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Pioneer Reports Fourth Quarter and Full Year 2006 Results

DALLAS--(BUSINESS WIRE)--Feb. 6, 2007--Pioneer Natural Resources Company (NYSE:PXD) today announced financial and operating results for the quarter and year ended December 31, 2006.

    --  Net income for the fourth quarter was $28 million, or $.22 per
        diluted share.

    --  Fourth quarter oil and gas sales from continuing operations
        averaged 100,799 barrels oil equivalent per day (BOEPD).

    --  North American production for the year rose 12% from
        equivalent volumetric production payment (VPP) adjusted 2005
        levels.

    --  Total production rose 7% to 35.9 million barrels oil
        equivalent (MMBOE) from equivalent VPP adjusted 2005 levels.
        On a per share basis, total production was up 19%.

    --  During 2006, 8.8 million shares were repurchased at $39.16 per
        share, essentially completing the $1 billion share repurchase
        program authorized by the board of directors in September
        2005.

    --  Net debt-to-book capitalization ended the year at 33%,
        reflecting the Company's strong balance sheet.

    --  Net proved reserves of 91 MMBOE were added in 2006 at a
        finding and development cost of $18.36 per barrel oil
        equivalent (BOE), resulting in reserve replacement of 200% of
        production.

Income from continuing operations for the fourth quarter of 2006 was $27 million, or $.22 per diluted share, as compared to $83 million, or $.64 per diluted share, for the fourth quarter of 2005. Income from continuing operations for the fourth quarter of 2006 included the following unusual items:

    --  incremental reclamation charge of $33 million ($21 million or
        $.17 per diluted share after taxes) resulting from the denial
        of the Company's application to "reef-in-place" the debris
        from East Cameron 322 which was destroyed in Hurricane Rita,

    --  estimated insurance recoveries for debris removal associated
        with East Cameron 322 of $43 million ($27 million or $.22 per
        diluted share after taxes) and

    --  a charge of $18 million ($13 million or $.11 per diluted share
        after taxes) related to previously drilled discoveries that
        had been suspended pending additional commercialization,
        appraisal and/or technical work.

Scott D. Sheffield, Pioneer's Chairman and CEO, stated, "Throughout 2006, we demonstrated that we can deliver strong, consistent production growth in North America. We expanded our resource base and made significant progress on two multi-year development projects. Our low-risk onshore development programs continue to deliver high returns, and with the contributions from our resource plays, especially in the Edwards Trend, and the initiation of production from the South Coast Gas project during the second half of 2007, we've laid a strong foundation for achieving our 10+% production growth target for 2007."

For the twelve months ended December 31, 2006, net income was $740 million, or $5.81 per diluted share, compared to $535 million, or $3.80 per diluted share for the prior year. Income from continuing operations was $172 million, or $1.36 per diluted share, compared to income from continuing operations of $195 million, or $1.40 per diluted share, for the same period in 2005.

Operations Review

For 2006, Pioneer posted outstanding operating results, drilling approximately 1,100 wells with 96% success. In the Permian Basin, Pioneer drilled over 300 wells in 2006, up from 190 wells during 2005, and increased Spraberry production by 21%. Successful drilling in the deeper Wolfcamp formation contributed to these strong results. The Company completed several attractive bolt-on acquisitions which added approximately 230,000 gross leasehold acres in the Spraberry field with estimated resource potential of more than 50 MMBOE.

In the Raton field, Pioneer drilled approximately 300 wells in 2006 and increased annual production by 10%, supported by pipeline expansion and improved compression. In South Texas, Pioneer focused on testing prospects with potential to further expand the Edwards Trend play, drilling six new discoveries with total program success of 88%.

In Canada, annual production rose 18% during 2006, supported by a 150-well Horseshoe Canyon CBM drilling program. In Tunisia, drilling success continued in the Adam Concession during 2006 and was extended to two adjacent blocks in early 2007. Recent discoveries in each of the three areas have tested approximately 13,000 BOPD on a combined gross basis. New 3-D seismic was acquired during 2006 to further optimize the drilling program going forward.

