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}{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}} \par\pard\plain\fs16\par\pard\plain\sb88\cf1\f51\fs24\b\qc UNITED STATES\par\pard\plain\cf1\f51\fs24\b\qc SECURITIES AND EXCHANGE COMMISSION\par\pard\plain\cf1\f51\fs20\b\qc Washington, D.C. 20549\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc ______________________________\par\pard\plain\sb132\cf1\f51\fs24\b\qc FORM 10-Q\plain\cf1\f51\fs24\qc \~\par\pard\plain\sb132\cf1\f51\fs20\qc ______________________________ \par\pard\plain {\trowd\clvertalc\cellx10778\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10778\trrh66\row}}} {\trowd\clvertalc\cellx646\clvertalc\cellx10778\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx646\clvertalc\cellx10778\trrh66\row}}} {\trowd\cellx646\cellx10778\trrh529 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f54\fs24\ql \cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\ql QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\ql 1934\cell{ {\trowd\cellx646\cellx10778\trrh529\row}}}\pard\plain\cf1\f51\fs20\b\qc For the quarterly period ended March\~31, 2019 \par\pard\plain\cf1\f51\fs20\b\qc or\plain\cf1\f51\fs18\qc \~ \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx647\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx647\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx647\cellx10800\trrh529 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f54\fs24\ql \cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\ql TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\ql 1934\cell{ {\trowd\cellx647\cellx10800\trrh529\row}}}\pard\plain\sb88\cf1\f51\fs18\b\qc For the transition period from \~________\~to ________ \~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\par\pard\plain\sb88\cf1\f51\fs18\b\qc Commission File Number: 1-13245\par\pard\plain\sb88\cf1\f51\fs20\qc ______________________________\~\par\pard\plain\sb88\cf1\f51\fs32\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\sb88\cf1\f51\fs18\b\qc (Exact name of Registrant as specified in its charter)\par\pard\plain\cf1\f51\fs18\b\qc ______________________________ \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx5292\clvertalc\cellx5616\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx5292\clvertalc\cellx5616\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\cellx5292\clvertalb\cellx5616\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Delaware\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc 75-2702753\cell{ {\trowd\trqc\cellx5292\clvertalb\cellx5616\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx5292\clvertalb\cellx5616\clvertalb\cellx10800\trrh430 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (State or other jurisdiction of\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc incorporation or organization)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (I.R.S. Employer\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Identification No.)\cell{ {\trowd\trqc\clvertalb\cellx5292\clvertalb\cellx5616\clvertalb\cellx10800\trrh430\row}}} {\trowd\trqc\clvertalb\cellx5292\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\cellx5292\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\cellx5292\clvertalb\cellx5616\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc 5205 N. O'Connor Blvd., Suite 200, Irving, Texas\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc 75039\cell{ {\trowd\trqc\cellx5292\clvertalb\cellx5616\cellx10800\trrh281\row}}} {\trowd\trqc\cellx5292\clvertalb\cellx5616\cellx10800\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (Address of principal executive offices)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (Zip Code)\cell{ {\trowd\trqc\cellx5292\clvertalb\cellx5616\cellx10800\trrh232\row}}}\pard\plain\sb176\cf1\f51\fs20\b\qc (972) 444-9001\par\pard\plain\cf1\f51\fs16\b\qc (Registrant's telephone number, including area code)\par\pard\plain\sb176\cf1\f51\fs20\b\qc Securities registered pursuant to Section 12(b) of the Act: \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx4212\clvertalc\cellx4319\clvertalc\cellx6479\clvertalc\cellx6586\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx4212\clvertalc\cellx4319\clvertalc\cellx6479\clvertalc\cellx6586\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4212\clvertalb\cellx4319\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6479\clvertalb\cellx6586\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Title of each class\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Trading Symbol\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Name of each exchange on which registered\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4212\clvertalb\cellx4319\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6479\clvertalb\cellx6586\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx4212\clvertalb\cellx4319\clvertalb\cellx6479\clvertalb\cellx6586\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc Common Stock, par value $.01 per share\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc PXD\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc New York Stock Exchange\cell{ {\trowd\trqc\clvertalb\cellx4212\clvertalb\cellx4319\clvertalb\cellx6479\clvertalb\cellx6586\clvertalb\cellx10800\trrh281\row}}}\pard\plain\sb176\cf1\f51\fs20\b\qc Not applicable\par\pard\plain\cf1\f51\fs16\b\qc (Former name, former address and former fiscal year, if changed since last report)\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc ______________________________\par\pard\plain\sb132\cf1\f51\fs18\ql Indicate by check mark whether the Registrant (1)\~has filed all reports required to be filed by Section\~13 or 15(d) of the Securities Exchange\plain\cf1\f51\fs18\ql Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)\~has been\plain\cf1\f51\fs18\ql subject to such filing requirements for the past 90 days. \~\~\~\~\plain\cf1\f51\fs18\b\ql Yes\~\~\plain\cf1\f54\fs18\ql \plain\cf1\f51\fs18\b\ql \~\~\~\~No\~\~\plain\cf1\f54\fs18\ql \par\pard\plain\sb176\cf1\f51\fs18\ql Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule\plain\cf1\f51\fs18\ql 405 of Regulation S-T (\u167?\~232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was\plain\cf1\f51\fs18\ql required to submit such files).\plain\cf1\f51\fs18\b\ql \~\~\~\~\par\pard\plain\cf1\f51\fs18\b\ql Yes\~\~\plain\cf1\f54\fs18\ql \plain\cf1\f51\fs18\b\ql \~\~\~\~No \~\~\plain\cf1\f54\fs18\ql \par\pard\plain\sb176\cf1\f51\fs18\ql Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting\plain\cf1\f51\fs18\ql company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and\plain\cf1\f51\fs18\ql "emerging growth company" in Rule 12b-2 of the Exchange Act. \par\pard\plain {\trowd\clvertalc\cellx10484\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10484\trrh66\row}}} {\trowd\clvertalc\cellx2201\clvertalc\cellx2305\clvertalc\cellx4821\clvertalc\cellx5135\clvertalc\cellx7756\clvertalc\cellx7860\clvertalc\cellx10484\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx2201\clvertalc\cellx2305\clvertalc\cellx4821\clvertalc\cellx5135\clvertalc\cellx7756\clvertalc\cellx7860\clvertalc\cellx10484\trrh66\row}}} {\trowd\clvertalb\cellx2201\clvertalb\cellx2305\clvertalb\cellx4821\clvertalb\cellx5135\clvertalb\cellx7756\clvertalb\cellx7860\clvertalb\cellx10484\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\ql Large\~accelerated\~filer\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f54\fs18\ql \cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\ql Accelerated\~filer\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f54\fs18\ql \cell{ {\trowd\clvertalb\cellx2201\clvertalb\cellx2305\clvertalb\cellx4821\clvertalb\cellx5135\clvertalb\cellx7756\clvertalb\cellx7860\clvertalb\cellx10484\trrh281\row}}} {\trowd\clvertalb\cellx2201\clvertalb\cellx4822\clvertalb\cellx7757\clvertalb\cellx10482\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx2201\clvertalb\cellx4822\clvertalb\cellx7757\clvertalb\cellx10482\trrh281\row}}} {\trowd\clvertalb\cellx2201\clvertalb\cellx2305\clvertalb\cellx4821\clvertalb\cellx5135\clvertalb\cellx7756\clvertalb\cellx7860\clvertalb\cellx10484\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\ql Non-accelerated filer\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f54\fs18\ql o\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\ql Smaller\~reporting\~company\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f54\fs18\ql \cell{ {\trowd\clvertalb\cellx2201\clvertalb\cellx2305\clvertalb\cellx4821\clvertalb\cellx5135\clvertalb\cellx7756\clvertalb\cellx7860\clvertalb\cellx10484\trrh281\row}}} {\trowd\clvertalb\cellx2201\clvertalb\cellx2305\clvertalb\cellx4821\clvertalb\cellx5135\clvertalb\cellx7756\clvertalb\cellx7860\clvertalb\cellx10484\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx2201\clvertalb\cellx2305\clvertalb\cellx4821\clvertalb\cellx5135\clvertalb\cellx7756\clvertalb\cellx7860\clvertalb\cellx10484\trrh281\row}}} {\trowd\clvertalb\cellx2201\clvertalb\cellx2305\clvertalb\cellx4821\clvertalb\cellx5135\clvertalb\cellx7756\clvertalb\cellx7860\clvertalb\cellx10484\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\ql Emerging growth company\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f54\fs18\ql \cell{ {\trowd\clvertalb\cellx2201\clvertalb\cellx2305\clvertalb\cellx4821\clvertalb\cellx5135\clvertalb\cellx7756\clvertalb\cellx7860\clvertalb\cellx10484\trrh281\row}}}\pard\plain\sb176\cf1\f51\fs18\ql If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying\plain\cf1\f51\fs18\ql with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.\~\~\~\~\plain\cf1\f54\fs18\ql \plain\cf1\f51\fs18\ql \~\~\~\~\par\pard\plain\sb176\cf1\f51\fs18\ql Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).\par\pard\plain\cf1\f51\fs20\b\ql Yes \~\~\plain\cf1\f54\fs20\ql \plain\cf1\f51\fs20\b\ql \~\~\~\~No\~\~\plain\cf1\f54\fs20\ql \par\pard\plain {\trowd\clvertalc\cellx4892\clvertalc\cellx6344\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx4892\clvertalc\cellx6344\trrh66\row}}} {\trowd\cellx4892\cellx6344\trrh446 \pard\plain\intbl\cf1\f51\fs18\ql Number of shares of Common Stock outstanding as of May\~6,\plain\intbl\cf1\f51\fs18\ql 2019\cell\pard\plain\intbl\cf1\f51\fs18\ql 168,423,736 \cell{ {\trowd\cellx4892\cellx6344\trrh446\row}}} \par\pard\plain\fs16\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart sc2f3254857155d95baca39e8ca8e28b}{\*\bkmkend sc2f3254857155d95baca39e8ca8e28b}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}} \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc TABLE OF CONTENTS\plain\cf1\f51\fs18\qc \~ \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx864\clvertalc\cellx10260\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx864\clvertalc\cellx10260\clvertalc\cellx10800\trrh66\row}}} 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"se2355a46bde65baabf39d6e61feb46d" }{\*\fldrslt\cf3\f51\fs20\ql Unregistered Sales of Equity Securities and Use of Proceeds}}\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "se2355a46bde65baabf39d6e61feb46d" }{\*\fldrslt\cf3\f51\fs20\qc 36}}\cell{ {\trowd\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281\row}}} {\trowd\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "sba796f31f9f3540b89fba10c0a234ef" }{\*\fldrslt\cf3\f51\fs20\ql Item 4.}}\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "sba796f31f9f3540b89fba10c0a234ef" }{\*\fldrslt\cf3\f51\fs20\ql Mine Safety Disclosures}}\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "sba796f31f9f3540b89fba10c0a234ef" }{\*\fldrslt\cf3\f51\fs20\qc 36}}\cell{ {\trowd\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281\row}}} {\trowd\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "s4e0cf3dca165505487ad4bf8099a398" }{\*\fldrslt\cf3\f51\fs20\ql Item\~6.}}\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "s4e0cf3dca165505487ad4bf8099a398" }{\*\fldrslt\cf3\f51\fs20\ql Exhibits}}\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "s4e0cf3dca165505487ad4bf8099a398" }{\*\fldrslt\cf3\f51\fs20\qc 37}}\cell{ {\trowd\cellx864\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx10260\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx10260\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "s62c046b585195785a5adfa5a0032d2c" }{\*\fldrslt\cf3\f51\fs20\ql Signatures}}\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "s62c046b585195785a5adfa5a0032d2c" }{\*\fldrslt\cf3\f51\fs20\qc 38}}\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10260\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx10260\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx10260\clvertalb\cellx10800\trrh281\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 2 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart saefe45d421005698998c468e19d1a0a}{\*\bkmkend saefe45d421005698998c468e19d1a0a}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}} \par\pard\plain\fs16\par\pard\plain\sb528\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\sb264\cf1\f51\fs20\b\ql Cautionary Statement Concerning Forward-Looking Statements\par\pard\plain\sb132\fi594\cf1\f51\fs20\i\qj The information in this Quarterly Report on Form 10-Q (this "Report") contains forward-looking statements that involve\plain\cf1\f51\fs20\i\qj risks and uncertainties. When used in this document, the words "believes," "plans," "expects," "anticipates," "forecasts,"\plain\cf1\f51\fs20\i\qj "intends," "continue," "may," "will," "could," "should," "future," "potential," "estimate" or the negative of such terms and similar\plain\cf1\f51\fs20\i\qj expressions as they relate to Pioneer Natural Resources Company ("Pioneer" or the "Company") are intended to identify\plain\cf1\f51\fs20\i\qj forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the\plain\cf1\f51\fs20\i\qj Company's current expectations, assumptions, estimates and projections about the Company and the industry in which the\plain\cf1\f51\fs20\i\qj Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking\plain\cf1\f51\fs20\i\qj statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases,\plain\cf1\f51\fs20\i\qj beyond the Company's control.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj These risks and uncertainties include, among other things, volatility of commodity prices, product supply and demand,\plain\cf1\f51\fs20\i\qj competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action,\plain\cf1\f51\fs20\i\qj the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms,\plain\cf1\f51\fs20\i\qj completion of planned divestitures, litigation, the costs and results of drilling and operations, availability of equipment, services,\plain\cf1\f51\fs20\i\qj resources and personnel required to perform the Company's drilling and operating activities, access to and availability of\plain\cf1\f51\fs20\i\qj transportation, processing, fractionation, refining and export facilities, Pioneer's ability to replace reserves, implement its\plain\cf1\f51\fs20\i\qj business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of\plain\cf1\f51\fs20\i\qj counterparties to Pioneer's credit facility, investment instruments and derivative contracts and purchasers of Pioneer's oil, NGL\plain\cf1\f51\fs20\i\qj and gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved\plain\cf1\f51\fs20\i\qj reserves in the future, the assumptions underlying production forecasts, quality of technical data, environmental and weather\plain\cf1\f51\fs20\i\qj risks, including the possible impacts of climate change, cybersecurity risks, ability to implement planned stock repurchases, the\plain\cf1\f51\fs20\i\qj risks associated with the ownership and operation of the Company's industrial sand mining and oilfield services businesses and\plain\cf1\f51\fs20\i\qj acts of war or terrorism. These and other risks are described in the Company's Annual Report on Form 10-K, this and other\plain\cf1\f51\fs20\i\qj Quarterly Reports on Form 10-Q and other filings with the United States Securities and Exchange Commission. In addition, the\plain\cf1\f51\fs20\i\qj Company may be subject to currently unforeseen risks that may have a materially adverse effect on it. Accordingly, no\plain\cf1\f51\fs20\i\qj assurances can be given that the actual events and results will not be materially different than the anticipated results described\plain\cf1\f51\fs20\i\qj in the forward-looking statements. See "Part I, Item\~2. Management's Discussion and Analysis of Financial Condition and\plain\cf1\f51\fs20\i\qj Results of Operations," "Part 1, Item\~3. Quantitative and Qualitative Disclosures About Market Risk" and "Part II, Item\~1A. Risk\plain\cf1\f51\fs20\i\qj Factors" in this Report and "Part I, Item\~1. Business \u8212? Competition, Markets and Regulations," "Part I, Item\~1A. Risk\plain\cf1\f51\fs20\i\qj Factors," "Part II, Item\~7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Part\plain\cf1\f51\fs20\i\qj II, Item\~7A. Quantitative and Qualitative Disclosures About Market Risk" in the Company's Annual Report on Form 10-K for the\plain\cf1\f51\fs20\i\qj year ended December\~31, 2018 for a description of various factors that could materially affect the ability of Pioneer to achieve\plain\cf1\f51\fs20\i\qj the anticipated results described in the forward-looking statements. Readers are cautioned not to place undue reliance on\plain\cf1\f51\fs20\i\qj forward-looking statements, which speak only as of the date hereof. The Company undertakes no duty to publicly update these\plain\cf1\f51\fs20\i\qj statements except as required by law. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 3 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s0e29258c44d854b2a9da792ceea2802}{\*\bkmkend s0e29258c44d854b2a9da792ceea2802}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}} \par\pard\plain\fs16\par\pard\plain\sb528\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\sb264\cf1\f51\fs20\b\ql Definitions of Certain Terms and Conventions Used Herein\par\pard\plain\sb132\sa66\fi528\cf1\f51\fs20\ql Within this Report, the following terms and conventions have specific meanings: \par\pard\plain {\trowd\clvertalc\cellx693\clvertalc\cellx6483\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx693\clvertalc\cellx6483\trrh66\row}}} {\trowd\cellx693\cellx6483\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "Bbl"\plain\intbl\cf1\f51\fs20\qj means a standard barrel containing 42 United States\plain\intbl\cf1\f51\fs20\qj gallons.\cell{ {\trowd\cellx693\cellx6483\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx695\clvertalc\cellx6631\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx695\clvertalc\cellx6631\trrh66\row}}} {\trowd\cellx695\cellx6631\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "Bcf"\plain\intbl\cf1\f51\fs20\qj means one billion cubic feet and is a measure of gas\plain\intbl\cf1\f51\fs20\qj volume.\cell{ {\trowd\cellx695\cellx6631\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh742 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "BOE"\plain\intbl\cf1\f51\fs20\qj means a barrel of oil equivalent and is a standard convention used to express oil and gas volumes on a\plain\intbl\cf1\f51\fs20\qj comparable oil equivalent basis. Gas equivalents are determined under the relative energy content method by using the\plain\intbl\cf1\f51\fs20\qj ratio of six thousand cubic feet of gas to one Bbl of oil or natural gas liquid.\cell{ {\trowd\cellx720\cellx10800\trrh742\row}}} \pard\plain {\trowd\clvertalc\cellx676\clvertalc\cellx3529\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx676\clvertalc\cellx3529\trrh66\row}}} {\trowd\cellx676\cellx3529\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "BOEPD"\plain\intbl\cf1\f51\fs20\qj means BOE\plain\intbl\cf1\f51\fs20\qj per day.\cell{ {\trowd\cellx676\cellx3529\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "Brent"\plain\intbl\cf1\f51\fs20\qj means Brent oil price, a major trading classification of light sweet oil that serves as a benchmark price for\plain\intbl\cf1\f51\fs20\qj purchases of oil worldwide.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "Btu"\plain\intbl\cf1\f51\fs20\qj means British thermal unit, which is a measure of the amount of energy required to raise the temperature of one\plain\intbl\cf1\f51\fs20\qj pound of water one degree Fahrenheit.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx687\clvertalc\cellx5618\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx687\clvertalc\cellx5618\trrh66\row}}} {\trowd\cellx687\cellx5618\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "DD&A"\plain\intbl\cf1\f51\fs20\qj means depletion, depreciation and\plain\intbl\cf1\f51\fs20\qj amortization.\cell{ {\trowd\cellx687\cellx5618\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx705\clvertalc\cellx8418\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx705\clvertalc\cellx8418\trrh66\row}}} {\trowd\cellx705\cellx8418\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "GAAP"\plain\intbl\cf1\f51\fs20\qj means accounting principles generally accepted in the United States of\plain\intbl\cf1\f51\fs20\qj America.\cell{ {\trowd\cellx705\cellx8418\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "HH"\plain\intbl\cf1\f51\fs20\qj means Henry Hub, a distribution hub in Louisiana that serves as the delivery location for gas futures contracts on\plain\intbl\cf1\f51\fs20\qj the NYMEX.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx677\clvertalc\cellx3712\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx677\clvertalc\cellx3712\trrh66\row}}} {\trowd\cellx677\cellx3712\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "MBbl"\plain\intbl\cf1\f51\fs20\qj means one\plain\intbl\cf1\f51\fs20\qj thousand Bbls.\cell{ {\trowd\cellx677\cellx3712\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx679\clvertalc\cellx3945\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx679\clvertalc\cellx3945\trrh66\row}}} {\trowd\cellx679\cellx3945\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "MBOE"\plain\intbl\cf1\f51\fs20\qj means one\plain\intbl\cf1\f51\fs20\qj thousand BOEs.\cell{ {\trowd\cellx679\cellx3945\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx696\clvertalc\cellx6875\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx696\clvertalc\cellx6875\trrh66\row}}} {\trowd\cellx696\cellx6875\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "Mcf"\plain\intbl\cf1\f51\fs20\qj means one thousand cubic feet and is a measure of gas\plain\intbl\cf1\f51\fs20\qj volume.\cell{ {\trowd\cellx696\cellx6875\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx677\clvertalc\cellx3756\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx677\clvertalc\cellx3756\trrh66\row}}} {\trowd\cellx677\cellx3756\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "MMBtu"\plain\intbl\cf1\f51\fs20\qj means one\plain\intbl\cf1\f51\fs20\qj million Btus.\cell{ {\trowd\cellx677\cellx3756\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "Mont Belvieu"\plain\intbl\cf1\f51\fs20\qj means the daily average natural gas liquids components as priced in\plain\intbl\cf1\f51\fs20\i\qj OPIS\plain\intbl\cf1\f51\fs20\qj in the table "U.S. and\plain\intbl\cf1\f51\fs20\qj Canada LP \u8211? Gas Weekly Averages" at Mont Belvieu, Texas.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "NGL"\plain\intbl\cf1\f51\fs20\qj means natural gas liquid, which are the heavier hydrocarbon liquids that are separated from the gas stream; such\plain\intbl\cf1\f51\fs20\qj liquids include ethane, propane, isobutane, normal butane and natural gasoline.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx687\clvertalc\cellx5446\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx687\clvertalc\cellx5446\trrh66\row}}} {\trowd\cellx687\cellx5446\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "NYMEX"\plain\intbl\cf1\f51\fs20\qj means the New York Mercantile\plain\intbl\cf1\f51\fs20\qj Exchange.\cell{ {\trowd\cellx687\cellx5446\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx707\clvertalc\cellx8796\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx707\clvertalc\cellx8796\trrh66\row}}} {\trowd\cellx707\cellx8796\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "Pioneer"\plain\intbl\cf1\f51\fs20\qj or the\plain\intbl\cf1\f51\fs20\b\i\qj "Company"\plain\intbl\cf1\f51\fs20\qj means Pioneer Natural Resources Company and its\plain\intbl\cf1\f51\fs20\qj subsidiaries.\cell{ {\trowd\cellx707\cellx8796\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh1732 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "Proved reserves"\plain\intbl\cf1\f51\fs20\qj mean those quantities of oil and gas, which, by analysis of geosciences and engineering data, can be\plain\intbl\cf1\f51\fs20\qj estimated with reasonable certainty to be economically producible \u8211? from a given date forward, from known\plain\intbl\cf1\f51\fs20\qj reservoirs, and under existing economic conditions, operating methods, and government regulations \u8211? prior to the\plain\intbl\cf1\f51\fs20\qj time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain,\plain\intbl\cf1\f51\fs20\qj regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the\plain\intbl\cf1\f51\fs20\qj hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within\plain\intbl\cf1\f51\fs20\qj a reasonable time.\cell{ {\trowd\cellx720\cellx10800\trrh1732\row}}}\pard\plain\li792\sb88\cf1\f51\fs20\qj (i) The area of the reservoir considered as proved includes: (A)\~The area identified by drilling and limited by fluid\plain\li792\cf1\f51\fs20\qj contacts, if any, and (B)\~Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be\plain\li792\cf1\f51\fs20\qj continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering\plain\li792\cf1\f51\fs20\qj data.\par\pard\plain\li792\sb88\cf1\f51\fs20\qj (ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known\plain\li792\cf1\f51\fs20\qj hydrocarbons ("LKH") as seen in a well penetration unless geoscience, engineering or performance data and reliable\plain\li792\cf1\f51\fs20\qj technology establishes a lower contact with reasonable certainty.\par\pard\plain\li792\sb88\cf1\f51\fs20\qj (iii) Where direct observation from well penetrations has defined a highest known oil ("HKO") elevation and the\plain\li792\cf1\f51\fs20\qj potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the\plain\li792\cf1\f51\fs20\qj reservoir only if geoscience, engineering or performance data and reliable technology establish the higher contact with\plain\li792\cf1\f51\fs20\qj reasonable certainty.\par\pard\plain\li792\sb88\cf1\f51\fs20\qj (iv) Reserves which can be produced economically through application of improved recovery techniques (including, but\plain\li792\cf1\f51\fs20\qj not limited to, fluid injection) are included in the proved classification when: (A)\~Successful testing by a pilot project in\plain\li792\cf1\f51\fs20\qj an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed\plain\li792\cf1\f51\fs20\qj program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable\plain\li792\cf1\f51\fs20\qj certainty of the engineering analysis on which the project or program was based; and (B)\~The project has been approved\plain\li792\cf1\f51\fs20\qj for development by all necessary parties and entities, including governmental entities.\par\pard\plain\li792\sb88\cf1\f51\fs20\qj (v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be\plain\li792\cf1\f51\fs20\qj determined. The price shall be the average during the 12-month period prior to the ending date of the period covered by\plain\li792\cf1\f51\fs20\qj the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within\plain\li792\cf1\f51\fs20\qj such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. \par\pard\plain {\trowd\clvertalc\cellx705\clvertalc\cellx6772\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx705\clvertalc\cellx6772\trrh66\row}}} {\trowd\cellx705\cellx6772\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\b\i\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "SEC"\plain\intbl\cf1\f51\fs20\qj means the United States Securities and Exchange\plain\intbl\cf1\f51\fs20\qj Commission.\cell{ {\trowd\cellx705\cellx6772\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx675\clvertalc\cellx3155\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx675\clvertalc\cellx3155\trrh66\row}}} {\trowd\cellx675\cellx3155\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "U.S."\plain\intbl\cf1\f51\fs20\qj means United\plain\intbl\cf1\f51\fs20\qj States.\cell{ {\trowd\cellx675\cellx3155\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\b\i\qj "WTI"\plain\intbl\cf1\f51\fs20\qj means West Texas Intermediate, a light sweet blend of oil produced from fields in western Texas and is a grade\plain\intbl\cf1\f51\fs20\qj of oil used as a benchmark in oil pricing.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh990 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj With respect to information on the working interest in wells, drilling locations and acreage,\plain\intbl\cf1\f51\fs20\b\i\qj "net"\plain\intbl\cf1\f51\fs20\qj wells, drilling\plain\intbl\cf1\f51\fs20\qj locations and acres are determined by multiplying\plain\intbl\cf1\f51\fs20\b\i\qj "gross"\plain\intbl\cf1\f51\fs20\qj wells, drilling locations and acres by the Company's working\plain\intbl\cf1\f51\fs20\qj interest in such wells, drilling locations or acres. Unless otherwise specified, wells, drilling locations and acreage\plain\intbl\cf1\f51\fs20\qj statistics quoted herein represent gross wells, drilling locations or acres.\cell{ {\trowd\cellx720\cellx10800\trrh990\row}}} \pard\plain {\trowd\clvertalc\cellx685\clvertalc\cellx5125\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx685\clvertalc\cellx5125\trrh66\row}}} {\trowd\cellx685\cellx5125\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj All currency amounts are expressed in\plain\intbl\cf1\f51\fs20\qj U.S. dollars.\cell{ {\trowd\cellx685\cellx5125\trrh495\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 4 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s3df17424a4ae531084d5f28ab343fde}{\*\bkmkend s3df17424a4ae531084d5f28ab343fde}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16{\*\bkmkstart part_1_2_1}{\*\bkmkend part_1_2_1}\par\pard\plain\cf1\f51\fs20\b\qc PART I. FINANCIAL INFORMATION{\*\bkmkstart se91fb60884915d40bc31182331d6a33}{\*\bkmkend se91fb60884915d40bc31182331d6a33}{\*\bkmkstart item_1_3_1}{\*\bkmkend item_1_3_1} \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1188\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~1.\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql FINANCIAL STATEMENTS\cell{ {\trowd\cellx1188\cellx10800\trrh281\row}}}{\*\bkmkstart sca148eced33e5c97b3b69ae50bdce4d}{\*\bkmkend sca148eced33e5c97b3b69ae50bdce4d}\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc CONSOLIDATED BALANCE SHEETS\par\pard\plain\cf1\f51\fs20\b\qc (in millions)\par\pard\plain\cf1\f51\fs18\ql \~ \par\pard\plain {\trowd\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalc\cellx6796\clvertalc\cellx7147\clvertalc\cellx8345\clvertalc\cellx8696\clvertalc\cellx8798\clvertalc\cellx9193\clvertalc\cellx10391\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6796\clvertalc\cellx7147\clvertalc\cellx8345\clvertalc\cellx8696\clvertalc\cellx8798\clvertalc\cellx9193\clvertalc\cellx10391\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalb\cellx6796\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8697\clvertalb\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10788\trrh529 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\qc March\~31, \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\qc December\~31, \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\qc 2018\cell{ {\trowd\clvertalb\cellx6796\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8697\clvertalb\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10788\trrh529\row}}} {\trowd\clvertalb\cellx6796\clvertalb\cellx8697\clvertalb\cellx8799\clvertalb\cellx10788\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc (Unaudited)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx6796\clvertalb\cellx8697\clvertalb\cellx8799\clvertalb\cellx10788\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc ASSETS\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8697\clvertalb\cellx8799\clvertalb\cellx10788\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Current assets:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8697\clvertalb\cellx8799\clvertalb\cellx10788\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7147\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9193\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Cash and cash equivalents\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 511\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 825\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7147\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9193\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Short-term investments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 445\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 443\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8697\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Accounts receivable:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8697\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Trade, net\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 870\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 694\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Due from affiliates\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 7\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 120\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Income taxes receivable\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 6\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 7\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Inventories\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 253\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 242\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Derivatives\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 30\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 52\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Investment in affiliate\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 347\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 172\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Other\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 36\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 25\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh298 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total current assets\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2,505\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2,580\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh298\row}}} {\trowd\cellx6796\clvertalb\cellx8697\clvertalb\cellx8799\clvertalb\cellx10788\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Oil and gas properties, successful efforts method of accounting:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8697\clvertalb\cellx8799\clvertalb\cellx10788\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Proved properties\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 22,038\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 21,165\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Unproved properties\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 607\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 601\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Accumulated depletion, depreciation and amortization\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (8,600\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (8,218\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8345\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8696\clvertalb\cellx8798\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10392\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total oil and gas properties, net\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 14,045\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 13,548\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8345\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8696\clvertalb\cellx8798\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10392\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Other property and equipment, net\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,072\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,291\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Operating lease right-of-use assets\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 356\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Long-term investments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 11\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 125\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Goodwill\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 264\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 264\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6796\clvertalb\cellx8345\clvertalb\cellx8696\clvertalb\cellx8798\clvertalb\cellx10392\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\fi-198\cf1\f51\fs20\ql Other assets\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 102\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 95\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6796\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8345\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8696\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8798\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10392\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\clvertalb\cellx6796\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7147\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8345\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8696\clvertalb\cellx8798\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9193\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10391\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 18,355\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 17,903\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\cellx6796\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7147\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8345\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8696\clvertalb\cellx8798\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9193\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10391\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10789\trrh281\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\sb264\cf1\f51\fs18\qc The financial information included as of March\~31, 2019 has been prepared by management\par\pard\plain\cf1\f51\fs18\qc without audit by independent registered public accountants.\par\pard\plain\sb264\cf1\f51\fs18\qc The accompanying notes are an integral part of these consolidated financial statements. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 5 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}} \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc CONSOLIDATED BALANCE SHEETS (continued)\par\pard\plain\cf1\f51\fs20\b\qc (in millions, except share data)\plain\cf1\f51\fs18\qc \~ \par\pard\plain\fs16 \par\pard\plain {\trowd\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalc\cellx6984\clvertalc\cellx7335\clvertalc\cellx8439\clvertalc\cellx8790\clvertalc\cellx8892\clvertalc\cellx9287\clvertalc\cellx10391\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6984\clvertalc\cellx7335\clvertalc\cellx8439\clvertalc\cellx8790\clvertalc\cellx8892\clvertalc\cellx9287\clvertalc\cellx10391\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalb\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8790\clvertalb\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10787\trrh529 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\qc March\~31, \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\qc December\~31, \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\qc 2018\cell{ {\trowd\clvertalb\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8790\clvertalb\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10787\trrh529\row}}} {\trowd\clvertalb\cellx6984\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10787\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc (Unaudited)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx6984\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10787\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc LIABILITIES AND EQUITY\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6984\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10787\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Current liabilities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx6984\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10787\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10787\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Accounts payable:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10787\trrh281\row}}} {\trowd\cellx6984\clvertalb\cellx7335\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx9287\clvertalb\cellx10391\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Trade\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,536\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,441\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clvertalb\cellx7335\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx9287\clvertalb\cellx10391\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Due to affiliates\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 181\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 183\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Interest payable\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 25\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 53\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Income taxes payable\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Current portion of long-term debt\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 449\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Derivatives\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 22\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 27\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Operating leases\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 145\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Other\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 172\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 112\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8439\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8790\clvertalb\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10391\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total current liabilities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2,532\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,818\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8439\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8790\clvertalb\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10391\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6984\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Long-term debt\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,836\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2,284\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6984\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh298\row}}} {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Deferred income taxes\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,255\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,152\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Operating leases\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 217\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Other liabilities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 306\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 538\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10787\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Equity:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10787\trrh281\row}}} {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh776 \pard\plain\intbl\li198\ri22\sb22\fi-198\cf1\f51\fs20\ql Common stock, $.01 par value; 500,000,000 shares authorized; 174,828,478 and\plain\intbl\li198\ri22\cf1\f51\fs20\ql 174,321,171 shares issued as of March 31, 2022 and December 31, 2018,\plain\intbl\li198\ri22\sa22\cf1\f51\fs20\ql respectively\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh776\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Additional paid-in capital\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 9,086\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 9,062\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh529 \pard\plain\intbl\li198\ri22\sb22\fi-198\cf1\f51\fs20\ql Treasury stock at cost: 6,406,441 and 4,822,069 shares as of March 31, 2022 and\plain\intbl\li198\ri22\sa22\cf1\f51\fs20\ql December 31, 2018, respectively\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (645\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (423\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx6984\clvertalb\cellx8439\clvertalb\cellx8790\clvertalb\cellx8892\clvertalb\cellx10391\clvertalb\cellx10789\trrh529\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Retained earnings\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3,766\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3,470\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8439\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8790\clvertalb\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10391\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total equity\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 12,209\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 12,111\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6984\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8439\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8790\clvertalb\cellx8892\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10391\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Commitments and contingencies\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6984\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8439\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8790\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8892\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\clvertalb\cellx6984\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7335\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8439\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8790\clvertalb\cellx8892\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9287\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10391\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10789\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 18,355\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 17,903\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\cellx6984\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7335\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8439\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8790\clvertalb\cellx8892\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9287\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10391\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10789\trrh298\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\sb264\cf1\f51\fs18\qc The financial information included as of March\~31, 2019 has been prepared by management\par\pard\plain\cf1\f51\fs18\qc without audit by independent registered public accountants.\par\pard\plain\sb264\cf1\f51\fs18\qc The accompanying notes are an integral part of these consolidated financial statements. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 6 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart sba53d666c9d55e7b83501152388c90b}{\*\bkmkend sba53d666c9d55e7b83501152388c90b}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}} \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc CONSOLIDATED STATEMENTS OF OPERATIONS\par\pard\plain\cf1\f51\fs20\b\qc (in millions, except per share data)\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\plain\cf1\f51\fs18\qc \~ \par\pard\plain {\trowd\trqc\clvertalc\cellx10799\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10799\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7778\clvertalc\cellx7918\clvertalc\cellx9094\clvertalc\cellx9234\clvertalc\cellx9341\clvertalc\cellx9481\clvertalc\cellx10657\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7778\clvertalc\cellx7918\clvertalc\cellx9094\clvertalc\cellx9234\clvertalc\cellx9341\clvertalc\cellx9481\clvertalc\cellx10657\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh529 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs20\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs20\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh529\row}}} {\trowd\trqc\clvertalb\cellx7778\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9234\clvertalb\cellx9341\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7778\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9234\clvertalb\cellx9341\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh298\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Revenues and other income:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281\row}}} {\trowd\trqc\cellx7778\clvertalb\cellx7918\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx9481\clvertalb\cellx10657\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Oil and gas\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,135\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,266\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7778\clvertalb\cellx7918\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx9481\clvertalb\cellx10657\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Sales of purchased oil and gas\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,109\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,070\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Interest and other\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 191\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 18\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Derivative loss, net\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (13\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (208\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9234\clvertalb\cellx9341\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10657\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Gain (loss) on disposition of assets, net\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (9\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9234\clvertalb\cellx9341\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10657\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2,413\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2,150\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7778\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10797\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Costs and expenses:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\cellx7778\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10797\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Oil and gas production\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 221\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 213\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Production and ad valorem taxes\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 68\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 76\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Depletion, depreciation and amortization\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 421\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 357\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Purchased oil and gas\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 957\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,054\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Exploration and abandonments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 20\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 35\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql General and administrative\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 94\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 90\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Accretion of discount on asset retirement obligations\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Interest\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 29\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 36\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Other\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 147\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 57\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9234\clvertalb\cellx9341\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10657\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,960\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,922\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9234\clvertalb\cellx9341\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10657\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Income before income taxes\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 453\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 228\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\trqc\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9234\clvertalb\cellx9341\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10657\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Income tax provision\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (103\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (50\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\cellx7778\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9094\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9234\clvertalb\cellx9341\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10657\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7918\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9481\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Net income attributable to common stockholders\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 350\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 178\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7918\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9481\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\trqc\clvertalb\cellx7778\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10797\trrh321 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\cellx7778\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10797\trrh321\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7918\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9481\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\fi-198\cf1\f51\fs20\ql Basic and diluted net income per share attributable to common stockholders\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.06\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1.04\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7918\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9481\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7778\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10797\trrh321 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\cellx7778\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10797\trrh321\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Weighted average shares outstanding:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281\row}}} {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Basic\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 169\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 170\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7778\clvertalb\cellx9094\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10657\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Diluted\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 169\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 171\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7778\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10797\trrh321 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\cellx7778\clvertalb\cellx9234\clvertalb\cellx9341\clvertalb\cellx10797\trrh321\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7918\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9481\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Dividends declared per share\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.32\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.16\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7778\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7918\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9094\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9234\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9341\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9481\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10657\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\cf1\f51\fs18\qc The financial information included herein has been prepared by management\par\pard\plain\cf1\f51\fs18\qc without audit by independent registered public accountants.\par\pard\plain\sb264\cf1\f51\fs18\qc The accompanying notes are an integral part of these consolidated financial statements. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 7 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart sf907ab71a48955bcb63668adaaff855}{\*\bkmkend sf907ab71a48955bcb63668adaaff855}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}} \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc CONSOLIDATED STATEMENTS OF EQUITY\par\pard\plain\cf1\f51\fs20\b\qc (in millions, except share data and dividends per share)\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\par\pard\plain\cf1\f51\fs18\ql \~ \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx1674\clvertalc\cellx2446\clvertalc\cellx2989\clvertalc\cellx3071\clvertalc\cellx3403\clvertalc\cellx3916\clvertalc\cellx4185\clvertalc\cellx4274\clvertalc\cellx4584\clvertalc\cellx5188\clvertalc\cellx5498\clvertalc\cellx5587\clvertalc\cellx5860\clvertalc\cellx6411\clvertalc\cellx6680\clvertalc\cellx6769\clvertalc\cellx7034\clvertalc\cellx7638\clvertalc\cellx7903\clvertalc\cellx7985\clvertalc\cellx8421\clvertalc\cellx9153\clvertalc\cellx9589\clvertalc\cellx9671\clvertalc\cellx9893\clvertalc\cellx10563\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1674\clvertalc\cellx2446\clvertalc\cellx2989\clvertalc\cellx3071\clvertalc\cellx3403\clvertalc\cellx3916\clvertalc\cellx4185\clvertalc\cellx4274\clvertalc\cellx4584\clvertalc\cellx5188\clvertalc\cellx5498\clvertalc\cellx5587\clvertalc\cellx5860\clvertalc\cellx6411\clvertalc\cellx6680\clvertalc\cellx6769\clvertalc\cellx7034\clvertalc\cellx7638\clvertalc\cellx7903\clvertalc\cellx7985\clvertalc\cellx8421\clvertalc\cellx9153\clvertalc\cellx9589\clvertalc\cellx9671\clvertalc\cellx9893\clvertalc\cellx10563\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7912\clvertalb\cellx7994\clvertalb\cellx9599\clvertalb\cellx9681\clvertalb\cellx10796\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\b\qc Equity Attributable To Common Stockholders\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7912\clvertalb\cellx7994\clvertalb\cellx9599\clvertalb\cellx9681\clvertalb\cellx10796\trrh281\row}}} {\trowd\clvertalb\cellx1674\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2990\clvertalb\cellx3072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4187\clvertalb\cellx4276\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5501\clvertalb\cellx5590\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6685\clvertalb\cellx6774\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7910\clvertalb\cellx7992\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9597\clvertalb\cellx9679\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10794\trrh776 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Shares\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Outstanding\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Common\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Stock\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Additional\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Paid-in\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Capital\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Treasury\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Stock\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Retained\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Earnings\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Noncontrolling\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Interests\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\qc Total\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\qc Equity\cell{ {\trowd\clvertalb\cellx1674\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2990\clvertalb\cellx3072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4187\clvertalb\cellx4276\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5501\clvertalb\cellx5590\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6685\clvertalb\cellx6774\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7910\clvertalb\cellx7992\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9597\clvertalb\cellx9679\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10794\trrh776\row}}} {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh529 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\qc (in\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\qc thousands)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh529\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3403\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4584\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5860\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6411\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6680\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6769\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7034\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7638\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7903\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7985\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8421\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9153\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9589\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9893\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10563\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Balance as of\plain\intbl\li22\ri22\cf1\f51\fs20\ql December 31,\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql 2018\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 169,499\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 9,062\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (423\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 3,470\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 12,111\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3403\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4584\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5860\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6411\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6680\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6769\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7034\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7638\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7903\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7985\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8421\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9153\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9589\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9893\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10563\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776\row}}} {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clvertalb\cellx7640\clvertalb\cellx7905\clvertalb\cellx7987\clvertalb\cellx9155\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh529 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Dividends declared\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql ($0.32 per share)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (54\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (54\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clvertalb\cellx7640\clvertalb\cellx7905\clvertalb\cellx7987\clvertalb\cellx9155\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh529\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh1024 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\~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh1024\row}}} 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\par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (222\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (222\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clvertalb\cellx7640\clvertalb\cellx7905\clvertalb\cellx7987\clvertalb\cellx9155\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh529\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2990\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3072\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4187\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4276\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5501\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5590\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6685\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6774\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7910\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7992\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9597\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9679\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10794\trrh776 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Stock-based\plain\intbl\li22\ri22\cf1\f51\fs20\ql compensation\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql costs:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2990\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3072\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4187\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4276\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5501\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5590\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6685\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6774\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7910\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7992\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9597\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9679\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10794\trrh776\row}}} 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\~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clvertalb\cellx7640\clvertalb\cellx7905\clvertalb\cellx7987\clvertalb\cellx9155\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776 \pard\plain\intbl\li198\ri22\sb22\cf1\f51\fs20\ql Compensation\plain\intbl\li198\ri22\cf1\f51\fs20\ql costs included in\plain\intbl\li198\ri22\sa22\cf1\f51\fs20\ql net income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 24\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 24\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776\row}}} {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7640\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7905\clvertalb\cellx7987\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9155\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Net income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 350\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 350\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7640\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7905\clvertalb\cellx7987\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9155\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3403\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4584\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5860\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6411\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6680\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6769\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7034\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7638\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7903\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7985\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8421\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9153\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9589\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9671\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9893\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10563\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh529 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Balance as of\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql March 31, 2019\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 168,422\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 9,086\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (645\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 3,766\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 12,209\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3403\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4584\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5860\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6411\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6680\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6769\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7034\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7638\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7903\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7985\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8421\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9153\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9589\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9671\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9893\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10563\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh529\row}}} {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh321 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh321\row}}} {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh321 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh321\row}}} {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7912\clvertalb\cellx7994\clvertalb\cellx9599\clvertalb\cellx9681\clvertalb\cellx10796\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\b\qc Equity Attributable To Common Stockholders\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7912\clvertalb\cellx7994\clvertalb\cellx9599\clvertalb\cellx9681\clvertalb\cellx10796\trrh281\row}}} {\trowd\clvertalb\cellx1674\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2990\clvertalb\cellx3072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4187\clvertalb\cellx4276\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5501\clvertalb\cellx5590\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6685\clvertalb\cellx6774\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7910\clvertalb\cellx7992\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9597\clvertalb\cellx9679\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10794\trrh776 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Shares\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Outstanding\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Common\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Stock\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Additional\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Paid-in\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Capital\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Treasury\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Stock\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Retained\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Earnings\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Noncontrolling\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc Interests\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\qc Total\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\qc Equity\cell{ {\trowd\clvertalb\cellx1674\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2990\clvertalb\cellx3072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4187\clvertalb\cellx4276\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5501\clvertalb\cellx5590\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6685\clvertalb\cellx6774\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7910\clvertalb\cellx7992\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9597\clvertalb\cellx9679\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10794\trrh776\row}}} {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh529 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\qc (in\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\qc thousands)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh529\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3403\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4584\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5860\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6411\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6680\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6769\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7034\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7638\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7903\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7985\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8421\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9153\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9589\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9893\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10563\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Balance as of\plain\intbl\li22\ri22\cf1\f51\fs20\ql December 31,\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql 2017\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 170,189\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 8,974\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (249\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2,547\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 5\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 11,279\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3403\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4584\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5860\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6411\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6680\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6769\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7034\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7638\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7903\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7985\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8421\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9153\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9589\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9893\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10563\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776\row}}} {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clvertalb\cellx7640\clvertalb\cellx7905\clvertalb\cellx7987\clvertalb\cellx9155\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh529 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Dividends declared\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql ($0.16 per share)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (27\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (27\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clvertalb\cellx7640\clvertalb\cellx7905\clvertalb\cellx7987\clvertalb\cellx9155\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh529\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh529 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Purchases of\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql treasury stock\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (262\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (45\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (45\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh529\row}}} {\trowd\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh776 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Stock-based\plain\intbl\li22\ri22\cf1\f51\fs20\ql compensation\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql costs:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx1674\clvertalb\cellx2990\clvertalb\cellx3072\clvertalb\cellx4187\clvertalb\cellx4276\clvertalb\cellx5501\clvertalb\cellx5590\clvertalb\cellx6685\clvertalb\cellx6774\clvertalb\cellx7910\clvertalb\cellx7992\clvertalb\cellx9597\clvertalb\cellx9679\clvertalb\cellx10794\trrh776\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Issued awards\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 492\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clvertalb\cellx7640\clvertalb\cellx7905\clvertalb\cellx7987\clvertalb\cellx9155\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh776 \pard\plain\intbl\li198\ri22\sb22\cf1\f51\fs20\ql Compensation\plain\intbl\li198\ri22\cf1\f51\fs20\ql costs included in\plain\intbl\li198\ri22\sa22\cf1\f51\fs20\ql net income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 17\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 17\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx1674\clvertalb\cellx2446\clvertalb\cellx2989\clvertalb\cellx3071\clvertalb\cellx3916\clvertalb\cellx4185\clvertalb\cellx4274\clvertalb\cellx5188\clvertalb\cellx5498\clvertalb\cellx5587\clvertalb\cellx6412\clvertalb\cellx6681\clvertalb\cellx6770\clvertalb\cellx7640\clvertalb\cellx7905\clvertalb\cellx7987\clvertalb\cellx9155\clvertalb\cellx9591\clvertalb\cellx9673\clvertalb\cellx10565\clvertalb\cellx10800\trrh776\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Net income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 178\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 178\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1674\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2446\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx2989\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3916\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4185\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4274\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5498\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5587\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6412\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6681\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7640\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7987\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9155\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9591\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9673\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10565\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx1674\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2446\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2989\clvertalb\cellx3071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3403\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3916\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4185\clvertalb\cellx4274\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4584\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5188\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5498\clvertalb\cellx5587\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5860\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6411\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6680\clvertalb\cellx6769\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7034\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7638\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7903\clvertalb\cellx7985\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8421\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9153\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9589\clvertalb\cellx9671\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9893\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10563\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh529 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Balance as of\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql March 31, 2018\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 170,419\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 8,991\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (294\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2,698\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 5\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 11,402\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx1674\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2446\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2989\clvertalb\cellx3071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3403\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3916\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4185\clvertalb\cellx4274\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4584\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5188\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5498\clvertalb\cellx5587\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5860\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6411\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6680\clvertalb\cellx6769\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7034\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7638\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7903\clvertalb\cellx7985\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8421\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9153\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9589\clvertalb\cellx9671\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9893\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10563\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh529\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\sb264\cf1\f51\fs18\qc The financial information included herein has been prepared by management\par\pard\plain\cf1\f51\fs18\qc without audit by independent registered public accountants.\par\pard\plain\sb264\cf1\f51\fs18\qc The accompanying notes are an integral part of these consolidated financial statements. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 8 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s6b7440b3e51f544d89fbae7376bd6ba}{\*\bkmkend s6b7440b3e51f544d89fbae7376bd6ba}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}} \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc CONSOLIDATED STATEMENTS OF CASH FLOWS\par\pard\plain\cf1\f51\fs20\b\qc (in millions)\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain {\trowd\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalc\cellx7397\clvertalc\cellx7639\clvertalc\cellx8898\clvertalc\cellx9038\clvertalc\cellx9145\clvertalc\cellx9387\clvertalc\cellx10648\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx7397\clvertalc\cellx7639\clvertalc\cellx8898\clvertalc\cellx9038\clvertalc\cellx9145\clvertalc\cellx9387\clvertalc\cellx10648\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalb\cellx7397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh529 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs20\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs20\b\qc March 31,\cell{ {\trowd\clvertalb\cellx7397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh529\row}}} {\trowd\clvertalb\cellx7397\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9038\clvertalb\cellx9145\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10788\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\qc 2018\cell{ {\trowd\clvertalb\cellx7397\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9038\clvertalb\cellx9145\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10788\trrh298\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Cash flows from operating activities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx7639\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx9387\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Net income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 350\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 178\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx7639\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx9387\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Adjustments to reconcile net income to net cash provided by operating activities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Depletion, depreciation and amortization\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 421\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 357\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Impairment of inventory and other property and equipment\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 32\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Exploration expenses, including dry holes\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 5\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Deferred income taxes\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 103\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql (Gain) loss on disposition of assets, net\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 9\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (4\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Accretion of discount on asset retirement obligations\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Interest expense\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Derivative related activity\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 17\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 136\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Amortization of stock-based compensation\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 24\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 17\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Investment in affiliate fair value adjustment\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (174\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Other\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 62\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 22\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Change in operating assets and liabilities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Accounts receivable\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (69\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (181\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Inventories\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (36\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (6\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Investments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Other current assets\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (15\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (3\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Accounts payable\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (74\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (9\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Interest payable\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (29\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (21\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Income taxes payable\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li462\ri22\sb22\sa22\cf1\f51\fs20\ql Other current liabilities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (22\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 5\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8898\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9038\clvertalb\cellx9145\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10648\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh298 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Net cash provided by operating activities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 604\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 555\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8898\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9038\clvertalb\cellx9145\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10648\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh298\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Cash flows from investing activities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10788\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Proceeds from disposition of assets, net of cash sold\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 6\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Proceeds from investments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 112\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 554\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Purchase of investments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (94\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Additions to oil and gas properties\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (741\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (818\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8898\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9038\clvertalb\cellx9145\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10648\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Additions to other assets and other property and equipment\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (72\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (51\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx7397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8898\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9038\clvertalb\cellx9145\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10648\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Net cash used in investing activities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (695\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (405\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10788\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Cash flows from financing activities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10788\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Purchase of treasury stock\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (222\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (45\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Payments of other liabilities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (1\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh298 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Net cash used in financing activities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (223\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (45\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh298\row}}} {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Net increase (decrease) in cash and cash equivalents\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (314\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 105\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clvertalb\cellx8898\clvertalb\cellx9038\clvertalb\cellx9145\clvertalb\cellx10648\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Cash and cash equivalents, beginning of period\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 825\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 896\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7397\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8898\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9038\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9145\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10648\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx7397\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7639\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8898\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9038\clvertalb\cellx9145\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9387\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10648\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Cash and cash equivalents, end of period\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 511\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,001\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7397\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7639\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8898\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9038\clvertalb\cellx9145\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9387\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10648\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10789\trrh281\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\cf1\f51\fs18\qc The financial information included herein has been prepared by management\par\pard\plain\cf1\f51\fs18\qc without audit by independent registered public accountants.\par\pard\plain\sb176\cf1\f51\fs18\qc The accompanying notes are an integral part of these consolidated financial statements. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 9 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s55e33b82f3105814958c8e5675134f7}{\*\bkmkend s55e33b82f3105814958c8e5675134f7}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16 \par\pard\plain\fs16{\*\bkmkstart s6918c5fcf0e659c88f5a41b6dceeba2}{\*\bkmkend s6918c5fcf0e659c88f5a41b6dceeba2}\par\pard\plain\cf1\f51\fs20\b\ql NOTE 1. Organization and Nature of Operations\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Pioneer Natural Resources Company ("Pioneer" or the "Company") is a Delaware corporation whose common stock is\plain\cf1\f51\fs20\qj listed and traded on the New York Stock Exchange. The Company is a large independent oil and gas exploration and production\plain\cf1\f51\fs20\qj company that explores for, develops and produces oil, natural gas liquids ("NGL") and gas within the United States, with\plain\cf1\f51\fs20\qj operations primarily in the Permian Basin in West Texas.{\*\bkmkstart s277264193c87553aa8ff36a146109c4}{\*\bkmkend s277264193c87553aa8ff36a146109c4}\par\pard\plain\sb264\cf1\f51\fs20\b\ql NOTE 2. Basis of Presentation\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Presentation.\plain\cf1\f51\fs20\qj In the opinion of management, the unaudited interim consolidated financial statements of the Company as of\plain\cf1\f51\fs20\qj March\~31, 2019 and for the three months ended March\~31, 2019 and 2018 include all adjustments and accruals, consisting only of\plain\cf1\f51\fs20\qj normal, recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods in conformity\plain\cf1\f51\fs20\qj with generally accepted accounting principles in the United States ("GAAP"). The operating results for the three months ended\plain\cf1\f51\fs20\qj March\~31, 2019 are not necessarily indicative of the results to be expected for the full year.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP\plain\cf1\f51\fs20\qj have been condensed or omitted in accordance with the rules and regulations of the United States Securities and Exchange\plain\cf1\f51\fs20\qj Commission (the "SEC"). These unaudited interim consolidated financial statements should be read together with the consolidated\plain\cf1\f51\fs20\qj financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December\~31,\plain\cf1\f51\fs20\qj 2018.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Certain reclassifications have been made to prior period amounts to conform to the current period's presentation.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Use of estimates in the preparation of financial statements.\plain\cf1\f51\fs20\qj Preparation of the Company's unaudited interim consolidated\plain\cf1\f51\fs20\qj financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported\plain\cf1\f51\fs20\qj amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the\plain\cf1\f51\fs20\qj reported amounts of revenues and expenses during the reporting periods. Depletion of oil and gas properties and impairment of\plain\cf1\f51\fs20\qj goodwill and proved and unproved oil and gas properties, in part, is determined using estimates of proved, probable and possible\plain\cf1\f51\fs20\qj oil and gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible\plain\cf1\f51\fs20\qj reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for\plain\cf1\f51\fs20\qj impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others,\plain\cf1\f51\fs20\qj estimates of future recoverable reserves and commodity price outlooks. Actual results could differ from the estimates and\plain\cf1\f51\fs20\qj assumptions utilized.\par\pard\plain\sb264\fi792\cf1\f51\fs20\b\i\qj Adoption of new accounting standards.\plain\cf1\f51\fs20\qj In February 2016, the Financial Accounting Standards Board ("FASB") issued\plain\cf1\f51\fs20\qj Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" ("ASC 842") which supersedes the lease recognition\plain\cf1\f51\fs20\qj requirements in Accounting Standards Codification ("ASC") 840, "Leases" ("ASC 840"), and requires lessees to recognize lease\plain\cf1\f51\fs20\qj assets and lease liabilities for those leases previously classified as operating leases. The Company adopted ASC 842 as of January\plain\cf1\f51\fs20\qj 1, 2019 using the modified retrospective transition method. The Company elected to apply the transition guidance under ASU\plain\cf1\f51\fs20\qj 2018-11, "Leases (Topic 842) Targeted Improvements," in which ASC 842 is applied at the adoption date, while the comparative\plain\cf1\f51\fs20\qj periods continue to be reported in accordance with historic accounting under ASC 840. This standard does not apply to leases to\plain\cf1\f51\fs20\qj explore for or use minerals, oil or gas resources, including the right to explore for those natural resources and rights to use the\plain\cf1\f51\fs20\qj land in which those natural resources are contained.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj ASC 842 allowed for the election of certain practical expedients at adoption to ease the burden of implementation. At\plain\cf1\f51\fs20\qj implementation, the Company elected to (i) maintain the historical lease classification for leases prior to January 1, 2019, (ii)\plain\cf1\f51\fs20\qj maintain the historical accounting treatment for land easements that existed at adoption, (iii) use historical practices in assessing\plain\cf1\f51\fs20\qj the lease term of existing contracts at adoption, (iv) combine lease and non-lease components of a contract as a single lease and\plain\cf1\f51\fs20\qj (v) not record short-term leases on the consolidated balance sheet, all in accordance with ASC 842.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj As of March 31, 2019, the Company's operating lease assets and liabilities totaled $356 million and $362 million,\plain\cf1\f51\fs20\qj respectively, on the consolidated balance sheet, in accordance with ASC 842. The adoption of ASC 842 did not have a material\plain\cf1\f51\fs20\qj impact on the consolidated statements of operations and had no impact on cash flows. The Company did not record a change to\plain\cf1\f51\fs20\qj its opening retained earnings as of January 1, 2019, as there was no material change to the timing or pattern of recognition of\plain\cf1\f51\fs20\qj lease costs due to the adoption of ASC 842. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 10 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj As of December 31, 2018, the Company was the deemed owner of the Company's new corporate headquarters (for\plain\cf1\f51\fs20\qj accounting purposes) during the construction period and was following the build-to-suit accounting guidance under ASC 840.\plain\cf1\f51\fs20\qj On January 1, 2019, upon the adoption of ASC 842, the Company derecognized $217 million of other property and equipment\plain\cf1\f51\fs20\qj and $219 million of build-to-suit lease liability costs associated with the building as this contract no longer qualifies for\plain\cf1\f51\fs20\qj capitalization. The contract will be evaluated and recorded on the Company's consolidated balance sheets upon lease\plain\cf1\f51\fs20\qj commencement, which is expected to occur during the second half of 2019.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s26d832a1161345f8a3702b7a87a7ab0" }{\*\fldrslt\cf3\f51\fs20\qj Note 10}}\plain\cf1\f51\fs20\qj for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj New accounting pronouncements.\plain\cf1\f51\fs20\qj In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses\plain\cf1\f51\fs20\qj (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). ASU 2016-13 changes the impairment\plain\cf1\f51\fs20\qj model for most financial assets and certain other instruments, including trade and other receivables, and requires entities to use a\plain\cf1\f51\fs20\qj new forward-looking expected loss model that will result in the earlier recognition of allowances for losses. This update is\plain\cf1\f51\fs20\qj effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early\plain\cf1\f51\fs20\qj adoption permitted. Entities will use the modified retrospective approach to apply the standard's provisions and record a\plain\cf1\f51\fs20\qj cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is\plain\cf1\f51\fs20\qj adopted. The Company continues to evaluate ASU 2016-13 but does not expect that it will have a material impact on its\plain\cf1\f51\fs20\qj consolidated financial statements.{\*\bkmkstart sdf22ec6d391f531b8e92f73590c50da}{\*\bkmkend sdf22ec6d391f531b8e92f73590c50da}\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 3. Divestiture, Decommissioning and Restructuring Activities\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company's significant divestiture, decommissioning and restructuring activities during the three months ended\plain\cf1\f51\fs20\qj March\~31, 2019 and 2018 are as follows: \par\pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh1485 \pard\plain\intbl\li594\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj In March 2019, the Company made certain changes to its leadership and organizational structure to align its cost\plain\intbl\cf1\f51\fs20\qj structure with the needs of a Permian Basin-focused company. These changes included the early retirement and\plain\intbl\cf1\f51\fs20\qj departure of certain officers of the Company. During the three months ended March\~31, 2019, the Company recorded\plain\intbl\cf1\f51\fs20\qj $12 million of employee-related charges associated with these changes. See\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "s31c172d54e4c5abc8a5d3c2df09861e" }{\*\fldrslt\cf3\f51\fs20\qj Note 15}}\plain\intbl\cf1\f51\fs20\qj for additional information.\cell{ {\trowd\cellx900\cellx10800\trrh1485\row}}} \pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh1485 \pard\plain\intbl\li594\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj In December 2018, the Company completed the sale of its pressure pumping assets to ProPetro Holding Corp.\plain\intbl\cf1\f51\fs20\qj ("ProPetro") in exchange for total consideration of $282 million, of which $110 million was received in the first\plain\intbl\cf1\f51\fs20\qj quarter of 2019. See\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "s7b7ba42f278b4f9c888199e366d12a6" }{\*\fldrslt\cf3\f51\fs20\qj Note 12}}\plain\intbl\cf1\f51\fs20\qj for additional information. During the three months ended March\~31, 2019, the Company reduced the gain associated\plain\intbl\cf1\f51\fs20\qj with the sale by $10 million and recorded additional employee-related charges of $1 million related to the sale.\cell{ {\trowd\cellx900\cellx10800\trrh1485\row}}} \pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh990 \pard\plain\intbl\li594\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj In November 2018, the Company announced plans to close its sand mine located in Brady, Texas and transition its\plain\intbl\cf1\f51\fs20\qj proppant supply requirements to West Texas sand sources. During the three months ended March\~31, 2019, the\plain\intbl\cf1\f51\fs20\qj Company recorded $23 million of accelerated depreciation and $16 million of inventory and other property and\plain\intbl\cf1\f51\fs20\qj equipment impairment charges associated with the planned shutdown.\cell{ {\trowd\cellx900\cellx10800\trrh990\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company's restructuring activities, including employee-related charges, contract termination charges and other costs\plain\cf1\f51\fs20\qj are recorded as other expense in the statements of operations and as other noncash operating activities in the consolidated\plain\cf1\f51\fs20\qj statements of cash flows. Obligations associated with employee-related charges are classified as accounts payable - due to\plain\cf1\f51\fs20\qj affiliates in the consolidated balance sheets. Obligations associated with contract termination charges are classified as other\plain\cf1\f51\fs20\qj current or noncurrent liabilities in the consolidated balance sheets. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 11 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company's restructuring activity during the three months ended March\~31, 2019 is as follows (in millions): \par\pard\plain {\trowd\trqc\clvertalc\cellx10799\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10799\trrh66\row}}} {\trowd\trqc\clvertalc\cellx8522\clvertalc\cellx8642\clvertalc\cellx10691\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx8522\clvertalc\cellx8642\clvertalc\cellx10691\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Employee-related charges:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10799\trrh281\row}}} {\trowd\trqc\clvertalb\cellx8522\clvertalb\cellx8642\clvertalb\cellx10691\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Beginning employee-related obligations\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 27\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\cellx8522\clvertalb\cellx8642\clvertalb\cellx10691\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776 \pard\plain\intbl\li198\ri22\sb22\cf1\f51\fs20\ql Additions (\pard\plain\intbl\li198\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "s31c172d54e4c5abc8a5d3c2df09861e" }{\*\fldrslt\cf3\f51\fs20\ql Note 15}}\plain\intbl\li198\ri22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 13\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776\row}}} {\trowd\trqc\clvertalb\cellx8522\clvertalb\cellx10691\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Cash payments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (10\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clvertalb\cellx8522\clvertalb\cellx10691\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776 \pard\plain\intbl\li198\ri22\sb22\cf1\f51\fs20\ql Noncash changes (\pard\plain\intbl\li198\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "sd9527953fcc35b258d54e4b68e52b61" }{\*\fldrslt\cf3\f51\fs20\ql Note 8}}\plain\intbl\li198\ri22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (4\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776\row}}} {\trowd\trqc\clvertalb\cellx8522\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10691\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Ending employee-related obligations\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 26\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\cellx8522\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10691\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10799\trrh371 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10799\trrh371\row}}} {\trowd\trqc\clvertalb\cellx8522\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Contract termination charges:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\cellx8522\clvertalb\cellx10799\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Beginning contract termination obligations\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 111\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx8522\clvertalb\cellx10691\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Cash payments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (9\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clvertalb\cellx8522\clvertalb\cellx10691\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Ending contract termination obligations (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 102\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8522\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\trqc\clvertalb\cellx8522\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10691\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Total restructuring obligations\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 128\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\cellx8522\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10691\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298\row}}}\pard\plain\cf1\f51\fs20\ql ______________________ \par\pard\plain {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx540\cellx10800\trrh742 \pard\plain\intbl\li198\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Includes $90 million of deficiency charges related to certain firm transportation contracts associated with the divestiture of\plain\intbl\cf1\f51\fs20\qj the Company's gas field assets in the Raton Basin. These obligations were retained by the Company and are expected to be\plain\intbl\cf1\f51\fs20\qj paid as follows: $30 million in 2019, $43 million in 2020 and $17 million in 2021.\cell{ {\trowd\cellx540\cellx10800\trrh742\row}}}{\*\bkmkstart s8b773a8d1f275391ab414dff3da659a}{\*\bkmkend s8b773a8d1f275391ab414dff3da659a}\pard\plain\sb264\cf1\f51\fs20\b\ql NOTE 4. Fair Value Measurements\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a\plain\cf1\f51\fs20\qj liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon\plain\cf1\f51\fs20\qj inputs that market participants use in pricing an asset or liability, which are characterized according to a hierarchy that prioritizes\plain\cf1\f51\fs20\qj those inputs based on the degree to which they are observable. Observable inputs represent market data obtained from\plain\cf1\f51\fs20\qj independent sources, whereas unobservable inputs reflect a company's own market assumptions, which are used if observable\plain\cf1\f51\fs20\qj inputs are not reasonably available without undue cost and effort. The fair value input hierarchy level to which an asset or\plain\cf1\f51\fs20\qj liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in\plain\cf1\f51\fs20\qj its entirety.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The three input levels of the fair value hierarchy are as follows: \par\pard\plain {\trowd\clvertalc\cellx820\clvertalc\cellx7642\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx820\clvertalc\cellx7642\trrh66\row}}} {\trowd\cellx820\cellx7642\trrh495 \pard\plain\intbl\li594\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj Level 1 \u8211? quoted prices for identical assets or liabilities in active\plain\intbl\cf1\f51\fs20\qj markets.\cell{ {\trowd\cellx820\cellx7642\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh990 \pard\plain\intbl\li594\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj Level 2 \u8211? quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar\plain\intbl\cf1\f51\fs20\qj assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or\plain\intbl\cf1\f51\fs20\qj liability (e.g. interest rates) and inputs derived principally from or corroborated by observable market data by\plain\intbl\cf1\f51\fs20\qj correlation or other means.\cell{ {\trowd\cellx900\cellx10800\trrh990\row}}} \pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh742 \pard\plain\intbl\li594\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj Level 3 \u8211? unobservable inputs for the asset or liability, typically reflecting management's estimate of\plain\intbl\cf1\f51\fs20\qj assumptions that market participants would use in pricing the asset or liability. The fair values are therefore,\plain\intbl\cf1\f51\fs20\qj determined using model-based techniques, including discounted cash flow models.\cell{ {\trowd\cellx900\cellx10800\trrh742\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 12 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Assets and liabilities measured at fair value on a recurring basis.