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

DALLAS--(BUSINESS WIRE)--Aug. 7, 2007--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 RESOURCES
                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 RESOURCES
      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 RESOURCES 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 RESOURCES 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 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    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 RESOURCES 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 RESOURCES 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.

CONTACT: 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

SOURCE: Pioneer Natural Resources Company

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