On the North Slope of Alaska, Pioneer completed the construction, contouring and armoring of the gravel drill site for its Oooguruk development project during 2006. Currently, winter-access construction activities are underway with development drilling anticipated to begin in late 2007 and first oil production in 2008.

Offshore South Africa, significant progress was made on the South Coast Gas project during 2006. Development wells were drilled and subsea equipment was fabricated in anticipation of first production during the second half of 2007.

Tim Dove, Pioneer's President and Chief Operating Officer, stated, "I congratulate our operations teams for their success in executing the shift in our focus to lower-risk opportunities, primarily in North America. The strong results delivered in 2006 support our confidence in our people and our expanding portfolio of growth opportunities in achieving continued success in 2007."

Financial Review

Fourth quarter oil sales averaged 25,004 barrels per day (BPD) and natural gas liquids sales averaged 18,708 BPD. Gas sales in the fourth quarter averaged 343 MMcfpd. The reported price for oil was $61.67 per barrel and included $12.58 per barrel related to deferred revenue from VPPs for which production was not recorded. The price for natural gas liquids was $32.78 per barrel. The reported price for gas was $5.67 per Mcf, including $.58 per Mcf related to deferred revenue from VPPs for which production was not recorded.

Fourth quarter production costs averaged $10.52 per BOE and were less than expected due to lower than anticipated 2006 ad valorem taxes.

Exploration and abandonment costs were $96 million for the quarter and included $44 million of unsuccessful drilling costs, $18 million of costs associated with previously drilled discoveries that will not be developed (included with unusual items noted above), $32 million of geologic and geophysical expenses, including seismic and personnel costs, and $2 million of acreage and other costs. Net activity related to the abandonment of East Cameron 322 resulted in an increase to earnings of $10 million (included with unusual items noted above and representing incremental abandonment charges of $33 million more than offset by $43 million of estimated insurance recoveries).

Comparable sales for the fourth quarter 2005, adjusted to exclude discontinued operations from asset divestitures and assuming that the 2006 VPP volumes were in place for all of the 2005 quarter, averaged 95,166 BOEPD. Adjusted to exclude only discontinued operations, sales averaged 103,906 BOEPD and included oil sales of 32,357 BPD, natural gas liquids sales of 19,568 BPD and gas sales of 312 MMcfpd. Reported prices for fourth quarter 2005 were $40.33 per barrel for oil, $37.22 per barrel for natural gas liquids and $8.10 per Mcf for gas, including $.76 per Mcf related to deferred revenue from VPPs for which production was not recorded.

Full-year 2006 oil and gas sales averaged 98,382 BOEPD, including oil sales of 24,540 BPD, natural gas liquids sales of 18,951 BPD and gas sales of 329 MMcfpd. Reported prices for 2006 were $65.51 per barrel for oil and included $12.96 per barrel related to deferred revenue from VPPs for which production was not recorded, $35.64 per barrel for natural gas liquids and $6.23 per Mcf for gas, including $.62 per Mcf related to deferred revenue from VPPs for which production was not recorded.

Comparable oil and gas sales for full-year 2005 (excluding discontinued operations and assuming the 2005 and 2006 VPP volumes were in place for all of 2005) averaged 91,640 BOEPD. Adjusted to exclude only discontinued operations from asset divestitures, full-year 2005 oil and gas sales averaged 101,366 BOEPD, including oil sales of 32,217 BPD, natural gas liquids sales of 17,906 BPD and gas sales of 307 MMcfpd. Reported prices for 2005 were $38.70 per barrel for oil, $32.12 per barrel for natural gas liquids and $7.02 per Mcf for gas, including $.68 per Mcf related to deferred revenue from VPPs for which production was not recorded.