\plain\cf1\f51\fs20\qj Assets and liabilities measured at fair value on a\plain\cf1\f51\fs20\qj recurring basis are as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx3646\clvertalc\cellx3974\clvertalc\cellx5116\clvertalc\cellx5444\clvertalc\cellx5548\clvertalc\cellx5880\clvertalc\cellx6942\clvertalc\cellx7229\clvertalc\cellx7333\clvertalc\cellx7653\clvertalc\cellx8795\clvertalc\cellx9115\clvertalc\cellx9213\clvertalc\cellx9473\clvertalc\cellx10532\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx3646\clvertalc\cellx3974\clvertalc\cellx5116\clvertalc\cellx5444\clvertalc\cellx5548\clvertalc\cellx5880\clvertalc\cellx6942\clvertalc\cellx7229\clvertalc\cellx7333\clvertalc\cellx7653\clvertalc\cellx8795\clvertalc\cellx9115\clvertalc\cellx9213\clvertalc\cellx9473\clvertalc\cellx10532\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx3646\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9120\clvertalb\cellx9218\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc Fair Value Measurement as of March 31, 2022 Using\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\cellx3646\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9120\clvertalb\cellx9218\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clvertalb\cellx3646\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5445\clvertalb\cellx5549\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7231\clvertalb\cellx7335\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9119\clvertalb\cellx9217\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh826 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Quoted\~Prices in\par\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\qc Active Markets for\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\qc Identical Assets\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (Level 1)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Significant\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Other Observable\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Inputs\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (Level 2)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Significant\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Unobservable\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Inputs\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (Level 3)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\qc Fair Value as of\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\qc March\~31, 2019\cell{ {\trowd\trqc\clvertalb\cellx3646\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5445\clvertalb\cellx5549\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7231\clvertalb\cellx7335\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9119\clvertalb\cellx9217\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh826\row}}} {\trowd\trqc\clvertalb\cellx3646\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx3646\clvertalb\cellx10799\trrh232\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3646\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5445\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5549\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7231\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7335\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9217\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Assets:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3646\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5445\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5549\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7231\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7335\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9217\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281\row}}} {\trowd\trqc\cellx3646\clvertalb\cellx3974\clvertalb\cellx5116\clvertalb\cellx5444\clvertalb\cellx5548\clvertalb\cellx5880\clvertalb\cellx6942\clvertalb\cellx7229\clvertalb\cellx7333\clvertalb\cellx7653\clvertalb\cellx8795\clvertalb\cellx9115\clvertalb\cellx9213\clvertalb\cellx9473\clvertalb\cellx10532\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity derivatives\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 30\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 30\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx3646\clvertalb\cellx3974\clvertalb\cellx5116\clvertalb\cellx5444\clvertalb\cellx5548\clvertalb\cellx5880\clvertalb\cellx6942\clvertalb\cellx7229\clvertalb\cellx7333\clvertalb\cellx7653\clvertalb\cellx8795\clvertalb\cellx9115\clvertalb\cellx9213\clvertalb\cellx9473\clvertalb\cellx10532\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3646\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5445\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5549\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6943\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7230\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7334\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9215\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10535\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Deferred compensation plan assets\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 89\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 89\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3646\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5445\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5549\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6943\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7230\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7334\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9215\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10535\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx3646\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5117\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5445\clvertalb\cellx5549\clvertalb\cellx6943\clvertalb\cellx7230\clvertalb\cellx7334\clvertalb\cellx8797\clvertalb\cellx9117\clvertalb\cellx9215\clvertalb\cellx10535\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Investment in affiliate\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 347\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 347\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx3646\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5117\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5445\clvertalb\cellx5549\clvertalb\cellx6943\clvertalb\cellx7230\clvertalb\cellx7334\clvertalb\cellx8797\clvertalb\cellx9117\clvertalb\cellx9215\clvertalb\cellx10535\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3646\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5117\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5445\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5549\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6943\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7230\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7334\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8797\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9215\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10535\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total assets\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 89\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 377\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 466\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3646\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5117\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5445\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5549\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6943\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7230\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7334\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8797\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9215\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10535\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\trqc\cellx3646\clvertalb\cellx5445\clvertalb\cellx5549\clvertalb\cellx7231\clvertalb\cellx7335\clvertalb\cellx9119\clvertalb\cellx9217\clvertalb\cellx10797\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Liabilities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\cellx3646\clvertalb\cellx5445\clvertalb\cellx5549\clvertalb\cellx7231\clvertalb\cellx7335\clvertalb\cellx9119\clvertalb\cellx9217\clvertalb\cellx10797\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3646\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5445\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5549\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6943\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7230\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7334\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9215\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10535\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity derivatives\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 22\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 22\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3646\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5445\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5549\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6943\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7230\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7334\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9117\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9215\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10535\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx3646\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5117\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5445\clvertalb\cellx5549\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6943\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7230\clvertalb\cellx7334\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8797\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9117\clvertalb\cellx9215\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10535\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total liabilities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 22\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 22\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx3646\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5117\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5445\clvertalb\cellx5549\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6943\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7230\clvertalb\cellx7334\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8797\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9117\clvertalb\cellx9215\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10535\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3646\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3974\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5116\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5444\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5548\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5880\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6942\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7229\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7333\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7653\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8795\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9115\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9213\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9473\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10532\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 89\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 355\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 444\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3646\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3974\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5116\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5444\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5548\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5880\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6942\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7229\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7333\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7653\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8795\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9115\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9213\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9473\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10532\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} \par\pard\plain {\trowd\trqc\clvertalc\cellx10799\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10799\trrh66\row}}} {\trowd\trqc\clvertalc\cellx3567\clvertalc\cellx3895\clvertalc\cellx5022\clvertalc\cellx5350\clvertalc\cellx5453\clvertalc\cellx5785\clvertalc\cellx6823\clvertalc\cellx7110\clvertalc\cellx7213\clvertalc\cellx7533\clvertalc\cellx8660\clvertalc\cellx8980\clvertalc\cellx9077\clvertalc\cellx9414\clvertalc\cellx10454\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx3567\clvertalc\cellx3895\clvertalc\cellx5022\clvertalc\cellx5350\clvertalc\cellx5453\clvertalc\cellx5785\clvertalc\cellx6823\clvertalc\cellx7110\clvertalc\cellx7213\clvertalc\cellx7533\clvertalc\cellx8660\clvertalc\cellx8980\clvertalc\cellx9077\clvertalc\cellx9414\clvertalc\cellx10454\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx3567\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8986\clvertalb\cellx9083\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc Fair Value Measurement as of December 31, 2021 Using\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\cellx3567\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8986\clvertalb\cellx9083\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clvertalb\cellx3567\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5350\clvertalb\cellx5453\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7111\clvertalb\cellx7214\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8983\clvertalb\cellx9080\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10795\trrh826 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\qc Quoted\~Prices in Active\plain\intbl\li22\ri22\cf1\f51\fs16\b\qc Markets for \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\cf1\f51\fs16\b\qc Identical Assets \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\qc (Level 1)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\qc Significant \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\cf1\f51\fs16\b\qc Other Observable \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\cf1\f51\fs16\b\qc Inputs \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\qc (Level 2)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\qc Significant \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\cf1\f51\fs16\b\qc Unobservable \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\cf1\f51\fs16\b\qc Inputs \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\qc (Level 3)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\qc Fair value as of\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\qc December\~31, 2018\cell{ {\trowd\trqc\clvertalb\cellx3567\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5350\clvertalb\cellx5453\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7111\clvertalb\cellx7214\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8983\clvertalb\cellx9080\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10795\trrh826\row}}} {\trowd\trqc\clvertalb\cellx3567\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx3567\clvertalb\cellx10799\trrh232\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3567\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7111\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8983\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9080\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10795\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Assets:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3567\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7111\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8983\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9080\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10795\trrh281\row}}} {\trowd\trqc\cellx3567\clvertalb\cellx3895\clvertalb\cellx5022\clvertalb\cellx5350\clvertalb\cellx5453\clvertalb\cellx5785\clvertalb\cellx6823\clvertalb\cellx7110\clvertalb\cellx7213\clvertalb\cellx7533\clvertalb\cellx8660\clvertalb\cellx8980\clvertalb\cellx9077\clvertalb\cellx9414\clvertalb\cellx10454\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity derivatives\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 52\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 52\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx3567\clvertalb\cellx3895\clvertalb\cellx5022\clvertalb\cellx5350\clvertalb\cellx5453\clvertalb\cellx5785\clvertalb\cellx6823\clvertalb\cellx7110\clvertalb\cellx7213\clvertalb\cellx7533\clvertalb\cellx8660\clvertalb\cellx8980\clvertalb\cellx9077\clvertalb\cellx9414\clvertalb\cellx10454\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3567\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6824\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7111\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8662\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8982\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9079\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10457\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Deferred compensation plan assets\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 82\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 82\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3567\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6824\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7111\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8662\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8982\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9079\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10457\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx3567\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5022\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5350\clvertalb\cellx5453\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6824\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7111\clvertalb\cellx7214\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8662\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8982\clvertalb\cellx9079\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10457\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Investment in affiliate\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 172\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 172\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx3567\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5022\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5350\clvertalb\cellx5453\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6824\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7111\clvertalb\cellx7214\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8662\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8982\clvertalb\cellx9079\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10457\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3567\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5022\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6824\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7111\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8662\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8982\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9079\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10457\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total assets\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 82\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 224\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 306\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3567\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5022\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6824\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7111\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8662\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8982\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9079\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10457\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx3567\clvertalb\cellx5350\clvertalb\cellx5453\clvertalb\cellx7111\clvertalb\cellx7214\clvertalb\cellx8983\clvertalb\cellx9080\clvertalb\cellx10795\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Liabilities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\cellx3567\clvertalb\cellx5350\clvertalb\cellx5453\clvertalb\cellx7111\clvertalb\cellx7214\clvertalb\cellx8983\clvertalb\cellx9080\clvertalb\cellx10795\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3567\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6824\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7111\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8662\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8982\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9079\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10457\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity derivatives\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 27\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 27\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3567\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6824\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7111\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8662\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8982\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9079\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10457\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx3567\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5022\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5350\clvertalb\cellx5453\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6824\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7111\clvertalb\cellx7214\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8662\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8982\clvertalb\cellx9079\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10457\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total liabilities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 27\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 27\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx3567\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5022\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5350\clvertalb\cellx5453\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6824\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7111\clvertalb\cellx7214\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8662\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8982\clvertalb\cellx9079\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10457\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3567\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3895\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5022\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5785\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6823\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7110\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7213\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7533\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8660\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8980\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9077\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9414\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10454\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 82\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 197\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 279\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3567\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3895\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5022\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5453\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5785\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6823\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7110\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7213\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7533\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8660\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8980\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9077\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9414\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10454\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Commodity derivatives.\plain\cf1\f51\fs20\qj The Company's commodity derivatives represent oil, NGL and gas swap contracts, collar contracts,\plain\cf1\f51\fs20\qj collar contracts with short puts and basis swap contracts. The asset and liability measurements for the Company's commodity\plain\cf1\f51\fs20\qj derivative contracts represent Level 2 inputs in the hierarchy. The Company utilizes discounted cash flow and option-pricing\plain\cf1\f51\fs20\qj models for valuing its commodity derivatives.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The asset and liability values attributable to the Company's commodity derivatives were determined based on inputs that\plain\cf1\f51\fs20\qj include (i)\~the contracted notional volumes, (ii)\~independent active market price quotes, (iii) the applicable estimated\plain\cf1\f51\fs20\qj credit-adjusted risk-free rate yield curve and (iv)\~the implied rate of volatility inherent in the collar contracts and collar contracts\plain\cf1\f51\fs20\qj with short puts, which is based on active and independent market-quoted volatility factors.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Deferred compensation plan assets.\plain\cf1\f51\fs20\qj The Company's deferred compensation plan assets represent investments in equity and\plain\cf1\f51\fs20\qj mutual fund securities that are actively traded on major exchanges. These investments are measured based on observable prices\plain\cf1\f51\fs20\qj on major exchanges. As of March\~31, 2019 and December\~31, 2018, the significant inputs to these asset exchange values\plain\cf1\f51\fs20\qj represented Level 1 independent active exchange market price inputs.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Investment in affiliate.\plain\cf1\f51\fs20\qj The Company elected the fair value option for measuring its equity method investment in ProPetro.\plain\cf1\f51\fs20\qj The fair value of its investment in ProPetro is determined using Level 2 inputs, including the quoted market price for the stock as \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 13 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\cf1\f51\fs20\qj adjusted to reflect a value discount due to the shares not being able to be sold until mid-2019. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s7b7ba42f278b4f9c888199e366d12a6" }{\*\fldrslt\cf3\f51\fs20\qj Note 12}}\plain\cf1\f51\fs20\qj and\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "sa9915796e7e55c3b9e8754d30207536" }{\*\fldrslt\cf3\f51\fs20\qj Note 14}}\plain\cf1\f51\fs20\qj for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Assets and liabilities measured at fair value on a nonrecurring basis.\plain\cf1\f51\fs20\qj Certain assets and liabilities are measured at fair\plain\cf1\f51\fs20\qj value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis, but are subject to\plain\cf1\f51\fs20\qj fair value adjustments in certain circumstances. These assets and liabilities can include inventory, proved and unproved oil and\plain\cf1\f51\fs20\qj gas properties and other long-lived assets that are written down to fair value when they are impaired or held for sale.\par\pard\plain\li66\sb264\fi594\cf1\f51\fs20\qj During the three months ended March 31, 2019, the Company impaired the remaining $16 million of inventory and other\plain\li66\cf1\f51\fs20\qj property and equipment related to the decommissioning of the Company's Brady, Texas sand mine, as these assets had no\plain\li66\cf1\f51\fs20\qj remaining future economic value. In addition, the Company recognized a $15 million impairment charge related to pressure\plain\li66\cf1\f51\fs20\qj pumping assets excluded from the December 2018 sale of the Company's pumping services assets. See\pard\plain\li66\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s31c172d54e4c5abc8a5d3c2df09861e" }{\*\fldrslt\cf3\f51\fs20\qj Note 15}}\plain\li66\cf1\f51\fs20\qj for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Financial instruments not carried at fair value.\plain\cf1\f51\fs20\qj Carrying values and fair values of financial instruments that are not\plain\cf1\f51\fs20\qj carried at fair value in the consolidated balance sheets are as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx5119\clvertalc\cellx5362\clvertalc\cellx6268\clvertalc\cellx6511\clvertalc\cellx6635\clvertalc\cellx6795\clvertalc\cellx7701\clvertalc\cellx7857\clvertalc\cellx7960\clvertalc\cellx8203\clvertalc\cellx9134\clvertalc\cellx9377\clvertalc\cellx9539\clvertalc\cellx9701\clvertalc\cellx10632\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5119\clvertalc\cellx5362\clvertalc\cellx6268\clvertalc\cellx6511\clvertalc\cellx6635\clvertalc\cellx6795\clvertalc\cellx7701\clvertalc\cellx7857\clvertalc\cellx7960\clvertalc\cellx8203\clvertalc\cellx9134\clvertalc\cellx9377\clvertalc\cellx9539\clvertalc\cellx9701\clvertalc\cellx10632\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx5119\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7859\clvertalb\cellx7962\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc As of March\~31, 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc As of December\~31, 2018\cell{ {\trowd\clvertalb\cellx5119\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7859\clvertalb\cellx7962\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281\row}}} {\trowd\clvertalb\cellx5119\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6511\clvertalb\cellx6635\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7858\clvertalb\cellx7961\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9379\clvertalb\cellx9541\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10796\trrh519 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Carrying\par\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Value\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fair\par\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Value\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Carrying\par\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Value\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fair\par\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Value\cell{ {\trowd\clvertalb\cellx5119\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6511\clvertalb\cellx6635\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7858\clvertalb\cellx7961\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9379\clvertalb\cellx9541\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10796\trrh519\row}}} {\trowd\clvertalb\cellx5119\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\clvertalb\cellx5119\clvertalb\cellx10799\trrh232\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7858\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7961\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9379\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9541\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Assets:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7858\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7961\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9379\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9541\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281\row}}} {\trowd\clvertalb\cellx5119\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx7858\clvertalb\cellx7961\clvertalb\cellx9379\clvertalb\cellx9541\clvertalb\cellx10796\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Cash and cash equivalents:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx5119\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx7858\clvertalb\cellx7961\clvertalb\cellx9379\clvertalb\cellx9541\clvertalb\cellx10796\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5362\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8203\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9134\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9377\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9539\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Cash (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 461\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 461\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 775\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 775\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5362\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8203\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9134\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9377\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9539\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx5119\clvertalb\cellx6268\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx7701\clvertalb\cellx7857\clvertalb\cellx7960\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9135\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9378\clvertalb\cellx9540\clvertalb\cellx10633\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Time deposits (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\cellx5119\clvertalb\cellx6268\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx7701\clvertalb\cellx7857\clvertalb\cellx7960\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9135\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9378\clvertalb\cellx9540\clvertalb\cellx10633\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5362\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6795\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8203\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9134\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9377\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9539\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9701\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10632\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\fi484\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 511\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 511\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 825\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 825\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5362\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6795\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8203\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9134\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9377\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9539\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9701\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10632\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\clvertalb\cellx5119\clvertalb\cellx6511\clvertalb\cellx6635\clbrdrt\brdrdb\brdrcf1\clvertalb\cellx7858\clvertalb\cellx7961\clvertalb\cellx9379\clvertalb\cellx9541\clvertalb\cellx10796\trrh332 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Short-term investments:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx5119\clvertalb\cellx6511\clvertalb\cellx6635\clbrdrt\brdrdb\brdrcf1\clvertalb\cellx7858\clvertalb\cellx7961\clvertalb\cellx9379\clvertalb\cellx9541\clvertalb\cellx10796\trrh332\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5362\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8203\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9134\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9377\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9539\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Commercial paper (b)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 21\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 21\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 53\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 53\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5362\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8203\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9134\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9377\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9539\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx5119\clvertalb\cellx6268\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx7701\clvertalb\cellx7857\clvertalb\cellx7960\clvertalb\cellx9135\clvertalb\cellx9378\clvertalb\cellx9540\clvertalb\cellx10633\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Corporate bonds (c)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 374\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 374\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 290\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 288\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\cellx5119\clvertalb\cellx6268\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx7701\clvertalb\cellx7857\clvertalb\cellx7960\clvertalb\cellx9135\clvertalb\cellx9378\clvertalb\cellx9540\clvertalb\cellx10633\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9135\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9378\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9540\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10633\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Time deposits (b)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 100\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 100\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9135\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9378\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9540\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10633\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx5119\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5362\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6268\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6511\clvertalb\cellx6635\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6795\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7701\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7857\clvertalb\cellx7960\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8203\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9134\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9377\clvertalb\cellx9539\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9701\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10632\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\fi484\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 445\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 445\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 443\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 441\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\cellx5119\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5362\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6268\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6511\clvertalb\cellx6635\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6795\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7701\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7857\clvertalb\cellx7960\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8203\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9134\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9377\clvertalb\cellx9539\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9701\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10632\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7858\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7961\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9379\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9541\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Long-term investments:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7858\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7961\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9379\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9541\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281\row}}} {\trowd\clvertalb\cellx5119\clvertalb\cellx5362\clvertalb\cellx6268\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx6795\clvertalb\cellx7701\clvertalb\cellx7857\clvertalb\cellx7960\clvertalb\cellx8203\clvertalb\cellx9134\clvertalb\cellx9377\clvertalb\cellx9539\clvertalb\cellx9701\clvertalb\cellx10632\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Corporate bonds (c)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 11\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 11\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 125\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 125\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\cellx5119\clvertalb\cellx5362\clvertalb\cellx6268\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx6795\clvertalb\cellx7701\clvertalb\cellx7857\clvertalb\cellx7960\clvertalb\cellx8203\clvertalb\cellx9134\clvertalb\cellx9377\clvertalb\cellx9539\clvertalb\cellx9701\clvertalb\cellx10632\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7858\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7961\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9379\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9541\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh338 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7858\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7961\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9379\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9541\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh338\row}}} {\trowd\clvertalb\cellx5119\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx7858\clvertalb\cellx7961\clvertalb\cellx9379\clvertalb\cellx9541\clvertalb\cellx10796\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Liabilities:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx5119\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx7858\clvertalb\cellx7961\clvertalb\cellx9379\clvertalb\cellx9541\clvertalb\cellx10796\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5362\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6795\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8203\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9134\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9377\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9539\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Current portion of long-term debt (d)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 449\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 466\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5362\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6268\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6511\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6635\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6795\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7857\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7960\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8203\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9134\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9377\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9539\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9701\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx5119\clvertalb\cellx5362\clvertalb\cellx6268\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx6795\clvertalb\cellx7701\clvertalb\cellx7857\clvertalb\cellx7960\clvertalb\cellx8203\clvertalb\cellx9134\clvertalb\cellx9377\clvertalb\cellx9539\clvertalb\cellx9701\clvertalb\cellx10632\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Long-term debt (d)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,836\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,948\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2,284\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2,374\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\cellx5119\clvertalb\cellx5362\clvertalb\cellx6268\clvertalb\cellx6511\clvertalb\cellx6635\clvertalb\cellx6795\clvertalb\cellx7701\clvertalb\cellx7857\clvertalb\cellx7960\clvertalb\cellx8203\clvertalb\cellx9134\clvertalb\cellx9377\clvertalb\cellx9539\clvertalb\cellx9701\clvertalb\cellx10632\clvertalb\cellx10800\trrh281\row}}}\pard\plain\cf1\f51\fs20\ql ______________________ \par\pard\plain {\trowd\clvertalc\cellx444\clvertalc\cellx7777\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx444\clvertalc\cellx7777\trrh66\row}}} {\trowd\cellx444\cellx7777\trrh495 \pard\plain\intbl\li198\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Fair value approximates carrying value due to the short-term nature of the\plain\intbl\cf1\f51\fs20\qj instruments.\cell{ {\trowd\cellx444\cellx7777\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx343\clvertalc\cellx4259\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx343\clvertalc\cellx4259\trrh66\row}}} {\trowd\cellx343\cellx4259\trrh495 \pard\plain\intbl\li198\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\qj Fair value is determined using Level\plain\intbl\cf1\f51\fs20\qj 2 inputs.\cell{ {\trowd\cellx343\cellx4259\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx335\clvertalc\cellx4248\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx335\clvertalc\cellx4248\trrh66\row}}} {\trowd\cellx335\cellx4248\trrh495 \pard\plain\intbl\li198\cf1\f51\fs20\ql (c)\cell\pard\plain\intbl\cf1\f51\fs20\qj Fair value is determined using Level\plain\intbl\cf1\f51\fs20\qj 1 inputs.\cell{ {\trowd\cellx335\cellx4248\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx540\cellx10800\trrh495 \pard\plain\intbl\li198\cf1\f51\fs20\ql (d)\cell\pard\plain\intbl\cf1\f51\fs20\qj Fair value is determined using Level 2 inputs. The Company's senior notes are quoted but not actively traded on\plain\intbl\cf1\f51\fs20\qj major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges.\cell{ {\trowd\cellx540\cellx10800\trrh495\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company has other financial instruments consisting primarily of receivables, payables, operating leases and other\plain\cf1\f51\fs20\qj current assets and liabilities that approximate fair value due to the nature of the instrument and their relatively short maturities.\plain\cf1\f51\fs20\qj Non-financial assets and liabilities initially measured at fair value include assets acquired and liabilities assumed in a business\plain\cf1\f51\fs20\qj combination, goodwill and asset retirement obligations. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 14 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s839a2c08a42b508bbb6bf18f10c7b75}{\*\bkmkend s839a2c08a42b508bbb6bf18f10c7b75}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 5. Derivative Financial Instruments\par\pard\plain\sb132\fi594\cf1\f51\fs20\qj The Company utilizes commodity swap contracts, option contracts, collar contracts, collar contracts with short puts and\plain\cf1\f51\fs20\qj basis swap contracts to (i)\~reduce the effect of price volatility on the commodities the Company produces and sells or consumes,\plain\cf1\f51\fs20\qj (ii)\~support the Company's annual capital budgeting and expenditure plans and (iii)\~reduce commodity price risk associated with\plain\cf1\f51\fs20\qj certain capital projects. The Company also, from time to time, utilizes interest rate contracts to reduce the effect of interest rate\plain\cf1\f51\fs20\qj volatility on the Company's indebtedness.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Oil production derivatives.\plain\cf1\f51\fs20\qj The Company sells its oil production at the lease and the sales contracts governing such oil\plain\cf1\f51\fs20\qj production are tied directly to, or are highly correlated with, New York Mercantile Exchange ("NYMEX") West Texas\plain\cf1\f51\fs20\qj Intermediate ("WTI") oil prices. The Company also enters into pipeline capacity commitments in order to secure available oil\plain\cf1\f51\fs20\qj transportation capacity from its areas of production to the Gulf Coast. In order to diversify the oil price it receives, the Company\plain\cf1\f51\fs20\qj (i) enters into oil purchase transactions with third parties in its areas of production that are consistent with the oil prices that the\plain\cf1\f51\fs20\qj Company receives at the lease, adjusted for transportation costs to the point of purchase, (ii) transports the purchased oil using its\plain\cf1\f51\fs20\qj pipeline capacity to the Gulf Coast and (iii) enters into third party sale transactions to sell the oil into the Gulf Coast refinery or\plain\cf1\f51\fs20\qj international export markets at prices that are highly correlated with Brent oil prices. As a result, the Company will generally use\plain\cf1\f51\fs20\qj Brent derivative contracts to manage future oil price volatility.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Volumes per day associated with the Company's outstanding oil derivative contracts as of March\~31, 2019 and the\plain\cf1\f51\fs20\qj weighted average oil prices for those contracts are as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx5431\clvertalc\cellx5716\clvertalc\cellx6913\clvertalc\cellx7151\clvertalc\cellx7254\clvertalc\cellx7539\clvertalc\cellx8736\clvertalc\cellx8974\clvertalc\cellx9077\clvertalc\cellx9362\clvertalc\cellx10559\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5431\clvertalc\cellx5716\clvertalc\cellx6913\clvertalc\cellx7151\clvertalc\cellx7254\clvertalc\cellx7539\clvertalc\cellx8736\clvertalc\cellx8974\clvertalc\cellx9077\clvertalc\cellx9362\clvertalc\cellx10559\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx5431\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell{ {\trowd\clvertalb\cellx5431\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx5431\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7151\clvertalb\cellx7254\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8974\clvertalb\cellx9077\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Second Quarter\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Third Quarter\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fourth Quarter\cell{ {\trowd\clvertalb\cellx5431\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7151\clvertalb\cellx7254\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8974\clvertalb\cellx9077\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5431\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7151\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7254\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8974\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9077\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Brent collar contracts with short puts:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5431\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7151\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7254\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8974\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9077\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281\row}}} {\trowd\cellx5431\cellx6913\clvertalb\cellx7151\clvertalb\cellx7254\cellx8736\clvertalb\cellx8974\clvertalb\cellx9077\cellx10559\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Volume per day (Bbl) (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 15,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 15,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 15,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5431\cellx6913\clvertalb\cellx7151\clvertalb\cellx7254\cellx8736\clvertalb\cellx8974\clvertalb\cellx9077\cellx10559\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5431\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7151\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7254\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8974\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9077\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Price per Bbl:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5431\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7151\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7254\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8974\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9077\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10797\trrh281\row}}} {\trowd\cellx5431\cellx5716\cellx6913\clvertalb\cellx7151\clvertalb\cellx7254\cellx7539\cellx8736\clvertalb\cellx8974\clvertalb\cellx9077\cellx9362\cellx10559\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Ceiling\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 89.90\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 89.90\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 89.90\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5431\cellx5716\cellx6913\clvertalb\cellx7151\clvertalb\cellx7254\cellx7539\cellx8736\clvertalb\cellx8974\clvertalb\cellx9077\cellx9362\cellx10559\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5431\clshdng100\clcfpat11\clcbpat11\cellx5716\clshdng100\clcfpat11\clcbpat11\cellx6913\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7151\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7254\clshdng100\clcfpat11\clcbpat11\cellx7539\clshdng100\clcfpat11\clcbpat11\cellx8736\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8974\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9077\clshdng100\clcfpat11\clcbpat11\cellx9362\clshdng100\clcfpat11\clcbpat11\cellx10559\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Floor\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 75.00\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 75.00\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 75.00\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5431\clshdng100\clcfpat11\clcbpat11\cellx5716\clshdng100\clcfpat11\clcbpat11\cellx6913\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7151\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7254\clshdng100\clcfpat11\clcbpat11\cellx7539\clshdng100\clcfpat11\clcbpat11\cellx8736\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8974\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9077\clshdng100\clcfpat11\clcbpat11\cellx9362\clshdng100\clcfpat11\clcbpat11\cellx10559\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx5431\cellx5716\cellx6913\clvertalb\cellx7151\clvertalb\cellx7254\cellx7539\cellx8736\clvertalb\cellx8974\clvertalb\cellx9077\cellx9362\cellx10559\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Short put\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 65.00\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 65.00\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 65.00\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5431\cellx5716\cellx6913\clvertalb\cellx7151\clvertalb\cellx7254\cellx7539\cellx8736\clvertalb\cellx8974\clvertalb\cellx9077\cellx9362\cellx10559\clvertalb\cellx10800\trrh281\row}}}\pard\plain\sb154\cf1\f51\fs20\ql ____________________ \par\pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh990 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Subsequent to March\~31, 2019, the Company entered into additional Brent collar contracts with short puts for (i) 30,000\plain\intbl\cf1\f51\fs20\qj Bbls per day of May through December 2019 production with an average ceiling price of $75.13 per Bbl, a floor price\plain\intbl\cf1\f51\fs20\qj of $65.00 per Bbl and a short put price of $55.00 per Bbl and (ii) 9,000 Bbls per day of 2020 production with a ceiling\plain\intbl\cf1\f51\fs20\qj price of $75.57, a floor price of $65.00 and a short put price of $55.00.\cell{ {\trowd\cellx720\cellx10800\trrh990\row}}}\pard\plain\sb264\fi528\cf1\f51\fs20\b\i\qj NGL production derivatives.\plain\cf1\f51\fs20\qj All material physical sales contracts governing the Company's NGL production are tied\plain\cf1\f51\fs20\qj directly or indirectly to Mont Belvieu, Texas NGL component product prices. The Company uses derivative contracts to manage\plain\cf1\f51\fs20\qj the NGL component product price volatility. As of March\~31, 2019, the Company did not have any NGL derivative contracts\plain\cf1\f51\fs20\qj outstanding.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Gas production derivatives.\plain\cf1\f51\fs20\qj All material physical sales contracts governing the Company's gas production are tied directly\plain\cf1\f51\fs20\qj or indirectly to NYMEX Henry Hub ("HH") gas prices or regional index prices where the gas is sold. The Company uses\plain\cf1\f51\fs20\qj derivative contracts to manage gas price volatility and basis swap contracts to reduce basis risk between HH prices and actual\plain\cf1\f51\fs20\qj index prices at which the gas is sold. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 15 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Volumes per day associated with outstanding gas derivative contracts as of March\~31, 2019 and the weighted average gas\plain\cf1\f51\fs20\qj prices for those contracts are as follows:\plain\cf1\f51\fs18\qj \~ \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx5428\clvertalc\cellx5713\clvertalc\cellx6900\clvertalc\cellx7138\clvertalc\cellx7241\clvertalc\cellx7526\clvertalc\cellx8713\clvertalc\cellx8951\clvertalc\cellx9054\clvertalc\cellx9343\clvertalc\cellx10559\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx5428\clvertalc\cellx5713\clvertalc\cellx6900\clvertalc\cellx7138\clvertalc\cellx7241\clvertalc\cellx7526\clvertalc\cellx8713\clvertalc\cellx8951\clvertalc\cellx9054\clvertalc\cellx9343\clvertalc\cellx10559\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx5428\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell{ {\trowd\trqc\clvertalb\cellx5428\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\trqc\clvertalb\cellx5428\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7138\clbrdrt\brdrs\brdrcf1\clvertalb\cellx7241\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8951\clbrdrt\brdrs\brdrcf1\clvertalb\cellx9054\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs18\b\qc Second Quarter\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs18\b\qc Third Quarter\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs18\b\qc Fourth Quarter\cell{ {\trowd\trqc\clvertalb\cellx5428\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7138\clbrdrt\brdrs\brdrcf1\clvertalb\cellx7241\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8951\clbrdrt\brdrs\brdrcf1\clvertalb\cellx9054\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh298\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx5428\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7138\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8951\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9054\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Swap contracts:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx5428\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7138\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8951\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9054\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10798\trrh281\row}}} {\trowd\trqc\cellx5428\clvertalb\cellx6900\clvertalb\cellx7138\clvertalb\cellx7241\clvertalb\cellx8713\clvertalb\cellx8951\clvertalb\cellx9054\clvertalb\cellx10559\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Volume per day (MMBtu)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 50,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 16,848\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx5428\clvertalb\cellx6900\clvertalb\cellx7138\clvertalb\cellx7241\clvertalb\cellx8713\clvertalb\cellx8951\clvertalb\cellx9054\clvertalb\cellx10559\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx5428\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5713\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6900\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7138\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7526\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8713\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8951\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9054\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9343\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10559\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Price per MMBtu\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.94\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.94\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.94\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx5428\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5713\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6900\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7138\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7526\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8713\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8951\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9054\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9343\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10559\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx5428\clvertalb\cellx7138\clvertalb\cellx7241\clvertalb\cellx8951\clvertalb\cellx9054\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Basis swap contracts:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\cellx5428\clvertalb\cellx7138\clvertalb\cellx7241\clvertalb\cellx8951\clvertalb\cellx9054\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx5428\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6900\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7138\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8713\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8951\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9054\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10559\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Permian Basin index swap volume per day(MMBtu) (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 60,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 60,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx5428\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6900\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7138\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8713\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8951\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9054\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10559\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx5428\clvertalb\cellx5713\clvertalb\cellx6900\clvertalb\cellx7138\clvertalb\cellx7241\clvertalb\cellx7526\clvertalb\cellx8713\clvertalb\cellx8951\clvertalb\cellx9054\clvertalb\cellx9343\clvertalb\cellx10559\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Price differential ($/MMBtu)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (1.46\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (1.46\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx5428\clvertalb\cellx5713\clvertalb\cellx6900\clvertalb\cellx7138\clvertalb\cellx7241\clvertalb\cellx7526\clvertalb\cellx8713\clvertalb\cellx8951\clvertalb\cellx9054\clvertalb\cellx9343\clvertalb\cellx10559\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx5428\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6900\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7138\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8713\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8951\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9054\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10559\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Southern California index swap volume per day (MMBtu) (b)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 80,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 80,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 80,000\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx5428\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6900\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7138\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8713\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8951\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9054\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10559\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx5428\clvertalb\cellx5713\clvertalb\cellx6900\clvertalb\cellx7138\clvertalb\cellx7241\clvertalb\cellx7526\clvertalb\cellx8713\clvertalb\cellx8951\clvertalb\cellx9054\clvertalb\cellx9343\clvertalb\cellx10559\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Price differential ($/MMBtu)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.31\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.31\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.31\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx5428\clvertalb\cellx5713\clvertalb\cellx6900\clvertalb\cellx7138\clvertalb\cellx7241\clvertalb\cellx7526\clvertalb\cellx8713\clvertalb\cellx8951\clvertalb\cellx9054\clvertalb\cellx9343\clvertalb\cellx10559\clvertalb\cellx10800\trrh281\row}}}\pard\plain\cf1\f51\fs20\ql ____________________ \par\pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj The referenced basis swap contracts fix the basis differentials between the index price at which the Company sells its\plain\intbl\cf1\f51\fs20\qj Permian Basin gas and the HH price used in swap contracts.