Scott Sheffield, chairman and chief executive officer, stated, “While our first quarter financial results reflect the current low commodity price environment, our operating results were strong as Pioneer’s low-decline assets continue to perform above expectations. The aggressive steps we have taken to reduce drilling and production costs, coupled with a $60+ oil price strip for 2010 and 2011 and some recently added commodity price derivatives for this time frame, are giving us increasing confidence that we can get back to a meaningful oil drilling program in the Spraberry field and in Tunisia in early 2010.”

“We remain committed to a free cash flow model, with excess cash flow being used to reduce debt. The company’s 2009 capital program is expected to generate annual production growth of at least 5% per share, with about 80% of the capital focused on oil-related activities. Of the remaining 20% for gas-related activities, we have recently reallocated capital for additional appraisal activity in the Eagle Ford Shale play.”

Operations Update

In the Spraberry field, first quarter 2009 daily production was up 23% compared to first quarter 2008 reflecting the success of the 2008 drilling program. First quarter 2009 production totaled 37 thousand barrels oil equivalent per day (MBOEPD), of which about 2,500 barrels per day (BPD) was associated to the sales of inventoried natural gas liquids (NGLs) that were not able to be fractionated and sold in the fourth quarter as a result of hurricane damage to third-party fractionation facilities. Under the decreased 2009 capital spending program, Pioneer Natural Resources drilled 17 Spraberry wells during the first quarter of 2009. The company at present has no rigs drilling in the Spraberry field and is continuing to focus its efforts on achieving additional drilling and production cost reductions. Pioneer Natural Resources has continued its assessment of shale/silt zones in the Spraberry field with encouraging results. With declining costs, new oil price derivatives and the strip price for oil exceeding $60 per barrel for 2010 and 2011, the outlook for restarting drilling in early 2010 is improving.

In South Texas, Pioneer Natural Resources first quarter 2009 daily production rose 28% against the previous year quarter as a result of a strong drilling program in 2008. The company is fracing its first horizontal well in the Eagle Ford shale play where it holds a considerable acreage position in the gas window. The Eagle Ford shale overlays the Edwards Trend in the 310,000 acres that the company holds, and Pioneer Natural Resources plans to drill its second horizontal well in third quarter 2009 to help delineate the field and review resource potential.

On the North Slope of Alaska, production from the company’s Oooguruk field averaged 3,889 BPD during the first quarter 2009. Pioneer Natural Resources water injection plans were delayed until March 2009 pending repairs to a third-party water delivery system. Water injection rates remain limited due to constraints in the third-party water delivery system. These limitations will impact production from high-rate Kuparuk wells through most of the second quarter as water injection is critical to managing the reservoir and maximizing recoverable reserves. The company intends to drill and fracture stimulate two Nuiqsut production wells this summer and has forecast 2009 net production to average 5,000 BPD, in spite of the existing water injection constraints. As development drilling continues, production is at present forecast to steadily rise to 10,000 BPD to 14,000 BPD in 2011. Strong well performance and the results of this summer’s activities will be assessed later in 2009 to determine potential upside to the production forecast.

In South Africa, first quarter 2009 daily production was up 43% compared to the year-ago quarter in 2008 reflecting the beginning of production from the most prolific well in Pioneer Natural Resources’ South Coast gas project during fourth quarter 2008.

Daily production in Tunisia was up 60% compared to the year-ago quarter. Infrastructure is currently in place and has allowed production from earlier drilled exploration wells to be brought on line.

Cost Reduction Initiatives

Pioneer Natural Resources is continuing to work with service providers to reduce drilling and completion costs. Since the third quarter of 2008, when drilling and completion costs peaked, the company has achieved a decrease of 25% in the cost of drilling and completing a well and is targeting an additional 5% to 10% reduction.

Pioneer Natural Resources asset teams are also implementing initiatives to decrease 2009 lease operating expense (LOE) by at least 15% compared to 2008. The company is targeting cost reductions in electricity, water disposal and compression rental costs while expanding its use of integrated services.

Credit Facility Amendment and Financial Flexibility

Effective April 29, 2009, Pioneer Natural Resources and its lenders amended its unsecured senior credit facility, a five-year $1.5 billion revolving line of credit. While Pioneer Natural Resources was well within compliance with all of its debt covenants, the company amended the facility to make sure maximum liquidity in lower price environments. Pioneer Natural Resources continues to target free cash flow for 2009, with excess cash flows to be used to reduce debt.

The amendment changes the ratio of the net present value (NPV) of Pioneer Natural Resources oil and gas properties to total debt from 1.75-1 to 1.5-1 through March 31, 2011, further strengthening its financial flexibility. The agreement was also updated to comprise Pioneer Natural Resources ownership of common units of Pioneer Southwest Energy Partners L.P. (Pioneer Southwest) in the computation of NPV at 75% of market value. The covenant requiring the company to maintain a ratio of total debt to total capitalization of no more than 0.60-1 was not changed.

The amendment also raised the spread on Pioneer Natural Resources’ borrowing rates from 0.75% to 2.00% and the commitment fee on the undrawn amounts under the credit facility from 0.125% to 0.375%. The terms of the amendment are covered more fully in the Form 8-K Pioneer filed today.

Pioneer Natural Resources’ continues to assess the merits of selling certain oil and gas assets to Pioneer Southwest. The company cannot predict the timing or ultimate outcome of this action as it is subject to market conditions, among other factors.

First Quarter 2009 Financial Review

First quarter sales averaged 127,005 BOEPD, consisting of oil sales averaging 34,050 BPD, NGL sales averaging 22,699 BPD and gas sales averaging 422 million cubic feet per day (MMCFPD). First quarter oil production comprised about 2,500 BPD of sales of inventoried NGLs that were not able to be fractionated and sold in the fourth quarter as a result of hurricane damage to third-party fractionation facilities.

The reported first quarter average price for oil was $52.82 per barrel and comprised $8 per barrel associated to deferred revenue from volumetric production payments (VPPs) for which production was not recorded. The reported price for NGLs was $22.97 per barrel. The reported price for gas was $4.35 per thousand cubic feet (MCF), including $.32 per MCF related to deferred revenue from VPPs for which production was not recorded.

First quarter production costs averaged $12.31 per BOE, down $2.66, or 18%, from the fourth quarter of 2008 as a result of Pioneer Natural Resources cost decrease initiatives and reduced production taxes associated with lower commodity prices.