Financial Outlook

First quarter 2007 production is forecasted to average 97,000 to 102,000 BOEPD, approximately 3,000 BOEPD lower than anticipated due to significant winter weather downtime in the Raton, Hugoton and West Panhandle fields during January. First quarter production costs (including production and ad valorem taxes and transportation costs) are expected to average $11.25 to $12.25 per BOE based on current NYMEX strip prices for oil and gas. Production costs per BOE are forecasted to be approximately $.25 per BOE higher in the first quarter as a result of the weather downtime and related repairs. Depreciation, depletion and amortization expense is expected to average $10.00 to $11.00 per BOE.

Total exploration and abandonment expense during the first quarter is expected to be $50 million to $90 million and could include up to $25 million of costs associated with high-impact drilling in the NPR-A on Alaska's North Slope. It could also include up to $30 million associated with lower-risk resource plays in the Edwards Trend in South Texas, Uinta/Piceance basins in the Rockies, Canada and Tunisia and up to $5 million for acreage and other expenses. In addition, exploration expense is expected to include up to $30 million for seismic investments and personnel, primarily related to the onshore resource plays Pioneer is currently progressing.

General and administrative expense is expected to be $30 million to $35 million, including performance-related compensation. Interest expense is expected to be $25 million to $28 million. Accretion of discount on asset retirement obligations is expected to be $1 million to $2 million.

The Company's first quarter effective income tax rate is expected to range from 37% to 45% based on current capital spending plans. Cash income taxes are expected to range from $5 million to $15 million, principally related to Tunisian income taxes.

The Company's financial results and oil and gas hedges are outlined on the attached schedules. First quarter 2007 amortization of deferred losses on terminated oil and gas hedges is expected to be $33 million.

Earnings Conference Call

On Wednesday, February 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) 310-1961 (confirmation code: 6881455) 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: 6881455).

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 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, 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, or complete its development projects as scheduled, access to and cost of capital, uncertainties about estimates of reserves, the assumptions underlying production forecasts, 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.

                    PIONEER NATURAL RESOURCES COMPANY
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)

                                             December 31, December 31,
                                                 2006         2005
                                             ------------ ------------
                                             (Unaudited)

                                  ASSETS

Current assets:
     Cash and cash equivalents               $     7,033  $    18,802
     Accounts receivable, net                    199,371      337,658
     Income taxes receivable                      24,693        1,198
     Inventories                                  95,131       79,659
     Prepaid expenses                             11,509       18,091
     Deferred income taxes                        82,927      158,878
     Other current assets, net                   115,894        9,518
                                             ------------ ------------

        Total current assets                     536,558      623,804
                                             ------------ ------------

Property, plant and equipment, at cost:
     Oil and gas properties, using the
      successful efforts method of
      accounting                               8,178,052    8,813,134
     Accumulated depletion, depreciation and
      amortization                            (1,895,408)  (2,577,946)
                                             ------------ ------------

        Total property, plant and equipment    6,282,644    6,235,188
                                             ------------ ------------

Deferred income taxes                                345            -
Goodwill                                         309,908      311,651
Other assets, net                                225,944      158,591
                                             ------------ ------------

                                             $ 7,355,399  $ 7,329,234
                                             ============ ============

                   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Accounts payable                        $   349,820  $   345,204
     Interest payable                             31,008       40,314
     Income taxes payable                         12,865       22,470
     Deferred revenue                            181,232      190,327
     Other current liabilities                   312,054      435,040
                                             ------------ ------------

        Total current liabilities                886,979    1,033,355
                                             ------------ ------------

Long-term debt                                 1,497,162    2,058,412
Deferred income taxes                          1,172,507      767,329
Deferred revenue                                 483,279      664,511
Other liabilities and minority interests         330,801      588,525
Stockholders' equity                           2,984,671    2,217,102
                                             ------------ ------------

                                             $ 7,355,399  $ 7,329,234
                                             ============ ============
                 PIONEER NATURAL RESOURCES COMPANY
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (in thousands, except for per share data)

                           Three months ended       Year ended
                               December 31,        December 31,
                           ------------------- ---------------------
                             2006      2005       2006        2005
                           --------- --------- ----------- -----------

