^{EXHIBIT 99.1}

^{News Release}

^{Pioneer Reports Second Quarter 2008 Results}

^{Dallas, Texas, August 4, 2008 -- Pioneer Natural Resources Company (NYSE:PXD) today announced financial and operating results for the quarter ended June 30, 2008.}

^•

^{Reported second quarter net income of $159 million, or $1.32 per diluted share}

^•

^{Increased average daily oil and gas sales to 113,987 barrels oil equivalent per day (BOEPD); 19% above sales for the second quarter of 2007 (excluding 2007 sales from divested Canada assets)}

^•

^{Posted strong production growth in Spraberry, Raton, Edwards, Tunisia and Alaska}

^•

^{Increased 2008 production growth target to 18% to 20% from 14% versus 2007 in response to strong production growth to date, improved drilling efficiencies (more wells per rig) and operational success}

^•

^{Raised 2008 capital budget by $300 million to fund a portion of the incremental production growth and to cover rising costs for tubulars, fuel and pumping services}

^•

^{Advanced enhanced recovery initiatives and shale interval testing in Spraberry}

^•

^{Confirmed contribution from two additional zones in Pierre Shale}

^•

^{Drilled three new discovery wells in Tunisia}

^•

^{Commenced production at Oooguruk on the North Slope of Alaska}

^•

^{Closed the Pioneer Southwest Energy Partners L.P. IPO generating net proceeds of $163 million}

^{Scott Sheffield, Chairman and CEO, stated, “We are extremely pleased with the strong and consistent production growth our core operating areas continue to deliver. This strong performance and our investment discipline will result in the Company generating free cash flow beginning this year. Pioneer is at a significant inflection point, as we expect our 2009
discretionary cash flow to increase by approximately 50% and our earnings to double from 2008 levels based on current commodity prices and costs.”}

^{2008 Production Growth Target}

^{Based on Pioneer’s successful year-to-date production growth results and its remaining planned drilling activity, the Company has increased its 2008 production growth forecast to 18% to 20% from 14% compared to 2007. Pioneer has increased its 2008 capital budget from $1.0 billion to $1.3 billion (which excludes acquisitions, asset retirement obligations, capitalized
interest and geological and geophysical G&A), and with the related increase in its 2008 production growth forecast, the Company expects to generate free cash flow for the year. The capital budget was increased to reflect drilling efficiencies (more wells per rig), operational success and today’s higher cost environment, primarily for tubulars, fuel and pumping services. More specifically, drilling efficiencies in the Spraberry and Edwards fields are allowing wells to be
drilled at a faster-than-expected pace which will result in the Company drilling and completing more wells during 2008. Additional development capital related to drilling success in the Edwards Trend and progressing front-end engineering planning for the Cosmopolitan project in Alaska is also being added to the 2008 budget.}

^{Financial Review}

^{Pioneer’s second quarter net income was $159 million, or $1.32 per diluted share. Cash flow from operating activities for the second quarter was $333 million.}

^{Second quarter oil sales averaged 30,229 barrels per day (BPD), natural gas liquids sales averaged 20,509 BPD and gas sales averaged 379 million cubic feet per day (MMCFPD).}

^{The reported second quarter average price for oil was $89.73 per barrel and included $9.46 per barrel related to deferred revenue from volumetric production payments (VPPs) for which production was not recorded. The reported price for natural gas liquids was $56.30 per barrel. The reported price for gas was $8.73 per thousand cubic feet (MCF), including $.39 per MCF
related to deferred revenue from VPPs for which production was not recorded.}

^{Second quarter production costs averaged $13.93 per BOE. Production costs were primarily impacted by higher production taxes related to the increase in commodity prices.}

^{Exploration and abandonment costs were $30 million for the quarter and included $1 million of acreage costs and $29 million of geologic and geophysical expenses, including seismic costs related to ongoing activities in the Edwards Trend and Tunisia and personnel costs.}

^{In May, Pioneer completed the initial public offering of common units in Pioneer Southwest Energy Partners L.P. (PSE) and received net proceeds of $163 million. Pioneer retains an ownership interest in PSE of approximately 68%.}

