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Incentive Plans
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Incentive Plans Incentive Plans
Deferred compensation retirement plan. The Company's deferred compensation retirement plan allows for qualified officers and certain key employees of the Company to contribute up to 50 percent of their base salary and 100 percent of their annual bonus. The Company provides a matching contribution of 100 percent of the officer's and key employee's contribution limited up to the first ten percent of their salary. The Company's matching contribution vests immediately. A trust fund has been established by the Company to accumulate the contributions made under this retirement plan.
The Company match for the deferred compensation plan is as follows:
Year Ended December 31,
202120202019
(in millions)
Deferred compensation plan$2 $1 $2 
401(k) plan. The Pioneer Natural Resources USA, Inc. ("Pioneer USA," a wholly-owned subsidiary of the Company) 401(k) and Matching Plan (the "401(k) Plan") is a defined contribution plan established under the Internal Revenue Code Section 401. All regular full-time and part-time employees of Pioneer USA are eligible to participate in the 401(k) Plan on the first day of the month following their date of hire. Participants may contribute up to 80 percent of their annual base salary into the 401(k) Plan. Matching contributions are made to the 401(k) Plan in cash by Pioneer USA in amounts equal to 100 percent of a participant's contributions to the 401(k) Plan that are not in excess of ten percent of the participant's annual base salary (the "Matching Contribution"). Each participant's account is credited with the participant's contributions, Matching Contributions and allocations of the 401(k) Plan's earnings. Participants are fully vested in their account balances except for Matching Contributions and their proportionate share of 401(k) Plan earnings attributable to Matching Contributions, which proportionately vest over a four-year period that begins on the participant's date of hire. Eligible employees are automatically enrolled in the 401(k) Plan at a contribution rate of five percent of the employee's annual base salary, unless the employee opts out of participation or makes an alternate election within 30 days of becoming eligible for participation.
The Company match for the 401(k) plan is as follows:
Year Ended December 31,
202120202019
(in millions)
401(k) plan$17 $18 $27 
Long-Term Incentive Plan. The Company's Amended and Restated 2006 Long-Term Incentive Plan ("LTIP") provides for the granting of various forms of awards, including stock options, stock appreciation rights, performance units, restricted stock and restricted stock units to directors, officers and employees of the Company.
In connection with the Parsley Acquisition, the Company assumed all rights and obligations under the Amended and Restated Parsley Energy, Inc. 2014 Long-Term Incentive Plan (the "2014 Parsley Plan") and the Jagged Peak Energy Inc. 2017 Long-Term Incentive Plan (the "Jagged Peak Plan") and together with the 2014 Parsley Plan, (the "Parsley Plans"). The awards outstanding under the Parsley Plans were assumed by the Company and were automatically converted into an award with the right to receive a number of shares of Pioneer common stock that is equal to the product of the number of shares of Parsley common stock subject to such award under the Parsley Plans as of the acquisition date and the Exchange Ratio (0.1252). As a result, 37,299 shares of Pioneer common stock are issuable by the Company upon settlement of the outstanding awards granted under the 2014 Parsley Plan and 1,166 shares of Pioneer common stock are issuable by the Company upon settlement of the outstanding awards granted under the Jagged Peak Plan.
Shares available for future grant pursuant to awards under the LTIP are as follows:
As of December 31, 2021
Approved and authorized awards12,600,000 
2014 Parsley Plan awards available to the LTIP (a)879,575 
Awards issued under plan(9,369,570)
4,110,005 
______________________
(a)Under New York Stock Exchange rules, the Company added the shares that were available under the 2014 Parsley Plan to the LTIP. These shares can only be used for grants to employees who were not employed or engaged by Pioneer or any of its subsidiaries immediately before the Parsley Acquisition and such awards may only be granted through May 22, 2024, the date that the 2014 Parsley Plan would have otherwise expired.
Employee Stock Purchase Plan. The Company's Employee Stock Purchase Plan ("ESPP") allows eligible employees to annually purchase the Company's common stock at a discounted price. Officers of the Company are not eligible to participate in the ESPP. Contributions to the ESPP are limited to 15 percent of an employee's base salary (subject to certain ESPP limits) during the eight-month offering period (January 1 to August 31). Participants in the ESPP purchase the Company's common stock at a price that is 15 percent below the closing sales price of the Company's common stock on either the first day or the last day of each offering period, whichever closing sales price is lower.
Shares available for future issuance under the ESPP are as follows:
As of December 31, 2021
Approved and authorized shares (a)2,500,000 
Shares issued(1,172,763)
1,327,237 
Stock-based compensation expense and the associated income tax benefit for awards issued under both the LTIP and ESPP are as follows:
 Year Ended December 31,
 202120202019
 (in millions)
Restricted stock - equity awards$44 $49 $79 
Restricted stock - liability awards (a)17 12 19 
Restricted stock and performance units - Parsley awards (b)33 — — 
Performance unit awards27 21 19 
Employee Stock Purchase Plan2 2 2 
Total stock-based compensation expense$123 $84 $119 
Income tax benefit$14 $7 $18 
______________________
(a)Liability Awards are expected to be settled on their vesting date in cash. As of December 31, 2021 and December 31, 2020, accounts payable – due to affiliates included $9 million and $7 million, respectively, of liabilities attributable to Liability Awards.