Revenues and other income:
  Oil and gas              $376,905  $419,398  $1,582,049  $1,453,240
  Interest and other         16,642     9,595      58,723      31,531
  Gain (loss) on
   disposition of assets,
   net                       (3,707)   57,202      (7,891)     59,827
                           --------- --------- ----------- -----------

                            389,840   486,195   1,632,881   1,544,598
                           --------- --------- ----------- -----------

Costs and expenses:
  Oil and gas production     97,539    93,046     398,257     346,439
  Depletion, depreciation
   and amortization          93,845    84,801     359,523     299,944
  Impairment of long-lived
   assets                         -         -           -         644
  Exploration and
   abandonments              96,065    48,445     264,145     163,323
  General and
   administrative            29,694    30,336     121,830     114,237
  Accretion of discount on
   asset retirement
   obligations                1,356     1,026       4,826       4,209
  Interest                   24,104    35,075     107,032     126,086
  Hurricane activity, net   (10,000)    7,000      32,000      39,813
  Other                       4,688    40,698      36,280      99,437
                           --------- --------- ----------- -----------

                            337,291   340,427   1,323,893   1,194,132
                           --------- --------- ----------- -----------

Income from continuing
 operations before
income taxes                 52,549   145,768     308,988     350,466
Income tax provision        (25,472)  (62,598)   (136,666)   (155,832)
                           --------- --------- ----------- -----------

Income from continuing
 operations                  27,077    83,170     172,322     194,634
Income from discontinued
 operations, net of tax         609    57,609     567,409     339,934
                           --------- --------- ----------- -----------
Net income                 $ 27,686  $140,779  $  739,731  $  534,568
                           ========= ========= =========== ===========

Basic earnings per share:
  Income from continuing
   operations              $    .22  $    .66  $     1.39  $     1.42
  Income from discontinued
   operations, net of tax       .01       .45        4.56        2.48
                           --------- --------- ----------- -----------
  Net income               $    .23  $   1.11  $     5.95  $     3.90
                           ========= ========= =========== ===========

Diluted earnings per
 share:
  Income from continuing
   operations              $    .22  $    .64  $     1.36  $     1.40
  Income from discontinued
   operations, net of tax         -       .44        4.45        2.40
                           --------- --------- ----------- -----------
  Net income               $    .22  $   1.08  $     5.81  $     3.80
                           ========= ========= =========== ===========

Weighted average shares
 outstanding:
  Basic                     120,914   127,243     124,359     137,110
                           ========= ========= =========== ===========
  Diluted                   123,067   131,465     127,608     141,417
                           ========= ========= =========== ===========
                    PIONEER NATURAL RESOURCES COMPANY
        UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)

                          Three months ended         Year ended
                             December 31,           December 31,
                         --------------------- -----------------------
                            2006       2005       2006        2005
                         ---------- ---------- ---------- ------------

Cash flows from
 operating activities:
  Net income             $  27,686  $ 140,779  $ 739,731  $   534,568
  Adjustments to
   reconcile net income
   to net cash provided
   by operating
   activities:
    Depletion,
     depreciation and
     amortization           93,845     84,801    359,523      299,944
    Impairment of long-
     lived assets                -          -          -          644
    Exploration
     expenses, including
     dry holes              62,160     18,731    148,077       53,489
    Hurricane activity      33,000      7,000     75,000       39,813
    Deferred income
     taxes                  44,391     44,228    154,911      104,987
    Loss (gain) on
     disposition of
     assets, net             3,707    (57,202)     7,891      (59,827)
    Loss on
     extinguishment of
     debt                        -          -      8,076       25,975
    Accretion of
     discount on asset
     retirement
     obligations             1,356      1,026      4,826        4,209
    Discontinued
     operations              6,830    114,076   (537,073)     376,952
    Interest expense         3,520      1,844     11,042        4,399
    Commodity hedge
     related activity       (2,078)    30,306    (11,498)      21,237
    Amortization of
     stock-based
     compensation            6,708      7,238     32,065       26,857
    Amortization of
     deferred revenue      (47,096)   (21,817)  (190,327)     (75,773)
    Other noncash items      1,571     10,182     15,589       19,940
  Changes in operating
   assets and
   liabilities, net of
   effects from
   acquisitions and
   dispositions:
    Accounts receivable,
     net                   (40,454)   (82,760)   121,360     (128,015)
    Income taxes
     receivable            (23,426)       382    (23,495)      (1,198)
    Inventories              4,053    (15,281)   (48,060)     (36,948)
    Prepaid expenses         4,517        201      4,808       (7,504)
    Other current
     assets, net           (44,531)      (484)   (42,484)         972
    Accounts payable       (14,832)    60,335    (36,085)      83,960
    Interest payable         4,976     18,842     (6,500)      (7,115)
    Income taxes payable   (21,515)     3,345     (3,695)       8,950
    Other current
     liabilities            (6,230)     1,677    (28,854)     (13,362)
                         ---------- ---------- ---------- ------------