^Operations

^{In the Spraberry field, production increased 21% in the first half of 2008 compared to the first half of 2007. Pioneer is increasing its forecast for full-year 2008 Spraberry production growth from approximately 15% to more than 18%. Production growth is exceeding expectations due to the strong incremental contribution from the Wolfcamp formation, operational efficiencies
and a faster drilling pace related to improved drilling efficiency which has increased the number of wells being drilled per rig. The 2008 Spraberry drilling program is being expanded by 40 wells to 390 wells. Pioneer is currently running 17 rigs in the field and has drilled approximately 225 wells year-to-date.}

^{Early results from Pioneer’s 20-acre drilling, horizontal re-entry program and shale interval testing in the Spraberry field are encouraging. These results and the Company’s plans to continue to increase its drilling activity in the field support expectations for 15% compound average annual growth in Spraberry production through 2011.}

^{Pioneer’s Raton Basin production increased 24% in the first half of 2008 compared to the first half of 2007. The Company has successfully integrated the properties acquired in December 2007 and is very encouraged with Pierre Shale drilling and test results to date which confirmed contribution from two additional zones. Raton production growth is expected to exceed
15% for 2008 versus 2007. To accommodate longer-term growth, Pioneer has added firm pipeline capacity to transport 75 MMCFPD from Raton to the West Coast beginning in 2011.}

^{In the Edwards Trend in South Texas, Pioneer’s production for the first half of 2008 rose 56% from a year ago. Year-to-date, the Company has drilled 22 Edwards wells, benefiting from reduced drilling time related to rig improvements and wellbore design enhancements. As a result, the 2008 drilling program is being expanded from 35 wells to 40 wells. Pioneer is
steadily expanding infrastructure and treating capacity to accommodate new drilling and the higher producing rates seen in recent wells. The Company is also increasing its forecast for full-year 2008 Edwards Trend production growth from approximately 25% to more than 40%.}

^{Pioneer’s Barnett Shale drilling program is on track with seven operated wells drilled year-to-date. The Company plans to drill approximately 25 Barnett wells during 2008, including six wells operated by others. Early production results are in line with other wells in Parker County with peak-month daily rates averaging approximately 1 MMCFPD. Pioneer expects to
expand its Barnett drilling program to include four operated rigs during 2009, targeting production of 100 MMCFPD gas equivalent by 2011.}

^{In Tunisia, Pioneer continues to drill successful wells and expand its production facilities. During the second quarter, three successful wells were drilled and gross facility capacity in the Cherouq Concession was expanded to 10 thousand barrels of oil per day (MBOPD). Six to seven wells are planned for the second half of 2008 and gross facility capacity will be
further increased to 20 MBOPD during the fourth quarter. Pioneer’s net production from Tunisia is currently averaging more than 7.5 thousand barrels oil equivalent per day (MBOEPD), and the Company expects full-year 2008 production growth of 80% to 90% versus 2007.}

^{Offshore South Africa, Pioneer’s production from interests in the Sable oil field and the South Coast Gas (SCG) project averaged 3.7 MBOEPD during the second quarter. Late in the third quarter, it is anticipated that Sable oil production will be shut in to convert Sable’s gas re-injection well to a producing well. The Sable gas well is expected to be the
most productive well in the SCG system. Total gas equivalent production from SCG is expected to average approximately 10 MMCFPD to 15 MMCFPD net to Pioneer for the fourth quarter of 2008, rising to 30 MMCFPD to 35 MMCFPD net for the first half of 2009.}

^{During the second quarter of 2008, the Oooguruk project on the North Slope of Alaska commenced production operations. Following the completion of scheduled mid-year maintenance at third-party onshore production facilities, production will be reinitiated. Net sales are expected to reach 3 MBOPD to 4 MBOPD by year-end 2008 and gradually increase to 10 MBOPD to 14 MBOPD
by 2010 as development drilling continues.}