(b)Represents the accelerated vesting of Parsley restricted stock equity awards and performance units upon completion of the Parsley Acquisition, which was recorded to other expense in the consolidated statements of operations.
As of December 31, 2021, there is $85 million of unrecognized stock-based compensation expense related to unvested share-based compensation awards, including $23 million attributable to stock-based awards that are expected to be settled on their vesting date in cash, rather than in equity shares. The unrecognized compensation expense will be recognized on a straight-line basis over the remaining vesting periods of the awards, which is a period of less than three years on a weighted average basis.
Restricted stock awards. The Company routinely awards restricted shares or units of the Company's common stock as compensation to directors, officers and employees of the Company.
Restricted stock award activity is as follows:
Year Ended December 31, 2021
Equity AwardsLiability Awards
 Number of SharesWeighted
Average Grant-
Date Fair
Value		Number of shares
Beginning incentive compensation awards765,981 $130.72 221,353 
Awards granted304,142 $141.82 71,870 
Awards assumed (a)38,465 $133.25 — 
Awards forfeited(8,598)$124.33 (9,455)
Awards vested (b)(358,098)$138.28 (101,490)
Ending incentive compensation awards741,892 $131.83 182,278 
______________________
(a)Awards assumed as a result of the Parsley Acquisition that will settle in Company shares upon vesting.
(b)Per the terms of award agreements and elections, the issuance of common stock may be deferred for certain restricted stock equity awards that vest during the period.

In addition to the aforementioned, during the year ended December 31, 2021, the Company assumed 216,914 Parsley restricted stock equity awards that immediately vested upon completion of the Parsley Acquisition.
The weighted average grant-date fair value per unit of restricted stock Equity Awards awarded during 2021, 2020 and 2019 was $141.82, $108.24 and $137.23, respectively. The grant-date fair value of restricted stock Equity Awards that vested during 2021, 2020 and 2019 was $50 million, $59 million and $99 million, respectively. The total fair value of restricted stock Equity Awards that vested during 2021, 2020 and 2019 was $51 million, $47 million and $91 million, respectively.
Year Ended December 31,
202120202019
(in millions)
Cash paid for vested Liability Awards$14 $16 $20 
Performance unit awards. Each year, at its discretion, the board of directors of the Company awards performance units to certain of the Company's officers under the LTIP. The number of shares of common stock to be issued is determined by comparing the Company's total shareholder return to the total shareholder return of a predetermined group of peer companies over the performance period. The performance unit awards vest over a 34-month service period.
The grant-date fair value per unit of the 2021, 2020 and 2019 performance unit awards were $165.32, $184.06 and $165.84, respectively, and are being recorded as stock-based compensation expense ratably over the performance period. The fair value of the performance unit awards was determined using the Monte Carlo simulation model that utilizes multiple input variables to determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant.
Assumptions used to estimate the fair value of performance unit awards granted in each of the following years are as follows: 
202120202019
Risk-free interest rate0.18%0.68%2.49%
Range of volatilities25% -104%31% -45%28% -43%
Performance unit activity is as follows:
Year Ended December 31, 2021
Number of
Units (a)		Weighted 
Average Grant-
Date Fair
Value
Beginning performance unit awards207,430 $177.37 
Units granted173,423 $165.32 
Units vested (b)(76,167)$165.84 
Ending performance unit awards304,686 $173.39 
_____________________
(a)Amount reflects the number of performance units initially granted. The actual payout of shares upon vesting may be between zero and 250 percent of the performance units included in this table depending upon the total shareholder return ranking of the Company compared to peer companies at the vesting date.
(b)Units vested reflects the number of performance units that vest upon retirement or departure of eligible officers or when the service period on the award has ended. Awards that vest upon retirement or departure of eligible officers are not transferred to the officer until the original service period of the award lapses. None of the 76,167 units that vested are associated with eligible officer retirements in 2021. On December 31, 2021, the service period lapsed on 86,483 performance unit awards that earned 1.55 shares for each vested award resulting in 134,059 aggregate shares of common stock being issued on January 3, 2022. Of the 86,483 performance unit awards that lapsed, 10,316 units were associated with units that vested in prior years upon retirement or departure of eligible officers.
In addition, during the year ended December 31, 2021, the Company assumed 100,056 Parsley performance units which immediately vested upon completion of the Parsley Acquisition.
The grant-date fair value of performance units that vested during 2021, 2020 and 2019 was $13 million, $10 million and $22 million, respectively. The total fair value of performance units that vested during 2021, 2020 and 2019 was $14 million, $5 million, and $13 million, respectively.