Net cash provided by
 operating activities       98,158    367,449    754,828    1,277,154
Net cash provided by
 (used in) investing
 activities               (452,597)  (217,514)   145,515       84,734
Net cash provided by
 (used in) financing
 activities                261,683   (195,552)  (913,543)  (1,353,634)
                         ---------- ---------- ---------- ------------

Net increase (decrease)
 in cash and cash
 equivalents               (92,756)   (45,617)   (13,200)       8,254
Effect of exchange rate
 changes on cash and
 cash equivalents             (283)       (89)     1,431        3,291
Cash and cash
 equivalents, beginning
 of period                 100,072     64,508     18,802        7,257
                         ---------- ---------- ---------- ------------

Cash and cash
 equivalents, end of
 period                  $   7,033  $  18,802  $   7,033  $    18,802
                         ========== ========== ========== ============
                  PIONEER NATURAL RESOURCES COMPANY
                  SUMMARY PRODUCTION AND PRICE DATA
                             (Unaudited)

                               Three months ended      Year ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------

Average Daily Sales
 Volumes from
 Continuing
 Operations:
   Oil (Bbls) -      U.S.        18,639    23,877    17,716    21,942
                     Canada         347       258       311       210
                     Africa       6,018     8,222     6,513    10,065
                               --------- --------- --------- ---------
                     Worldwide   25,004    32,357    24,540    32,217
                               ========= ========= ========= =========

   Natural gas       U.S.
    liquids (Bbls) -             18,156    19,087    18,488    17,403
                     Canada         552       481       463       503
                               --------- --------- --------- ---------
                     Worldwide   18,708    19,568    18,951    17,906
                               ========= ========= ========= =========

   Gas (Mcf) -       U.S.       291,509   274,671   284,732   271,033
                     Canada      46,280    37,220    43,420    36,427
                     Africa       4,740         -     1,195         -
                               --------- --------- --------- ---------
                     Worldwide  342,529   311,891   329,347   307,460
                               ========= ========= ========= =========

Average Daily Sales
 Volumes from
 Discontinued
 Operations:
   Oil (Bbls) -      U.S.             -     4,688     2,400     5,280
                     Argentina        -     7,564     2,515     7,869
                     Canada           -         -         -        28
                               --------- --------- --------- ---------
                     Worldwide        -    12,252     4,915    13,177
                               ========= ========= ========= =========

   Natural gas       U.S.
    liquids (Bbls) -                  -         -         -        65
                     Argentina        -     1,854       421     1,824
                     Canada           -         -         -       112
                               --------- --------- --------- ---------
                     Worldwide        -     1,854       421     2,001
                               ========= ========= ========= =========

   Gas (Mcf) -       U.S.           (36)  175,615    36,038   230,171
                     Argentina        -   140,025    43,905   137,032
                     Canada        (114)        -        14     6,489
                               --------- --------- --------- ---------
                     Worldwide     (150)  315,640    79,957   373,692
                               ========= ========= ========= =========