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\qj The referenced basis swap contracts fix the basis differentials between Permian Basin index prices and southern\plain\intbl\cf1\f51\fs20\qj California index prices for Permian Basin gas forecasted for sale in Arizona and southern California.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}}\pard\plain\li66\sb264\fi594\cf1\f51\fs20\qj The Company's derivatives are accounted for as non-hedge derivatives and therefore all changes in the fair values of its\plain\li66\cf1\f51\fs20\qj derivative contracts are recognized as gains or losses in the earnings of the periods in which they occur. The Company enters\plain\li66\cf1\f51\fs20\qj into derivatives under master netting arrangements, which, in an event of default, allows the Company to offset payables to and\plain\li66\cf1\f51\fs20\qj receivables from the defaulting counterparty.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Fair value.\plain\cf1\f51\fs20\qj The fair value of derivative financial instruments not designated as hedging instruments is as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx3135\clvertalc\cellx3236\clvertalc\cellx5413\clvertalc\cellx5514\clvertalc\cellx5670\clvertalc\cellx6787\clvertalc\cellx6943\clvertalc\cellx7044\clvertalc\cellx7387\clvertalc\cellx8525\clvertalc\cellx8868\clvertalc\cellx8969\clvertalc\cellx9312\clvertalc\cellx10450\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx3135\clvertalc\cellx3236\clvertalc\cellx5413\clvertalc\cellx5514\clvertalc\cellx5670\clvertalc\cellx6787\clvertalc\cellx6943\clvertalc\cellx7044\clvertalc\cellx7387\clvertalc\cellx8525\clvertalc\cellx8868\clvertalc\cellx8969\clvertalc\cellx9312\clvertalc\cellx10450\clvertalc\cellx10800\trrh66\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh256 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fair Value of Derivative Instruments as of March 31, 2019\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh256\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3135\clvertalb\cellx3236\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5413\clvertalb\cellx5514\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6945\clvertalb\cellx7046\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8870\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8971\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10795\trrh942 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Type\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Consolidated\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Balance Sheet\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Location\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fair\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Value\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Gross Amounts\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Offset in the\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Consolidated\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Balance Sheet\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Net Fair Value\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Presented in the\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Consolidated\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Balance Sheet\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3135\clvertalb\cellx3236\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5413\clvertalb\cellx5514\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6945\clvertalb\cellx7046\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8870\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8971\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10795\trrh942\row}}} {\trowd\clvertalb\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in\~millions)\cell{ {\trowd\clvertalb\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx10798\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5414\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5515\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6946\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8871\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8972\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Asset Derivatives:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5414\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5515\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6946\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8871\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8972\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281\row}}} {\trowd\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx5670\clvertalb\cellx6787\clvertalb\cellx6943\clvertalb\cellx7044\clvertalb\cellx7387\clvertalb\cellx8525\clvertalb\cellx8868\clvertalb\cellx8969\clvertalb\cellx9312\clvertalb\cellx10450\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity price derivatives\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Derivatives\~-\~current\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 36\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (6\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 30\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx5670\clvertalb\cellx6787\clvertalb\cellx6943\clvertalb\cellx7044\clvertalb\cellx7387\clvertalb\cellx8525\clvertalb\cellx8868\clvertalb\cellx8969\clvertalb\cellx9312\clvertalb\cellx10450\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5414\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5515\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6946\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8871\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8972\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Liability Derivatives:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5414\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5515\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6946\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8871\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8972\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281\row}}} {\trowd\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx5670\clvertalb\cellx6787\clvertalb\cellx6943\clvertalb\cellx7044\clvertalb\cellx7387\clvertalb\cellx8525\clvertalb\cellx8868\clvertalb\cellx8969\clvertalb\cellx9312\clvertalb\cellx10450\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity price derivatives\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Derivatives\~-\~current\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 28\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (6\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 22\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx5670\clvertalb\cellx6787\clvertalb\cellx6943\clvertalb\cellx7044\clvertalb\cellx7387\clvertalb\cellx8525\clvertalb\cellx8868\clvertalb\cellx8969\clvertalb\cellx9312\clvertalb\cellx10450\clvertalb\cellx10800\trrh281\row}}} \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx3135\clvertalc\cellx3236\clvertalc\cellx5413\clvertalc\cellx5514\clvertalc\cellx5670\clvertalc\cellx6787\clvertalc\cellx6943\clvertalc\cellx7044\clvertalc\cellx7387\clvertalc\cellx8525\clvertalc\cellx8868\clvertalc\cellx8969\clvertalc\cellx9312\clvertalc\cellx10450\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx3135\clvertalc\cellx3236\clvertalc\cellx5413\clvertalc\cellx5514\clvertalc\cellx5670\clvertalc\cellx6787\clvertalc\cellx6943\clvertalc\cellx7044\clvertalc\cellx7387\clvertalc\cellx8525\clvertalc\cellx8868\clvertalc\cellx8969\clvertalc\cellx9312\clvertalc\cellx10450\clvertalc\cellx10800\trrh66\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh256 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fair Value of Derivative Instruments as of December 31, 2018\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh256\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3135\clvertalb\cellx3236\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5413\clvertalb\cellx5514\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6945\clvertalb\cellx7046\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8870\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8971\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10795\trrh942 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Type\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Consolidated\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Balance Sheet\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Location\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fair\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Value\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Gross Amounts\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Offset in the\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Consolidated\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Balance Sheet\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Net Fair Value\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Presented in the\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Consolidated\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Balance Sheet\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3135\clvertalb\cellx3236\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5413\clvertalb\cellx5514\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6945\clvertalb\cellx7046\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8870\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8971\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10795\trrh942\row}}} {\trowd\clvertalb\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in\~millions)\cell{ {\trowd\clvertalb\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx10798\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5414\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5515\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6946\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8871\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8972\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Asset Derivatives:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5414\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5515\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6946\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8871\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8972\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281\row}}} {\trowd\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx5670\clvertalb\cellx6787\clvertalb\cellx6943\clvertalb\cellx7044\clvertalb\cellx7387\clvertalb\cellx8525\clvertalb\cellx8868\clvertalb\cellx8969\clvertalb\cellx9312\clvertalb\cellx10450\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity price derivatives\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Derivatives\~-\~current\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 59\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (7\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 52\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx5670\clvertalb\cellx6787\clvertalb\cellx6943\clvertalb\cellx7044\clvertalb\cellx7387\clvertalb\cellx8525\clvertalb\cellx8868\clvertalb\cellx8969\clvertalb\cellx9312\clvertalb\cellx10450\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5414\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5515\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6946\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8871\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8972\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Liability Derivatives:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5414\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5515\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6946\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8871\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8972\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10796\trrh281\row}}} {\trowd\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx5670\clvertalb\cellx6787\clvertalb\cellx6943\clvertalb\cellx7044\clvertalb\cellx7387\clvertalb\cellx8525\clvertalb\cellx8868\clvertalb\cellx8969\clvertalb\cellx9312\clvertalb\cellx10450\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity price derivatives\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Derivatives\~-\~current\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 34\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (7\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 27\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx3135\clvertalb\cellx3236\clvertalb\cellx5413\clvertalb\cellx5514\clvertalb\cellx5670\clvertalb\cellx6787\clvertalb\cellx6943\clvertalb\cellx7044\clvertalb\cellx7387\clvertalb\cellx8525\clvertalb\cellx8868\clvertalb\cellx8969\clvertalb\cellx9312\clvertalb\cellx10450\clvertalb\cellx10800\trrh281\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 16 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Gains and losses recorded on derivative contracts are as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10774\cellx10777\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10774\cellx10777\trrh66\row}}} {\trowd\trqc\clvertalc\cellx3647\clvertalc\cellx3754\clvertalc\cellx7491\clvertalc\cellx7598\clvertalc\cellx7724\clvertalc\cellx9003\clvertalc\cellx9129\clvertalc\cellx9236\clvertalc\cellx9362\clvertalc\cellx10643\clvertalc\cellx10769\cellx10772\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx3647\clvertalc\cellx3754\clvertalc\cellx7491\clvertalc\cellx7598\clvertalc\cellx7724\clvertalc\cellx9003\clvertalc\cellx9129\clvertalc\cellx9236\clvertalc\cellx9362\clvertalc\cellx10643\clvertalc\cellx10769\cellx10772\trrh66\row}}} {\trowd\trqc\clvertalb\clvmgf\cellx3647\clvertalb\cellx3754\clvertalb\clvmgf\cellx7491\clvertalb\cellx7598\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10773\cellx10776\trrh479 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Derivatives\~Not\~Designated\~as Hedging\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc Instruments\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Location of Loss Recognized in Earnings on\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc Derivatives\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clvmgf\cellx3647\clvertalb\cellx3754\clvertalb\clvmgf\cellx7491\clvertalb\cellx7598\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10773\cellx10776\trrh479\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clvmrg\cellx3647\clvertalb\cellx3754\clbrdrb\brdrs\brdrcf1\clvertalb\clvmrg\cellx7491\clvertalb\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9131\clvertalb\cellx9238\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10772\clvertalc\cellx10773\clvertalc\cellx10778\trrh281 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clvmrg\cellx3647\clvertalb\cellx3754\clbrdrb\brdrs\brdrcf1\clvertalb\clvmrg\cellx7491\clvertalb\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9131\clvertalb\cellx9238\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10772\clvertalc\cellx10773\clvertalc\cellx10778\trrh281\row}}} {\trowd\trqc\clvertalb\cellx3647\clvertalb\cellx3754\clvertalb\cellx7491\clvertalb\cellx7598\clvertalc\cellx10773\clvertalc\cellx10774\clvertalc\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\cellx3647\clvertalb\cellx3754\clvertalb\cellx7491\clvertalb\cellx7598\clvertalc\cellx10773\clvertalc\cellx10774\clvertalc\cellx10778\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3647\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3754\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7491\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7598\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7724\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9003\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9129\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9236\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9362\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10643\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10769\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10770\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Commodity price derivatives\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Derivative loss, net\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 13\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 208\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx3647\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3754\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7491\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7598\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7724\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9003\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9129\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9236\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9362\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10643\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10769\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10770\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its\plain\cf1\f51\fs20\qj derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative\plain\cf1\f51\fs20\qj instruments, associated credit risk is mitigated by the Company's credit risk policies and procedures.{\*\bkmkstart s9ff62951b7155536ad71573fbb7b582}{\*\bkmkend s9ff62951b7155536ad71573fbb7b582}\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 6. Exploratory Costs\par\pard\plain\sb132\fi594\cf1\f51\fs20\qj The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either\plain\cf1\f51\fs20\qj found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are presented in\plain\cf1\f51\fs20\qj proved properties in the consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired\plain\cf1\f51\fs20\qj costs are charged to exploration and abandonments expense.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Capitalized exploratory well and project activity is as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx8658\clvertalc\cellx8883\clvertalc\cellx10574\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx8658\clvertalc\cellx8883\clvertalc\cellx10574\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx8658\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Three Months Ended\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc March 31, 2019\cell{ {\trowd\trqc\clvertalb\cellx8658\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx8658\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx8658\clvertalb\cellx10799\trrh232\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx8658\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8883\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10574\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Beginning capitalized exploratory well costs\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 509\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx8658\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8883\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10574\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx8658\clvertalb\cellx10574\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\fi-198\cf1\f51\fs20\ql Additions to exploratory well costs pending the determination of proved reserves\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 647\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx8658\clvertalb\cellx10574\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx8658\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10574\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Reclassification due to determination of proved reserves\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (406\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx8658\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10574\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx8658\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8883\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10574\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Ending capitalized exploratory well costs\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 750\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx8658\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8883\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10574\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj Aging of capitalized exploratory costs and the number of projects for which exploratory well costs have been capitalized\plain\cf1\f51\fs20\qj for a period greater than one year, based on the date drilling was completed, are as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx6224\clvertalc\cellx6531\clvertalc\cellx8121\clvertalc\cellx8390\clvertalc\cellx8494\clvertalc\cellx8850\clvertalc\cellx10440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6224\clvertalc\cellx6531\clvertalc\cellx8121\clvertalc\cellx8390\clvertalc\cellx8494\clvertalc\cellx8850\clvertalc\cellx10440\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx6224\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8391\clvertalb\cellx8495\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc As of \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc March\~31, 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc As of \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc December\~31, 2018\cell{ {\trowd\clvertalb\cellx6224\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8391\clvertalb\cellx8495\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh479\row}}} {\trowd\clvertalb\cellx6224\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions, except well counts)\cell{ {\trowd\clvertalb\cellx6224\clvertalb\cellx10799\trrh232\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6224\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8495\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Capitalized exploratory well costs that have been suspended:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6224\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8391\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8495\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10798\trrh281\row}}} {\trowd\cellx6224\clvertalb\cellx6531\clvertalb\cellx8121\clvertalb\cellx8390\clvertalb\cellx8494\clvertalb\cellx8850\clvertalb\cellx10440\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql One year or less\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 750\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 509\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6224\clvertalb\cellx6531\clvertalb\cellx8121\clvertalb\cellx8390\clvertalb\cellx8494\clvertalb\cellx8850\clvertalb\cellx10440\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6224\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8121\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8390\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8494\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10441\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql More than one year\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6224\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8121\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8390\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8494\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10441\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx6224\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6531\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8121\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8390\clvertalb\cellx8494\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8850\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10440\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 750\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 509\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalb\cellx6224\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6531\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8121\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8390\clvertalb\cellx8494\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8850\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10440\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6224\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8121\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8390\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8494\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10441\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh529 \pard\plain\intbl\li198\ri22\sb22\fi-198\cf1\f51\fs20\ql Number of wells or projects with exploratory well costs that have been\plain\intbl\li198\ri22\sa22\cf1\f51\fs20\ql suspended for a period greater than one year\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6224\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8121\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8390\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8494\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10441\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh529\row}}}{\*\bkmkstart s332f9e4784455b9ba6d0d2caba29f14}{\*\bkmkend s332f9e4784455b9ba6d0d2caba29f14}\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 7. Long-term Debt\par\pard\plain\sb132\fi594\cf1\f51\fs20\b\i\qj Credit facility.\plain\cf1\f51\fs20\qj The Company's long-term debt consists of senior notes, a revolving corporate credit facility (the "Credit\plain\cf1\f51\fs20\qj Facility") and the effects of issuance costs and discounts. The Credit Facility is maintained with a syndicate of financial\plain\cf1\f51\fs20\qj institutions and has aggregate loan commitments of $1.5 billion. The Credit Facility has a maturity date of October 2023. As of\plain\cf1\f51\fs20\qj March\~31, 2019, the Company had no outstanding borrowings under the Credit Facility and was in compliance with its debt\plain\cf1\f51\fs20\qj covenants.\par\pard\plain\sb132\fi594\cf1\f51\fs20\b\i\qj Senior notes.\plain\cf1\f51\fs20\qj The Company's 7.50% senior notes with a debt principal balance of $450 million will mature in January\plain\cf1\f51\fs20\qj 2020 and are classified as current in the consolidated balance sheet as of March\~31, 2019. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 17 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart sd9527953fcc35b258d54e4b68e52b61}{\*\bkmkend sd9527953fcc35b258d54e4b68e52b61}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 8. Incentive Plans\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Stock-based compensation.\plain\cf1\f51\fs20\qj For the three months ended March\~31, 2019, the Company recorded $29 million of\plain\cf1\f51\fs20\qj stock-based compensation expense for all plans, as compared to $23 million for the same period in 2018. Stock-based\plain\cf1\f51\fs20\qj compensation expense for the three months ended March\~31, 2019 included $3 million of remaining expense associated with the\plain\cf1\f51\fs20\qj unvested restricted stock awards and performance units granted to the Company's former CEO, who retired during the period, in\plain\cf1\f51\fs20\qj accordance with the terms of his award agreements. In addition, the Company accounted for the modification of award\plain\cf1\f51\fs20\qj agreements with certain other officers that were notified during the three months ended March\~31, 2019 of the Company's\plain\cf1\f51\fs20\qj planned changes to its leadership and organizational structure to align its cost structure with the needs of a Permian\plain\cf1\f51\fs20\qj Basin-focused company. These other officer modifications provided for the full vesting of all outstanding awards upon each such\plain\cf1\f51\fs20\qj officers' early retirement and departure from the Company. The modification associated with the full vesting of outstanding\plain\cf1\f51\fs20\qj awards resulted in a modified fair value that is in excess of what would have vested in accordance with the terms of the original\plain\cf1\f51\fs20\qj award agreements. The stock-based compensation expense associated with the modified awards will be recognized over the\plain\cf1\f51\fs20\qj remaining service period of those officers, which is generally expected to be less than 90 days.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj As of March\~31, 2019, there was $146 million of unrecognized stock-based compensation expense related to unvested\plain\cf1\f51\fs20\qj share-based compensation plans, including $29 million attributable to stock-based awards that are expected to be settled on their\plain\cf1\f51\fs20\qj vesting date in cash, rather than in equity shares ("Liability Awards"). The unrecognized compensation expense will be\plain\cf1\f51\fs20\qj recognized on a straight-line basis over the remaining vesting periods of the awards, which is a period of less than three years on\plain\cf1\f51\fs20\qj a weighted average basis. As of March\~31, 2019 and December\~31, 2018, accounts payable \u8211? due to affiliates included $3\plain\cf1\f51\fs20\qj million and $14 million, respectively, of liabilities attributable to Liability Awards.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Activity for outstanding restricted stock awards and performance units is as follows: \par\pard\plain {\trowd\clvertalc\cellx10799\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10799\trrh66\row}}} {\trowd\clvertalc\cellx5283\clvertalc\cellx6581\clvertalc\cellx7088\clvertalc\cellx7192\clvertalc\cellx8490\clvertalc\cellx8894\clvertalc\cellx8998\clvertalc\cellx10286\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5283\clvertalc\cellx6581\clvertalc\cellx7088\clvertalc\cellx7192\clvertalc\cellx8490\clvertalc\cellx8894\clvertalc\cellx8998\clvertalc\cellx10286\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx5283\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ended March 31, 2019\cell{ {\trowd\clvertalb\cellx5283\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx5283\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7089\clvertalb\cellx7193\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8896\clvertalb\cellx9000\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh702 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Restricted\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Stock\~Equity\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Awards\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Restricted\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Stock Liability\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Awards\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Performance\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Units\cell{ {\trowd\clvertalb\cellx5283\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7089\clvertalb\cellx7193\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8896\clvertalb\cellx9000\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh702\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5283\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6581\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7088\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7192\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8490\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8998\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10286\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Beginning incentive compensation awards\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 799,672\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 201,501\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 119,169\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5283\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6581\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7088\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7192\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8490\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8998\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10286\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\cellx5283\clvertalb\cellx6581\clvertalb\cellx7088\clvertalb\cellx7192\clvertalb\cellx8490\clvertalb\cellx8894\clvertalb\cellx8998\clvertalb\cellx10286\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Awards granted\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 470,204\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 125,607\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 86,483\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5283\clvertalb\cellx6581\clvertalb\cellx7088\clvertalb\cellx7192\clvertalb\cellx8490\clvertalb\cellx8894\clvertalb\cellx8998\clvertalb\cellx10286\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5283\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6581\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7088\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7192\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8490\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8998\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10286\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Awards forfeited\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (3,201\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (2,026\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5283\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6581\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7088\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7192\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8490\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8998\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10286\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx5283\clvertalb\cellx6581\clvertalb\cellx7088\clvertalb\cellx7192\clvertalb\cellx8490\clvertalb\cellx8894\clvertalb\cellx8998\clvertalb\cellx10286\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Awards vested (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (391,446\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (101,219\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (39,793\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx5283\clvertalb\cellx6581\clvertalb\cellx7088\clvertalb\cellx7192\clvertalb\cellx8490\clvertalb\cellx8894\clvertalb\cellx8998\clvertalb\cellx10286\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5283\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6581\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7088\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7192\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8490\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8998\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10286\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Ending incentive compensation awards\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 875,229\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 223,863\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 165,859\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5283\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6581\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7088\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7192\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8490\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8998\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10286\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}}\pard\plain\cf1\f51\fs20\qj \~____________________ \par\pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Per the terms of award agreements and elections, the issuance of common stock may be deferred for certain restricted\plain\intbl\cf1\f51\fs20\qj stock equity awards and performance units that vest during the period.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 18 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s173786dce6535adbaab2464908d7efb}{\*\bkmkend s173786dce6535adbaab2464908d7efb}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 9. Asset Retirement Obligations\par\pard\plain\sb132\fi594\cf1\f51\fs20\qj Asset retirement obligations activity is as follows:\plain\cf1\f51\fs18\qj \~ \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7524\clvertalc\cellx7759\clvertalc\cellx9036\clvertalc\cellx9162\clvertalc\cellx9269\clvertalc\cellx9395\clvertalc\cellx10669\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7524\clvertalc\cellx7759\clvertalc\cellx9036\clvertalc\cellx9162\clvertalc\cellx9269\clvertalc\cellx9395\clvertalc\cellx10669\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7524\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7524\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7524\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9163\clvertalb\cellx9270\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7524\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9163\clvertalb\cellx9270\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7524\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx7524\clvertalb\cellx10799\trrh232\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7524\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7759\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9036\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9162\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9269\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9395\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Beginning asset retirement obligations\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 183\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 271\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7524\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7759\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9036\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9162\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9269\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9395\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7524\clvertalb\cellx9036\clvertalb\cellx9162\clvertalb\cellx9269\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql New wells placed on production\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7524\clvertalb\cellx9036\clvertalb\cellx9162\clvertalb\cellx9269\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7524\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9036\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9162\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9269\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Changes in estimates\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7524\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9036\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9162\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9269\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7524\clvertalb\cellx9036\clvertalb\cellx9162\clvertalb\cellx9269\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Obligations reclassified to liabilities held for sale\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (6\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\cellx7524\clvertalb\cellx9036\clvertalb\cellx9162\clvertalb\cellx9269\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7524\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9036\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9162\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9269\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Liabilities settled\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (6\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (9\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7524\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9036\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9162\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9269\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7524\clvertalb\cellx9036\clvertalb\cellx9162\clvertalb\cellx9269\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Accretion of discount\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7524\clvertalb\cellx9036\clvertalb\cellx9162\clvertalb\cellx9269\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7524\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7759\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9036\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9162\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9269\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9395\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Ending asset retirement obligations\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 180\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 263\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7524\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7759\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9036\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9162\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9269\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9395\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company records the current and noncurrent portions of asset retirement obligations in other current liabilities and\plain\cf1\f51\fs20\qj other liabilities, respectively, in the consolidated balance sheets. As of March 31, 2022 and December 31, 2018, the current\plain\cf1\f51\fs20\qj portions of the Company's asset retirement obligations were $31 million and $25 million, respectively.{\*\bkmkstart s26d832a1161345f8a3702b7a87a7ab0}{\*\bkmkend s26d832a1161345f8a3702b7a87a7ab0}\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 10. Leases\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company leases drilling rigs, storage tanks, equipment and office facilities under operating leases and recognizes lease\plain\cf1\f51\fs20\qj expense on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are initially recorded at\plain\cf1\f51\fs20\qj commencement date based on the present value of lease payments over the lease term. As most of the Company's lease contracts\plain\cf1\f51\fs20\qj do not provide an implicit discount rate, the Company uses its incremental borrowing rate based on the information available at\plain\cf1\f51\fs20\qj commencement date in determining the present value of lease payments. Certain leases contain variable costs above the minimum\plain\cf1\f51\fs20\qj required payments and are not included in the right-of-use assets or liabilities. Leases may include renewal, purchase or\plain\cf1\f51\fs20\qj termination options that can extend or shorten the term of the lease. The exercise of those options is at the Company\u8217?s\plain\cf1\f51\fs20\qj sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is\plain\cf1\f51\fs20\qj required. Leases with an initial term of 12 months or less are not recorded on the balance sheet.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj In June 2017, the Company entered into a 20-year operating lease for the Company's new corporate headquarters that is\plain\cf1\f51\fs20\qj currently being constructed in Irving, Texas. Annual base rent is expected to be $33 million and lease payments are expected to\plain\cf1\f51\fs20\qj commence once the building is complete. The Company has a variable equity interest in the entity that is constructing the\plain\cf1\f51\fs20\qj building. The Company is not the primary beneficiary of the variable interest entity and only has a profit sharing interest after\plain\cf1\f51\fs20\qj certain economic returns are achieved. The Company has no exposure to the variable interest entity's losses or future liabilities, if\plain\cf1\f51\fs20\qj any. The contract for the Company's new corporate headquarters will be evaluated under ASC 842 upon lease commencement,\plain\cf1\f51\fs20\qj which is expected to occur during the second half of 2019.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Lease costs, including amounts recoverable from joint operating partners, are as follows: \par\pard\plain {\trowd\clvertalc\cellx10778\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10778\trrh66\row}}} {\trowd\clvertalc\cellx8617\clvertalc\cellx8872\clvertalc\cellx10552\clvertalc\cellx10778\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx8617\clvertalc\cellx8872\clvertalc\cellx10552\clvertalc\cellx10778\trrh66\row}}} {\trowd\clvertalb\cellx8617\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10778\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Three Months Ended\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc March 31, 2019\cell{ {\trowd\clvertalb\cellx8617\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10778\trrh479\row}}} {\trowd\clvertalb\cellx8617\clvertalb\cellx10778\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc ($ in millions)\cell{ {\trowd\clvertalb\cellx8617\clvertalb\cellx10778\trrh232\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Lease costs:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8617\clvertalb\cellx8872\clvertalb\cellx10552\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Operating lease cost (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 45\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx8617\clvertalb\cellx8872\clvertalb\cellx10552\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10553\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Short-term lease cost (b)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 6\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10553\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8617\clvertalb\cellx10553\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Variable lease cost (c)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 19\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx8617\clvertalb\cellx10553\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8872\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10552\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Total lease costs\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 70\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8872\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10552\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh298\row}}} {\trowd\clvertalb\cellx8617\clvertalb\cellx10778\trrh338 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx8617\clvertalb\cellx10778\trrh338\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Other information:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8617\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Cash paid for amounts included in lease costs (d):\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx8617\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8872\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10552\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Operating cash flows from operating leases\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 21\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8872\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10552\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8617\clvertalb\cellx8872\clvertalb\cellx10552\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Investing cash flows from operating leases (e)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 49\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx8617\clvertalb\cellx8872\clvertalb\cellx10552\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8872\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10552\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Right-of-use assets obtained in exchange for new operating lease liabilities\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 88\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8872\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10552\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8617\clvertalb\cellx10553\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Weighted-average remaining lease term - operating leases\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3.4 years\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx8617\clvertalb\cellx10553\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10553\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Weighted-average discount rate - operating leases\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3.3\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql %\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8617\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10553\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}}\pard\plain\cf1\f51\fs20\qj \~____________________ \par\pard\plain {\trowd\clvertalc\cellx620\clvertalc\cellx8837\trrh0 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx620\clvertalc\cellx8837\trrh0\row}}} {\trowd\cellx620\cellx8837\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Represents straight-line rent cost associated with the Company's operating lease right-of-use\plain\intbl\cf1\f51\fs20\qj assets.\cell{ {\trowd\cellx620\cellx8837\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\qj Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are\plain\intbl\cf1\f51\fs20\qj not recorded on the consolidated balance sheet.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh742 \pard\plain\intbl\li396\cf1\f51\fs20\ql (c)\cell\pard\plain\intbl\cf1\f51\fs20\qj Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the\plain\intbl\cf1\f51\fs20\qj minimum required payments. Both the minimum required payments and the non-lease service component of the drilling\plain\intbl\cf1\f51\fs20\qj rig commitments are capitalized as additions to oil and gas properties.\cell{ {\trowd\cellx720\cellx10800\trrh742\row}}} \pard\plain {\trowd\clvertalc\cellx703\clvertalc\cellx10462\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx703\clvertalc\cellx10462\trrh66\row}}} {\trowd\cellx703\cellx10462\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (d)\cell\pard\plain\intbl\cf1\f51\fs20\qj Cash paid for amounts included in total lease costs may not agree due to timing of cash payments and costs\plain\intbl\cf1\f51\fs20\qj incurred.\cell{ {\trowd\cellx703\cellx10462\trrh495\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 19 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16 \pard\plain {\trowd\clvertalc\cellx620\clvertalc\cellx8810\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx620\clvertalc\cellx8810\trrh66\row}}} {\trowd\cellx620\cellx8810\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (e)\cell\pard\plain\intbl\cf1\f51\fs20\qj Lease costs associated with drilling operations are capitalized as additions to oil and gas\plain\intbl\cf1\f51\fs20\qj properties.\cell{ {\trowd\cellx620\cellx8810\trrh495\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The payment schedule for the Company's operating lease obligations as of March\~31, 2019 is as follows: \par\pard\plain {\trowd\clvertalc\cellx10778\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10778\trrh66\row}}} {\trowd\clvertalc\cellx8667\clvertalc\cellx8937\clvertalc\cellx10508\clvertalc\cellx10778\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx8667\clvertalc\cellx8937\clvertalc\cellx10508\clvertalc\cellx10778\trrh66\row}}} {\trowd\clvertalb\cellx8667\clvertalb\cellx10778\trrh257 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Operating Leases\cell{ {\trowd\clvertalb\cellx8667\clvertalb\cellx10778\trrh257\row}}} {\trowd\clvertalb\cellx8667\clbrdrt\brdrs\brdrcf1\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\clvertalb\cellx8667\clbrdrt\brdrs\brdrcf1\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8937\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Remainder of 2019\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 122\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8937\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8667\clvertalb\cellx10508\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql 2020\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 127\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx8667\clvertalb\cellx10508\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql 2021\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 69\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8667\clvertalb\cellx10508\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql 2022\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 36\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx8667\clvertalb\cellx10508\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql 2023\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 9\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8667\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10508\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Thereafter\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 26\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx8667\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10508\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Total minimum lease payments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 389\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh281\row}}} {\trowd\cellx8667\clvertalb\cellx10508\clvertalb\cellx10778\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Less: Amount associated with discounting\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (27\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\cellx8667\clvertalb\cellx10508\clvertalb\cellx10778\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8937\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh298 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 362\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx8667\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8937\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10508\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10778\trrh298\row}}}{\*\bkmkstart s7f864fe18e0b51ebba713db899721c5}{\*\bkmkend s7f864fe18e0b51ebba713db899721c5}\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 11. Commitments and Contingencies\par\pard\plain\sb132\fi594\cf1\f51\fs20\b\i\qj Legal actions.