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Pioneer Declares Dividend on Common Shares

DALLAS--(BUSINESS WIRE)--Mar. 5, 2009-- Pioneer Natural Resources Company (NYSE:PXD) announced today that its board of directors declared a cash dividend of $0.04 per share on Pioneer’s outstanding common stock. The dividend is payable April 14, 2009 to stockholders of record at the close of business on March 31, 2009.

Scott Sheffield, Chairman and CEO, stated, “Pioneer remains committed to returning cash to our shareholders and has therefore declared a dividend of $0.04 per share, providing an annual yield of approximately 0.5% which is competitive with peer companies of a similar size. This represents a reduction of $0.12 per share from the amount paid in October 2008, or approximately $14 million. Rather than paying a higher dividend, we applied these funds to the repurchase of one million shares of common stock which we believe will create more long-term value for our shareholders considering the current low market valuation1 of our shares.”

Mr. Sheffield continued, “We have cut our 2009 capital spending to $250 million to $300 million to ensure free cash flow in the current low commodity-price environment. This free cash flow will be used to repurchase shares and reduce debt, supporting our commitment to increase net asset value per share while maintaining or enhancing financial flexibility.”

Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, with operations in the United States, South Africa and Tunisia. For more information, visit Pioneer’s website at www.pxd.com.

1 Pioneer’s stock is currently trading on a Total Enterprise Value basis at approximately $5 per barrel oil equivalent of total proved reserves. Total Enterprise Value is a metric used by equity analysts to place valuations on companies and is calculated by multiplying Pioneer’s stock price by the number of common shares outstanding, adding net debt to this amount and dividing the sum by the Company’s proved reserves ([$13.80 per share as of March 4, 2009 X 114.5 million shares outstanding at year-end 2008 + $2.9 billion net debt at year-end 2008] / 960 million barrels oil equivalent proved reserves at year-end 2008 = approximately $4.70 per BOE).

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, the costs and results of drilling and operations, Pioneer's ability to implement its business plans (including its plan to repurchase stock), 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, and uncertainties about estimates of reserves. 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.

Source: Pioneer Natural Resources Company

Pioneer Natural Resources
Investors:
Frank Hopkins, 972-969-4065
or
Matt Gallagher, 972-969-4017
or
Media and Public Affairs:
Susan Spratlen, 972-969-4018

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