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Pioneer Reports First Quarter 2000 Net Income

Dallas, Texas, April 26, 2022 -- Pioneer Natural Resources Company (“Pioneer”)(NYSE:PXD) (TSE:PXD) today announced financial and operating results for the first quarter of 2000.

First Quarter 2000 Results

Pioneer reported first quarter 2000 net income of $14.8 million or $0.15 per share. Excluding a gain of $8.4 million on the disposition of assets and a $13.5 million non-cash mark-to-market charge related to commodity derivatives not treated as hedges, profits as adjusted were $19.9 million or $0.20 per share. For the same period last year, Pioneer reported a net loss of $2.5 million or $0.02 per share. Cash flow from operations for the first quarter of 2000 was $47.2 million compared to $8.3 million for the first quarter of 1999.

First quarter oil sales averaged 34,759 barrels per day (BPD) and natural gas liquid sales averaged 22,667 BPD. Natural gas sales in the first quarter averaged 359 million cubic feet per day (MMCFPD). On an oil equivalent basis, sales averaged 117,294 BPD. Realized prices for oil and natural gas liquids for the first quarter were $22.44 and $19.00 per barrel, respectively. The realized price for natural gas was $1.97 per thousand cubic feet (MCF).

First quarter production costs averaged $4.03 per barrel oil equivalent (BOE), a $0.73 per BOE increase over the fourth quarter. The increase resulted from a $0.10 per BOE increase in production taxes, a $0.17 per BOE increase in workover costs, and a $0.46 per BOE increase in lease operating expenses. Lease operating expenses increased to $3.08 per BOE primarily as a result of increases in ad valorem taxes and field fuel charges. Exploration and abandonment costs of $13.1 million for the quarter included $6.2 million of geologic and geophysical expenses including seismic costs, $4.5 million of non-cash leasehold abandonments including expired leases, and $2.4 million of exploration costs.

For the same quarter last year, Pioneer reported oil sales of 50,407 BPD, natural gas liquid sales of 27,539 BPD, and natural gas sales of 486 MMCFPD. Because of asset divestitures during 1999, the quarter-to-quarter volumes are not comparable. Realized prices for the 1999 first quarter were $11.80 per barrel for oil, $7.63 per barrel for natural gas liquids, and $1.71 per MCF for natural gas.

Operations Update

In Northeast British Columbia, Canada, Pioneer completed its annual development program in the Chinchaga and Martin Creek areas that are only accessible to drilling operations during the winter. Pioneer drilled 19 and completed 16 wells in the Chinchaga area and performed remedial stimulation operations on eight additional wells. New pipeline infrastructure was installed in field extension areas with additional follow-up drilling scheduled for next winter. In the North Chinchaga area, ten wells were drilled and seven were connected to the pipeline. In the Martin Creek area, seven wells were drilled, four wells were completed, and ten previously shut-in wells were connected to the pipeline. Compressor capacity was doubled to provide for production from new wells, to allow increased production from existing wells, and to accommodate production from additional shut-in wells expected to be connected to the pipeline during the next winter season. The winter program increased production by 20 million cubic feet equivalent per day, resulting in a 40% initial increase in total Canadian production.

In Argentina, Pioneer is running four rigs. A discovery well was drilled on a new structure defined by 3-D seismic and initially flowed 450 barrels of oil per day at a depth of approximately 1,500 meters. The well, Borde Colorado 1006, is in the Al Sur de la Dorsal block (100% working interest) acquired in November 1999 and was drilled adjacent to two producing fields setting up three to four additional wells to be drilled this year. In total, Pioneer plans to drill 14 wells this year on its newly acquired blocks. In the Al Norte de la Dorsal area, Pioneer's 2000 drilling program includes about 50 new wells. The emphasis in the second quarter will be on increasing gas volumes as the winter season approaches in the Southern Hemisphere and the demand for heating fuel rises.

During the first quarter, Pioneer participated in its third appraisal well on the Sable oil field project in Block 9, offshore South Africa encountering a thin oil column in an accumulation separate from the main Sable field pay. A sidetrack well drilled updip did not establish additional pay. A 3-D seismic survey is planned to further establish the areal extent of the western extension of this reservoir.

Development drilling continues in Pioneer's domestic core areas. In the Spraberry field, Pioneer has three rigs drilling development wells, and in the West Panhandle field, Pioneer is utilizing three rigs in its horizontal drilling program. In the East Texas Bossier play, the Company has completed its first operated well and is currently running two rigs with plans to add a third rig in June. Three Gulf Coast exploration wells are currently drilling, and Pioneer anticipates that the first appraisal well on the Devil's Tower discovery in Mississippi Canyon Block 773 in the deepwater Gulf of Mexico will be spudded in June.

Chairman's Comment

Scott D. Sheffield, Chairman and CEO stated, “We are excited to have turned the corner to growth, reporting strong first quarter results while expecting production increases in the second quarter. Our active drilling program is adding new production and establishing the foundation for future production growth.”

Earnings Conference Call

On Wednesday, April 26, 2000, at 4:30 p.m. EDT, investors will have the opportunity to listen to the first quarter earnings conference call and view a slide presentation over the Internet via Pioneer's website, located at http://www.pioneernrc.com. At the website, select the “Investors” button at the top of the page, then select “Earnings Calls” from the list across the bottom of the page. To listen to the live call, please go to the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available on the website shortly after the call.

Pioneer is a large independent exploration and production oil and gas company with operations in the United States, Canada, Argentina and South Africa. Pioneer's headquarters are in Dallas.



Financial Statements

Except for historical information contained herein, the statements in this Press 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 Natural Resources Company, are subject to a number of risks and uncertainties which may cause the Company's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation, the costs and results of drilling and operations, the Company's ability to replace reserves or implement its business plans, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, and environmental risks. These and other risks are described in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.

Investor Relations Contact: Susan Spratlen 972-444-9001

Important Legal Information ©2000 Pioneer Natural Resources Company
This information was published Wednesday, April 26, 2022
This page was last updated Wednesday, April 26, 2022

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