\plain\cf1\f51\fs20\qj The Company is a party to various proceedings and claims incidental to its business. While many of these\plain\cf1\f51\fs20\qj matters involve inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with\plain\cf1\f51\fs20\qj respect to these proceedings and claims will not have a material adverse effect on the Company's consolidated financial position\plain\cf1\f51\fs20\qj as a whole or on its liquidity, capital resources or future annual results of operations. The Company records reserves for\plain\cf1\f51\fs20\qj contingencies when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 20 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Obligations following divestitures.\plain\cf1\f51\fs20\qj In connection with its divestiture transactions, the Company may retain certain\plain\cf1\f51\fs20\qj liabilities and provide the purchaser certain indemnifications, subject to defined limitations, which may apply to identified\plain\cf1\f51\fs20\qj pre-closing matters, including matters of litigation, environmental contingencies, royalty and income taxes. The Company does\plain\cf1\f51\fs20\qj not believe it is probable that these obligations will have a material impact on its liquidity, financial position or future results of\plain\cf1\f51\fs20\qj operations. Also associated with its divestiture transactions, the Company has issued and received guarantees to facilitate the\plain\cf1\f51\fs20\qj transfer of contractual obligations, such as firm transportation agreements or gathering and processing arrangements.\~The\plain\cf1\f51\fs20\qj Company believes the likelihood of making or receiving payments under these guarantees is remote. As of March\~31, 2019, the\plain\cf1\f51\fs20\qj maximum amount of payments the Company could be required to make under the guarantees is $128 million, which could be\plain\cf1\f51\fs20\qj partially offset by credit support from third parties of $69 million.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Firm purchase, gathering, processing, transportation and fractionation commitments.\plain\cf1\f51\fs20\qj From time to time, the Company\plain\cf1\f51\fs20\qj enters into, and as of March\~31, 2019 was a party to, take-or-pay agreements, which include contractual commitments (i) to\plain\cf1\f51\fs20\qj purchase and process sand and purchase water for use in the Company's drilling operations, (ii) with midstream service\plain\cf1\f51\fs20\qj companies and pipeline carriers for future gathering, processing, transportation, storage and fractionation services and (iii) with\plain\cf1\f51\fs20\qj oilfield services companies that provide pressure pumping services. These commitments are normal and customary for the\plain\cf1\f51\fs20\qj Company's business activities.{\*\bkmkstart s7b7ba42f278b4f9c888199e366d12a6}{\*\bkmkend s7b7ba42f278b4f9c888199e366d12a6}\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 12. Related Party Transactions\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj In December\~2018, the Company completed the sale of its pressure pumping assets to ProPetro in exchange for 16.6\~million\plain\cf1\f51\fs20\qj shares of ProPetro common stock and $110 million of short-term receivables that were collected during the three months ended\plain\cf1\f51\fs20\qj March\~31, 2019. ProPetro is considered a related party since the shares received represent approximately 16 percent of ProPetro's\plain\cf1\f51\fs20\qj outstanding common stock. In addition to the sale of equipment and related facilities, the Company entered into a long-term\plain\cf1\f51\fs20\qj agreement with ProPetro for it to provide pressure pumping and related services. The costs of these services are capitalized in oil\plain\cf1\f51\fs20\qj and gas properties as incurred. See\pard\plain\sb198\sa22\ul{\field{\*\fldinst HYPERLINK \\l "sdf22ec6d391f531b8e92f73590c50da" }{\*\fldrslt\cf3\f51\fs20\qj Note 3}}\plain\cf1\f51\fs20\qj and\pard\plain\sb198\sa22\ul{\field{\*\fldinst HYPERLINK \\l "sa9915796e7e55c3b9e8754d30207536" }{\*\fldrslt\cf3\f51\fs20\qj Note 14}}\plain\sa22\cf1\f51\fs20\qj for additional information.\par\pard\plain\sb264\sa22\fi594\cf1\f51\fs20\qj Transactions and balances with ProPetro are as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx8656\clvertalc\cellx8881\clvertalc\cellx10574\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx8656\clvertalc\cellx8881\clvertalc\cellx10574\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx8656\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc Three Months Ended\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc March 31, 2019\cell{ {\trowd\trqc\clvertalb\cellx8656\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx8656\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx8656\clvertalb\cellx10799\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8656\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8881\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10574\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Pressure pumping services\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 147\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8656\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8881\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10574\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx6372\clvertalc\cellx6641\clvertalc\cellx8265\clvertalc\cellx8534\clvertalc\cellx8639\clvertalc\cellx8905\clvertalc\cellx10529\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx6372\clvertalc\cellx6641\clvertalc\cellx8265\clvertalc\cellx8534\clvertalc\cellx8639\clvertalc\cellx8905\clvertalc\cellx10529\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx6372\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8536\clvertalb\cellx8641\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc As of \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc March\~31, 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs18\b\qc As of \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs18\b\qc December 31, 2018\cell{ {\trowd\trqc\clvertalb\cellx6372\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8536\clvertalb\cellx8641\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh479\row}}} {\trowd\trqc\clvertalb\cellx6372\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx6372\clvertalb\cellx10799\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6372\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6641\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8265\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8534\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8639\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10529\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Accounts receivable - due from affiliate (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 7\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 119\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6372\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6641\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8265\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8534\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8639\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10529\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx6372\clvertalb\cellx6641\clvertalb\cellx8265\clvertalb\cellx8534\clvertalb\cellx8639\clvertalb\cellx8905\clvertalb\cellx10529\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Accounts payable - due to affiliate (b)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 104\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 37\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\cellx6372\clvertalb\cellx6641\clvertalb\cellx8265\clvertalb\cellx8534\clvertalb\cellx8639\clvertalb\cellx8905\clvertalb\cellx10529\clvertalb\cellx10800\trrh281\row}}}\pard\plain\cf1\f51\fs20\ql ____________________ \par\pard\plain {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx540\cellx10800\trrh495 \pard\plain\intbl\li198\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Includes employee-related charges to be reimbursed by ProPetro and $110 million of short-term receivables as of\plain\intbl\cf1\f51\fs20\qj December\~31, 2018 that were collected during the three months ended March\~31, 2019.\cell{ {\trowd\cellx540\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx540\cellx10800\trrh742 \pard\plain\intbl\li198\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\qj Prior to the Company's sale of its pressure pumping assets to ProPetro, the Company utilized the services of ProPetro in\plain\intbl\cf1\f51\fs20\qj the normal course of business. The balance as of December\~31, 2018 represents invoices associated with those services that\plain\intbl\cf1\f51\fs20\qj were in the process of being paid.\cell{ {\trowd\cellx540\cellx10800\trrh742\row}}}{\*\bkmkstart s0027ae67194f538c8fe8cd62d5a7c2c}{\*\bkmkend s0027ae67194f538c8fe8cd62d5a7c2c}\pard\plain\sb396\cf1\f51\fs20\b\qj NOTE 13. Revenue Recognition\par\pard\plain\sb396\fi594\cf1\f51\fs20\qj The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount\plain\cf1\f51\fs20\qj that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Disaggregated revenue from contracts with purchasers.\plain\cf1\f51\fs20\qj Revenues on sales of oil, NGL, gas and purchased oil and gas are\plain\cf1\f51\fs20\qj recognized when control of the product is transferred to the purchaser and payment can be reasonably assured. Sales prices for\plain\cf1\f51\fs20\qj oil, NGL and gas production are negotiated based on factors normally considered in the industry, such as an index or spot price,\plain\cf1\f51\fs20\qj distance from the well to the pipeline or market, commodity quality and prevailing supply and demand conditions. As such, the\plain\cf1\f51\fs20\qj prices of oil, NGL and gas generally fluctuate based on the relevant market index rates.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Disaggregated revenue from contracts with purchasers by product type is as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh0 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh0\row}}} {\trowd\clvertalc\cellx7598\clvertalc\cellx7736\clvertalc\cellx9023\clvertalc\cellx9149\clvertalc\cellx9256\clvertalc\cellx9382\clvertalc\cellx10669\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx7598\clvertalc\cellx7736\clvertalc\cellx9023\clvertalc\cellx9149\clvertalc\cellx9256\clvertalc\cellx9382\clvertalc\cellx10669\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx7598\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\clvertalb\cellx7598\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\clvertalb\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clbrdrt\brdrs\brdrcf1\clvertalb\cellx9257\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\clvertalb\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clbrdrt\brdrs\brdrcf1\clvertalb\cellx9257\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh298\row}}} {\trowd\clvertalb\cellx7598\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\clvertalb\cellx7598\clvertalb\cellx10799\trrh232\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7598\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Oil sales\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 917\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,013\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7598\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx7598\clvertalb\cellx9023\clvertalb\cellx9149\clvertalb\cellx9256\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql NGL sales\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 138\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 165\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7598\clvertalb\cellx9023\clvertalb\cellx9149\clvertalb\cellx9256\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7598\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Gas sales\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 80\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 88\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7598\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9023\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9149\clvertalb\cellx9256\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10670\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Total oil and gas sales\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,135\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,266\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9023\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9149\clvertalb\cellx9256\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10670\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7598\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Sales of purchased oil\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,107\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,051\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7598\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx7598\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9023\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9149\clvertalb\cellx9256\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10670\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Sales of purchased gas\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 19\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7598\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9023\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9149\clvertalb\cellx9256\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10670\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Total sales of purchased oil and gas\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,109\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,070\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7736\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9023\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9149\clvertalb\cellx9256\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9382\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10669\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Total revenue derived from contracts with purchasers\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2,244\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2,336\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7598\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7736\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9023\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9149\clvertalb\cellx9256\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9382\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10669\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Oil sales\plain\cf1\f51\fs20\qj . Sales under the Company's oil contracts are generally considered performed when the Company sells oil\plain\cf1\f51\fs20\qj production at the wellhead and receives an agreed-upon index price, net of any price differentials. The Company recognizes\plain\cf1\f51\fs20\qj revenue when control transfers to the purchaser at the wellhead based on the net price received.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj NGL and gas sales\plain\cf1\f51\fs20\qj . The Company evaluated whether it is the principal or the agent in gas processing transactions and\plain\cf1\f51\fs20\qj concluded that it is the principal when it has the ability to take-in-kind, which is the case in the majority of the Company's gas\plain\cf1\f51\fs20\qj processing and transportation contracts. Therefore the Company recognizes revenue on a gross basis, with the gathering,\plain\cf1\f51\fs20\qj processing, \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 21 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\cf1\f51\fs20\qj transportation and fractionation costs associated with its take-in-kind arrangements being recorded as oil and gas production\plain\cf1\f51\fs20\qj costs in the consolidated statement of operations.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Sales of purchased oil and gas\plain\cf1\f51\fs20\qj . The Company enters into pipeline capacity commitments in order to secure available oil,\plain\cf1\f51\fs20\qj NGL and gas transportation capacity from the Company's areas of production. The Company enters into purchase transactions\plain\cf1\f51\fs20\qj with third parties and separate sale transactions with third parties to (i) diversify a portion of the Company's WTI oil sales to the\plain\cf1\f51\fs20\qj Gulf Coast refinery or international export markets and (ii) satisfy unused pipeline capacity commitments. Revenues and expenses\plain\cf1\f51\fs20\qj from these transactions are presented on a gross basis as the Company acts as a principal in the transaction by assuming control\plain\cf1\f51\fs20\qj of the commodities purchased and the responsibility to deliver the commodities sold. Revenue is recognized when control\plain\cf1\f51\fs20\qj transfers to the purchaser at the delivery point based on the price received from the purchaser. The transportation costs associated\plain\cf1\f51\fs20\qj with these transactions are presented as a component of purchased oil and gas expense. Firm transportation payments on excess\plain\cf1\f51\fs20\qj pipeline capacity are included in other expense in the consolidated statements of operations.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Performance obligations and contract balances.\plain\cf1\f51\fs20\qj The majority of the Company's product sale commitments are short-term\plain\cf1\f51\fs20\qj in nature with a contract term of one year or less. The Company typically satisfies its performance obligations upon transfer of\plain\cf1\f51\fs20\qj control as described above in\plain\cf1\f51\fs20\i\qj Disaggregated revenue from contracts with purchasers\plain\cf1\f51\fs20\qj and records the related revenue in the\plain\cf1\f51\fs20\qj month production is delivered to the purchaser. Settlement statements for sales of oil, NGL and gas and sales of purchased oil\plain\cf1\f51\fs20\qj and gas may not be received for 30 to 60 days after the date the volumes are delivered, and as a result, the Company is required\plain\cf1\f51\fs20\qj to estimate the amount of volumes delivered to the purchaser and the price that will be received for the sale of the product. The\plain\cf1\f51\fs20\qj Company records the differences between estimates and the actual amounts received for product sales in the month that payment\plain\cf1\f51\fs20\qj is received from the purchaser. Historically, differences between the Company's revenue estimates and actual revenue received\plain\cf1\f51\fs20\qj have not been significant. As of March 31, 2022 and December 31, 2018, the accounts receivable balance representing amounts\plain\cf1\f51\fs20\qj due or billable under the terms of contracts with purchasers was $825 million and $646 million, respectively.{\*\bkmkstart sa9915796e7e55c3b9e8754d30207536}{\*\bkmkend sa9915796e7e55c3b9e8754d30207536}\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 14. Interest and Other Income\par\pard\plain\sb132\fi594\cf1\f51\fs20\qj The components of interest and other income are as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10799\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10799\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7941\clvertalc\cellx8176\clvertalc\cellx9241\clvertalc\cellx9367\clvertalc\cellx9474\clvertalc\cellx9600\clvertalc\cellx10670\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7941\clvertalc\cellx8176\clvertalc\cellx9241\clvertalc\cellx9367\clvertalc\cellx9474\clvertalc\cellx9600\clvertalc\cellx10670\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7941\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7941\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7941\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9368\clvertalb\cellx9475\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7941\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9368\clvertalb\cellx9475\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7941\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx7941\clvertalb\cellx10799\trrh232\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7941\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8176\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9367\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9474\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9600\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Investment in affiliate fair value adjustment (\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "s8b773a8d1f275391ab414dff3da659a" }{\*\fldrslt\cf3\f51\fs20\ql Note 4}}\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 174\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7941\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8176\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9367\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9474\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9600\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776\row}}} {\trowd\trqc\cellx7941\clvertalb\cellx9241\clvertalb\cellx9367\clvertalb\cellx9474\clvertalb\cellx10671\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Interest income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 8\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 7\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7941\clvertalb\cellx9241\clvertalb\cellx9367\clvertalb\cellx9474\clvertalb\cellx10671\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7941\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9367\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9474\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Deferred compensation plan income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 7\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7941\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9367\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9474\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7941\clvertalb\cellx9241\clvertalb\cellx9367\clvertalb\cellx9474\clvertalb\cellx10671\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Other income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7941\clvertalb\cellx9241\clvertalb\cellx9367\clvertalb\cellx9474\clvertalb\cellx10671\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7941\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9367\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9474\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Seismic data sales\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7941\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9241\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9367\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9474\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7941\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8176\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9241\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9367\clvertalb\cellx9474\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9600\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10670\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 191\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 18\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\cellx7941\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8176\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9241\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9367\clvertalb\cellx9474\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9600\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10670\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298\row}}}\pard\plain\sb154\cf1\f51\fs20\qc \~{\*\bkmkstart s31c172d54e4c5abc8a5d3c2df09861e}{\*\bkmkend s31c172d54e4c5abc8a5d3c2df09861e}\par\pard\plain\sb396\cf1\f51\fs16\ql \~\plain\cf1\f51\fs20\b\ql NOTE 15. Other Expense\par\pard\plain\sb132\fi594\cf1\f51\fs20\qj The components of other expense are as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7907\clvertalc\cellx8033\clvertalc\cellx9091\clvertalc\cellx9217\clvertalc\cellx9324\clvertalc\cellx9609\clvertalc\cellx10669\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7907\clvertalc\cellx8033\clvertalc\cellx9091\clvertalc\cellx9217\clvertalc\cellx9324\clvertalc\cellx9609\clvertalc\cellx10669\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7907\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7907\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7907\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9219\clvertalb\cellx9326\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7907\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9219\clvertalb\cellx9326\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7907\clvertalc\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx7907\clvertalc\cellx10799\trrh232\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7907\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8033\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9091\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9217\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9324\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Transportation commitment charges (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 40\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 34\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7907\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8033\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9091\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9217\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9324\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7907\clvertalb\cellx9092\clvertalb\cellx9218\clvertalb\cellx9325\clvertalb\cellx10670\clvertalb\cellx10800\trrh776 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Asset impairment (b) (\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "s8b773a8d1f275391ab414dff3da659a" }{\*\fldrslt\cf3\f51\fs20\ql Note 4}}\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 32\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7907\clvertalb\cellx9092\clvertalb\cellx9218\clvertalb\cellx9325\clvertalb\cellx10670\clvertalb\cellx10800\trrh776\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7907\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9092\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9218\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9325\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\ql Restructuring charges (\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "sdf22ec6d391f531b8e92f73590c50da" }{\*\fldrslt\cf3\f51\fs20\ql Note 3}}\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 13\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7907\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9092\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9218\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9325\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh776\row}}} {\trowd\trqc\cellx7907\clvertalb\cellx9092\clvertalb\cellx9218\clvertalb\cellx9325\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Accelerated depreciation (c)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 23\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7907\clvertalb\cellx9092\clvertalb\cellx9218\clvertalb\cellx9325\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7907\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9092\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9218\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9325\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Vertical integration services loss, net (d)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 20\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 6\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7907\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9092\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9218\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9325\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7907\clvertalb\cellx9092\clvertalb\cellx9218\clvertalb\cellx9325\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Other\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 10\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 13\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7907\clvertalb\cellx9092\clvertalb\cellx9218\clvertalb\cellx9325\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7907\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9092\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9218\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9325\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh214 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Legal and environmental charges\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 5\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7907\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9092\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9218\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9325\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh214\row}}} {\trowd\trqc\cellx7907\clvertalb\cellx9092\clvertalb\cellx9218\clvertalb\cellx9325\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Idle drilling and well service equipment charges (e)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7907\clvertalb\cellx9092\clvertalb\cellx9218\clvertalb\cellx9325\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7907\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8033\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9091\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9217\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9324\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9609\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 147\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 57\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7907\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8033\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9091\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9217\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9324\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9609\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}}\pard\plain\cf1\f51\fs20\ql \~____________________ \par\pard\plain {\trowd\clvertalc\cellx452\clvertalc\cellx8072\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx452\clvertalc\cellx8072\trrh66\row}}} {\trowd\cellx452\cellx8072\trrh495 \pard\plain\intbl\li198\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Primarily represents firm transportation payments on excess pipeline capacity\plain\intbl\cf1\f51\fs20\qj commitments.\cell{ {\trowd\cellx452\cellx8072\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx540\cellx10800\trrh742 \pard\plain\intbl\li198\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\qj Represents inventory and other property and equipment impairment charges of $16 million related to the decommissioning\plain\intbl\cf1\f51\fs20\qj of the Company's Brady, Texas sand mine and $15 million of impairment charges related to inventory and other property\plain\intbl\cf1\f51\fs20\qj and equipment excluded from the Company's sale of its pumping services assets in December 2018.\cell{ {\trowd\cellx540\cellx10800\trrh742\row}}} \pard\plain {\trowd\clvertalc\cellx504\clvertalc\cellx9728\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx504\clvertalc\cellx9728\trrh66\row}}} {\trowd\cellx504\cellx9728\trrh248 \pard\plain\intbl\li198\cf1\f51\fs20\ql (c)\cell\pard\plain\intbl\cf1\f51\fs20\qj Represents accelerated depreciation related to the decommissioning of the Company's Brady, Texas sand mine.\cell{ {\trowd\cellx504\cellx9728\trrh248\row}}} \pard\plain {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx540\cellx10800\trrh1980 \pard\plain\intbl\li198\cf1\f51\fs20\ql (d)\cell\pard\plain\intbl\cf1\f51\fs20\qj For the three months ended March\~31, 2019, amount includes $9 million of decommissioning operating expenses related to\plain\intbl\cf1\f51\fs20\qj the Company's Brady sand mine and $15\~million of carryover and winding down operating expenses related to the\plain\intbl\cf1\f51\fs20\qj Company's sale of its pumping services assets in December 2018, partially offset by net margins (attributable to third party\plain\intbl\cf1\f51\fs20\qj working interest owners) that result from Company-provided well service operations, which are ancillary to and supportive\plain\intbl\cf1\f51\fs20\qj of the Company's oil and gas joint operating activities, and do not represent intercompany transactions. For the three\plain\intbl\cf1\f51\fs20\qj months ended March\~31, 2019, these vertical integration net margins included $35 million of revenues and $55 million of\plain\intbl\cf1\f51\fs20\qj costs and expenses. For the same period in 2018, these vertical integration net margins included $34 million of revenues\plain\intbl\cf1\f51\fs20\qj and $40\~million of costs and expenses.\cell{ {\trowd\cellx540\cellx10800\trrh1980\row}}} \pard\plain {\trowd\clvertalc\cellx538\clvertalc\cellx10736\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx538\clvertalc\cellx10736\trrh66\row}}} {\trowd\cellx538\cellx10736\trrh248 \pard\plain\intbl\li198\cf1\f51\fs20\ql (e)\cell\pard\plain\intbl\cf1\f51\fs20\qj Primarily represents expenses attributable to idle frac fleet and drilling rig fees that are not chargeable to joint operations.\cell{ {\trowd\cellx538\cellx10736\trrh248\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 22 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s2b7804f5ef67536f8a4e48d51ac614b}{\*\bkmkend s2b7804f5ef67536f8a4e48d51ac614b}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE\~16. Income Taxes\par\pard\plain\sb132\fi594\cf1\f51\fs20\qj Income tax provision and effective tax rate are as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7518\clvertalc\cellx7644\clvertalc\cellx8918\clvertalc\cellx9104\clvertalc\cellx9211\clvertalc\cellx9337\clvertalc\cellx10609\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7518\clvertalc\cellx7644\clvertalc\cellx8918\clvertalc\cellx9104\clvertalc\cellx9211\clvertalc\cellx9337\clvertalc\cellx10609\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7518\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7518\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7518\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9105\clvertalb\cellx9212\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7518\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9105\clvertalb\cellx9212\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7518\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx7518\clvertalb\cellx10799\trrh232\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7518\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7644\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8918\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9104\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9211\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9337\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Deferred tax provision\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 103\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7518\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7644\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8918\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9104\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9211\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9337\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7518\clvertalb\cellx8919\clvertalb\cellx9105\clvertalb\cellx9212\clvertalb\cellx10611\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Effective tax rate\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 23\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql %\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 22\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql %\cell{ {\trowd\trqc\cellx7518\clvertalb\cellx8919\clvertalb\cellx9105\clvertalb\cellx9212\clvertalb\cellx10611\clvertalb\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Uncertain tax positions.\plain\cf1\f51\fs20\qj The Company recognizes the tax benefit from an uncertain tax position only if it is more likely\plain\cf1\f51\fs20\qj than not that the tax position will be sustained upon examination by the taxing authorities based upon the technical merits of the\plain\cf1\f51\fs20\qj position. As of March\~31, 2019 and December\~31, 2018, the Company had unrecognized tax benefits ("UTBs") of $141 million\plain\cf1\f51\fs20\qj for each respective period resulting from research and experimental expenditures related to horizontal drilling and completion\plain\cf1\f51\fs20\qj innovations.\~If all or a portion of the UTBs is sustained upon examination by the taxing authorities, the tax benefit will be\plain\cf1\f51\fs20\qj recorded as a reduction to the Company's deferred tax liability and will affect the Company's effective tax rate in the period it is\plain\cf1\f51\fs20\qj recorded. The timing as to when the Company will substantially resolve the uncertainties associated with the UTBs is uncertain.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company files income tax returns in the U.S. federal and various state and foreign jurisdictions. The Internal Revenue\plain\cf1\f51\fs20\qj Service has closed examinations of the 2011 and prior tax years and, with few exceptions, the Company believes that it is no\plain\cf1\f51\fs20\qj longer subject to examinations by state and foreign tax authorities for years before 2012. As of March\~31, 2019, no adjustments\plain\cf1\f51\fs20\qj had been proposed in any jurisdiction that would have a significant effect on the Company's liquidity, future results of operations\plain\cf1\f51\fs20\qj or financial position.{\*\bkmkstart sb8cf769a00df5be0b2de102d2dc8f40}{\*\bkmkend sb8cf769a00df5be0b2de102d2dc8f40}\par\pard\plain\sb396\cf1\f51\fs20\b\ql NOTE 17. Net Income Per Share\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The components of basic and diluted net income per share attributable to common stockholders are as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7610\clvertalc\cellx7736\clvertalc\cellx9023\clvertalc\cellx9149\clvertalc\cellx9256\clvertalc\cellx9382\clvertalc\cellx10669\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7610\clvertalc\cellx7736\clvertalc\cellx9023\clvertalc\cellx9149\clvertalc\cellx9256\clvertalc\cellx9382\clvertalc\cellx10669\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7610\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7610\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7610\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clbrdrt\brdrs\brdrcf1\clvertalb\cellx9257\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7610\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clbrdrt\brdrs\brdrcf1\clvertalb\cellx9257\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10797\trrh298\row}}} {\trowd\trqc\clvertalb\cellx7610\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx7610\clvertalb\cellx10799\trrh232\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7610\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\fi-198\cf1\f51\fs20\ql Net income attributable to common stockholders\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 350\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 178\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7610\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7610\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9024\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clvertalb\cellx9257\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10671\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Participating share-based earnings\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (2\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (1\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\cellx7610\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9024\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clvertalb\cellx9257\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10671\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7610\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\fi-198\cf1\f51\fs20\ql Basic and diluted net income attributable to common stockholders\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 348\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 177\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7610\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx7519\clvertalc\cellx8905\clvertalc\cellx9095\clvertalc\cellx9230\clvertalc\cellx10609\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx7519\clvertalc\cellx8905\clvertalc\cellx9095\clvertalc\cellx9230\clvertalc\cellx10609\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx7519\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\clvertalb\cellx7519\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\clvertalb\cellx7519\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9095\clbrdrt\brdrs\brdrcf1\clvertalb\cellx9230\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\clvertalb\cellx7519\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9095\clbrdrt\brdrs\brdrcf1\clvertalb\cellx9230\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh298\row}}} {\trowd\clvertalb\cellx7519\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\clvertalb\cellx7519\clvertalb\cellx10799\trrh232\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9095\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9230\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\fi-198\cf1\f51\fs20\ql Basic weighted average shares outstanding\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 169\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 170\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8905\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9095\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9230\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx7519\clvertalb\cellx8905\clvertalb\cellx9095\clvertalb\cellx9230\clvertalb\cellx10609\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Dilution attributable to stock-based compensation awards\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx7519\clvertalb\cellx8905\clvertalb\cellx9095\clvertalb\cellx9230\clvertalb\cellx10609\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7519\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8905\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9095\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9230\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li198\ri22\sb22\sa22\fi-198\cf1\f51\fs20\ql Diluted weighted average shares outstanding\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 169\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 171\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7519\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8905\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9095\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9230\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Stock repurchase program\plain\cf1\f51\fs20\qj . In December 2018, the Company's board of directors authorized a $2 billion common stock\plain\cf1\f51\fs20\qj repurchase program. Under this stock repurchase program, the Company may repurchase shares at management's discretion in\plain\cf1\f51\fs20\qj accordance with applicable securities laws. In addition, the Company may repurchase shares pursuant to a trading plan meeting\plain\cf1\f51\fs20\qj the requirements of Rule 10b5-1 under the Securities Act of 1934, which would permit the Company to repurchase shares at\plain\cf1\f51\fs20\qj times that may otherwise be prohibited under the Company's insider trading policy. The stock repurchase program has no time\plain\cf1\f51\fs20\qj limit, may be modified, suspended or terminated at any time by the board of directors and replaced and terminated the\plain\cf1\f51\fs20\qj Company's prior $100 million common stock repurchase program announced in February 2018. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 23 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc NOTES TO CONSOLIDATED FINANCIAL STATEMENTS\par\pard\plain\cf1\f51\fs20\b\qc March 31, 2019\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited) \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj During the three months ended March\~31, 2019 and 2018, the Company repurchased $200\~million and $17 million,\plain\cf1\f51\fs20\qj respectively, of common stock under these repurchase programs. As of March\~31, 2019, $1.7\~billion remains available for use to\plain\cf1\f51\fs20\qj repurchase shares under the Company's common stock repurchase program.{\*\bkmkstart s319ff0f0be565ed2b57b38a8c559232}{\*\bkmkend s319ff0f0be565ed2b57b38a8c559232}\par\pard\plain\sb396\cf1\f51\fs20\b\qj NOTE 18. Subsequent Events\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj In May 2019, the Company completed the sale of its Eagle Ford assets and other remaining assets in South Texas to an\plain\cf1\f51\fs20\qj unaffiliated third party. The sale of these assets is expected to result in a pretax loss of $400 million to $550 million during the\plain\cf1\f51\fs20\qj second quarter of 2019. The Company expects to recognize a liability associated with the sale for estimated deficiency fees\plain\cf1\f51\fs20\qj retained by the Company on unused minimum volume commitments. Additionally, under the agreement, the Company expects to\plain\cf1\f51\fs20\qj receive up to $475\~million in total proceeds, of which $25 million was received at closing and $450 million is contingent on\plain\cf1\f51\fs20\qj future commodity prices. The contingent proceeds will be valued based on the probability-weighted estimate of proceeds that\plain\cf1\f51\fs20\qj will be received over the earn-out period using forecasted commodity prices. The contingent proceeds will be determined\plain\cf1\f51\fs20\qj annually over the 2020 through 2024-time periods based on actual commodity prices for each year. The contingent proceeds, if\plain\cf1\f51\fs20\qj any, will be received between 2023 and 2025.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj In May 2019, the Company announced its plans to divest of its ownership interest in certain gas gathering and processing\plain\cf1\f51\fs20\qj assets operated by a third party. The Company expects this divestiture process to be completed before the end of 2019, although\plain\cf1\f51\fs20\qj no assurance can be given that this divestiture will be completed in accordance with the Company's plans or on terms and at a\plain\cf1\f51\fs20\qj price that is acceptable to the Company.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj In April 2019, the Company adopted a voluntary separation program (\u8220?VSP\u8221?) for certain eligible employees.\plain\cf1\f51\fs20\qj Eligible employees who voluntarily choose to participate in the program will receive certain severance and related benefits above\plain\cf1\f51\fs20\qj the Company's customary involuntary termination benefits. The Company plans to further reduce its headcount levels during the\plain\cf1\f51\fs20\qj second quarter of 2019 with an involuntary separation program. Based on initial estimates, the Company expects to recognize\plain\cf1\f51\fs20\qj between $140 million and $180 million of severance and related benefit costs associated with the voluntary and involuntary\plain\cf1\f51\fs20\qj programs during the second quarter of 2019, of which approximately 25 percent is expected to be noncash charges related to the\plain\cf1\f51\fs20\qj accelerated vesting of certain equity awards. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 24 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s70ffc366169257abb9dfde707748f2a}{\*\bkmkend s70ffc366169257abb9dfde707748f2a}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16{\*\bkmkstart item_1_3_2}{\*\bkmkend item_1_3_2} \par\pard\plain {\trowd\clvertalc\cellx10778\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10778\trrh66\row}}} {\trowd\clvertalc\cellx1185\clvertalc\cellx10778\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1185\clvertalc\cellx10778\trrh66\row}}} {\trowd\cellx1185\cellx10778\trrh529 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~2.\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs20\b\ql MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF\plain\intbl\li22\ri22\sa22\cf1\f51\fs20\b\ql OPERATIONS\cell{ {\trowd\cellx1185\cellx10778\trrh529\row}}}{\*\bkmkstart sa174ac7144ae57538c753c6d032ae42}{\*\bkmkend sa174ac7144ae57538c753c6d032ae42}\pard\plain\sb396\cf1\f51\fs20\b\ql Financial and Operating Performance\par\pard\plain\sb132\fi528\cf1\f51\fs20\qj The Company's financial and operating performance for the three months ended March\~31, 2019 included the following\plain\sa132\cf1\f51\fs20\qj highlights: \par\pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh1125 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj Net income attributable to common stockholders for the three months ended March\~31, 2019 was $350 million\plain\intbl\cf1\f51\fs20\qj ($2.06 per diluted share), as compared to net income of $178 million ($1.04 per diluted share) for the same\plain\intbl\cf1\f51\fs20\qj period in 2018. The primary components of the increase in net income attributable to common stockholders\plain\intbl\cf1\f51\fs20\qj include:\cell{ {\trowd\cellx720\cellx10800\trrh1125\row}}} \pard\plain {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1440\cellx10800\trrh630 \pard\plain\intbl\li1188\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj a $195 million decrease in derivative net losses, primarily as a result of changes in forward commodity prices\plain\intbl\cf1\f51\fs20\qj and the cash settlement of derivative positions in accordance with their terms;\cell{ {\trowd\cellx1440\cellx10800\trrh630\row}}} \pard\plain {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1440\cellx10800\trrh878 \pard\plain\intbl\li1188\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj a $173 million increase in interest and other income, primarily due to a $174 million noncash fair value\plain\intbl\cf1\f51\fs20\qj adjustment gain attributable to the 16.6 million shares of ProPetro Holding Corp. ("ProPetro") common stock\plain\intbl\cf1\f51\fs20\qj owned by the Company;\cell{ {\trowd\cellx1440\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1440\cellx10800\trrh630 \pard\plain\intbl\li1188\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj a $136 million increase in net sales of purchased oil and gas, primarily due to favorable downstream oil\plain\intbl\cf1\f51\fs20\qj margins on the Company's Gulf Coast refinery and export sales; and\cell{ {\trowd\cellx1440\cellx10800\trrh630\row}}} \pard\plain {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1440\cellx10800\trrh630 \pard\plain\intbl\li1188\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj a $15 million decrease in exploration and abandonment expense, primarily due to reductions in geological and\plain\intbl\cf1\f51\fs20\qj geophysical costs and abandoned well costs;\cell{ {\trowd\cellx1440\cellx10800\trrh630\row}}}\pard\plain\li1584\sa132\fi-484\cf1\f51\fs20\qj partially offset by: \par\pard\plain {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1440\cellx10800\trrh630 \pard\plain\intbl\li1188\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj a $131 million decrease in oil and gas revenues primarily due to a 16 percent decrease in average realized\plain\intbl\cf1\f51\fs20\qj commodity prices per BOE, partially offset by a seven percent increase in daily sales volumes;\cell{ {\trowd\cellx1440\cellx10800\trrh630\row}}} \pard\plain {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1440\cellx10800\trrh1372 \pard\plain\intbl\li1188\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj a $90 million increase in other expense, primarily due to inventory and other property and other equipment\plain\intbl\cf1\f51\fs20\qj impairment charges of $32 million associated with the Company's decommissioning of the Brady, Texas sand\plain\intbl\cf1\f51\fs20\qj mine and pumping services asset sale, accelerated depreciation of $23 million related to the decommissioning of\plain\intbl\cf1\f51\fs20\qj the Company's Brady, Texas sand mine and corporate restructuring-related charges of $13 million to align the\plain\intbl\cf1\f51\fs20\qj organization with the needs of a Permian Basin-focused company;\cell{ {\trowd\cellx1440\cellx10800\trrh1372\row}}} \pard\plain {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1440\cellx10800\trrh878 \pard\plain\intbl\li1188\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj a $64 million increase in DD&A expense, primarily due to declines in commodity prices, which led to\plain\intbl\cf1\f51\fs20\qj reductions in proved reserves as a result of shortening the economic productive lives of the Company's\plain\intbl\cf1\f51\fs20\qj producing wells; and\cell{ {\trowd\cellx1440\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1440\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1440\cellx10800\trrh630 \pard\plain\intbl\li1188\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj a $53 million increase in the Company's income tax provision as a result of the improvements in earnings\plain\intbl\cf1\f51\fs20\qj during the three months ended March\~31, 2019, as compared to the same period in 2018.\cell{ {\trowd\cellx1440\cellx10800\trrh630\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh1125 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj During the three months ended March\~31, 2019, average daily sales volumes increased by seven percent to 333,430\plain\intbl\cf1\f51\fs20\qj BOEPD, as compared to 311,845 BOEPD during the same period in 2018, primarily due to the Company's successful\plain\intbl\cf1\f51\fs20\qj Spraberry/Wolfcamp horizontal drilling program, which more than offset the loss of production associated with the\plain\intbl\cf1\f51\fs20\qj Company's 2018 divestitures.\cell{ {\trowd\cellx720\cellx10800\trrh1125\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh878 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj Average oil, NGL and gas prices decreased per Bbl (for oil and NGL) and Mcf (for gas) during the three months ended\plain\intbl\cf1\f51\fs20\qj March\~31, 2019 to $49.38, $22.79 and $2.50, respectively, as compared to $61.64, $27.74 and $2.59, respectively, for\plain\intbl\cf1\f51\fs20\qj the same period in 2018.\cell{ {\trowd\cellx720\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh1372 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj Net cash provided by operating activities increased by nine percent to $604 million for the three months ended\plain\intbl\cf1\f51\fs20\qj March\~31, 2019, as compared to $555 million for the same period in 2018, primarily due to an increase of (i) $136\plain\intbl\cf1\f51\fs20\qj million in net sales of purchased oil and gas, primarily due to favorable downstream oil margins on the Company's Gulf\plain\intbl\cf1\f51\fs20\qj Coast refinery and export sales and (ii) $76 million of incremental cash available from commodity derivative activity,\plain\intbl\cf1\f51\fs20\qj partially offset by decreases in the Company's oil and gas revenues in 2019 as a result of decreases in commodity prices.\cell{ {\trowd\cellx720\cellx10800\trrh1372\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\qj As of March\~31, 2019 and December\~31, 2018, the Company's net debt to book capitalization was 10 percent and seven\plain\intbl\cf1\f51\fs20\qj percent, respectively.