Average Reported
 Prices (a):
   Oil (per Bbl) -   U.S.      $  62.45  $  33.71  $  65.73  $  32.01
                     Canada    $  54.02  $  52.99  $  65.57  $  52.12
                     Africa    $  59.72  $  59.16  $  64.91  $  53.00
                     Worldwide $  61.67  $  40.33  $  65.51  $  38.70

   Natural gas       U.S.
    liquids (per
    Bbl) -                     $  32.47  $  36.80  $  35.24  $  31.72
                     Canada    $  43.23  $  53.88  $  51.47  $  45.79
                     Worldwide $  32.78  $  37.22  $  35.64  $  32.12

   Gas (per Mcf) -   U.S.      $   5.72  $   7.73  $   6.15  $   6.94
                     Canada    $   5.33  $  10.83  $   6.75  $   7.67
                     Africa    $   5.97  $      -  $   5.97  $      -
                     Worldwide $   5.67  $   8.10  $   6.23  $   7.02

(a) Average prices are attributable to continuing operations and
 include the results of hedging activities and amortization of VPP
 deferred revenue.
                  PIONEER NATURAL RESOURCES 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        Year ended
                              December 31,          December 31,
                          -------------------- -----------------------
                             2006      2005       2006        2005
                          ---------- --------- ----------- -----------

Net income                $  27,686  $140,779  $  739,731  $  534,568
Depletion, depreciation
 and amortization            93,845    84,801     359,523     299,944
Impairment of long-lived
 assets                           -         -           -         644
Exploration and
 abandonments                96,065    48,445     264,145     163,323
Hurricane activity           33,000     7,000      75,000      39,813
Loss on extinguishment of
 debt                             -         -       8,076      25,975
Accretion of discount on
 asset retirement
 obligations                  1,356     1,026       4,826       4,209
Interest expense             24,104    35,075     107,032     126,086
Income tax provision         25,472    62,598     136,666     155,832
Loss (gain) on
 disposition of assets,
 net                          3,707   (57,202)      7,891     (59,827)
Discontinued operations       3,023   115,353    (385,737)    392,854
Commodity hedge related
 activity                    (2,078)   30,306     (11,498)     21,237
Amortization of stock-
 based compensation           6,708     7,238      32,065      26,857
Amortization of deferred
 revenue                    (47,096)  (21,817)   (190,327)    (75,773)
Other noncash items           1,571    10,182      15,589      19,940
                          ---------- --------- ----------- -----------

    EBITDAX (a)             267,363   463,784   1,162,982   1,675,682

Less:        Cash
              interest
              expense       (20,584)  (33,231)    (95,990)   (121,687)
             Current
              income
              taxes          22,726   (18,375)   (130,936)    (57,683)
                          ---------- --------- ----------- -----------

  Discretionary cash flow
   (b)                      269,505   412,178     936,056   1,496,312

Less:        Cash
              exploration
              expense       (33,905)  (30,986)   (118,223)   (118,898)
             Changes in
              operating
              assets and
              liabilities  (137,442)  (13,743)    (63,005)   (100,260)
                          ---------- --------- ----------- -----------

Net cash provided by
 operating activities     $  98,158  $367,449  $  754,828  $1,277,154
                          ========== ========= =========== ===========

(a) "EBITDAX" represents earnings before depletion, depreciation and
 amortization expense; impairment of long-lived assets; exploration
 and abandonments; hurricane activity; accretion of discount on asset
 retirement obligations; interest expense; income taxes; gain or loss
 on the disposition of assets; loss on extinguishment of debt; 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 RESOURCES COMPANY

                       SUPPLEMENTAL INFORMATION
                        As of February 5, 2007

                    Open Commodity Hedge Positions
----------------------------------------------------------------------


                                         2007
                  ---------------------------------------------------
                       First        Second      Third       Fourth
                      Quarter      Quarter     Quarter      Quarter
                  --------------- ---------- ------------ -----------

Average Daily Oil
 Production
Hedged:
  Swap Contracts:
  Volume (Bbl)               689          -            -           -
  NYMEX price
   (Bbl)             $     30.58   $      -   $        -    $      -

