66,000 42,000 Loss on extinguishment of debt -- 8,076 -- 8,076 Accretion of discount on asset retirement obligations 2,146 1,154 4,204 2,302 Interest expense 30,502 22,766 58,996 59,342 Income tax provision 16,284 50,207 32,203 70,924 Loss on disposition of assets, net 1,802 3,403 1,542 3,476 Discontinued operations (61) (1,002) (2,167) (540,655) Current income taxes on discontinued operations (202) (8,545) (4,699) (152,575) Cash exploration expense on discontinued operations -- 634 -- 2,145 Commodity hedge related activity 4,734 (6,061) 10,633 (5,553) Amortization of stock-based compensation 8,617 10,824 16,355 18,310 Amortization of deferred revenue (45,322) (47,886) (90,356) (95,835) Other noncash items 3,125 4,892 (3,152) 7,591 --------- --------- --------- ---------- EBITDAX (a) 296,765 256,103 515,802 345,444 Cash interest expense (26,015) (20,648) (49,783) (54,177) Current income taxes 36,546 8,561 35,890 148,835 --------- --------- --------- ---------- Discretionary cash flow (b) 307,296 244,016 501,909 440,102 Cash exploration expense (26,869) (24,898) (56,276) (56,469) Changes in operating assets and liabilities (63,065) (60,472) (98,274) 93,251 --------- --------- --------- ---------- Net cash provided by operating activities $217,362 $158,646 $347,359 $ 476,884 --------- --------- --------- ---------- (a) "EBITDAX" represents earnings before depletion, depreciation and amortization expense; impairment of long-lived assets; exploration and abandonments; noncash hurricane activity; loss on extinguishment of debt; accretion of discount on asset retirement obligations; interest expense; income taxes; loss on the disposition of assets; noncash effects from discontinued operations; commodity hedge related activity; stock-based compensation; amortization of deferred revenue; and other noncash items. (b) Discretionary cash flow equals cash flows from operating activities before changes in operating assets and liabilities and before cash exploration expense. PIONEER NATURAL RE

SOURCES COMPANY SUPPLEMENTAL INFORMATION As of August 6, 2007 Open Commodity Hedge Positions 2007 ----------------- Third Fourth Quarter Quarter 2008 2009 2010 -------- -------- ------- ------ ------ Average Daily Oil Production Hedged: Swap Contracts: Volume (Bbl) 5,995 6,500 13,750 6,000 4,000 NYMEX price (Bbl) $ 70.12 $ 70.35 $ 59.30 $70.47 $71.46 Collar Contracts: Volume (Bbl) 5,000 5,000 3,000 2,000 -- NYMEX price (Bbl) Ceiling $ 76.04 $ 76.04 $ 80.80 $76.50 $ -- Floor $ 63.00 $ 63.00 $ 65.00 $65.00 $ -- Average Daily Natural Gas Liquid Production Hedged: Swap Contracts: Volume (Bbl) -- -- 500 500 -- Blended index price (Bbl) (a) $ -- $ -- $ 44.33 $41.75 $ -- Average Daily Gas Production Hedged: Swap Contracts: Volume (MMBtu) 225,000 225,000 47,473 2,500 2,500 NYMEX price (MMBtu) (b) $ 8.48 $ 8.48 $ 9.08 $ 8.37 $ 8.07 (a) Represents blended Mont Belvieu posted price per Bbl. (b) Approximate, based on historical differentials to index prices. Amortization of Volumetric Production Payment Proceeds and Net Derivative Losses (in thousands) 2007 ----------------- Third Fourth Quarter Quarter 2008 Thereafter Total -------- -------- --------- ---------- --------- VPP proceeds, net of transaction costs $44,058 $43,766 $152,304 $308,018 $548,146 Net hedge obligations assigned 1,520 1,531 5,834 17,123 26,008 -------- -------- --------- ---------- --------- Total deferred revenues (a) 45,578 45,297 158,138 325,141 574,154 Less derivative gains and (losses) to be recognized in pretax earnings (b) 424 (347) (4,373) (12,744) (17,040) -------- ------- -------- ---------- -------- Total VPP impact to pretax earnings $46,002 $44,950 $153,765 $312,397 $557,114 -------- -------- --------- ---------- --------- (a) Deferred revenue will be amortized as increases to oil and gas revenues during the indicated future periods. (b) Represents the remaining pretax earnings impact of the derivatives assigned in the VPPs. PIONEER NATURAL RE

SOURCES COMPANY SUPPLEMENTAL INFORMATION As of August 6, 2007 (continued) Deferred Losses on Terminated Hedges (a) (in thousands) 2007 ------------------- Third Fourth Quarter Quarter 2008 2009 Thereafter --------- --------- --------- ------ ---------- Commodity hedge gains (losses) (b) $(38,409) $(36,220) $(94,652) $ -- $ -- Debt hedge losses (c) (117) (119) (488) (541) (5,203) --------- --------- --------- ------ ---------- Total deferred gains (losses) $(38,526) $(36,339) $(95,140) $(541) $(5,203) --------- --------- --------- ------ ---------- (a) Excludes deferred hedge gains and losses on terminated VPP hedges. (b) Deferred commodity hedge losses will be amortized as decreases to oil and gas revenues during the indicated future periods. (c) Deferred debt hedge losses will be amortized as increases to interest expense during the indicated future periods.

For further information:

For further information: Pioneer Natural Resources Company Investor
Relations: Frank Hopkins, 972-444-9001 or Scott Rice, 972-444-9001 or Media
Relations: Susan Spratlen, 972-444-9001

Organization Profile

PIONEER NATURAL RESOURCES COMPANY

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890