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 25 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s05bacaff0bef5f45ac6abc2b938a006}{\*\bkmkend s05bacaff0bef5f45ac6abc2b938a006}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb396\cf1\f51\fs16\ql \~\plain\cf1\f51\fs20\b\ql Second Quarter 2019 Outlook\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company is only providing Permian Basin specific estimates for production, production costs and DD&A expense for\plain\cf1\f51\fs20\qj the three months ending June\~30, 2019. All other operating and financial results for the three months ending June\~30, 2019\plain\cf1\f51\fs20\qj provided below reflect the expected results of the total Company. The Company completed the sale of its Eagle Ford and other\plain\cf1\f51\fs20\qj South Texas assets in early May 2019; consequently, the results of operations for these assets will be included in the Company's\plain\cf1\f51\fs20\qj consolidated financial results through April 2019. \par\pard\plain {\trowd\clvertalc\cellx10673\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10673\trrh66\row}}} {\trowd\clvertalc\cellx7258\clvertalc\cellx10673\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx7258\clvertalc\cellx10673\trrh66\row}}} {\trowd\clvertalb\cellx7258\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ending June 30, 2019\cell{ {\trowd\clvertalb\cellx7258\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Guidance\cell{ {\trowd\clvertalb\cellx7258\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc ($ in millions, except per BOE amounts)\cell{ {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Permian Basin Specific Guidance:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Average daily production (MBOE)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc 313 - 328\cell{ {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Average daily oil production (MBbl)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc 198 - 208\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Production costs per BOE\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc $8.50 - $10.50\cell{ {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql DD&A per BOE\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc $13.00 - $15.00\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql Total Company Guidance:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Exploration and abandonments expense\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc $20 - $30\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql General and administrative expense\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc $93 - $98\cell{ {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Accretion of discount on asset retirement obligations\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc $3 - $6\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Interest expense\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc $28 - $33\cell{ {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Other expense\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc $25 - $35\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Cash flow uplift from firm transportation\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc $50 - $110\cell{ {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Current income tax provision\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc < $5\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7258\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10673\trrh281\row}}} {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Effective tax rate\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qc 21% - 25%\cell{ {\trowd\clvertalb\cellx7258\clvertalb\cellx10673\trrh281\row}}}{\*\bkmkstart saea75f3c65b95e0c8e87f532e477c72}{\*\bkmkend saea75f3c65b95e0c8e87f532e477c72}\pard\plain\sb396\cf1\f51\fs20\b\ql Operations and Drilling Highlights\par\pard\plain\sb176\cf1\f51\fs20\ql Average daily oil, NGL and gas sales volumes by significant asset area are as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx6794\clvertalc\cellx8350\clvertalc\cellx8689\clvertalc\cellx8824\clvertalc\cellx10380\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6794\clvertalc\cellx8350\clvertalc\cellx8689\clvertalc\cellx8824\clvertalc\cellx10380\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx6794\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ended March 31, 2019\cell{ {\trowd\clvertalb\cellx6794\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx6794\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8690\clvertalb\cellx8825\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Permian Basin\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Total Company\cell{ {\trowd\clvertalb\cellx6794\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8690\clvertalb\cellx8825\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6794\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8350\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8824\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Oil (Bbls)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 202,538\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 206,256\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6794\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8350\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8824\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\cellx6794\clvertalb\cellx8350\clvertalb\cellx8689\clvertalb\cellx8824\clvertalb\cellx10380\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql NGL (Bbls)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 63,277\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 67,070\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6794\clvertalb\cellx8350\clvertalb\cellx8689\clvertalb\cellx8824\clvertalb\cellx10380\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6794\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8824\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Gas (Mcf)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 322,986\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 360,620\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6794\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8350\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8824\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx6794\clvertalb\cellx8350\clvertalb\cellx8689\clvertalb\cellx8824\clvertalb\cellx10380\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Total (BOE)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 319,646\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 333,430\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6794\clvertalb\cellx8350\clvertalb\cellx8689\clvertalb\cellx8824\clvertalb\cellx10380\clvertalb\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company's liquids production increased to 82 percent of total production on a BOE basis for the three months ended\plain\cf1\f51\fs20\qj March\~31, 2019, as compared to 80 percent for the same period last year.\par\pard\plain\li594\sb176\fi594\cf1\f51\fs20\ql Costs incurred by significant asset area are as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx6820\clvertalc\cellx7046\clvertalc\cellx8477\clvertalc\cellx8703\clvertalc\cellx8810\clvertalc\cellx9088\clvertalc\cellx10519\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6820\clvertalc\cellx7046\clvertalc\cellx8477\clvertalc\cellx8703\clvertalc\cellx8810\clvertalc\cellx9088\clvertalc\cellx10519\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx6820\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ended March 31, 2019\cell{ {\trowd\clvertalb\cellx6820\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx6820\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8704\clvertalb\cellx8811\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Permian Basin\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Total Company\cell{ {\trowd\clvertalb\cellx6820\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8704\clvertalb\cellx8811\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281\row}}} {\trowd\clvertalb\cellx6820\clvertalb\cellx10799\trrh232 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\clvertalb\cellx6820\clvertalb\cellx10799\trrh232\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6820\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7046\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8477\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8810\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9088\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Unproved property acquisitions costs\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 11\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 11\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6820\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7046\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8477\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8810\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9088\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx6820\clvertalb\cellx8477\clvertalb\cellx8703\clvertalb\cellx8810\clvertalb\cellx10519\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Exploration costs\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 659\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 663\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6820\clvertalb\cellx8477\clvertalb\cellx8703\clvertalb\cellx8810\clvertalb\cellx10519\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6820\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8477\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8810\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Development costs\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 238\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 239\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6820\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8477\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8810\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx6820\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7046\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8477\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8703\clvertalb\cellx8810\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9088\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10519\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 908\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 913\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6820\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7046\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8477\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8703\clvertalb\cellx8810\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9088\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10519\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 26 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb176\fi594\cf1\f51\fs20\ql Development drilling activity by significant asset area is as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx6827\clvertalc\cellx8364\clvertalc\cellx8703\clvertalc\cellx8838\clvertalc\cellx10380\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6827\clvertalc\cellx8364\clvertalc\cellx8703\clvertalc\cellx8838\clvertalc\cellx10380\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx6827\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ended March 31, 2019\cell{ {\trowd\clvertalb\cellx6827\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx6827\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8704\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8839\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Permian Basin\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Total Company\cell{ {\trowd\clvertalb\cellx6827\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8704\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8839\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh298\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6827\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8364\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8838\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Beginning wells in progress\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 16\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 16\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6827\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8364\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8838\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\cellx6827\clvertalb\cellx8364\clvertalb\cellx8703\clvertalb\cellx8838\clvertalb\cellx10380\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Wells spud\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 9\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 9\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6827\clvertalb\cellx8364\clvertalb\cellx8703\clvertalb\cellx8838\clvertalb\cellx10380\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6827\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8364\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8838\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Successful wells\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (9\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (9\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6827\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8364\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8838\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx6827\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8364\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8703\clvertalb\cellx8838\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10380\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Ending wells in progress\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 16\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 16\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6827\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8364\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8703\clvertalb\cellx8838\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10380\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298\row}}}\pard\plain\sb176\fi594\cf1\f51\fs20\ql Exploration/extension drilling activity by significant asset area is as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx6827\clvertalc\cellx8364\clvertalc\cellx8703\clvertalc\cellx8838\clvertalc\cellx10380\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6827\clvertalc\cellx8364\clvertalc\cellx8703\clvertalc\cellx8838\clvertalc\cellx10380\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx6827\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ended March 31, 2019\cell{ {\trowd\clvertalb\cellx6827\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx6827\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8704\clvertalb\cellx8839\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Permian Basin\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Total Company\cell{ {\trowd\clvertalb\cellx6827\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8704\clvertalb\cellx8839\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6827\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8364\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8838\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Beginning wells in progress\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 163\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 166\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6827\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8364\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8838\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx6827\clvertalb\cellx8364\clvertalb\cellx8703\clvertalb\cellx8838\clvertalb\cellx10380\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Wells spud\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 92\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 92\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6827\clvertalb\cellx8364\clvertalb\cellx8703\clvertalb\cellx8838\clvertalb\cellx10380\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6827\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8364\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8838\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Successful wells\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (64\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (64\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx6827\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8364\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8703\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8838\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10380\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx6827\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8364\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8703\clvertalb\cellx8838\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10380\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Ending wells in progress\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 191\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 194\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx6827\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8364\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8703\clvertalb\cellx8838\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10380\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh298\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Permian Basin area.\plain\cf1\f51\fs20\qj The Company is currently operating 22 rigs in the Spraberry/Wolfcamp field, with 17 rigs operating\plain\cf1\f51\fs20\qj in the northern portion of the play and 5 rigs operating in the southern portion of the play.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj During the three months ended March\~31, 2019, the Company successfully completed 60 horizontal wells in the northern\plain\cf1\f51\fs20\qj portion of the play and 13 horizontal wells in the southern portion of the play. In the northern portion of the play, approximately\plain\cf1\f51\fs20\qj 50 percent of the horizontal wells placed on production were Wolfcamp A interval wells, approximately 30 percent were\plain\cf1\f51\fs20\qj Wolfcamp B interval wells and the remaining 20 percent were primarily Spraberry interval wells. In the southern portion of the\plain\cf1\f51\fs20\qj play, 100 percent of the horizontal wells placed on production were Wolfcamp B interval wells.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company expects to place on production in 2019 between 265 and 290 horizontal wells. Approximately 45 percent of\plain\cf1\f51\fs20\qj the horizontal wells are planned to be drilled in the Wolfcamp B interval, 35 percent of the horizontal wells are planned to be\plain\cf1\f51\fs20\qj drilled in the Wolfcamp A interval and the remaining 20 percent will be a combination of wells in the Spraberry intervals and a\plain\cf1\f51\fs20\qj limited appraisal program for the Wolfcamp D interval.{\*\bkmkstart sa83136cccb425a38a8243a538409a05}{\*\bkmkend sa83136cccb425a38a8243a538409a05}\par\pard\plain\sb396\cf1\f51\fs20\b\ql Results of Operations\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Oil and gas revenues.\plain\cf1\f51\fs20\qj Oil and gas revenues totaled $1.1 billion for the three months ended March 31, 2019, as compared\plain\cf1\f51\fs20\qj to $1.3 billion for the same period in 2018. The decrease in oil and gas revenues during the three months ended March 31, 2019,\plain\cf1\f51\fs20\qj as compared to the same period in 2018, is primarily due to decreases of 20 percent, 18 percent and three percent in oil, NGL\plain\cf1\f51\fs20\qj and gas prices, respectively, and a decrease of five percent in gas sales volumes, partially offset by increases of 13 percent and\plain\cf1\f51\fs20\qj one percent in daily oil and NGL sales volumes, respectively.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Average daily BOE sales volumes increased by seven percent for the three months ended March 31, 2019, as compared to\plain\cf1\f51\fs20\qj the same period in 2018, principally due to the Company's successful Spraberry/Wolfcamp horizontal drilling program, which\plain\cf1\f51\fs20\qj more than offset the loss of production associated with the Company's 2018 divestitures.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Average daily sales volumes are as follows:\plain\cf1\f51\fs18\qj \~ \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7510\clvertalc\cellx8897\clvertalc\cellx9087\clvertalc\cellx9222\clvertalc\cellx10609\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7510\clvertalc\cellx8897\clvertalc\cellx9087\clvertalc\cellx9222\clvertalc\cellx10609\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7510\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7510\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7510\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9087\clvertalb\cellx9222\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7510\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9087\clvertalb\cellx9222\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7510\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8897\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9087\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9222\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Oil (Bbls)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 206,256\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 182,519\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7510\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8897\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9087\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9222\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx7510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8897\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9087\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9222\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql NGL (Bbls)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 67,070\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 66,181\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx7510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8897\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9087\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9222\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7510\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8897\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9087\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9222\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Gas (Mcf)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 360,620\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 378,869\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7510\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8897\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9087\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9222\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx7510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8897\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9087\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9222\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\fi198\cf1\f51\fs20\ql Total (BOEs)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 333,430\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 311,845\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx7510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8897\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9087\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9222\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 27 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The oil, NGL and gas prices that the Company reports are based on the market prices received for each commodity. The\plain\cf1\f51\fs20\qj average prices are as follows:\plain\cf1\f51\fs18\qj \~ \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7607\clvertalc\cellx7733\clvertalc\cellx9022\clvertalc\cellx9148\clvertalc\cellx9255\clvertalc\cellx9381\clvertalc\cellx10670\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7607\clvertalc\cellx7733\clvertalc\cellx9022\clvertalc\cellx9148\clvertalc\cellx9255\clvertalc\cellx9381\clvertalc\cellx10670\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7607\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7607\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7607\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9149\clvertalb\cellx9256\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7607\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9149\clvertalb\cellx9256\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7607\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7733\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9148\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9255\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9381\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Oil per Bbl\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 49.38\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 61.64\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7607\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7733\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9148\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9255\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9381\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx7607\clvertalb\cellx7733\clvertalb\cellx9022\clvertalb\cellx9148\clvertalb\cellx9255\clvertalb\cellx9381\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql NGL per Bbl\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 22.79\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 27.74\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx7607\clvertalb\cellx7733\clvertalb\cellx9022\clvertalb\cellx9148\clvertalb\cellx9255\clvertalb\cellx9381\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7607\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7733\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9148\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9255\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9381\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Gas per Mcf\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.50\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.59\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7607\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7733\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9148\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9255\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9381\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx7607\clvertalb\cellx7733\clvertalb\cellx9022\clvertalb\cellx9148\clvertalb\cellx9255\clvertalb\cellx9381\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\fi198\cf1\f51\fs20\ql Total per BOE\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 37.84\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 45.11\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx7607\clvertalb\cellx7733\clvertalb\cellx9022\clvertalb\cellx9148\clvertalb\cellx9255\clvertalb\cellx9381\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Sales of purchased oil and gas.\plain\cf1\f51\fs20\qj The Company enters into pipeline capacity commitments in order to secure available oil, NGL\plain\cf1\f51\fs20\qj and gas transportation capacity from the Company's areas of production. The Company enters into purchase transactions with\plain\cf1\f51\fs20\qj third parties and separate sale transactions with third parties to (i) diversify a portion of the Company's WTI oil sales to the Gulf\plain\cf1\f51\fs20\qj Coast refinery or international export markets and (ii) satisfy unused pipeline capacity commitments. Revenues and expenses from\plain\cf1\f51\fs20\qj these transactions are presented on a gross basis as the Company acts as a principal in the transaction by assuming both the risk\plain\cf1\f51\fs20\qj and rewards of ownership, including credit risk, of the commodities purchased and the responsibility to deliver the commodities\plain\cf1\f51\fs20\qj sold. The transportation costs associated with these transactions are presented as a component of purchased oil and gas expense.\plain\cf1\f51\fs20\qj The net effect of third party purchases and sales of oil and gas for the three months ended March 31, 2022 was income of\plain\cf1\f51\fs20\qj $152\~million, as compared to income of $16 million for the same period in 2018. Firm transportation payments on excess\plain\cf1\f51\fs20\qj pipeline capacity commitments that are not able to be mitigated through purchase and sale transactions are included in other\plain\cf1\f51\fs20\qj expense in the consolidated statements of operations. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s31c172d54e4c5abc8a5d3c2df09861e" }{\*\fldrslt\cf3\f51\fs20\qj Note 15}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements" for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Interest and other income\plain\cf1\f51\fs20\b\qj .\plain\cf1\f51\fs20\qj The Company's interest and other income for the three months ended March 31, 2022 was\plain\cf1\f51\fs20\qj $191\~million , as compared to $18 million for the same period in 2018. The increase in interest and other income during the\plain\cf1\f51\fs20\qj three months ended March 31, 2019, as compared to the same period in 2018, was primarily due to a noncash gain of $174\plain\cf1\f51\fs20\qj million as a result of the fair value adjustment on the 16.6 million shares of ProPetro's common stock that the Company owns.\plain\cf1\f51\fs20\qj See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "sa9915796e7e55c3b9e8754d30207536" }{\*\fldrslt\cf3\f51\fs20\qj Note 14}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements" for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Derivative loss, net.\plain\cf1\f51\fs20\qj The Company utilizes commodity swap contracts, option contracts, collar contracts, collar contracts\plain\cf1\f51\fs20\qj with short puts and basis swap contracts to (i)\~reduce the effect of price volatility on the commodities the Company produces and\plain\cf1\f51\fs20\qj sells or consumes, (ii)\~support the Company's annual capital budgeting and expenditure plans and (iii)\~reduce commodity price\plain\cf1\f51\fs20\qj risk associated with certain capital projects. During the three months ended March 31, 2019, the Company recorded a $13\~million\plain\cf1\f51\fs20\qj net derivative loss on commodity price derivatives, which included $4\~million of net cash receipts. During the three months ended\plain\cf1\f51\fs20\qj March 31, 2018, the Company recorded a $208\~million net derivative loss on commodity price and marketing derivatives, of\plain\cf1\f51\fs20\qj which $72\~million represented net cash payments.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Commodity derivatives and the relative price impact (per Bbl or Mcf) are as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx6924\clvertalc\cellx7205\clvertalc\cellx8245\clvertalc\cellx8526\clvertalc\cellx8632\clvertalc\cellx8769\clvertalc\cellx9816\clvertalc\cellx9953\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6924\clvertalc\cellx7205\clvertalc\cellx8245\clvertalc\cellx8526\clvertalc\cellx8632\clvertalc\cellx8769\clvertalc\cellx9816\clvertalc\cellx9953\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx6924\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ended March 31, 2019\cell{ {\trowd\clvertalb\cellx6924\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx6924\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8527\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8633\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh447 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\qc Net cash receipts\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\qc (payments)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc Price impact\cell{ {\trowd\clvertalb\cellx6924\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8527\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8633\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh447\row}}} {\trowd\clvertalb\cellx6924\clvertalb\cellx8527\clvertalb\cellx8633\clvertalb\cellx9956\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx6924\clvertalb\cellx8527\clvertalb\cellx8633\clvertalb\cellx9956\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6924\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7205\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8245\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8526\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8769\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9816\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9953\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\fi22\cf1\f51\fs20\ql Oil derivative receipts\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 12\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.68\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql per Bbl\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6924\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7205\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8245\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8526\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8769\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9816\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9953\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx6924\clvertalb\cellx8245\clvertalb\cellx8526\clvertalb\cellx8632\clvertalb\cellx8769\clvertalb\cellx9816\clvertalb\cellx9953\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\fi22\cf1\f51\fs20\ql Gas derivative payments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (8\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (0.26\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql per Mcf\cell{ {\trowd\clvertalb\cellx6924\clvertalb\cellx8245\clvertalb\cellx8526\clvertalb\cellx8632\clvertalb\cellx8769\clvertalb\cellx9816\clvertalb\cellx9953\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6924\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7205\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8245\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8526\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9955\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Total net commodity derivative receipts\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6924\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7205\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8245\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8526\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8632\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9955\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} \par\pard\plain {\trowd\clvertalc\cellx10799\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10799\trrh66\row}}} {\trowd\clvertalc\cellx6885\clvertalc\cellx7214\clvertalc\cellx8252\clvertalc\cellx8533\clvertalc\cellx8639\clvertalc\cellx8776\clvertalc\cellx9819\clvertalc\cellx9956\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx6885\clvertalc\cellx7214\clvertalc\cellx8252\clvertalc\cellx8533\clvertalc\cellx8639\clvertalc\cellx8776\clvertalc\cellx9819\clvertalc\cellx9956\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx6885\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ended March 31, 2018\cell{ {\trowd\clvertalb\cellx6885\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx6885\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8534\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8640\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh447 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\qc Net cash receipts\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\qc (payments)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc Price impact\cell{ {\trowd\clvertalb\cellx6885\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8534\clbrdrt\brdrs\brdrcf1\clvertalb\cellx8640\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh447\row}}} {\trowd\clvertalb\cellx6885\clvertalb\cellx8534\clvertalb\cellx8640\clvertalb\cellx9959\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx6885\clvertalb\cellx8534\clvertalb\cellx8640\clvertalb\cellx9959\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6885\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8252\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8533\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8639\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8776\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9819\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9956\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\fi22\cf1\f51\fs20\ql Oil derivative payments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (74\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (4.49\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql per Bbl\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6885\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7214\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8252\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8533\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8639\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8776\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9819\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9956\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx6885\clvertalb\cellx8252\clvertalb\cellx8533\clvertalb\cellx8639\clvertalb\cellx8776\clvertalb\cellx9819\clvertalb\cellx9956\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\fi22\cf1\f51\fs20\ql NGL derivative receipts\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.08\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql per Bbl\cell{ {\trowd\clvertalb\cellx6885\clvertalb\cellx8252\clvertalb\cellx8533\clvertalb\cellx8639\clvertalb\cellx8776\clvertalb\cellx9819\clvertalb\cellx9956\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6885\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8252\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8533\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8639\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8776\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9819\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9956\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\fi22\cf1\f51\fs20\ql Gas derivative receipts\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.05\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql per Mcf\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6885\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8252\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8533\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8639\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8776\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9819\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9956\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx6885\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7214\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8252\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8533\clvertalb\cellx8639\clvertalb\cellx9958\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Total net commodity derivative payments\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (72\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx6885\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7214\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8252\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8533\clvertalb\cellx8639\clvertalb\cellx9958\clvertalb\cellx10800\trrh298\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 28 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company's open derivative contracts are subject to continuing market risk. See "Item 3. Quantitative and Qualitative\plain\cf1\f51\fs20\qj Disclosures About Market Risk" and\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s839a2c08a42b508bbb6bf18f10c7b75" }{\*\fldrslt\cf3\f51\fs20\qj Note 5}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements" for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Gain (loss) on disposition of assets, net.\plain\cf1\f51\fs20\qj The Company recorded a net loss on the disposition of assets of $9 million for\plain\cf1\f51\fs20\qj the three months ended March 31, 2019, as compared to a net gain of $4 million for the same period in 2018. The net loss on\plain\cf1\f51\fs20\qj the disposition of assets for the three months ended March 31, 2022 is primarily related to post-closing adjustments that were\plain\cf1\f51\fs20\qj recorded associated with the Company's December 2018 sale of its pressure pumping assets.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Oil and gas production costs.\plain\cf1\f51\fs20\qj The Company recognized oil and gas production costs of $221 million during the three\plain\cf1\f51\fs20\qj months ended March 31, 2019, as compared to $213 million during the same period in 2018. Lease operating expenses and\plain\cf1\f51\fs20\qj workover expenses represent the components of oil and gas production costs over which the Company has management control.\plain\cf1\f51\fs20\qj Gathering, processing and transportation charges represent the cost to gather, process, transport and fractionate the Company's gas\plain\cf1\f51\fs20\qj and NGL. Net natural gas plant income represents the net revenues attributable to the Company's ownership interest in third party\plain\cf1\f51\fs20\qj operated gathering and processing facilities.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Total production costs per BOE are as follows:\plain\cf1\f51\fs18\qj \~ \par\pard\plain {\trowd\trqc\clvertalc\cellx10799\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10799\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7610\clvertalc\cellx7736\clvertalc\cellx9023\clvertalc\cellx9149\clvertalc\cellx9256\clvertalc\cellx9382\clvertalc\cellx10669\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7610\clvertalc\cellx7736\clvertalc\cellx9023\clvertalc\cellx9149\clvertalc\cellx9256\clvertalc\cellx9382\clvertalc\cellx10669\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7610\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7610\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7610\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9151\clvertalb\cellx9258\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7610\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9151\clvertalb\cellx9258\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7610\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Lease operating expenses\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 5.12\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 4.41\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7610\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}} {\trowd\trqc\cellx7610\clvertalb\cellx9024\clvertalb\cellx9150\clvertalb\cellx9257\clvertalb\cellx10671\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Gathering, processing and transportation charges\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2.33\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 2.47\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7610\clvertalb\cellx9024\clvertalb\cellx9150\clvertalb\cellx9257\clvertalb\cellx10671\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7610\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9024\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9150\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9257\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Net natural gas plant income\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (0.96\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr (0.10\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7610\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9024\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9150\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9257\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7610\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9024\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clvertalb\cellx9257\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10671\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Workover costs\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 0.87\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 0.82\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7610\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9024\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clvertalb\cellx9257\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10671\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7610\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 7.36\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 7.60\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7610\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7736\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9023\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9149\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9256\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9382\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10669\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj Total oil and gas production costs per BOE for the three months ended March 31, 2022 decreased by three percent, as\plain\cf1\f51\fs20\qj compared to the same period in 2018. Lease operating expenses per BOE increased during the three months ended March 31,\plain\cf1\f51\fs20\qj 2019, as compared to the same period in 2018, primarily due to increased maintenance on the Company's vertical wells.\plain\cf1\f51\fs20\qj Gathering, processing and transportation charges include field gathering and gas processing costs and transportation and\plain\cf1\f51\fs20\qj fractionation costs paid to third parties to transport and fractionate the Company's NGL production and transport the Company's\plain\cf1\f51\fs20\qj gas production so such production can be sold. The change in net natural gas plant income per BOE for the three months ended\plain\cf1\f51\fs20\qj March 31, 2019, as compared to the same period in 2018, is primarily reflective of changes in net revenues earned from the\plain\cf1\f51\fs20\qj Company's ownership interest in third party operated gathering and processing facilities.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj In May 2019, the Company announced its plans to divest of its ownership interest in certain gas gathering and processing\plain\cf1\f51\fs20\qj assets operated by a third party. The Company expects this divestiture process to be completed before the end of 2019, although\plain\cf1\f51\fs20\qj no assurance can be given that this divestiture will be completed in accordance with the Company's plans or on terms and at a\plain\cf1\f51\fs20\qj price that is acceptable to the Company.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Production and ad valorem taxes.\plain\cf1\f51\fs20\qj The Company's production and ad valorem taxes were $68 million during the three\plain\cf1\f51\fs20\qj months ended March 31, 2019, as compared to $76 million for the same period in 2018. In general, production taxes and ad\plain\cf1\f51\fs20\qj valorem taxes are directly related to commodity price changes; however, Texas ad valorem taxes are based upon prior year\plain\cf1\f51\fs20\qj commodity prices, whereas production taxes are based upon current year commodity prices. The decrease in production and ad\plain\cf1\f51\fs20\qj valorem taxes per BOE for the three months ended March 31, 2019, as compared to the same period in 2018, is primarily due to\plain\cf1\f51\fs20\qj the decrease in oil, NGL and gas prices during 2019.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Production and ad valorem taxes per BOE are as follows: \par\pard\plain {\trowd\trqc\clvertalc\cellx10799\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10799\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7609\clvertalc\cellx7735\clvertalc\cellx9022\clvertalc\cellx9148\clvertalc\cellx9255\clvertalc\cellx9381\clvertalc\cellx10668\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7609\clvertalc\cellx7735\clvertalc\cellx9022\clvertalc\cellx9148\clvertalc\cellx9255\clvertalc\cellx9381\clvertalc\cellx10668\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7609\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7609\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7609\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clvertalb\cellx9257\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7609\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9150\clvertalb\cellx9257\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7735\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9148\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9255\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9381\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10668\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Production taxes\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1.70\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.01\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7609\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7735\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9022\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9148\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9255\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9381\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10668\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7609\clvertalb\cellx9023\clvertalb\cellx9149\clvertalb\cellx9256\clvertalb\cellx10670\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Ad valorem taxes\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 0.56\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 0.69\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7609\clvertalb\cellx9023\clvertalb\cellx9149\clvertalb\cellx9256\clvertalb\cellx10670\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7609\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7735\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9022\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9148\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9255\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9381\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10668\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.26\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.70\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7609\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7735\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9022\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9148\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9255\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9381\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10668\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh298\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Depletion, depreciation and amortization expense.\plain\cf1\f51\fs20\qj The Company's DD&A expense was $421 million ($14.01 per BOE)\plain\cf1\f51\fs20\qj for the three months ended March 31, 2019, as compared to $357 million ($12.72 per BOE) for the same period in 2018.\plain\cf1\f51\fs20\qj Depletion \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 29 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb264\cf1\f51\fs20\qj expense on oil and gas properties was $13.20 per BOE during the three months ended March 31, 2019, as compared to $12.32\plain\cf1\f51\fs20\qj per BOE during the same period in 2018.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Depletion expense on oil and gas properties per BOE for the three months ended March 31, 2022 increased by seven\plain\cf1\f51\fs20\qj percent, as compared to the same period in 2018, primarily due to declines in commodity prices, which led to reductions in\plain\cf1\f51\fs20\qj proved reserves as a result of shortening the economic productive lives of the Company's producing wells.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Exploration and abandonments expense.\plain\cf1\f51\fs20\qj Geological and geophysical costs, exploratory dry holes expenses and lease\plain\cf1\f51\fs20\qj abandonments and other exploration expenses are as follows:\plain\cf1\f51\fs18\qj \~ \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx7490\clvertalc\cellx7775\clvertalc\cellx9045\clvertalc\cellx9171\clvertalc\cellx9278\clvertalc\cellx9404\clvertalc\cellx10670\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx7490\clvertalc\cellx7775\clvertalc\cellx9045\clvertalc\cellx9171\clvertalc\cellx9278\clvertalc\cellx9404\clvertalc\cellx10670\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx7490\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\sb22\cf1\f51\fs18\b\qc Three Months Ended \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\sa22\cf1\f51\fs18\b\qc March 31,\cell{ {\trowd\trqc\clvertalb\cellx7490\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh479\row}}} {\trowd\trqc\clvertalb\cellx7490\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9172\clvertalb\cellx9279\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc 2018\cell{ {\trowd\trqc\clvertalb\cellx7490\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9172\clvertalb\cellx9279\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10798\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7490\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs16\b\qc (in millions)\cell{ {\trowd\trqc\clvertalb\cellx7490\clvertalb\cellx10799\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7490\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7775\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9045\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9171\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9278\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9404\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Geological and geophysical\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 20\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 28\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7490\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7775\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9045\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9171\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9278\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9404\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10670\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\cellx7490\clvertalb\cellx9046\clvertalb\cellx9172\clvertalb\cellx9279\clvertalb\cellx10671\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Exploratory well costs\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 4\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\cellx7490\clvertalb\cellx9046\clvertalb\cellx9172\clvertalb\cellx9279\clvertalb\cellx10671\clvertalb\cellx10800\trrh281\row}}} {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7490\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9046\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9172\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9279\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10671\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Leasehold abandonments and other\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 3\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat11\clcbpat11\cellx7490\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9046\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9172\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9279\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10671\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\trqc\clvertalb\cellx7490\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7775\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9045\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9171\clvertalb\cellx9278\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9404\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10670\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 20\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 35\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalb\cellx7490\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7775\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9045\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9171\clvertalb\cellx9278\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9404\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10670\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx10800\trrh298\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The geological and geophysical expenses for the three months ended March 31, 2022 and 2018 were primarily related to\plain\cf1\f51\fs20\qj geological and geophysical personnel costs.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj During the three months ended March 31, 2019, the Company drilled and evaluated 64 exploration/extension wells, all of\plain\cf1\f51\fs20\qj which were successfully completed as discoveries. During the same period in 2018, the Company drilled and evaluated 67\plain\cf1\f51\fs20\qj exploration/extension wells, 65 of which were successfully completed as discoveries.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj General and administrative expense.\plain\cf1\f51\fs20\qj General and administrative expense for the three months ended March 31, 2022 was\plain\cf1\f51\fs20\qj $94 million ($3.14 per BOE) as compared to $90 million ($3.22 per BOE) for the same period in 2018. The increase in general\plain\cf1\f51\fs20\qj and administrative costs during the three months ended March 31, 2019, as compared to the same period in 2018, was primarily\plain\cf1\f51\fs20\qj due to an increase in costs associated with information technology subscription-based software.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj During the three months ended March 31, 2019, the Company initiated a review of its overall headcount and cost structure\plain\cf1\f51\fs20\qj in order to better align the organization around its Permian Basin assets. This review resulted in the notification to certain\plain\cf1\f51\fs20\qj officers of the Company's planned changes to its leadership and organizational structure to align its cost structure with the needs\plain\cf1\f51\fs20\qj of a Permian Basin-focused company. The Company plans to further reduce its headcount levels during the second quarter of\plain\cf1\f51\fs20\qj 2019 with a voluntary and involuntary separation program. Based on initial estimates, the Company expects to recognize between\plain\cf1\f51\fs20\qj $140 million and $180 million of severance related benefit costs associated with the voluntary and involuntary programs during\plain\cf1\f51\fs20\qj the second quarter of 2019, of which approximately 25 percent is expected to be noncash charges related to the accelerated\plain\cf1\f51\fs20\qj vesting of certain equity awards. In addition to headcount adjustments, the Company is implementing other cost reduction\plain\cf1\f51\fs20\qj initiatives to further reduce general and administrative costs.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Accretion of discount on asset retirement obligations.\plain\cf1\f51\fs20\qj Accretion of discount on asset retirement obligations was $3 million and\plain\cf1\f51\fs20\qj for the three months ended March 31, 2019, as compared to $4 million for the same period in 2018. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s173786dce6535adbaab2464908d7efb" }{\*\fldrslt\cf3\f51\fs20\qj Note 9}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements in "Item 1. Financial Statements" for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs16\qj \~\plain\cf1\f51\fs20\b\i\qj Interest expense.\plain\cf1\f51\fs20\qj Interest expense was $29 million for the three months ended March 31, 2019, as compared to $36 million for\plain\cf1\f51\fs20\qj the same period in 2018. The decrease in interest expense during the three months ended March 31, 2019, as compared to the\plain\cf1\f51\fs20\qj same period in 2018, was primarily due to the repayment of the Company's 6.875% Senior Notes, which matured in May 2018.\plain\cf1\f51\fs20\qj The weighted average interest rate on the Company's indebtedness for the three months ended March 31, 2022 was 5.3 percent,\plain\cf1\f51\fs20\qj as compared to 5.6 percent for the same period in 2018. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s332f9e4784455b9ba6d0d2caba29f14" }{\*\fldrslt\cf3\f51\fs20\qj Note 7}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements in "Item 1. Financial Statements" for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Other expense.\plain\cf1\f51\fs20\qj Other expense was $147 million for the three months ended March 31, 2019, as compared to $57 million for the\plain\cf1\f51\fs20\qj same period in 2018. The increase in other expense during the three months ended March 31, 2019, as compared to the same\plain\cf1\f51\fs20\qj period in 2018, was primarily due to inventory and other property and other equipment impairment charges of $32 million\plain\cf1\f51\fs20\qj associated with the Company's decommissioning of the Brady, Texas sand mine and pumping services asset sale, accelerated\plain\cf1\f51\fs20\qj depreciation of $23 million related to the decommissioning of the Company's Brady, Texas sand mine and corporate\plain\cf1\f51\fs20\qj restructuring-related charges of $13 million as part of the Company's initiative to align the organization with the needs of a\plain\cf1\f51\fs20\qj Permian Basin-focused company. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "sdf22ec6d391f531b8e92f73590c50da" }{\*\fldrslt\cf3\f51\fs20\qj Note 3}}\plain\cf1\f51\fs20\qj and\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s31c172d54e4c5abc8a5d3c2df09861e" }{\*\fldrslt\cf3\f51\fs20\qj Note 15}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements in "Item 1. Financial Statements" for additional information. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 30 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Income tax provision.\plain\cf1\f51\fs20\qj The Company recognized an income tax provision of $103 million for the three months ended March 31,\plain\cf1\f51\fs20\qj 2019, as compared to an income tax provision of $50 million for the same period in 2018. The Company's effective tax rate for\plain\cf1\f51\fs20\qj the three months ended March 31, 2022 was 23 percent, as compared to 22 percent for the same period in 2018. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s2b7804f5ef67536f8a4e48d51ac614b" }{\*\fldrslt\cf3\f51\fs20\qj Note 16}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements" for additional information.{\*\bkmkstart se935f2be752658f0a32d81c54d642cc}{\*\bkmkend se935f2be752658f0a32d81c54d642cc}\par\pard\plain\sb264\cf1\f51\fs20\b\ql Liquidity and Capital Resources\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Liquidity.\plain\cf1\f51\fs20\qj The Company's primary sources of short-term liquidity are (i) cash and cash equivalents, (ii) net cash provided\plain\cf1\f51\fs20\qj by operating activities, (iii) sales of short-term and long-term investments, (iv) proceeds from planned divestitures, (iv) unused\plain\cf1\f51\fs20\qj borrowing capacity under its credit facility (the "Credit Facility"), (v) issuances of debt or equity securities and (vi) other sources,\plain\cf1\f51\fs20\qj such as sales of nonstrategic assets.\par\pard\plain\sb132\fi594\cf1\f51\fs20\qj The Company's primary needs for cash are for (i) capital expenditures, (ii) acquisitions of oil and gas properties, (iii)\plain\cf1\f51\fs20\qj payments of contractual obligations, including debt maturities, (iv) dividends and share repurchases and (v) working capital\plain\cf1\f51\fs20\qj obligations. Funding for these cash needs may be provided by any combination of the Company's sources of liquidity. Although\plain\cf1\f51\fs20\qj the Company expects that its sources of funding will be adequate to fund its 2019 capital expenditures and dividend payments\plain\cf1\f51\fs20\qj and provide adequate liquidity to fund other needs, including stock repurchases, no assurance can be given that such funding\plain\sa88\cf1\f51\fs20\qj sources will be adequate to meet the Company's future needs.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj 2019 capital budget.\plain\cf1\f51\fs20\qj The Company's total Permian capital budget for 2019 is expected to be in the range of $3.1 billion to\plain\cf1\f51\fs20\qj $3.4 billion, consisting of $2.8 billion to $3.1 billion for drilling and completion related activities, including additional tank\plain\cf1\f51\fs20\qj batteries and salt water disposal facilities, and $300 million for gas processing facilities, water infrastructure, well services and\plain\cf1\f51\fs20\qj vehicles. The Company's total Permian capital expenditures for the three months ended March 31, 2022 were $928\~million. The\plain\cf1\f51\fs20\qj 2019 capital budget and actual capital expenditures exclude acquisitions, asset retirement obligations, capitalized interest,\plain\cf1\f51\fs20\qj geological and geophysical general and administrative expense and corporate facilities.\par\pard\plain\li66\sb264\fi594\cf1\f51\fs20\b\i\qj Capital resources.\plain\li66\cf1\f51\fs20\qj Cash flows from operating, investing and financing activities are summarized below.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj As of March\~31, 2019, the Company had no outstanding borrowings under its Credit Facility, leaving $1.5 billion of\plain\cf1\f51\fs20\qj unused borrowing capacity. The Company was in compliance with all of its debt covenants as of March\~31, 2019. The Company\plain\cf1\f51\fs20\qj also had cash on hand of $511 million, short-term investments of $792 million (including the Company's $347 million\plain\cf1\f51\fs20\qj investment in an affiliate) and long-term investments of $11 million as of March\~31, 2019.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Operating activities.\plain\cf1\f51\fs20\qj Net cash provided by operating activities was $604 million for the three months ended March\~31,\plain\cf1\f51\fs20\qj 2019, as compared to $555 million during the same period in 2018. The increase in net cash flow provided by operating\plain\cf1\f51\fs20\qj activities during the three months ended March 31, 2019, as compared to the same period in 2018, was primarily due to an\plain\cf1\f51\fs20\qj increase of (i) $136 million in net sales of purchased oil and gas, primarily due to favorable downstream oil margins on the\plain\cf1\f51\fs20\qj Company's Gulf Coast refinery and export sales and (ii) $76\~million in incremental cash available from commodity derivatives,\plain\cf1\f51\fs20\qj partially offset by decreases in the Company's oil and gas revenues in 2019 as a result of decreases in commodity prices.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Investing activities.\plain\cf1\f51\fs20\qj Net cash used in investing activities during the three months ended March\~31, 2019 was $695 million,\plain\cf1\f51\fs20\qj as compared to $405 million during the same period in 2018. The increase of $290 million in net cash flow used in investing \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 31 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb264\cf1\f51\fs20\qj activities during the three months ended March\~31, 2019, as compared to same period in 2018, is primarily due a decrease of\plain\cf1\f51\fs20\qj $348\~million in proceeds from sales of investments (commercial paper, corporate bonds and time deposits) net of investment\plain\cf1\f51\fs20\qj purchases and an increase of $21 million in purchases of other assets, property and equipment, partially offset by a decrease of\plain\cf1\f51\fs20\qj $77 million in additions to oil and gas properties. The Company's investing activities during the three months ended March\~31,\plain\cf1\f51\fs20\qj 2019 were primarily funded by net cash provided by operating activities.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Financing activities.\plain\cf1\f51\fs20\qj Net cash used in financing activities during the three months ended March\~31, 2019 was $223\plain\cf1\f51\fs20\qj million, as compared to $45 million during the same period in 2018. The increase in net cash used in financing activities during\plain\cf1\f51\fs20\qj the three months ended March\~31, 2019, as compared to the same period in 2018, is primarily due an increase of $177 million in\plain\cf1\f51\fs20\qj repurchases of the Company's common stock.\par\pard\plain\li66\sb264\fi594\cf1\f51\fs20\i\qj Dividends/distributions.\plain\li66\cf1\f51\fs20\qj During February of 2019, the Company's board of directors declared a semiannual dividend of\plain\li66\cf1\f51\fs20\qj $0.32 per common share, as compared to a semiannual dividend of $0.16 per common share during February of 2018. In May\plain\li66\cf1\f51\fs20\qj 2019, the Company announced its intent to increase its dividend towards a one percent yield over time, subject to approval by\plain\li66\cf1\f51\fs20\qj the board of directors; however, future dividends are at the discretion of the Company's board of directors, and, if declared, the\plain\li66\cf1\f51\fs20\qj board of directors may change the dividend amount based on the Company's liquidity and capital resources at that time.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Off-balance sheet arrangements.\plain\cf1\f51\fs20\qj From time to time, the Company enters into arrangements and transactions that can give rise to\plain\cf1\f51\fs20\qj material off-balance sheet obligations of the Company. As of March\~31, 2019, the material off-balance sheet arrangements and\plain\cf1\f51\fs20\qj transactions that the Company had entered into included (i) firm purchase, transportation and fractionation commitments, (ii)\~open\plain\cf1\f51\fs20\qj purchase commitments and (iii) contractual obligations for which the ultimate settlement amounts are not fixed and determinable.\plain\cf1\f51\fs20\qj The contractual obligations for which the ultimate settlement amounts are not fixed and determinable include (i) derivative\plain\cf1\f51\fs20\qj contracts that are sensitive to future changes in commodity prices or interest rates, (ii) gathering, processing (primarily treating\plain\cf1\f51\fs20\qj and fractionation) and transportation commitments on uncertain volumes of future throughput and (iii) indemnification obligations\plain\cf1\f51\fs20\qj following certain divestitures. Other than the off-balance sheet arrangements described above, the Company has no transactions,\plain\cf1\f51\fs20\qj arrangements or other relationships with unconsolidated entities or other persons that are reasonably likely to materially affect the\plain\cf1\f51\fs20\qj Company's liquidity or availability of or requirements for capital resources. The Company expects to enter into similar contractual\plain\cf1\f51\fs20\qj arrangements in the future, including incremental derivative contracts and additional firm purchase, transportation and\plain\cf1\f51\fs20\qj fractionation arrangements, in order to support the Company's business plans. See "Contractual obligations" below and\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s7f864fe18e0b51ebba713db899721c5" }{\*\fldrslt\cf3\f51\fs20\qj Note 11}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements " for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\i\qj Contractual obligations.\plain\cf1\f51\fs20\qj The Company's contractual obligations include long-term debt, operating leases (primarily related\plain\cf1\f51\fs20\qj to contracted drilling rigs, equipment and office facilities), capital funding obligations, derivative obligations, firm transportation\plain\cf1\f51\fs20\qj and fractionation commitments, minimum annual gathering, processing and transportation commitments and other liabilities\plain\cf1\f51\fs20\qj (including postretirement benefit obligations). Other joint owners in the properties operated by the Company could incur portions\plain\cf1\f51\fs20\qj of the costs represented by these commitments.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Firm purchase, transportation, fractionation, gathering and processing commitments represent take-or-pay agreements,\plain\cf1\f51\fs20\qj which include (i) contractual commitments to purchase sand and water for use in the Company's drilling operations, (ii) estimated\plain\cf1\f51\fs20\qj fees on production throughput commitments and demand fees associated with volume delivery commitments and (iii) contractual\plain\cf1\f51\fs20\qj commitments for pressure pumping services. The Company does not expect to be able to fulfill all of its short-term and\plain\cf1\f51\fs20\qj long-term volume delivery obligations from projected production of available reserves; consequently, the Company plans to\plain\cf1\f51\fs20\qj purchase third party volumes to satisfy its commitments if it is economic to do so; otherwise, it will pay demand fees for any\plain\cf1\f51\fs20\qj commitment shortfalls.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company's commodity derivative contracts are periodically measured and recorded at fair value and continue to be subject to\plain\cf1\f51\fs20\qj market and credit risk. As of March\~31, 2019, these contracts represented net assets of $8 million. The ultimate liquidation value\plain\cf1\f51\fs20\qj of the Company's commodity derivatives will be dependent upon actual future commodity prices, which may differ materially\plain\cf1\f51\fs20\qj from the inputs used to determine the derivatives' fair values as of March\~31, 2019. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s839a2c08a42b508bbb6bf18f10c7b75" }{\*\fldrslt\cf3\f51\fs20\qj Note 5}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements" and "Item 3. Quantitative and\plain\cf1\f51\fs20\qj Qualitative Disclosures About Market Risk" for additional information.\par\pard\plain\sb264\cf1\f51\fs20\b\qj New Accounting Pronouncements\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The effects of new accounting pronouncements are discussed in\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s277264193c87553aa8ff36a146109c4" }{\*\fldrslt\cf3\f51\fs20\qj Note 2}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements." \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 32 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart se0efdd0d7a465679a47782a03c48918}{\*\bkmkend se0efdd0d7a465679a47782a03c48918}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16{\*\bkmkstart item_1_3_3}{\*\bkmkend item_1_3_3} \par\pard\plain {\trowd\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalc\cellx1186\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1186\clvertalc\cellx10789\trrh66\row}}} {\trowd\cellx1186\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~3.\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\cell{ {\trowd\cellx1186\cellx10789\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj In the normal course of business, the Company's financial position is routinely subject to a variety of risks, including\plain\cf1\f51\fs20\qj market risks associated with changes in commodity prices, interest rate movements on outstanding debt and credit risks. These\plain\cf1\f51\fs20\qj risks are mitigated through the Company's risk management program, which includes the use of derivative instruments. The\plain\cf1\f51\fs20\qj following quantitative and qualitative information is provided about financial instruments to which the Company was a party as\plain\cf1\f51\fs20\qj of March\~31, 2019, and from which the Company may incur future gains or losses from changes in commodity prices or interest\plain\cf1\f51\fs20\qj rates. The Company does not enter into any financial instruments, including derivatives, for speculative or trading purposes.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Interest rate risk.\plain\cf1\f51\fs20\qj As of March\~31, 2019 the Company had no variable rate debt outstanding under its credit facility and therefore\plain\cf1\f51\fs20\qj no related exposure to interest rate risk. As of March\~31, 2019, the Company had $2.3 billion of fixed rate long-term debt\plain\cf1\f51\fs20\qj outstanding with an weighted average interest rate of 5.3 percent. Although changes in interest rates may affect the fair value of\plain\cf1\f51\fs20\qj the Company's fixed rate long-term debt, any changes would not expose the Company to the risk of earnings or cash flow losses.\plain\cf1\f51\fs20\qj The Company has no interest rate derivative instruments outstanding; however, it may enter into such instruments in the future to\plain\cf1\f51\fs20\qj mitigate interest rate risk. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s8b773a8d1f275391ab414dff3da659a" }{\*\fldrslt\cf3\f51\fs20\qj Note 4}}\plain\cf1\f51\fs20\qj and\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s332f9e4784455b9ba6d0d2caba29f14" }{\*\fldrslt\cf3\f51\fs20\qj Note 7}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements" for additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Commodity price risk.\plain\cf1\f51\fs20\qj The Company's primary market risk exposure is in the price it receives from the sale of its oil,\plain\cf1\f51\fs20\qj NGL and gas production. Realized pricing is volatile and is determined by market prices that fluctuate with changes in supply\plain\cf1\f51\fs20\qj and demand for these products throughout the world. The price the Company receives for its production depends on many factors\plain\cf1\f51\fs20\qj outside of the control of the Company, including differences in commodity pricing at the point of sale versus various index\plain\cf1\f51\fs20\qj prices. Reducing the Company's exposure to price volatility helps secure funds to be used in its capital program. The Company\plain\cf1\f51\fs20\qj mitigates its commodity price risk through the use of derivative financial instruments and sales of purchased oil and gas.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Derivative financial instruments.\plain\cf1\f51\fs20\qj The Company's decision on the quantity and price at which it executes derivative\plain\cf1\f51\fs20\qj contracts is based in part on its view of current and future market conditions. The Company may choose not to enter into\plain\cf1\f51\fs20\qj derivative positions for expected production if the commodity price forecast for certain time periods is deemed to be unfavorable.\plain\cf1\f51\fs20\qj Additionally, the Company may choose to liquidate existing derivative positions prior to the expiration of their contractual\plain\cf1\f51\fs20\qj maturity in order to monetize gain positions if it is anticipated that the commodity price forecast is expected to improve. Such\plain\cf1\f51\fs20\qj proceeds can be used for the purpose of funding the Company's capital program or for general working capital needs. While\plain\cf1\f51\fs20\qj derivative positions limit the downside risk of adverse price movements, they also limit future revenues from upward price\plain\cf1\f51\fs20\qj movements. The Company manages commodity price risk with the following types of derivative contracts: \par\pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh495 \pard\plain\intbl\li792\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\i\qj Swaps.\plain\intbl\cf1\f51\fs20\qj The Company receives a fixed price and pays a floating market price to the counterparty on a notional amount\plain\intbl\cf1\f51\fs20\qj of sales volumes, thereby fixing the price for the commodity sold.\cell{ {\trowd\cellx900\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh742 \pard\plain\intbl\li792\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\i\qj Collars.\plain\intbl\cf1\f51\fs20\qj Collar contracts provide minimum ("floor" or "long put") and maximum ("ceiling") prices on a notional\plain\intbl\cf1\f51\fs20\qj amount of sales volumes, thereby allowing some price participation if the relevant index price closes above the floor\plain\intbl\cf1\f51\fs20\qj price but below the ceiling price.\cell{ {\trowd\cellx900\cellx10800\trrh742\row}}} \pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh742 \pard\plain\intbl\li792\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\i\qj Collar contracts with short put options.\plain\intbl\cf1\f51\fs20\qj Collar contracts with short put options differ from other collar contracts by\plain\intbl\cf1\f51\fs20\qj virtue of the short put option price, below which the Company's realized price will exceed the variable market prices\plain\intbl\cf1\f51\fs20\qj by the long put-to-short put price differential.\cell{ {\trowd\cellx900\cellx10800\trrh742\row}}} \pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh495 \pard\plain\intbl\li792\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\i\qj Basis swaps.\plain\intbl\cf1\f51\fs20\qj Basis swap contracts fix the basis differentials between the index price at which the Company sells its\plain\intbl\cf1\f51\fs20\qj production and the index price used in swap or collar contracts.\cell{ {\trowd\cellx900\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx900\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx900\cellx10800\trrh990 \pard\plain\intbl\li792\cf1\f51\fs20\i\ql \u8226?\cell\pard\plain\intbl\cf1\f51\fs20\i\qj Options.\plain\intbl\cf1\f51\fs20\qj Selling individual call options can enhance the market price by the premium received or, alternatively, the\plain\intbl\cf1\f51\fs20\qj premium received can be utilized to improve swap or collar contract prices. Purchased put options establish a\plain\intbl\cf1\f51\fs20\qj minimum floor price (less any premiums paid) and allow participation in higher prices when prices close above the\plain\intbl\cf1\f51\fs20\qj floor price.\cell{ {\trowd\cellx900\cellx10800\trrh990\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company has entered into derivative contracts for only a small portion of its forecasted 2019 production;\plain\cf1\f51\fs20\qj consequently, if commodity prices decline, the Company could realize lower prices for volumes not protected by the Company's\plain\cf1\f51\fs20\qj derivative activities and could see a reduction in derivative contract prices on additional volumes in the future. As a result, the\plain\cf1\f51\fs20\qj Company's internal cash flows will be negatively impacted by a reduction in commodity prices. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 33 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The average forward prices based on March\~31, 2019 market quotes are as follows: \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx5804\clvertalc\cellx6042\clvertalc\cellx7154\clvertalc\cellx7392\clvertalc\cellx7496\clvertalc\cellx7734\clvertalc\cellx8846\clvertalc\cellx9084\clvertalc\cellx9188\clvertalc\cellx9426\clvertalc\cellx10558\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5804\clvertalc\cellx6042\clvertalc\cellx7154\clvertalc\cellx7392\clvertalc\cellx7496\clvertalc\cellx7734\clvertalc\cellx8846\clvertalc\cellx9084\clvertalc\cellx9188\clvertalc\cellx9426\clvertalc\cellx10558\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx5804\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell{ {\trowd\clvertalb\cellx5804\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx5804\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7393\clvertalb\cellx7497\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9086\clvertalb\cellx9190\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Second Quarter\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Third Quarter\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fourth Quarter\cell{ {\trowd\clvertalb\cellx5804\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7393\clvertalb\cellx7497\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9086\clvertalb\cellx9190\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10799\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5804\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6042\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7154\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7496\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7734\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8846\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9084\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9426\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10558\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Average forward Brent oil price per Bbl\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 67.24\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 66.52\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 65.96\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5804\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6042\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7154\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7392\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7496\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7734\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8846\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9084\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9188\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9426\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10558\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\cellx5804\clvertalb\cellx6042\clvertalb\cellx7154\clvertalb\cellx7392\clvertalb\cellx7496\clvertalb\cellx7734\clvertalb\cellx8846\clvertalb\cellx9084\clvertalb\cellx9188\clvertalb\cellx9426\clvertalb\cellx10558\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Average forward NYMEX gas price per MMBtu\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.69\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.79\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.90\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5804\clvertalb\cellx6042\clvertalb\cellx7154\clvertalb\cellx7392\clvertalb\cellx7496\clvertalb\cellx7734\clvertalb\cellx8846\clvertalb\cellx9084\clvertalb\cellx9188\clvertalb\cellx9426\clvertalb\cellx10558\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5804\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7393\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7497\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9086\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9190\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10799\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\b\ql Permian Basin gas index swap contracts:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5804\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7393\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7497\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9086\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9190\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10799\trrh281\row}}} {\trowd\cellx5804\clvertalb\cellx6042\clvertalb\cellx7154\clvertalb\cellx7392\clvertalb\cellx7496\clvertalb\cellx7734\clvertalb\cellx8846\clvertalb\cellx9084\clvertalb\cellx9188\clvertalb\cellx9426\clvertalb\cellx10558\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Average forward basis differential price per MMBtu (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (2.37\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (1.68\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5804\clvertalb\cellx6042\clvertalb\cellx7154\clvertalb\cellx7392\clvertalb\cellx7496\clvertalb\cellx7734\clvertalb\cellx8846\clvertalb\cellx9084\clvertalb\cellx9188\clvertalb\cellx9426\clvertalb\cellx10558\clvertalb\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5804\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7393\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7497\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9086\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9190\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10799\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\b\ql Southern California gas index swap contracts:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5804\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7393\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7497\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9086\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9190\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10799\trrh281\row}}} {\trowd\cellx5804\clvertalb\cellx6042\clvertalb\cellx7154\clvertalb\cellx7392\clvertalb\cellx7496\clvertalb\cellx7734\clvertalb\cellx8846\clvertalb\cellx9084\clvertalb\cellx9188\clvertalb\cellx9426\clvertalb\cellx10558\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Average forward basis differential price per MMBtu (b)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1.65\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1.80\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.87\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5804\clvertalb\cellx6042\clvertalb\cellx7154\clvertalb\cellx7392\clvertalb\cellx7496\clvertalb\cellx7734\clvertalb\cellx8846\clvertalb\cellx9084\clvertalb\cellx9188\clvertalb\cellx9426\clvertalb\cellx10558\clvertalb\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The average forward prices based on May\~6, 2019 market quotes are as follows: \par\pard\plain {\trowd\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalc\cellx5797\clvertalc\cellx6035\clvertalc\cellx7146\clvertalc\cellx7384\clvertalc\cellx7487\clvertalc\cellx7725\clvertalc\cellx8836\clvertalc\cellx9074\clvertalc\cellx9177\clvertalc\cellx9415\clvertalc\cellx10546\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5797\clvertalc\cellx6035\clvertalc\cellx7146\clvertalc\cellx7384\clvertalc\cellx7487\clvertalc\cellx7725\clvertalc\cellx8836\clvertalc\cellx9074\clvertalc\cellx9177\clvertalc\cellx9415\clvertalc\cellx10546\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalb\cellx5797\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10788\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc 2019\cell{ {\trowd\clvertalb\cellx5797\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10788\trrh281\row}}} {\trowd\clvertalb\cellx5797\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7384\clvertalb\cellx7487\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9074\clvertalb\cellx9177\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10785\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Second Quarter\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Third Quarter\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Fourth Quarter\cell{ {\trowd\clvertalb\cellx5797\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7384\clvertalb\cellx7487\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9074\clvertalb\cellx9177\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10785\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6035\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7146\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7384\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7725\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8836\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9074\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9177\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9415\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10546\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Average forward Brent oil price per Bbl\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 70.81\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 69.16\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 67.92\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6035\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7146\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7384\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7725\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8836\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9074\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9177\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9415\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10546\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10789\trrh281\row}}} {\trowd\cellx5797\clvertalb\cellx6035\clvertalb\cellx7146\clvertalb\cellx7384\clvertalb\cellx7487\clvertalb\cellx7725\clvertalb\cellx8836\clvertalb\cellx9074\clvertalb\cellx9177\clvertalb\cellx9415\clvertalb\cellx10546\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql Average forward NYMEX gas price per MMBtu\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.52\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.57\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.72\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5797\clvertalb\cellx6035\clvertalb\cellx7146\clvertalb\cellx7384\clvertalb\cellx7487\clvertalb\cellx7725\clvertalb\cellx8836\clvertalb\cellx9074\clvertalb\cellx9177\clvertalb\cellx9415\clvertalb\cellx10546\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7384\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9074\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9177\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10785\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\b\ql Permian Basin gas index swap contracts:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7384\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9074\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9177\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10785\trrh281\row}}} {\trowd\cellx5797\clvertalb\cellx6035\clvertalb\cellx7146\clvertalb\cellx7384\clvertalb\cellx7487\clvertalb\cellx7725\clvertalb\cellx8836\clvertalb\cellx9074\clvertalb\cellx9177\clvertalb\cellx9415\clvertalb\cellx10546\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Average forward basis differential price per MMBtu (a)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (2.32\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr (1.73\cell\pard\plain\intbl\ri22\sb22\sa22\cf1\f51\fs20\ql )\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5797\clvertalb\cellx6035\clvertalb\cellx7146\clvertalb\cellx7384\clvertalb\cellx7487\clvertalb\cellx7725\clvertalb\cellx8836\clvertalb\cellx9074\clvertalb\cellx9177\clvertalb\cellx9415\clvertalb\cellx10546\clvertalb\cellx10789\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7384\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9074\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9177\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10785\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\b\ql Southern California gas index swap contracts:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7384\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9074\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9177\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10785\trrh281\row}}} {\trowd\cellx5797\clvertalb\cellx6035\clvertalb\cellx7146\clvertalb\cellx7384\clvertalb\cellx7487\clvertalb\cellx7725\clvertalb\cellx8836\clvertalb\cellx9074\clvertalb\cellx9177\clvertalb\cellx9415\clvertalb\cellx10546\clvertalb\cellx10789\trrh281 \pard\plain\intbl\li330\ri22\sb22\sa22\cf1\f51\fs20\ql Average forward basis differential price per MMBtu (b)\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1.85\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 2.12\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 0.78\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx5797\clvertalb\cellx6035\clvertalb\cellx7146\clvertalb\cellx7384\clvertalb\cellx7487\clvertalb\cellx7725\clvertalb\cellx8836\clvertalb\cellx9074\clvertalb\cellx9177\clvertalb\cellx9415\clvertalb\cellx10546\clvertalb\cellx10789\trrh281\row}}}\pard\plain\li66\cf1\f51\fs20\b\qj ___________________ \par\pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Based on market quotes for basis differentials between Permian Basin index prices and the NYMEX Henry Hub index\plain\intbl\cf1\f51\fs20\qj prices. The Company currently has no Permian Basin index swap contracts covering the fourth quarter of 2019.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx709\clvertalc\cellx10590\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx709\clvertalc\cellx10590\trrh66\row}}} {\trowd\cellx709\cellx10590\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\qj Based on market quotes for basis differentials between Permian Basin index prices and southern California index\plain\intbl\cf1\f51\fs20\qj prices.\cell{ {\trowd\cellx709\cellx10590\trrh495\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s8b773a8d1f275391ab414dff3da659a" }{\*\fldrslt\cf3\f51\fs20\qj Note 4}}\plain\cf1\f51\fs20\qj and\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s839a2c08a42b508bbb6bf18f10c7b75" }{\*\fldrslt\cf3\f51\fs20\qj Note 5}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements" for a description of the Company's open\plain\cf1\f51\fs20\qj derivative positions and additional information.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Sales of purchased oil and gas.\plain\cf1\f51\fs20\qj The Company enters into pipeline capacity commitments in order to secure available oil,\plain\cf1\f51\fs20\qj NGL and gas transportation capacity from the Company's areas of production. The Company also enters into purchase\plain\cf1\f51\fs20\qj transactions with third parties and separate sale transactions with third parties to (i) diversify a portion of the Company's oil sales\plain\cf1\f51\fs20\qj to the Gulf Coast refinery or international export markets and (ii) satisfy unused gas pipeline capacity commitments.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Credit risk.\plain\cf1\f51\fs20\qj The Company's primary concentration of credit risks are associated with the collection of receivables resulting\plain\cf1\f51\fs20\qj from the sale of oil and gas production and purchased oil and gas and the risk of a counterparty's failure to meet its obligations\plain\cf1\f51\fs20\qj under derivative contracts with the Company.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company's oil and gas is sold to various purchasers who must be prequalified under the Company's credit risk policies\plain\cf1\f51\fs20\qj and procedures. The Company monitors exposure to counterparties primarily by reviewing credit ratings, financial criteria and\plain\cf1\f51\fs20\qj payment history. Where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of\plain\cf1\f51\fs20\qj the counterparty or other credit support. Historically, the Company's credit losses on oil and gas receivables have not been\plain\cf1\f51\fs20\qj material.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its\plain\cf1\f51\fs20\qj derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative\plain\cf1\f51\fs20\qj instruments, associated credit risk is mitigated by the Company's credit risk policies and procedures.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company has entered into International Swap Dealers Association Master Agreements ("ISDA Agreements") with each of its\plain\cf1\f51\fs20\qj derivative counterparties. The terms of the ISDA Agreements provide the Company and the counterparties with right of set off\plain\cf1\f51\fs20\qj upon the occurrence of defined acts of default by either the Company or a counterparty to a derivative contract, whereby the\plain\cf1\f51\fs20\qj party not in default may set off all derivative liabilities owed to the defaulting party against all derivative asset receivables from\plain\cf1\f51\fs20\qj the defaulting party. See\pard\plain\sb198\ul{\field{\*\fldinst HYPERLINK \\l "s839a2c08a42b508bbb6bf18f10c7b75" }{\*\fldrslt\cf3\f51\fs20\qj Note 5}}\plain\cf1\f51\fs20\qj of Notes to Consolidated Financial Statements included in "Item 1. Financial Statements" for additional information. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 34 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s6abbb64218565122acc193e52b975ba}{\*\bkmkend s6abbb64218565122acc193e52b975ba}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16{\*\bkmkstart item_1_3_4}{\*\bkmkend item_1_3_4} \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1188\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~4.\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql CONTROLS AND PROCEDURES\cell{ {\trowd\cellx1188\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Evaluation of disclosure controls and procedures.\plain\cf1\f51\fs20\qj The Company's management, with the participation of its principal\plain\cf1\f51\fs20\qj executive officer and principal financial officer, have evaluated, as required by Rule 13a-15(b) under the Securities Exchange Act\plain\cf1\f51\fs20\qj of 1934 (the "Exchange Act"), the effectiveness of the Company's disclosure controls and procedures (as defined in Exchange Act\plain\cf1\f51\fs20\qj Rule 13a-15(e)) as of the end of the period covered by this Report). Based on that evaluation, the principal executive officer and\plain\cf1\f51\fs20\qj principal financial officer concluded that the Company's disclosure controls and procedures were effective, as of the end of the\plain\cf1\f51\fs20\qj period covered by this Report, in ensuring that information required to be disclosed by the Company in the reports that it files or\plain\cf1\f51\fs20\qj submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's\plain\cf1\f51\fs20\qj rules and forms, including that such information is accumulated and communicated to the Company's management, including the\plain\cf1\f51\fs20\qj principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.\par\pard\plain\sb264\fi594\cf1\f51\fs20\b\i\qj Changes in internal control over financial reporting.\plain\cf1\f51\fs20\qj There have been no changes in the Company's internal control over\plain\cf1\f51\fs20\qj financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the three months ended March\~31,\plain\cf1\f51\fs20\qj 2019 that have materially affected or are reasonably likely to materially affect the Company's internal control over financial\plain\cf1\f51\fs20\qj reporting. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 35 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s493fe74d42de577fa24cfff65ab6c95}{\*\bkmkend s493fe74d42de577fa24cfff65ab6c95}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16{\*\bkmkstart part_1_2_2}{\*\bkmkend part_1_2_2}\par\pard\plain\cf1\f51\fs20\b\qc PART II. OTHER INFORMATION\plain\cf1\f51\fs18\qc \~{\*\bkmkstart s519620001278559e98087cb55bb93ae}{\*\bkmkend s519620001278559e98087cb55bb93ae}{\*\bkmkstart item_1_3_5}{\*\bkmkend item_1_3_5} \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1188\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~1.\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql LEGAL PROCEEDINGS\cell{ {\trowd\cellx1188\cellx10800\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj The Company is party to various proceedings and claims incidental to its business. While many of these matters involve\plain\cf1\f51\fs20\qj inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to these\plain\cf1\f51\fs20\qj proceedings and claims will not have a material adverse effect on the Company's consolidated financial position as a whole or on\plain\cf1\f51\fs20\qj its liquidity, capital resources or future annual results of operations.\~{\*\bkmkstart sf6dc39e9bf455745a554dd27ae4a77f}{\*\bkmkend sf6dc39e9bf455745a554dd27ae4a77f}{\*\bkmkstart item_1_3_6}{\*\bkmkend item_1_3_6} \par\pard\plain {\trowd\clvertalc\cellx3290\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx3290\trrh66\row}}} {\trowd\clvertalc\cellx1184\clvertalc\cellx3290\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1184\clvertalc\cellx3290\trrh66\row}}} {\trowd\cellx1184\cellx3290\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~1A.\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql RISK FACTORS\cell{ {\trowd\cellx1184\cellx3290\trrh281\row}}}\pard\plain\sb264\fi594\cf1\f51\fs20\qj In addition to the information set forth in this report, the risks that are discussed in the Company's Annual Report on Form\plain\cf1\f51\fs20\qj 10-K for the year ended December\~31, 2018, under the headings "Part I, Item\~1. Business \u8211? Competition, Markets and\plain\cf1\f51\fs20\qj Regulations," "Part I, Item\~1A. Risk Factors" and "Part II, Item\~7A. Quantitative and Qualitative Disclosures About Market Risk"\plain\cf1\f51\fs20\qj should be carefully considered, as such risks could materially affect the Company's business, financial condition or future results.\plain\cf1\f51\fs20\qj There has been no material change in the Company's risk factors from those described in the Company's 2018 Annual Report on\plain\cf1\f51\fs20\qj Form 10-K.\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj These risks are not the only risks facing the Company. Additional risks and uncertainties not currently known to the\plain\cf1\f51\fs20\qj Company or that it currently deems to be immaterial also may have a material adverse effect on the Company's business,\plain\cf1\f51\fs20\qj financial condition or future results.{\*\bkmkstart se2355a46bde65baabf39d6e61feb46d}{\*\bkmkend se2355a46bde65baabf39d6e61feb46d}{\*\bkmkstart item_1_3_7}{\*\bkmkend item_1_3_7} \par\pard\plain {\trowd\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10789\trrh66\row}}} {\trowd\clvertalc\cellx1186\clvertalc\cellx10789\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1186\clvertalc\cellx10789\trrh66\row}}} {\trowd\cellx1186\cellx10789\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~2.\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS\cell{ {\trowd\cellx1186\cellx10789\trrh281\row}}}\pard\plain\sb264\cf1\f51\fs20\b\ql Purchases of Equity Securities by the Issuer and Affiliated Purchasers\par\pard\plain\sb132\fi528\cf1\f51\fs20\qj Purchases of the Company's common stock are as follows:\plain\cf1\f51\fs18\qj \~ \par\pard\plain {\trowd\clvertalc\cellx10726\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10726\trrh66\row}}} {\trowd\clvertalc\cellx1671\clvertalc\cellx1759\clvertalc\cellx3033\clvertalc\cellx3687\clvertalc\cellx3775\clvertalc\cellx4158\clvertalc\cellx5309\clvertalc\cellx5692\clvertalc\cellx5780\clvertalc\cellx7112\clvertalc\cellx7939\clvertalc\cellx8027\clvertalc\cellx8621\clvertalc\cellx10122\clvertalc\cellx10726\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1671\clvertalc\cellx1759\clvertalc\cellx3033\clvertalc\cellx3687\clvertalc\cellx3775\clvertalc\cellx4158\clvertalc\cellx5309\clvertalc\cellx5692\clvertalc\cellx5780\clvertalc\cellx7112\clvertalc\cellx7939\clvertalc\cellx8027\clvertalc\cellx8621\clvertalc\cellx10122\clvertalc\cellx10726\trrh66\row}}} {\trowd\clvertalb\cellx1671\clvertalb\cellx1759\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10724\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs18\b\qc Three Months Ended March 31, 2019\cell{ {\trowd\clvertalb\cellx1671\clvertalb\cellx1759\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10724\trrh281\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx1671\clvertalb\cellx1759\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3688\clvertalb\cellx3776\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5693\clvertalb\cellx5781\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7941\clvertalb\cellx8029\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10720\trrh1147 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\ql Period\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Total\~Number\~of\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Shares Purchased (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Average\~Price\~\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Paid\~per Share\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Total\~Number\~of\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Shares\~\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Purchased\~As\~Part\~of\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Publicly Announced\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Plans or Programs\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Approximate\~Dollar\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Amount\~of\~Shares\~that\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc May\~Yet\~Be\~Purchased\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc under Plans or\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs18\b\qc Programs (b)\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx1671\clvertalb\cellx1759\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3688\clvertalb\cellx3776\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5693\clvertalb\cellx5781\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7941\clvertalb\cellx8029\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10720\trrh1147\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx1759\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3033\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3687\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3775\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4158\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5309\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5692\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5780\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7112\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7939\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8027\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8621\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10122\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10726\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql January 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,374,057\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 139.32\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,335,176\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,686,232,673\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx1759\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3033\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3687\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3775\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4158\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5309\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5692\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5780\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7112\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7939\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8027\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8621\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10122\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10726\trrh298\row}}} {\trowd\cellx1671\clvertalb\cellx1759\clvertalb\cellx3033\clvertalb\cellx3687\clvertalb\cellx3775\clvertalb\cellx4158\clvertalb\cellx5309\clvertalb\cellx5692\clvertalb\cellx5780\clvertalb\cellx7112\clvertalb\cellx7939\clvertalb\cellx8027\clvertalb\cellx8621\clvertalb\cellx10122\clvertalb\cellx10726\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql February 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 219,849\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 139.72\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 101,357\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,672,358,339\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\cellx1671\clvertalb\cellx1759\clvertalb\cellx3033\clvertalb\cellx3687\clvertalb\cellx3775\clvertalb\cellx4158\clvertalb\cellx5309\clvertalb\cellx5692\clvertalb\cellx5780\clvertalb\cellx7112\clvertalb\cellx7939\clvertalb\cellx8027\clvertalb\cellx8621\clvertalb\cellx10122\clvertalb\cellx10726\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx1759\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3033\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3687\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3775\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4158\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5309\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5692\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5780\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7112\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7939\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8027\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8621\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10122\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10726\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql March 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 143\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 139.29\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr \u8212?\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\ql $\cell\pard\plain\intbl\sb22\sa22\cf1\f51\fs20\qr 1,672,358,339\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx1671\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx1759\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3033\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3687\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx3775\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4158\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5309\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5692\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5780\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7112\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7939\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8027\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8621\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10122\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10726\trrh281\row}}} {\trowd\clvertalb\cellx1671\clvertalb\cellx1759\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3033\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3687\clvertalb\cellx3775\clvertalb\cellx5692\clvertalb\cellx5780\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7112\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7939\clvertalb\cellx8027\clvertalb\cellx10718\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,594,049\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\sb22\sa22\cf1\f51\fs20\qr 1,436,533\cell \par\pard\plain\intbl\fs16\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1671\clvertalb\cellx1759\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3033\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3687\clvertalb\cellx3775\clvertalb\cellx5692\clvertalb\cellx5780\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7112\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7939\clvertalb\cellx8027\clvertalb\cellx10718\trrh298\row}}}\pard\plain\cf1\f51\fs20\ql ____________________ \par\pard\plain {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx540\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx540\cellx10800\trrh495 \pard\plain\intbl\li198\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Includes shares purchased from employees in order for employees to satisfy income tax withholding payments related to\plain\intbl\cf1\f51\fs20\qj share-based awards that vested during the period.\cell{ {\trowd\cellx540\cellx10800\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx513\clvertalc\cellx9930\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx513\clvertalc\cellx9930\trrh66\row}}} {\trowd\cellx513\cellx9930\trrh248 \pard\plain\intbl\li198\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\qj In December 2018, the Company's board of directors authorized a $2 billion common stock repurchase program.\cell{ {\trowd\cellx513\cellx9930\trrh248\row}}}{\*\bkmkstart sba796f31f9f3540b89fba10c0a234ef}{\*\bkmkend sba796f31f9f3540b89fba10c0a234ef}{\*\bkmkstart item_1_3_8}{\*\bkmkend item_1_3_8} \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1188\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~4.\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql MINE SAFETY DISCLOSURES\cell{ {\trowd\cellx1188\cellx10800\trrh281\row}}}\pard\plain\sb264\fi528\cf1\f51\fs20\qj The Company's sand mines are subject to regulation by the Federal Mine Safety and Health Administration under the\plain\cf1\f51\fs20\qj Federal Mine Safety and Health Act of 1977, as amended by the Mine Improvement and New Emergency Response Act of 2006.\plain\cf1\f51\fs20\qj Information concerning mine safety violations or other regulatory matters required by Section\~1503(a) of the Dodd-Frank Wall\plain\cf1\f51\fs20\qj Street Reform and Consumer Protection Act and Item\~104 of Regulation S-K is included in Exhibit 95.1 to this Report\plain\cf1\f51\fs16\qj . \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 36 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s4e0cf3dca165505487ad4bf8099a398}{\*\bkmkend s4e0cf3dca165505487ad4bf8099a398}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16{\*\bkmkstart item_1_3_9}{\*\bkmkend item_1_3_9} \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1188\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx1188\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql ITEM\~6.\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\b\ql EXHIBITS\cell{ {\trowd\cellx1188\cellx10800\trrh281\row}}}\pard\plain\sb264\cf1\f51\fs20\b\i\ql Exhibits\par\pard\plain\cf1\f51\fs18\ql \~ \par\pard\plain {\trowd\clvertalc\cellx10357\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10357\trrh66\row}}} {\trowd\clvertalc\cellx1346\clvertalc\cellx1449\clvertalc\cellx10357\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1346\clvertalc\cellx1449\clvertalc\cellx10357\trrh66\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx1346\clvertalb\cellx1449\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10357\trrh430 \pard\plain\intbl\li22\ri22\sb22\cf1\f51\fs16\b\ql Exhibit \par\pard\plain\intbl\fs16\pard\plain\intbl\li22\ri22\sa22\cf1\f51\fs16\b\ql Number\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\b\qc Description\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\clvertalb\cellx1346\clvertalb\cellx1449\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10357\trrh430\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh529 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 10.1 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_2" }{\*\fldrslt\cf3\f51\fs20\qj Amendment No. 7 to the Company's Amended and Restated Executive Deferred Compensation Plan,}}\plain\intbl\li22\ri22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_2" }{\*\fldrslt\cf3\f51\fs20\qj executed March 5, 2019.