^{Financial Outlook}

^{Third quarter 2008 production is forecasted to average 114,000 BOEPD to 119,000 BOEPD. Production growth is expected to continue during the third quarter, driven primarily by increasing production from several of Pioneer’s core onshore areas (Spraberry, Edwards and Tunisia). The forecasted third quarter production range includes production that is attributable
to the public ownership in PSE. The expense estimates below also include amounts attributable to the public ownership in PSE.}

^{Third quarter production costs (including production and ad valorem taxes and transportation costs) are expected to average $13.50 to $14.50 per BOE based on current NYMEX strip prices for oil and gas. Depreciation, depletion and amortization expense is expected to average $10.75 to $11.75 per BOE.}

^{Total exploration and abandonment expense during the third quarter is expected to be $40 million to $70 million, including up to $45 million associated with drilling in lower-risk resource plays in the Edwards Trend and Tunisia and $35 million of seismic (principally in the Edwards Trend and Tunisia) and personnel costs.}

^{General and administrative expense is expected to be $35 million to $39 million. Interest expense is expected to be $36 million to $40 million. Accretion of discount on asset retirement obligations is expected to be $2 million to $4 million.}

^{Minority interest in consolidated subsidiaries’ net income is expected to be $8 million to $10 million, primarily reflecting the public ownership in PSE.}

^{The Company’s third quarter effective income tax rate is expected to range from 40% to 50% based on current capital spending plans. Cash taxes are expected to be $30 million to $40 million and are primarily attributable to Tunisia.}

^{Third quarter 2008 amortization of deferred losses on terminated oil and gas hedges is expected to be $30 million. The Company's financial results, oil, NGL and gas hedges and future VPP amortization are outlined on the attached schedules.}

^{Earnings Conference Call}

^{On Tuesday, August 5 at 11:00 a.m. Eastern Time, Pioneer will discuss its financial and operating results with an accompanying presentation. The call will be webcast on Pioneer’s website, www.pxd.com. The presentation will soon be available on Pioneer’s website for preview in advance of the call.At the website, select ‘INVESTORS’ 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 (877) 741-4245 (confirmation code: 1498320) 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: 1498320).}

^{Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, with operations in the United States, 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, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms,
international operations and associated international political and economic instability, litigation, the costs and results of drilling and operations, access to and availability of drilling equipment and transportation, processing and refining facilities, 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, uncertainties about estimates
of reserves and resource potential and the ability to add proved reserves in the future, the assumptions underlying production forecasts, quality of technical data, environmental and weather risks, and 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. In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on
it. Pioneer undertakes no duty to publicly update these statements except as required by law.}

^{Pioneer Natural Resources Contacts:}

^Investors

^{Frank Hopkins – 972-969-4065}

^{Matt Gallagher – 972-969-4017}

^{Media and Public Affairs}

^{Susan Spratlen – 972-969-4018}

^{PIONEER NATURAL RESOURCES COMPANY}

^{CONDENSED CONSOLIDATED BALANCE SHEETS}

^{(in thousands)}

	^{June 30,}			^{December 31,}
	²⁰⁰⁸			²⁰⁰⁷
	^(Unaudited)
^ASSETS

^{Current assets:}
^{Cash and cash equivalents}	^$	^43,282		^$	^12,171
^{Accounts receivable, net}		^378,664			^283,832
^{Income taxes receivable}		^49,448			^40,046
^Inventories		^131,973			^97,619
^{Prepaid expenses}		^8,477			^9,378
^{Deferred income taxes}		^238,446			^108,073
^{Other current assets, net}		^7,720			^213,936

^{Total current assets}		^858,010			^765,055

^{Property, plant and equipment, at cost:}
^{Oil and gas properties, using the successful efforts method of accounting}		^9,878,071			^9,251,113
^{Accumulated depletion, depreciation and amortization}		^(2,238,250	⁾		^(2,028,472	⁾

^{Total property, plant and equipment}		^7,639,821			^7,222,641

^{Deferred income taxes}		²⁴¹			^10,263
^Goodwill		^310,596			^310,870
^{Other assets, net}		^356,269			^308,152

