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Pioneer Plans to Form Two Master Limited Partnerships

DALLAS--(BUSINESS WIRE)--April 23, 2007--Pioneer Natural Resources Company (NYSE:PXD) today announced that its board of directors has approved a plan to form two new publicly-traded master limited partnerships (MLPs) which will own interests in long-lived, low-decline oil and gas assets.

It is anticipated that the first MLP to be formed will initially acquire an interest in a portion of Pioneer's long-lived proved developed oil, gas and natural gas liquids reserves in the Spraberry field in West Texas. Pioneer expects to file with the U.S. Securities and Exchange Commission (SEC) a registration statement for the initial public offering of units of this MLP during the third quarter of 2007 and that the offering will be made during the fourth quarter of 2007. Approximately $250 million of these partnership units are expected to be offered to the public, subject to market conditions.

It is anticipated that a second MLP will initially acquire an interest in a portion of Pioneer's long-lived proved developed gas reserves in the Raton Basin field in southern Colorado. Approximately $250 million of these partnership units are expected to be offered to the public during 2008, subject to market conditions.

At the close of the initial public offerings, Pioneer will be the general partner of each of the MLPs and hold a majority ownership in the units of each of the MLPs. Pioneer will continue to operate and own a partial working interest in the assets that will form the MLPs.

The purpose of the MLP offerings is to create vehicles that would: provide Pioneer the opportunity to substantially increase the valuation of Pioneer's proved reserves due to the valuation differences between MLPs and Pioneer; allow Pioneer to more effectively pursue the acquisition of reserves through joint bidding with the MLPs; and afford Pioneer an opportunity to sell its proved reserves to the MLPs and apply the proceeds (including the proceeds from the initial offerings) to fund low-risk opportunities and share repurchases, while maintaining financial flexibility.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations of offers to buy, or any sales of securities will only be made in accordance with the registration requirements of the Securities Act of 1933 or an exemption therefrom.

Due to limitations imposed by U.S. securities laws, Pioneer will not be holding a conference call to discuss the content of this release.

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

The statements in this News Release are forward-looking statements that are subject to a number of risks and uncertainties including, among other things, the risks and uncertainties that one or both of the master limited partnerships will not be formed, will not complete an offering of securities, will not raise the planned amount of capital even if an offering of securities is completed, and will not be able to complete its proposed actions on the timetable indicated. Furthermore, the structure, nature, purpose, and proposed assets and liabilities of the master limited partnerships may change materially from those depicted herein. No assurance can be given as to the value of the master limited partnerships, the price at which their securities may trade, or whether a liquid market for those securities will develop or be maintained. In addition, Pioneer and the master limited partnerships will be subject to the risks normally attendant to businesses in the oil and gas exploration and production industry, including the volatility of oil and gas 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, litigation, the costs and results of drilling and operations, availability of drilling equipment, the ability to replace reserves, the ability to implement their business plans or complete their 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, and acts of war or terrorism. Pioneer will also be subject to risks of international operations and associated international political and economic instability. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission. Any duty to update these statements is disclaimed except as required by law.

CONTACT: Pioneer Natural Resources Company
Investors:
Frank Hopkins or Scott Rice, 972-444-9001
or
Media and Public Affairs:
Susan Spratlen, 972-444-9001

SOURCE: Pioneer Natural Resources Company

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