Pioneer Reports Full Year 2006 Results

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. -- www.tsx.com