	^$	^9,164,937		^$	^8,616,981

^{LIABILITIES AND STOCKHOLDERS' EQUITY}

^{Current liabilities:}
^{Accounts payable}	^$	^417,414		^$	^378,416
^{Interest payable}		^45,174			^42,020
^{Income taxes payable}		^40,954			^12,842
^{Deferred revenue}		^152,897			^158,138
^{Other current liabilities}		^682,860			^402,753

^{Total current liabilities}		^1,339,299			^994,169

^{Long-term debt}		^2,642,443			^2,755,491
^{Deferred income taxes}		^1,338,254			^1,229,677
^{Deferred revenue}		^251,447			^325,142
^{Minority interest in consolidated subsidiaries}		^50,869			^11,942
^{Other liabilities}		^416,337			^257,838
^{Stockholders' equity}		^3,126,288			^3,042,722

	^$	^9,164,937		^$	^8,616,981

^{PIONEER NATURAL RESOURCES COMPANY}

^{UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS}

^{(in thousands, except for per share data)}

^{Three months ended}

^{Six months ended}

^{June 30,}

²⁰⁰⁸

²⁰⁰⁷

²⁰⁰⁸

²⁰⁰⁷

^{Revenues and other income:}

^{Oil and gas}

^653,309

^419,792

^1,211,785

^773,374

^{Interest and other}

^8,479

^26,206

^33,503

^37,608

^{Gain (loss) on disposition of assets, net}

^3,901

^(1,669

⁾

^4,578

^(1,418

⁾

^665,689

^444,329

^1,249,866

^809,564

^{Costs and expenses:}

^{Oil and gas production}

^144,528

^105,378

^277,175

^194,826

^{Depletion, depreciation and amortization}

^114,679

^88,198

^224,306

^167,048

^{Impairment of long-lived assets}

^—

^17,891

^—

^17,891

^{Exploration and abandonments}

^30,088

^63,874

^68,766

^135,645

^{General and administrative}

^35,548

^29,350

^72,029

^61,974

^{Accretion of discount on asset retirement obligations}

^2,160

^1,691

^4,302

^3,323

^Interest

^38,281

^30,531

^75,734

^58,956

^{Hurricane activity, net}

^1,401

^47,000

^1,859

^60,548

^{Minority interest in consolidated subsidiaries' net} ^{income (loss)}

^6,227

¹⁹⁹

^6,966

^(1,192

⁾

^Other

^8,986

^7,025

^19,873

^14,705

^381,898

^391,137

^751,010

^713,724

^{Income from continuing operations before income taxes}

^283,791

^53,192

^498,856

^95,840

^{Income tax provision}

^(125,758

⁾

^(16,601

⁾

^(213,024

⁾

^(31,233

⁾

^{Income from continuing operations}

^158,033

^36,591

^285,832

^64,607

^{Income (loss) from discontinued operations, net of tax}

⁷⁹⁶

⁽¹¹¹

⁾

^2,736

^1,466

^{Net income}

^158,829

^36,480

^288,568

^66,073

^{Basic earnings per share:}

^{Income from continuing operations}

^1.33

^0.30

^2.42

^0.53

^{Income from discontinued operations,

net of tax}

^.01

^—

^.02

^0.01

^{Net income}

^1.34

^0.30

^2.44

^0.54

^{Diluted earnings per share:}

^{Income from continuing operations}

^1.31

^0.30

^2.39

^0.53

^{Income from discontinued operations,

net of tax}

^.01

^—

^.02

^0.01

^{Net income}

^1.32

^0.30

^2.41

^0.54

^{Weighted average shares outstanding:}

^Basic

^118,363

^121,226

^118,149

^121,374

^Diluted

^120,047

^122,776

^119,570

^122,847

^{PIONEER NATURAL RESOURCES COMPANY}

^{UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS}