Average Daily Gas
 Production
Hedged:
  Swap Contracts:
  Volume (MMBtu)         107,063    185,000      185,000     185,000
  NYMEX price
   (MMBtu) (a)       $      8.69   $   8.54   $     8.54    $   8.54
  Collar
   Contracts:
  Volume (MMBtu)          25,000          -            -           -
  NYMEX price
   (MMBtu) (a)
    Ceiling          $     12.82   $      -   $        -    $      -
    Floor            $     10.00   $      -   $        -    $      -




                    2007         2008
                  --------- ----------

Average Daily Oil
 Production
Hedged:
  Swap Contracts:
  Volume (Bbl)         170      4,000
  NYMEX price
   (Bbl)          $  30.58  $   32.00

Average Daily Gas
 Production
Hedged:
  Swap Contracts:
  Volume (MMBtu)   165,783     15,000
  NYMEX price
   (MMBtu) (a)    $   8.56  $    9.10
  Collar
   Contracts:
  Volume (MMBtu)     6,164          -
  NYMEX price
   (MMBtu) (a)
    Ceiling       $  12.82  $       -
    Floor         $  10.00  $       -


(a)   Approximate, based on historical differentials to index prices.
Amortization of Volumetric Production Payment Proceeds and Derivative
                          Gains and (Losses)
                            (in thousands)
----------------------------------------------------------------------


                                                 2007
                                  -----------------------------------
                                   First    Second   Third    Fourth
                                  Quarter  Quarter  Quarter  Quarter
                                  -------- -------- -------- --------

Unamortized VPP proceeds, net of
 transaction costs                $43,564  $43,828  $44,058  $43,766
Net hedge obligations assigned      1,470    1,495    1,520    1,531
                                  -------- -------- -------- --------

Total deferred revenue (a)         45,034   45,323   45,578   45,297

Less derivative gains and
 (losses) to be recognized in
 pretax earnings (b)               (3,765)     148      424     (347)
                                  -------- -------- -------- --------
Total VPP impact to pretax
 earnings                         $41,269  $45,471  $46,002  $44,950
                                  ======== ======== ======== ========





                                          2008    Thereafter   Total
                                       ---------- ---------- ---------

Unamortized VPP proceeds, net of
 transaction costs                      $152,304   $308,018  $635,538
Net hedge obligations assigned             5,834     17,123    28,973
                                       ---------- ---------- ---------

Total deferred revenue (a)               158,138    325,141   664,511

Less derivative gains and (losses) to
 be recognized in pretax earnings (b)     (4,373)   (12,744)  (20,657)
                                       ---------- ---------- ---------
Total VPP impact to pretax earnings     $153,765   $312,397  $643,854
                                       ========== ========== =========


(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, which will be reflected in oil and
 gas revenues.
                  PIONEER NATURAL RESOURCES COMPANY

                       SUPPLEMENTAL INFORMATION
                        As of February 5, 2007
                             (continued)


               Deferred Losses on Terminated Hedges (a)
                            (in thousands)
----------------------------------------------------------------------


                                              2007
                             ----------------------------------------
                               First     Second     Third    Fourth
                              Quarter    Quarter   Quarter   Quarter
                             ---------- --------- --------- ---------

Commodity hedge losses (b)    $(33,388) $(38,849) $(38,410) $(36,220)
Debt hedge losses (c)              (58)      (87)      (89)      (91)
                             ---------- --------- --------- ---------

Total deferred losses         $(33,446) $(38,936) $(38,499) $(36,311)
                             ========== ========= ========= =========





                                   2008      Thereafter      Total
                             -------------- ------------  ------------

Commodity hedge losses (b)     $   (94,653)  $        -    $ (241,520)
Debt hedge losses (c)                 (371)      (4,413)       (5,109)
                             -------------- ------------  ------------

Total deferred losses          $   (95,024)  $   (4,413)   $ (246,629)
                             ============== ============  ============



(a) Excludes deferred hedge gains and losses on terminated VPPs.
(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.

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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