^{(in thousands)}

^{Three months ended}

^{Six months ended}

^{June, 30}

²⁰⁰⁸

²⁰⁰⁷

²⁰⁰⁸

²⁰⁰⁷

^{Cash flows from operating activities:}

^{Net income}

^158,829

^36,480

^288,568

^66,073

^{Adjustments to reconcile net income to net cash}

^{provided by operating activities:}

^{Depletion, depreciation and amortization}

^114,679

^88,198

^224,306

^167,048

^{Impairment of long-lived assets}

^—

^17,891

^—

^17,891

^{Exploration expenses, including dry holes}

^1,034

^40,563

^4,582

^83,981

^{Hurricane activity}

^—

^47,000

^—

^66,000

^{Deferred income taxes}

^113,720

^52,938

^179,884

^62,414

^{Loss (gain) on disposition of assets, net}

^(3,901

⁾

^1,669

^(4,578

⁾

^1,418

^{Accretion of discount on asset retirement obligations}

^2,160

^1,691

^4,302

^3,323

^{Discontinued operations}

²⁵

^18,357

³⁷³

^34,799

^{Interest expense}

^4,408

^4,487

^7,880

^9,213

^{Commodity hedge related activity}

^7,851

^4,734

^15,516

^10,633

^{Amortization of stock-based compensation}

^8,241

^8,617

^17,221

^16,355

^{Amortization of deferred revenue}

^(39,457

⁾

^(45,322

⁾

^(78,936

⁾

^(90,356

⁾

^{Other noncash items}

^8,454

^3,124

^3,814

^(3,159

⁾

^{Change in operating assets and liabilities:}

^{Accounts receivable, net}

^(84,474

⁾

^15,789

^(98,535

⁾

⁵⁶²

^{Income taxes receivable}

^(9,327

⁾

^(49,156

⁾

^(9,403

⁾

^(36,598

⁾

^Inventories

^(14,471

⁾

^(11,393

⁾

^(40,643

⁾

^(9,404

⁾

^{Prepaid expenses}

¹⁶⁶

^4,063

^1,103

^5,219

^{Other current assets, net}

^5,191

⁽³⁹⁹

⁾

^7,186

⁽¹⁸⁷

⁾

^{Accounts payable}

^32,744

^(7,996

⁾

^(1,169

⁾

^(32,586

⁾

^{Interest payable}

^16,489

^13,736

^3,154

^10,266

^{Income taxes payable}

^18,921

^(3,914

⁾

^28,111

^2,900

^{Other current liabilities}

^(8,232

⁾

^(23,795

⁾

^(42,004

⁾

^(38,446

⁾

^{Net cash provided by operating activities}

^333,050

^217,362

^510,732

^347,359

^{Net cash used in investing activities}

^(313,941

⁾

^(538,982

⁾

^(491,481

⁾

^(986,437

⁾

^{Net cash provided by financing activities}

^6,853

^333,069

^11,860

^656,712

^{Net increase in cash and cash equivalents}

^25,962

^11,449

^31,111

^17,634

^{Effect of exchange rate changes on cash and cash equivalents}

^—

⁵¹⁹

^—

⁶⁵¹

^{Cash and cash equivalents, beginning of period}

^17,320

^13,350

^12,171

^7,033

^{Cash and cash equivalents, end of period}

^43,282

^25,318

^43,282

^25,318

^{PIONEER NATURAL RESOURCES COMPANY}

^{UNAUDITED SUMMARY PRODUCTION AND PRICE DATA}

^{Three months ended}

^{Six months ended}

^{June 30,}

²⁰⁰⁸

²⁰⁰⁷

²⁰⁰⁸

²⁰⁰⁷

^{Average Daily Sales Volumes}

^{from Continuing Operations:}

^{Oil (Bbls) —}

^U.S.

^21,040

^18,753

^21,230

^18,779

^{South Africa}

^2,819

^3,080

^2,821

^2,716

^Tunisia

^6,370

^3,763

^5,136

^3,927

^Worldwide

^30,229

^25,596

^29,187

^25,422

^{Natural gas liquids (Bbls) —}

^U.S.

^20,509

^17,685

^19,959

^17,272

^{Gas (Mcf) —}

^U.S.

^371,307

^308,342

^370,563

^295,540

^{South Africa}

^5,570

^—

^5,322

^—

^Tunisia

^2,619

^7,250

^2,098

^3,645

^Worldwide

^379,496

^315,592

^377,983

^299,185

^{Total (BOE) —}

^U.S.

^103,434

^87,828

^102,949

^85,307

^{South Africa}

^3,747

^3,080

^3,708

^2,716

^Tunisia

^6,806

^4,971

^5,486

^4,535

^Worldwide

^113,987

^95,879

^112,143

^92,558

^{Average Daily Sales Volumes}

^{from Discontinued Operations:}

^{Oil (Bbls) —}

^Canada

^—

²⁹²

^—

³²⁶

^{Natural gas liquids (Bbls) —}

^Canada

^—

⁴⁵⁵

^—

³⁹⁷

^{Gas (Mcf) —}

^Canada

^—

^54,176

^—

^50,962

^{Total (BOE) —}

^Canada

^—

^9,777

^—

^9,217

^{Average Reported Prices (a):}

^{Oil (Bbls) —}

^U.S.

^73.63

^57.93

^71.91

^54.97

^{South Africa}

^131.23

^69.73

^116.34

^66.59

^Tunisia

^124.58

^64.89

^115.00

^62.11

^Worldwide

^89.73

^60.37

^83.79

^57.32

^{Natural gas liquids (per Bbl) —}

^U.S.

^56.30

^39.11

^55.13

^35.51

^{Gas (per Mcf) —}

^U.S.

^8.69

^7.53

^8.21

^7.36

^{South Africa}

^8.52

^—

^8.09

^—

^Tunisia

^14.89

^7.65

^13.39

^7.65

^Worldwide

^8.73

^7.53

^8.23

^7.36

^{Total (BOE) —}

^U.S.

^57.32

^46.67

^55.06

^44.78

^{South Africa}

^111.39

^69.73

^100.12

^66.59

^Tunisia

^122.32

^60.28

^112.79

^59.94

^Worldwide

^62.98

^48.11

^59.37

^46.16

^{_____________}

^(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}

^{UNAUDITED SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES}

^{(in thousands)}

^{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,}

²⁰⁰⁸

²⁰⁰⁷

²⁰⁰⁸

²⁰⁰⁷

^{Net income}

^158,829

^36,480

^288,568

^66,073

^{Depletion, depreciation and amortization}

^114,679

^88,198

^224,306

^167,048

^{Impairment of oil and gas properties}

^—

^17,891

^—

^17,891

^{Exploration and abandonments}

^30,088

^63,874

^68,766

^135,645

^{Hurricane activity}

^—

^47,000

^—

^66,000

^{Accretion of discount on asset retirement obligations}

^2,160

^1,691

^4,302

^3,323

^{Interest expense}

^38,281

^30,531

^75,734

^58,956

^{Income tax provision}

^125,758

^16,601

^213,024

^31,233

^{(Gain) loss on disposition of assets, net}

^(3,901

⁾

^1,669

^(4,578

⁾

^1,418

^{Discontinued operations}

²⁵

^18,357

³⁷³

^34,799

^{Current income tax provision (benefit) on discontinued operations}

⁽³⁴⁸

⁾

¹⁹⁴

¹⁷¹

^4,688

^{Cash exploration and interest expense on discontinued operations}

^—

^3,530

^—

^4,652

^{Commodity hedge related activity}

^7,851

^4,734

^15,516

^10,633

^{Amortization of stock-based compensation}

^8,241

^8,617

^17,221

^16,355

^{Amortization of deferred revenue}

^(39,457

⁾

^(45,322

⁾

^(78,936

⁾

^(90,356

⁾

^{Other noncash items}

^8,454

^3,124

^3,814

^(3,159

⁾

^{EBITDAX (a)}

^450,660

^297,169

^828,281

^525,199

^{Cash interest expense}

^(33,873

⁾

^(26,015

⁾

^(67,854

⁾

^(49,784

⁾

^{Current income taxes}

^(11,690

⁾

^36,142

^(33,311

⁾

^26,493

^{Discretionary cash flow (b)}

^405,097

^307,296

^727,116

^501,908

^{Cash exploration expense}

^(29,054

⁾

^(26,869

⁾

^(64,184

⁾

^(56,275

⁾

^{Changes in operating assets and liabilities}

^(42,993

⁾

^(63,065

⁾

^(152,200

⁾

^(98,274

⁾

^{Net cash provided by operating activities}

^333,050

^217,362

^510,732

^347,359

^{_____________}

^(a)

^{"EBITDAX" represents earnings before depletion, depreciation and amortization expense; exploration and abandonments; noncash hurricane activity; accretion of discount on asset retirement obligations; interest expense; income taxes; gain on the disposition of assets; noncash effects
from discontinued operations; commodity hedge related activity; amortization of 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}

^{Open Commodity Hedge Positions as of August 1, 2008}

²⁰⁰⁸

^Third

^Fourth

^Quarter

²⁰⁰⁹

²⁰¹⁰

²⁰¹¹

^{Average Daily Oil Production Hedged:}

^{Swap Contracts:}

^{Volume (Bbl)}

^15,000

^8,000

^4,000

^—

^{NYMEX price (Bbl)}

^65.46

^79.43

^85.21

^—

^{Collar Contracts:}

^{Volume (Bbl)}

^3,000

^7,000

^5,000

^2,000

^{NYMEX price (Bbl)}

^Ceiling

^80.80

^159.04

^194.70

^170.00

^Floor

^65.00

^90.00

^100.00

^115.00

^{Average Daily Natural Gas Liquid}

^{Production Hedged:}

^{Swap Contracts:}

^{Volume (Bbl)}

^1,000

^—

^{Blended index price (Bbl) (a)}

^50.74

^47.41

^46.15

^—

^{Average Daily Gas Production Hedged:}

^{Swap Contracts:}

^{Volume (MMBtu)}

^215,000

^201,739

^19,795

^5,000

^—

^{NYMEX price (MMBtu) (b)}

^8.37

^8.40

^9.45

^8.54

^—

^{_____________}

^(a)	^{Represents blended Mont Belvieu posted price per Bbl.}

^(b)	^{Approximate NYMEX price, based on historical differentials to index prices at the time the derivative was entered into.}

^{Amortization of Deferred Revenue Associated with Volumetric}

^{Production Payments and Net Derivative Losses as of June 30, 2008}

^{(in thousands)}

²⁰⁰⁸

^Third

^Fourth

^Quarter

²⁰⁰⁹

²⁰¹⁰

^Thereafter

^Total

^{Total deferred revenues (a)}

^39,707

^39,495

^147,906

^90,216

^87,020

^404,344

^{Less derivative losses to be}

^{Recognized in pretax earnings (b)}

⁽²⁸⁴

⁾

⁽⁸³⁹

⁾

^(3,613

⁾

^(2,403

⁾

^(6,730

⁾

^(13,869

⁾

^{Total VPP impact to pretax earnings}

^39,423

^38,656

^144,293

^87,813

^80,290

^390,475

^{_____________}

^(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}

^{Deferred Losses on Terminated Commodity Hedges as of June 30, 2008(a)}

^{(in thousands)}

²⁰⁰⁸

^{Third Quarter}

^{Fourth Quarter}

²⁰⁰⁹

²⁰¹⁰

^{Commodity hedge gains (losses) (b)}

^29,601

^29,237

^20,709

^17,783

^{_____________}

^(a)	^{Excludes deferred hedge gains and losses on terminated derivatives related to the VPPs.}

^(b)	^{Deferred commodity hedge losses will be amortized as decreases to oil and gas revenues during the indicated future periods.}

Delaware	1-13245	75-2702753
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

5205 N. O'Connor Blvd., Suite 200, Irving, Texas		75039
(Address of principal executive offices)		(Zip Code)

	By:	/s/ Frank W. Hall
		Frank W. Hall,
		Vice President and Chief Accounting Officer

Dated: August 4, 2008