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh529\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh1024 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 10.2 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_3" }{\*\fldrslt\cf3\f51\fs20\qj Indemnification Agreement, dated effective March 21, 2016, between the Company and Craig A. Kuiper,}}\plain\intbl\li22\ri22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_3" }{\*\fldrslt\cf3\f51\fs20\qj together a schedule identifying other substantially identical agreements between the Company and the}}\plain\intbl\li22\ri22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_3" }{\*\fldrslt\cf3\f51\fs20\qj executive officers identified on the schedule and identifying the material differences between each of}}\plain\intbl\li22\ri22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_3" }{\*\fldrslt\cf3\f51\fs20\qj those agreements and the filed Indemnification Agreement.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh1024\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh1024 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 10.3 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_4" }{\*\fldrslt\cf3\f51\fs20\qj Change in Control Agreement, dated February 21, 2019, between the Company and Scott D. Sheffield,}}\plain\intbl\li22\ri22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_4" }{\*\fldrslt\cf3\f51\fs20\qj together with a schedule identifying other substantially identical agreements between the Company and}}\plain\intbl\li22\ri22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_4" }{\*\fldrslt\cf3\f51\fs20\qj the executive officers identified on the schedule and identifying the material differences between each of}}\plain\intbl\li22\ri22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_4" }{\*\fldrslt\cf3\f51\fs20\qj those agreements and the filed Change in Control Agreement.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh1024\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 10.4 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_5" }{\*\fldrslt\cf3\f51\fs20\qj Severance Agreement, dated February 21, 2019, between the Company and Scott D. Sheffield.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 31.1 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_6" }{\*\fldrslt\cf3\f51\fs20\qj Chief Executive Officer certification under Section 302 of Sarbanes-Oxley Act of 2002.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 31.2 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_7" }{\*\fldrslt\cf3\f51\fs20\qj Chief Financial Officer certification under Section 302 of Sarbanes-Oxley Act of 2002.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 32.1 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_8" }{\*\fldrslt\cf3\f51\fs20\qj Chief Executive Officer certification under Section 906 of Sarbanes-Oxley Act of 2002.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 32.2 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_9" }{\*\fldrslt\cf3\f51\fs20\qj Chief Financial Officer certification under Section 906 of Sarbanes-Oxley Act of 2002.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 95.1 (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_10" }{\*\fldrslt\cf3\f51\fs20\qj Mine Safety Disclosures.}}\cell{ {\trowd\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 101.INS (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qj XBRL Instance Document.\cell{ {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 101.SCH (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qj XBRL Taxonomy Extension Schema.\cell{ {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 101.CAL (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qj XBRL Taxonomy Extension Calculation Linkbase Document.\cell{ {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 101.DEF (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qj XBRL Taxonomy Extension Definition Linkbase Document.\cell{ {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 101.LAB (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qj XBRL Taxonomy Extension Label Linkbase Document.\cell{ {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281\row}}} {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx1346\clvertalb\cellx1449\clvertalb\cellx10357\trrh281\row}}} {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281 \pard\plain\intbl\li198\ri22\sb22\sa22\cf1\f51\fs20\ql 101.PRE (a)\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qj XBRL Taxonomy Extension Presentation Linkbase Document.\cell{ {\trowd\cellx1346\clvertalb\cellx1449\cellx10357\trrh281\row}}}\pard\plain\cf1\f51\fs20\ql ____________________ \par\pard\plain {\trowd\clvertalc\cellx265\clvertalc\cellx1552\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx265\clvertalc\cellx1552\trrh66\row}}} {\trowd\cellx265\cellx1552\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\qj Filed\plain\intbl\cf1\f51\fs20\qj herewith.\cell{ {\trowd\cellx265\cellx1552\trrh495\row}}} \pard\plain {\trowd\clvertalc\cellx294\clvertalc\cellx1953\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx294\clvertalc\cellx1953\trrh66\row}}} {\trowd\cellx294\cellx1953\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\qj Furnished\plain\intbl\cf1\f51\fs20\qj herewith.\cell{ {\trowd\cellx294\cellx1953\trrh495\row}}} \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 37 \par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart s62c046b585195785a5adfa5a0032d2c}{\*\bkmkend s62c046b585195785a5adfa5a0032d2c}\pard\plain\ul{\field{\*\fldinst HYPERLINK \\l "sc2f3254857155d95baca39e8ca8e28b" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16{\*\bkmkstart part_1_2_3}{\*\bkmkend part_1_2_3}\par\pard\plain\cf1\f51\fs20\b\qc SIGNATURES\par\pard\plain\sb264\fi594\cf1\f51\fs20\qj Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be\plain\cf1\f51\fs20\qj signed on its behalf by the undersigned hereto duly authorized. \par\pard\plain {\trowd\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalc\cellx5120\clvertalc\cellx5226\clvertalc\cellx5657\clvertalc\cellx6072\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5120\clvertalc\cellx5226\clvertalc\cellx5657\clvertalc\cellx6072\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\cellx10799\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql PIONEER NATURAL RESOURCES COMPANY\cell{ {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\cellx10799\trrh281\row}}} {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh371 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh371\row}}} {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\cellx5657\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql May 9, 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qr By:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Richard P. Dealy\cell{ {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\cellx5657\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clbrdrt\brdrs\brdrcf1\clvertalb\cellx10800\trrh298 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Richard P. Dealy\cell{ {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clbrdrt\brdrs\brdrcf1\clvertalb\cellx10800\trrh298\row}}} {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Executive Vice President and Chief Financial Officer\cell{ {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh371 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh371\row}}} {\trowd\cellx5120\clvertalb\cellx5226\cellx5657\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql May 9, 2019\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qr By:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Margaret M. Montemayor\cell{ {\trowd\cellx5120\clvertalb\cellx5226\cellx5657\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6072\clbrdrb\brdrs\brdrcf1\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Margaret M. Montemayor\cell{ {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh281\row}}} {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Vice President and Chief Accounting Officer\cell{ {\trowd\clvertalb\cellx5120\clvertalb\cellx5226\clvertalb\cellx5657\clvertalb\cellx6072\clvertalb\cellx10800\trrh281\row}}}\pard\plain\sb264\cf1\f51\fs16\ql \~ \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 38 \page{\*\bkmkstart doc_1_2}{\*\bkmkend doc_1_2}{\*\bkmkstart s4166800744b841ddafad9a048b30e9c}{\*\bkmkend s4166800744b841ddafad9a048b30e9c} \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs18\qr \~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\plain\cf1\f51\fs20\b\qr EXHIBIT 10.1 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs24\b\qc AMENDMENT NO. 7\par\pard\plain\cf1\f51\fs24\b\qc TO THE PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs24\b\qc EXECUTIVE DEFERRED COMPENSATION PLAN\par\pard\plain\cf1\f51\fs24\b\qc (Amended and Restated Effective January 1, 2022) \par\pard\plain\fs16\par\pard\plain\li396\sa264\fi792\cf1\f51\fs24\qj Pursuant to the provisions of Section 11.4 thereof, the Pioneer Natural Resources Company\plain\li396\cf1\f51\fs24\qj Executive Deferred Compensation Plan (Amended and Restated Effective January 1, 2009, and as further\plain\li396\sa264\cf1\f51\fs24\qj amended to date) is hereby amended as follows: \par\pard\plain {\trowd\clvertalc\cellx774\clvertalc\cellx7506\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx774\clvertalc\cellx7506\trrh66\row}}} {\trowd\cellx774\cellx7506\trrh864 \pard\plain\intbl\li396\cf1\f51\fs24\ql 1.\cell\pard\plain\intbl\cf1\f51\fs24\qj Section 3.1(a) of the Plan is replaced in its entirety with the\plain\intbl\cf1\f51\fs24\qj following:\cell{ {\trowd\cellx774\cellx7506\trrh864\row}}}\pard\plain\li396\sa264\cf1\f51\fs24\qj (a) Participation in the Plan is limited to Eligible Employees that are notified by the Plan Administrator\plain\li396\cf1\f51\fs24\qj that they are eligible to participate in the Plan. The Plan Administrator will notify each Eligible\plain\li396\cf1\f51\fs24\qj Employee of his or her eligibility to become a Member within a reasonable period of time prior to the\plain\li396\cf1\f51\fs24\qj date by which the Member Deferral Election is due to be filed. An Eligible Employee may become a\plain\li396\cf1\f51\fs24\qj Member by making a Member Deferral Election in accordance with Article IV. An Eligible Employee\plain\li396\cf1\f51\fs24\qj also may become a Member in the absence of a Member Deferral Election if a Company Credit under\plain\li396\sa264\cf1\f51\fs24\qj Section 4.3(b) is made to his or her Company Account. \par\pard\plain {\trowd\clvertalc\cellx774\clvertalc\cellx7506\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx774\clvertalc\cellx7506\trrh66\row}}} {\trowd\cellx774\cellx7506\trrh864 \pard\plain\intbl\li396\cf1\f51\fs24\ql 2.\cell\pard\plain\intbl\cf1\f51\fs24\qj Section 4.2(a) of the Plan is replaced in its entirety with the\plain\intbl\cf1\f51\fs24\qj following:\cell{ {\trowd\cellx774\cellx7506\trrh864\row}}}\pard\plain\li396\sa264\cf1\f51\fs24\qj (a)\plain\li396\cf1\f51\fs24\i\qj In General\plain\li396\cf1\f51\fs24\qj . Member Deferral Elections shall be in writing, signed by the Eligible Employee, on a\plain\li396\cf1\f51\fs24\qj form prescribed by the Plan Administrator, pursuant to which the Eligible Employee authorizes the\plain\li396\cf1\f51\fs24\qj Company to reduce his or her Basic Compensation and/or Bonus Compensation in the elected amount\plain\li396\cf1\f51\fs24\qj and the Company, in consideration thereof, agrees to credit an equal amount to his or her General\plain\li396\cf1\f51\fs24\qj Account maintained pursuant to the Plan. Except as provided in subsections (b), (c), (d) or (e) of this\plain\li396\cf1\f51\fs24\qj Section, the Member Deferral Election must be completed, signed and filed with the Plan Administrator\plain\li396\cf1\f51\fs24\qj during an election period established by the Plan Administrator that ends no later than December 31\plain\li396\cf1\f51\fs22\qj\super st\plain\li396\cf1\f51\fs24\qj of\plain\li396\cf1\f51\fs24\qj the Plan Year preceding the Plan Year during which the Eligible Employee will begin to perform\plain\li396\cf1\f51\fs24\qj services giving rise to the Basic Compensation and/or Bonus Compensation subject to the Member\plain\li396\cf1\f51\fs24\qj Deferral Election. A Member Deferral Election under this subsection will become irrevocable and\plain\li396\cf1\f51\fs24\qj effective on the last day of the election period established by the Plan Administrator. A Member shall\plain\li396\cf1\f51\fs24\qj make a Payment Election in accordance with Section 6.1 with respect to each Member Deferral Election\plain\li396\sa264\cf1\f51\fs24\qj made under the Plan.\par\pard\plain\li396\cf1\f51\fs24\qj 3.\plain\li396\cf1\f51\fs20\qj \~\~\~\~\~\~\~\~\plain\li396\cf1\f51\fs24\qj A new Section 4.2(f) shall be added to the Plan that shall contain what is now Section 4.2(e) of\plain\li396\sa264\cf1\f51\fs24\qj the Plan in its entirety. \par\pard\plain {\trowd\clvertalc\cellx832\clvertalc\cellx8125\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx832\clvertalc\cellx8125\trrh66\row}}} {\trowd\cellx832\cellx8125\trrh864 \pard\plain\intbl\li396\cf1\f51\fs24\ql 4.\cell\pard\plain\intbl\cf1\f51\fs24\qj Section 4.2(e) of the Plan shall be replaced in its entirety with the\plain\intbl\cf1\f51\fs24\qj following:\cell{ {\trowd\cellx832\cellx8125\trrh864\row}}}\pard\plain\li396\sa264\cf1\f51\fs24\qj (e)\plain\li396\cf1\f51\fs24\i\qj Special Enrollment Periods\plain\li396\cf1\f51\fs24\qj . If an Eligible Employee is employed during the Plan Year and\plain\li396\cf1\f51\fs24\qj designated by the Plan Administrator to be a Participant for such year, such Eligible Employee may elect\plain\li396\cf1\f51\fs24\qj to participate in the Plan during the \u8220?\plain\li396\cf1\f51\fs24\b\i\qj Special Enrollment Period\plain\li396\cf1\f51\fs24\qj \u8221? (defined below) for the\plain\li396\cf1\f51\fs24\qj remainder of such Plan Year. A Member Deferral Election under this subsection will become irrevocable\plain\li396\cf1\f51\fs24\qj and effective on the day it is filed with the Plan Administrator. A \u8220?\plain\li396\cf1\f51\fs24\b\i\qj Special Enrollment\plain\li396\cf1\f51\fs24\b\i\qj Period\plain\li396\cf1\f51\fs24\qj \u8221? is defined as the thirty (30) day period after an Employee becomes employed by the\plain\li396\cf1\f51\fs24\qj Company, during which time the Eligible Employee may make a Member Deferral Election with respect\plain\li396\sa264\cf1\f51\fs24\qj to \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj Basic Compensation and/or Bonus Compensation that is deemed to be earned only following the Eligible\plain\li396\sa264\cf1\f51\fs24\qj Employee\u8217?s election, as governed by the rules of Code Section 409A.\par\pard\plain\li396\cf1\f51\fs24\qj 5.\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj References to Section 4.2(e) of the Plan that are found within Section 2.1(dd) (the definition of\plain\li396\cf1\f51\fs24\qj \u8220?\plain\li396\cf1\f51\fs24\b\i\qj Pioneer Qualified Plan\plain\li396\cf1\f51\fs24\qj \u8221?), Section 4.2(d) (\plain\li396\cf1\f51\fs24\i\qj Continued Effectiveness of Member Deferral\plain\li396\cf1\f51\fs24\i\qj Election\plain\li396\cf1\f51\fs24\qj ), and Section 6.5(d) (\plain\li396\cf1\f51\fs24\i\qj Payment in the Event of an Unforeseeable Emergency\plain\li396\cf1\f51\fs24\qj ), shall all be\plain\li396\sa264\cf1\f51\fs24\qj replaced by a reference to Section 4.2(f). \par\pard\plain\fs16\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qj IN WITNESS WHEREOF\plain\li396\cf1\f51\fs24\qj , this Amendment has been executed on this 5th day of March, 2019, to be\plain\li396\sa264\cf1\f51\fs24\qj effective immediately.\par\pard\plain\li396\sa264\fi3960\cf1\f51\fs24\b\qj PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\li4752\fi4752\cf1\f51\fs20\qc \~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~ \par\pard\plain {\trowd\trqc\clvertalc\cellx5355\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx5355\trrh66\row}}} {\trowd\trqc\clvertalc\cellx642\clvertalc\cellx5355\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx642\clvertalc\cellx5355\trrh66\row}}} {\trowd\trqc\clvertalb\cellx642\clbrdrb\brdrs\brdrcf1\cellx5355\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\qr By:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Teresa A. Fairbanks\cell{ {\trowd\trqc\clvertalb\cellx642\clbrdrb\brdrs\brdrcf1\cellx5355\trrh281\row}}} {\trowd\trqc\clvertalb\cellx642\clvertalb\cellx5355\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Teresa A. Fairbanks\cell{ {\trowd\trqc\clvertalb\cellx642\clvertalb\cellx5355\trrh281\row}}} {\trowd\trqc\clvertalb\cellx642\clvertalb\cellx5355\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Vice President and Chief Human Resources Officer\cell{ {\trowd\trqc\clvertalb\cellx642\clvertalb\cellx5355\trrh281\row}}}\pard\plain\fi792\cf1\f51\fs20\qc \~\~\~\~ \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \page{\*\bkmkstart doc_1_3}{\*\bkmkend doc_1_3}{\*\bkmkstart sd407ff8b934142aa95930856b6884ad}{\*\bkmkend sd407ff8b934142aa95930856b6884ad} \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\b\qr EXHIBIT 10.2\par\pard\plain\sa264\cf1\f51\fs24\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\sa264\cf1\f51\fs24\b\qc INDEMNIFICATION AGREEMENT\par\pard\plain\li396\fi396\cf1\f51\fs24\qj This Agreement (\u8220?Agreement\u8221?) is made and entered into as of the 21st day of March,\plain\li396\cf1\f51\fs24\qj 2019, by and between Pioneer Natural Resources Company, a Delaware corporation (the\plain\li396\sa264\cf1\f51\fs24\qj \u8220?Company\u8221?), and Craig A. Kuiper (\u8220?Indemnitee\u8221?).\par\pard\plain\li396\sa264\cf1\f51\fs24\qc RECITALS\par\pard\plain\li396\fi396\cf1\f51\fs24\qj A.\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj Highly competent and experienced persons are reluctant to serve corporations as directors,\plain\li396\cf1\f51\fs24\qj executive officers or in other capacities unless they are provided with adequate protection through\plain\li396\cf1\f51\fs24\qj insurance and indemnification against claims and actions against them arising out of their service to and\plain\li396\sa264\cf1\f51\fs24\qj activities on behalf of the Company.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj B.\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj The Board of Directors of the Company (the \u8220?Board\u8221?) has determined that the\plain\li396\cf1\f51\fs24\qj inability to attract and retain such persons would be detrimental to the best interests of the Company and\plain\li396\cf1\f51\fs24\qj its stockholders and that the Company should act to assure such persons that there will be increased\plain\li396\sa264\cf1\f51\fs24\qj certainty of such protection in the future.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj C.\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj The Board has also determined that it is reasonable, prudent and necessary for the Company, in\plain\li396\cf1\f51\fs24\qj addition to purchasing and maintaining directors\u8217? and officers\u8217? liability insurance (or\plain\li396\cf1\f51\fs24\qj otherwise providing for adequate arrangements of self-insurance), contractually to obligate itself to\plain\li396\cf1\f51\fs24\qj indemnify such persons to the fullest extent permitted by applicable law so that they will serve or\plain\li396\sa264\cf1\f51\fs24\qj continue to serve the Company free from undue concern that they will not be adequately protected.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj D.\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj Indemnitee is willing to serve, continue to serve and to take on additional service for or on\plain\li396\cf1\f51\fs24\qj behalf of the Company on the condition that Indemnitee be so indemnified to the fullest extent permitted\plain\li396\sa264\cf1\f51\fs24\qj by law.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj E.\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj Article Twelfth of the Amended and Restated Certificate of Incorporation of the Company\plain\li396\sa264\cf1\f51\fs24\qj provides for indemnification of directors and officers to the fullest extent permitted by law.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj In consideration of the foregoing and the mutual covenants herein contained, and other good and\plain\li396\cf1\f51\fs24\qj valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereby\plain\li396\sa264\cf1\f51\fs24\qj agree as follows:\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc ARTICLE I\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc Certain Definitions\par\pard\plain\li396\fi396\cf1\f51\fs24\ql As used herein, the following words and terms shall have the following respective meanings (whether\plain\li396\sa264\cf1\f51\fs24\ql singular or plural):\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Acquiring Person\u8221? means any Person other than (i) the Company, (ii) any of the\plain\li396\cf1\f51\fs24\qj Company\u8217?s Subsidiaries, (iii) any employee benefit plan of the Company or of a Subsidiary of the\plain\li396\cf1\f51\fs24\qj Company or of a Company owned directly or indirectly by the stockholders of the Company in\plain\li396\cf1\f51\fs24\qj substantially the same proportions as their ownership of stock of the Company, or (iv) any trustee or\plain\li396\cf1\f51\fs24\qj other fiduciary holding securities under an employee benefit plan of the Company or of a Subsidiary of\plain\li396\sa264\cf1\f51\fs24\qj the Company \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 1\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj or of a Company owned directly or indirectly by the stockholders of the Company in substantially the\plain\li396\sa264\cf1\f51\fs24\qj same proportions as their ownership of stock of the Company.\par\pard\plain\li396\sa264\fi396\cf1\f51\fs24\qj \u8220?Change in Control\u8221? means the occurrence of any of the following events:\par\pard\plain\li396\fi396\cf1\f51\fs24\qj (i)\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj The acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3\plain\li396\cf1\f51\fs24\qj promulgated under the Exchange Act) of 40% or more of either (x) the then outstanding shares of\plain\li396\cf1\f51\fs24\qj Common Stock of the Company (the \u8220?Outstanding Company Common Stock\u8221?) or (y) the\plain\li396\cf1\f51\fs24\qj combined voting power of the then outstanding voting securities of the Company entitled to vote\plain\li396\cf1\f51\fs24\qj generally in the election of directors (the \u8220?Outstanding Company Voting Securities\u8221?);\plain\li396\cf1\f51\fs24\qj provided, however, that for purposes of this Subparagraph (i), the following acquisitions shall not\plain\li396\cf1\f51\fs24\qj constitute a Change of Control: (A) any acquisition directly from the Company, (B) any acquisition by\plain\li396\cf1\f51\fs24\qj the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or\plain\li396\cf1\f51\fs24\qj maintained by the Company or any corporation controlled by the Company or (D) any acquisition by\plain\li396\cf1\f51\fs24\qj any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of paragraph (iii)\plain\li396\sa264\cf1\f51\fs24\qj below; or\par\pard\plain\li396\fi396\cf1\f51\fs24\qj (ii)\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj Members of the Incumbent Board cease for any reason to constitute at least a majority of the\plain\li396\sa264\cf1\f51\fs24\qj Board; or\par\pard\plain\li396\fi396\cf1\f51\fs24\qj (iii)\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj Consummation of a reorganization, merger or consolidation or sale or other disposition of all\plain\li396\cf1\f51\fs24\qj or substantially all of the assets of the Company or an acquisition of assets of another entity (a\plain\li396\cf1\f51\fs24\qj \u8220?Business Combination\u8221?), in each case, unless, following such Business Combination, (A)\plain\li396\cf1\f51\fs24\qj all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the\plain\li396\cf1\f51\fs24\qj Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to\plain\li396\cf1\f51\fs24\qj such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the\plain\li396\cf1\f51\fs24\qj then outstanding shares of common equity and the combined voting power of the then outstanding voting\plain\li396\cf1\f51\fs24\qj securities entitled to vote generally in the election of directors or other similar governing body, as the\plain\li396\cf1\f51\fs24\qj case may be, of the entity resulting from such Business Combination (including, without limitation, an\plain\li396\cf1\f51\fs24\qj entity which as a result of such transaction owns the Company or all or substantially all of the\plain\li396\cf1\f51\fs24\qj Company\u8217?s assets either directly or through one or more subsidiaries) in substantially the same\plain\li396\cf1\f51\fs24\qj proportions as their ownership, immediately prior to such Business Combination of the Outstanding\plain\li396\cf1\f51\fs24\qj Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no\plain\li396\cf1\f51\fs24\qj Person (excluding any employee benefit plan (or related trust) of the Company or the entity resulting\plain\li396\cf1\f51\fs24\qj from such Business Combination) beneficially owns, directly or indirectly, 40% or more of, respectively,\plain\li396\cf1\f51\fs24\qj the then outstanding shares of common equity of the entity resulting from such Business Combination or\plain\li396\cf1\f51\fs24\qj the combined voting power of the then outstanding voting securities of such entity except to the extent\plain\li396\cf1\f51\fs24\qj that such ownership results solely from ownership of the Company that existed prior to the Business\plain\li396\cf1\f51\fs24\qj Combination and (C) at least a majority of the members of the board of directors or other similar\plain\li396\cf1\f51\fs24\qj governing body of the entity resulting from such Business Combination were members of the Incumbent\plain\li396\cf1\f51\fs24\qj Board at the time of the execution of the initial agreement, or of the action of the Board, providing for\plain\li396\sa264\cf1\f51\fs24\qj such Business Combination; or\par\pard\plain\li396\fi396\cf1\f51\fs24\qj (iv)\plain\li396\cf1\f51\fs20\qj \~\~\~\~\plain\li396\cf1\f51\fs24\qj Approval by the stockholders of the Company of a complete liquidation or dissolution of the\plain\li396\sa264\cf1\f51\fs24\qj Company.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Claim\u8221? means an actual or threatened claim or request for relief which was, is or may\plain\li396\cf1\f51\fs24\qj be made by reason of anything done or not done by Indemnitee in, or by reason of any event or\plain\li396\sa264\cf1\f51\fs24\qj occurrence related to, Indemnitee\u8217?s Corporate Status. \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 2\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Corporate Status\u8221? means the status of a person who is, becomes or was a director,\plain\li396\cf1\f51\fs24\qj officer, employee, agent or fiduciary of the Company or is, becomes or was serving at the request of the\plain\li396\cf1\f51\fs24\qj Company as a director, officer, partner, member, venturer, proprietor, trustee, employee, agent, fiduciary\plain\li396\cf1\f51\fs24\qj or similar functionary of another foreign or domestic corporation, partnership, limited liability company,\plain\li396\cf1\f51\fs24\qj joint venture, sole proprietorship, trust, employee benefit plan or other enterprise. For purposes of this\plain\li396\cf1\f51\fs24\qj Agreement, the Company agrees that Indemnitee\u8217?s service on behalf of or with respect to any\plain\li396\sa264\cf1\f51\fs24\qj Subsidiary of the Company shall be deemed to be at the request of the Company.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?DGCL\u8221? means the Delaware General Corporation Law and any successor statute\plain\li396\sa264\cf1\f51\fs24\qj thereto, as either of them may from time to time be amended.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Disinterested Director\u8221? with respect to any request by Indemnitee for indemnification\plain\li396\cf1\f51\fs24\qj hereunder, means a director of the Company who at the time of the vote is not a named defendant or\plain\li396\sa264\cf1\f51\fs24\qj respondent in the Proceeding in respect of which indemnification is sought by Indemnitee.\par\pard\plain\li396\sa264\fi396\cf1\f51\fs24\qj \u8220?Exchange Act\u8221? means the Securities Exchange Act of 1934.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Expenses\u8221? means all attorneys\u8217? fees and disbursements, retainers,\plain\li396\cf1\f51\fs24\qj accountant\u8217?s fees and disbursements, private investigator fees and disbursements, court costs,\plain\li396\cf1\f51\fs24\qj transcript costs, fees and expenses of experts, witness fees and expenses, travel expenses, duplicating\plain\li396\cf1\f51\fs24\qj costs, printing and binding costs, telephone charges, postage, delivery service fees and all other\plain\li396\cf1\f51\fs24\qj disbursements, costs or expenses of the types customarily incurred in connection with prosecuting,\plain\li396\cf1\f51\fs24\qj defending (including affirmative defenses and counterclaims), preparing to prosecute or defend,\plain\li396\cf1\f51\fs24\qj investigating, being or preparing to be a witness in, or participating in or preparing to participate in\plain\li396\cf1\f51\fs24\qj (including on appeal) a Proceeding and all interest or finance charges attributable to any thereof. Should\plain\li396\cf1\f51\fs24\qj any payments by the Company under this Agreement be determined to be subject to any federal, state or\plain\li396\cf1\f51\fs24\qj local income or excise tax, \u8220?Expenses\u8221? shall also include such amounts as are necessary to\plain\li396\cf1\f51\fs24\qj place Indemnitee in the same after-tax position (after giving effect to all applicable taxes) as Indemnitee\plain\li396\cf1\f51\fs24\qj would have been in had no such tax been determined to apply to such payments. Also, in this\plain\li396\cf1\f51\fs24\qj Agreement \u8220?witness\u8221? includes responding (or objecting) to a discovery request, whether in\plain\li396\sa264\cf1\f51\fs24\qj writing or in an oral deposition, in any Proceeding.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Incumbent Board\u8221? means the individuals who, as of the date of this Agreement,\plain\li396\cf1\f51\fs24\qj constitute the Board and any other individual who becomes a director of the Company after that date and\plain\li396\cf1\f51\fs24\qj whose election or appointment by the Board or nomination for election by the Company\u8217?s\plain\li396\cf1\f51\fs24\qj stockholders was approved by a vote of at least a majority of the directors then comprising the\plain\li396\cf1\f51\fs24\qj Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office\plain\li396\cf1\f51\fs24\qj occurs as a result of an actual or threatened election contest with respect to the election or removal of\plain\li396\cf1\f51\fs24\qj directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person\plain\li396\sa264\cf1\f51\fs24\qj other than the Incumbent Board.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Independent Counsel\u8221? means a law firm, or a member of a law firm, that is\plain\li396\cf1\f51\fs24\qj experienced in matters of corporation law and neither contemporaneously is, nor in the five years\plain\li396\cf1\f51\fs24\qj theretofore has been, retained to represent: (a) the Company or Indemnitee in any matter material to\plain\li396\cf1\f51\fs24\qj either such party (other than as Independent Counsel under this Agreement or similar agreements),\plain\li396\cf1\f51\fs24\qj (b)\~any other party to the Proceeding giving rise to a claim for indemnification hereunder or (c) the\plain\li396\cf1\f51\fs24\qj beneficial owner, directly or indirectly, of securities of the Company representing 5% or more of the\plain\li396\cf1\f51\fs24\qj combined voting power of the Company\u8217?s then outstanding voting securities (other than, in each\plain\li396\cf1\f51\fs24\qj such case, with respect to matters concerning the rights of Indemnitee under this Agreement, or of other\plain\li396\sa264\cf1\f51\fs24\qj indemnitees under similar indemnification agreements). Notwithstanding the foregoing, the term \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 3\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Independent Counsel\u8221? shall not include any person who, under the applicable standards\plain\li396\cf1\f51\fs24\qj of professional conduct then prevailing, would have a conflict of interest in representing either the\plain\li396\sa264\cf1\f51\fs24\qj Company or Indemnitee in an action to determine Indemnitee\u8217?s rights under this Agreement.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Independent Directors\u8221? means the directors on the Board that are independent directors\plain\li396\cf1\f51\fs24\qj as defined in Section 303A of the New York Stock Exchange Listed Company Manual or successor\plain\li396\cf1\f51\fs24\qj provision, or, if the Company\u8217?s common stock is not then quoted on the NYSE, that qualify as\plain\li396\cf1\f51\fs24\qj independent, disinterested, or a similar term as defined in the rules of the principal securities exchange\plain\li396\sa264\cf1\f51\fs24\qj or inter-dealer quotation system on which the Company\u8217?s common stock is then listed or quoted.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Person\u8221? means any individual, entity or group (within the meaning of Sections\plain\li396\sa264\cf1\f51\fs24\qj 13(d)(3) and 14(d)(2) of the Exchange Act).\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Potential Change in Control\u8221? shall be deemed to have occurred if (i) any Person shall\plain\li396\cf1\f51\fs24\qj have announced publicly an intention to effect a Change in Control, or commenced any action (such as\plain\li396\cf1\f51\fs24\qj the commencement of a tender offer for the Company\u8217?s Common Stock or the solicitation of\plain\li396\cf1\f51\fs24\qj proxies for the election of any of the Company\u8217?s directors) that, if successful, could reasonably be\plain\li396\cf1\f51\fs24\qj expected to result in the occurrence of a Change in Control; (ii) the Company enters into an agreement,\plain\li396\cf1\f51\fs24\qj the consummation of which would constitute a Change in Control; or (iii) any other event occurs which\plain\li396\sa264\cf1\f51\fs24\qj the Board declares to be a Potential Change of Control.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Proceeding\u8221? means any threatened, pending or completed action, suit, arbitration,\plain\li396\cf1\f51\fs24\qj investigation, inquiry, alternate dispute resolution mechanism, administrative or legislative hearing, or\plain\li396\cf1\f51\fs24\qj any other proceeding (including, without limitation, any securities laws action, suit, arbitration,\plain\li396\cf1\f51\fs24\qj alternative dispute resolution mechanism, hearing or procedure) whether civil, criminal, administrative,\plain\li396\cf1\f51\fs24\qj arbitrative or investigative and whether or not based upon events occurring, or actions taken, before the\plain\li396\cf1\f51\fs24\qj date hereof, and any appeal in or related to any such action, suit, arbitration, investigation, hearing or\plain\li396\cf1\f51\fs24\qj proceeding and any inquiry or investigation (including discovery), whether conducted by or in the right\plain\li396\cf1\f51\fs24\qj of the Company or any other Person, that Indemnitee in good faith believes could lead to any such\plain\li396\cf1\f51\fs24\qj action, suit, arbitration, alternative dispute resolution mechanism, hearing or other proceeding or appeal\plain\li396\sa264\cf1\f51\fs24\qj thereof.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Subsidiary\u8221? means, with respect to any Person, any corporation or other entity of\plain\li396\cf1\f51\fs24\qj which a majority of the voting power of the voting equity securities or equity interest is owned, directly\plain\li396\sa264\cf1\f51\fs24\qj or indirectly, by that Person.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj \u8220?Voting Securities\u8221? means any securities that vote generally in the election of directors,\plain\li396\sa264\cf1\f51\fs24\qj in the admission of general partners, or in the selection of any other similar governing body.\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc ARITCLE II\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc Services by Indemnitee\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Indemnitee is serving as an officer of the Company. Indemnitee may from time to time also agree to\plain\li396\cf1\f51\fs24\qj serve, as the Company may request from time to time, in another capacity for the Company (including\plain\li396\cf1\f51\fs24\qj another officer or director position) or as a director, officer, partner, member, venturer, proprietor,\plain\li396\cf1\f51\fs24\qj trustee, employee, agent, fiduciary or similar functionary of another foreign or domestic corporation,\plain\li396\cf1\f51\fs24\qj partnership, joint venture, limited liability company, sole proprietorship, trust, employee benefit plan or\plain\li396\cf1\f51\fs24\qj other enterprise. Indemnitee and the Company each acknowledge that they have entered into this\plain\li396\sa264\cf1\f51\fs24\qj Agreement as a means of inducing Indemnitee to serve, or continue to serve, the \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 4\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj Company in such capacities. Indemnitee may at any time and for any reason resign from such position\plain\li396\cf1\f51\fs24\qj or positions (subject to any other contractual obligation or any obligation imposed by operation of law).\plain\li396\cf1\f51\fs24\qj The Company shall have no obligation under this Agreement to continue Indemnitee in any such\plain\li396\sa264\cf1\f51\fs24\qj position or positions.\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc ARTICLE III\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc Indemnification\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 3.1\~\~\~\~\plain\li396\cf1\f51\fs24\qj General\plain\li396\cf1\f51\fs24\qj . Subject to the provisions set forth in Article IV, the Company shall\plain\li396\cf1\f51\fs24\qj indemnify, and advance Expenses to, Indemnitee to the fullest extent permitted by applicable law in\plain\li396\cf1\f51\fs24\qj effect on the date hereof and to such greater extent as applicable law may hereafter from time to time\plain\li396\cf1\f51\fs24\qj permit. The other provisions set forth in this Agreement are provided in addition to and as a means of\plain\li396\cf1\f51\fs24\qj furtherance and implementation of, and not in limitation of, the obligations expressed in this Article III.\plain\li396\cf1\f51\fs24\qj No requirement, condition to or limitation of any right to indemnification or to advancement of Expenses\plain\li396\sa264\cf1\f51\fs24\qj under this Article III shall in any way limit the rights of Indemnitee under Article VII.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 3.2\~\~\~\~\plain\li396\cf1\f51\fs24\qj Additional Indemnity of the Company\plain\li396\cf1\f51\fs24\qj . Indemnitee shall be entitled to indemnification\plain\li396\cf1\f51\fs24\qj pursuant to this Section 3.2 if, by reason of anything done or not done by Indemnitee in, or by reason of\plain\li396\cf1\f51\fs24\qj any event or occurrence related to, Indemnitee\u8217?s Corporate Status, Indemnitee is, was or becomes,\plain\li396\cf1\f51\fs24\qj or is threatened to be made, a party to, or witness or other participant in any Proceeding. Pursuant to this\plain\li396\cf1\f51\fs24\qj Section 3.2, Indemnitee shall be indemnified against any and all Expenses, judgments, penalties\plain\li396\cf1\f51\fs24\qj (including excise or similar taxes), fines and amounts paid in settlement (including all interest,\plain\li396\cf1\f51\fs24\qj assessments and other charges paid or payable in connection with or in respect of any such Expenses,\plain\li396\cf1\f51\fs24\qj judgments, penalties, fines and amounts paid in settlement) actually and reasonably incurred by\plain\li396\cf1\f51\fs24\qj Indemnitee or on Indemnitee\u8217?s behalf in connection with such Proceeding or any Claim, issue or\plain\li396\cf1\f51\fs24\qj matter therein. Notwithstanding the foregoing, the obligations of the Company under this Section 3.2\plain\li396\cf1\f51\fs24\qj shall be subject to the condition that no determination (which, in any case in which Independent Counsel\plain\li396\cf1\f51\fs24\qj is involved, shall be in a form of a written opinion) shall have been made pursuant to Article IV that\plain\li396\cf1\f51\fs24\qj Indemnitee would not be permitted to be indemnified under applicable law. Nothing in this Section 3.2\plain\li396\sa264\cf1\f51\fs24\qj shall limit the benefits of Section 3.1, Section 3.3 or any other Section hereunder.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 3.3 \~\~\~\~\plain\li396\cf1\f51\fs24\qj Advancement of Expenses\plain\li396\cf1\f51\fs24\qj . The Company shall pay all Expenses reasonably incurred\plain\li396\cf1\f51\fs24\qj by, or in the case of retainers to be incurred by, or on behalf of Indemnitee (or, if applicable, reimburse\plain\li396\cf1\f51\fs24\qj Indemnitee for any and all Expenses reasonably incurred by Indemnitee and previously paid by\plain\li396\cf1\f51\fs24\qj Indemnitee) in connection with any Claim or Proceeding, whether brought by the Company or otherwise,\plain\li396\cf1\f51\fs24\qj in advance of any determination respecting entitlement to indemnification pursuant to Article IV hereof\plain\li396\cf1\f51\fs24\qj (and shall continue to pay such Expenses after such determination and until it shall ultimately be\plain\li396\cf1\f51\fs24\qj determined (in a final adjudication by a court from which there is no further right of appeal or in a final\plain\li396\cf1\f51\fs24\qj adjudication of an arbitration pursuant to Section 5.1 if Indemnitee elects to seek such arbitration) that\plain\li396\cf1\f51\fs24\qj Indemnitee is not entitled to be indemnified by the Company against such Expenses) within 10 days\plain\li396\cf1\f51\fs24\qj after the receipt by the Company of (a) a written request from Indemnitee requesting such payment or\plain\li396\cf1\f51\fs24\qj payments from time to time, whether prior to or after final disposition of such Claim or Proceeding, and\plain\li396\cf1\f51\fs24\qj (b) a written affirmation from Indemnitee of Indemnitee\u8217?s good faith belief that Indemnitee has\plain\li396\cf1\f51\fs24\qj met the standard of conduct necessary for Indemnitee to be permitted to be indemnified under applicable\plain\li396\cf1\f51\fs24\qj law. Any such payment by the Company is referred to in this Agreement as an \u8220?Expense\plain\li396\cf1\f51\fs24\qj Advance.\u8221? In connection with any request for an Expense Advance, if requested by the Company,\plain\li396\sa264\cf1\f51\fs24\qj Indemnitee or Indemnitee\u8217?s counsel shall also submit an affidavit stating \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 5\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj that the Expenses incurred were, or in the case of retainers to be incurred are, reasonably incurred. Any\plain\li396\cf1\f51\fs24\qj dispute as to the reasonableness of the incurrence of any Expense shall not delay an Expense Advance\plain\li396\cf1\f51\fs24\qj by the Company, and the Company agrees that any such dispute shall be resolved only upon the\plain\li396\cf1\f51\fs24\qj disposition or conclusion of the underlying Claim against Indemnitee. Indemnitee hereby undertakes and\plain\li396\cf1\f51\fs24\qj agrees that Indemnitee will reimburse and repay the Company without interest for any Expense\plain\li396\cf1\f51\fs24\qj Advances to the extent that it shall ultimately be determined (in a final adjudication by a court from\plain\li396\cf1\f51\fs24\qj which there is no further right of appeal or in a final adjudication of an arbitration pursuant to Section\plain\li396\cf1\f51\fs24\qj 5.1 if Indemnitee elects to seek such arbitration) that Indemnitee is not entitled to be indemnified by the\plain\li396\cf1\f51\fs24\qj Company against such Expenses. Indemnitee shall not be required to provide collateral or otherwise\plain\li396\cf1\f51\fs24\qj secure the undertaking and agreement described in the prior sentence. The Company shall make all\plain\li396\cf1\f51\fs24\qj Expense Advances pursuant to this Section 3.3 without regard to the financial ability of the Indemnitee\plain\li396\cf1\f51\fs24\qj to make repayment and without regard to the prospect of whether the Indemnitee may ultimately be\plain\li396\cf1\f51\fs24\qj found to be entitled to indemnification under the provisions of this Agreement.\par\pard\plain\li396\sa264\fi396\cf1\f51\fs24\qj Section 3.4\~\~\~\~\plain\li396\cf1\f51\fs24\qj Indemnification for Additional Expenses\plain\li396\cf1\f51\fs24\qj . The Company shall indemnify Indemnitee\plain\li396\cf1\f51\fs24\qj against any and all costs and expenses (of the types described in the definition of Expenses in Article I)\plain\li396\cf1\f51\fs24\qj and, if requested by Indemnitee, shall (within two business days of that request) advance those costs and\plain\li396\cf1\f51\fs24\qj expenses to Indemnitee, that are incurred by Indemnitee in connection with any claim asserted against,\plain\li396\cf1\f51\fs24\qj or action brought by, Indemnitee for (i)\~indemnification or an Expense Advance by the Company under\plain\li396\cf1\f51\fs24\qj this Agreement or any other agreement or provision of the Company\u8217?s Certificate of Incorporation\plain\li396\cf1\f51\fs24\qj or Bylaws now or hereafter in effect relating to any Claim or Proceeding, (ii) recovery under any\plain\li396\cf1\f51\fs24\qj directors\u8217? and officers\u8217? liability insurance policies maintained by the Company, or (iii)\plain\li396\cf1\f51\fs24\qj enforcement of, or claims for breaches of, any provision of this Agreement, in each of the foregoing\plain\li396\cf1\f51\fs24\qj situations regardless of whether Indemnitee ultimately is determined to be entitled to that\plain\li396\cf1\f51\fs24\qj indemnification, Expense Advance payment, insurance recovery, enforcement, or damage claim, as the\plain\li396\cf1\f51\fs24\qj case may be, and regardless of whether the nature of the proceeding with respect to such matters is\plain\li396\sa264\cf1\f51\fs24\qj judicial, by arbitration, or otherwise.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 3.5\~\~\~\~\plain\li396\cf1\f51\fs24\qj Partial Indemnity\plain\li396\cf1\f51\fs24\qj . If Indemnitee is entitled under any provision of this Agreement to\plain\li396\cf1\f51\fs24\qj indemnification by the Company for some or a portion of the Expenses, judgments, fines, penalties, and\plain\li396\cf1\f51\fs24\qj amounts paid in settlement of a Claim or Proceeding but not, however, for all of the total amount\plain\li396\cf1\f51\fs24\qj thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which\plain\li396\cf1\f51\fs24\qj Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent\plain\li396\cf1\f51\fs24\qj that Indemnitee has been successful on the merits or otherwise in defense of any or all Claims or\plain\li396\cf1\f51\fs24\qj Proceedings, or in defense of any issue or matter therein, including dismissal without prejudice,\plain\li396\sa264\cf1\f51\fs24\qj Indemnitee shall be indemnified against all Expenses incurred in connection therewith.\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc ARTICLE IV\par\pard\plain\li396\cf1\f51\fs24\b\qc Procedure for Determination of Entitlement\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc to Indemnification\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 4.1\~\~\~\~\plain\li396\cf1\f51\fs24\qj Request by Indemnitee\plain\li396\cf1\f51\fs24\qj . To obtain indemnification under this Agreement, Indemnitee\plain\li396\cf1\f51\fs24\qj shall submit to the Company a written request, including therein or therewith such documentation and\plain\li396\cf1\f51\fs24\qj information as is reasonably available to Indemnitee and is reasonably necessary to determine whether\plain\li396\cf1\f51\fs24\qj and to what extent Indemnitee is entitled to indemnification. The Secretary or an Assistant Secretary of\plain\li396\cf1\f51\fs24\qj the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in\plain\li396\cf1\f51\fs24\qj writing that Indemnitee has requested indemnification. Nevertheless, any failure of Indemnitee to provide\plain\li396\sa264\cf1\f51\fs24\qj a request to the Company, or to provide such a \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 6\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj request timely, shall not relieve the Company of any liability that it may have to Indemnitee hereunder\plain\li396\cf1\f51\fs24\qj except, and to the extent that, such failure actually and materially prejudices the interests of the\plain\li396\sa264\cf1\f51\fs24\qj Company.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 4.2\~\~\~\~\plain\li396\cf1\f51\fs24\qj Determination of Request\plain\li396\cf1\f51\fs24\qj . Upon written request by Indemnitee for indemnification\plain\li396\cf1\f51\fs24\qj pursuant to the first sentence of Section 4.1 hereof, a determination, if required by applicable law, with\plain\li396\cf1\f51\fs24\qj respect to whether Indemnitee is permitted under applicable law to be indemnified shall be made, in\plain\li396\sa264\cf1\f51\fs24\qj accordance with the terms of Section 4.5, in the specific case as follows:\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (a)If a Potential Change in Control or a Change in Control shall have occurred, by\plain\li792\cf1\f51\fs24\qj Independent Counsel (selected in accordance with Section 4.3) in a written opinion to the Board and\plain\li792\cf1\f51\fs24\qj Indemnitee, unless Indemnitee shall request that such determination be made by the Board, or a\plain\li792\cf1\f51\fs24\qj committee of the Board, in which case by the person or persons or in the manner provided for in\plain\li792\sa264\cf1\f51\fs24\qj clause (i) or (ii) of paragraph (b) below; or\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (b)If a Potential Change in Control or a Change in Control shall not have occurred, (i) by the\plain\li792\cf1\f51\fs24\qj Board by a majority vote of the Disinterested Directors even though less than a quorum of the Board,\plain\li792\cf1\f51\fs24\qj or (ii) by a majority vote of a committee solely of two or more Disinterested Directors designated to\plain\li792\cf1\f51\fs24\qj act in the matter by a majority vote of all Disinterested Directors even though less than a quorum of\plain\li792\cf1\f51\fs24\qj the Board, or (iii) by Independent Counsel selected by the Board or a committee of the Board by a\plain\li792\cf1\f51\fs24\qj vote as set forth in clauses (i) or (ii) of this paragraph (b), or if such vote is not obtainable or such a\plain\li792\cf1\f51\fs24\qj committee cannot be established, by a majority vote of all directors, or (iv) if Indemnitee and the\plain\li792\cf1\f51\fs24\qj Company agree, by the stockholders of the Company in a vote that excludes the shares held by\plain\li792\sa264\cf1\f51\fs24\qj directors who are not Disinterested Directors.\par\pard\plain\li396\cf1\f51\fs24\qj If it is so determined that Indemnitee is permitted to be indemnified under applicable law, payment to\plain\li396\cf1\f51\fs24\qj Indemnitee shall be made within 10 days after such determination. Nothing contained in this Agreement\plain\li396\cf1\f51\fs24\qj shall require that any determination be made under this Section 4.2 prior to the disposition or conclusion\plain\li396\cf1\f51\fs24\qj of a Claim or Proceeding against Indemnitee; provided, however, that Expense Advances shall continue\plain\li396\cf1\f51\fs24\qj to be made by the Company pursuant to, and to the extent required by, the provisions of Article III.\plain\li396\cf1\f51\fs24\qj Indemnitee shall cooperate with the person or persons making such determination with respect to\plain\li396\cf1\f51\fs24\qj Indemnitee\u8217?s entitlement to indemnification, including providing to such person upon reasonable\plain\li396\cf1\f51\fs24\qj advance request any documentation or information that is not privileged or otherwise protected from\plain\li396\cf1\f51\fs24\qj disclosure and that is reasonably available to Indemnitee and reasonably necessary to such determination.\plain\li396\cf1\f51\fs24\qj Any costs or expenses (including attorneys\u8217? fees and disbursements) incurred by Indemnitee in so\plain\li396\cf1\f51\fs24\qj cooperating with the person or persons making such determination shall be borne by the Company\plain\li396\cf1\f51\fs24\qj (irrespective of the determination as to Indemnitee\u8217?s entitlement to indemnification), and the\plain\li396\sa264\cf1\f51\fs24\qj Company shall indemnify and hold harmless Indemnitee therefrom.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 4.3\~\~\~\~\plain\li396\cf1\f51\fs24\qj Independent Counsel\plain\li396\cf1\f51\fs24\qj . If a Potential Change in Control or a Change in Control shall not\plain\li396\cf1\f51\fs24\qj have occurred and the determination of entitlement to indemnification is to be made by Independent\plain\li396\cf1\f51\fs24\qj Counsel, the Independent Counsel shall be selected by (a) a majority vote of the Disinterested Directors,\plain\li396\cf1\f51\fs24\qj even though less than a quorum of the Board or (b) if there are no Disinterested Directors, by a majority\plain\li396\cf1\f51\fs24\qj vote of the Board, and the Company shall give written notice to Indemnitee, within 10 days after receipt\plain\li396\cf1\f51\fs24\qj by the Company of Indemnitee\u8217?s request for indemnification, specifying the identity and address\plain\li396\cf1\f51\fs24\qj of the Independent Counsel so selected. If a Potential Change in Control or a Change in Control shall\plain\li396\cf1\f51\fs24\qj have occurred and the determination of entitlement to indemnification is to be made by Independent\plain\li396\cf1\f51\fs24\qj Counsel, the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written\plain\li396\cf1\f51\fs24\qj notice to the Company, within 10 days after submission of Indemnitee\u8217?s request for\plain\li396\sa264\cf1\f51\fs24\qj indemnification, specifying the identity and address of \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 7\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj the Independent Counsel so selected (unless Indemnitee shall request that such selection be made by the\plain\li396\cf1\f51\fs24\qj Disinterested Directors or a committee of the Board, in which event the Company shall give written\plain\li396\cf1\f51\fs24\qj notice to Indemnitee within 10 days after receipt of Indemnitee\u8217?s request for the Board or a\plain\li396\cf1\f51\fs24\qj committee of the Disinterested Directors to make such selection, specifying the identity and address of\plain\li396\cf1\f51\fs24\qj the Independent Counsel so selected). In either event, (i)\~such notice to Indemnitee or the Company, as\plain\li396\cf1\f51\fs24\qj the case may be, shall be accompanied by a written affirmation of the Independent Counsel so selected\plain\li396\cf1\f51\fs24\qj that it satisfies the requirements of the definition of \u8220?Independent Counsel\u8221? in Article I and\plain\li396\cf1\f51\fs24\qj that it agrees to serve in such capacity and (ii)\~Indemnitee or the Company, as the case may be, may,\plain\li396\cf1\f51\fs24\qj within seven days after such written notice of selection shall have been given, deliver to the Company or\plain\li396\cf1\f51\fs24\qj to Indemnitee, as the case may be, a written objection to such selection. Any objection to the selection\plain\li396\cf1\f51\fs24\qj of Independent Counsel pursuant to this Section 4.3 may be asserted only on the ground that the\plain\li396\cf1\f51\fs24\qj Independent Counsel so selected does not meet the requirements of the definition of \u8220?Independent\plain\li396\cf1\f51\fs24\qj Counsel\u8221? in Article I, and the objection shall set forth with particularity the factual basis of such\plain\li396\cf1\f51\fs24\qj assertion. If such written objection is timely made, the Independent Counsel so selected may not serve as\plain\li396\cf1\f51\fs24\qj Independent Counsel unless and until a court of competent jurisdiction (the \u8220?Court\u8221?) has\plain\li396\cf1\f51\fs24\qj determined that such objection is without merit or such objection is withdrawn. In the event of a timely\plain\li396\cf1\f51\fs24\qj written objection to a choice of Independent Counsel, the party originally selecting the Independent\plain\li396\cf1\f51\fs24\qj Counsel shall have seven days to make an alternate selection of Independent Counsel and to give written\plain\li396\cf1\f51\fs24\qj notice of such selection to the other party, after which time such other party shall have five days to\plain\li396\cf1\f51\fs24\qj make a written objection to such alternate selection. If, within 30 days after submission of\plain\li396\cf1\f51\fs24\qj Indemnitee\u8217?s request for indemnification pursuant to Section 4.1, no Independent Counsel shall\plain\li396\cf1\f51\fs24\qj have been selected and not objected to, either the Company or Indemnitee may petition the Court for\plain\li396\cf1\f51\fs24\qj resolution of any objection that shall have been made by the Company or Indemnitee to the\plain\li396\cf1\f51\fs24\qj other\u8217?s selection of Independent Counsel and/or for the appointment as Independent Counsel of a\plain\li396\cf1\f51\fs24\qj person selected by the Court or by such other person as the Court shall designate, and the person with\plain\li396\cf1\f51\fs24\qj respect to whom an objection is so resolved or the person so appointed shall act as Independent Counsel\plain\li396\cf1\f51\fs24\qj under Section 4.2. The Company shall pay any and all fees of, and expenses reasonably incurred by,\plain\li396\cf1\f51\fs24\qj such Independent Counsel in connection with acting pursuant to Section 4.2, and the Company shall pay\plain\li396\cf1\f51\fs24\qj all fees and expenses reasonably incurred incident to the procedures of this Section 4.3, regardless of the\plain\li396\cf1\f51\fs24\qj manner in which such Independent Counsel was selected or appointed. Upon the due commencement of\plain\li396\cf1\f51\fs24\qj any judicial proceeding or arbitration pursuant to Section 5.1, Independent Counsel shall be discharged\plain\li396\cf1\f51\fs24\qj and relieved of any further responsibility in such capacity (subject to the applicable standards of\plain\li396\sa264\cf1\f51\fs24\qj professional conduct then prevailing).\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 4.4\~\~\~\~\plain\li396\cf1\f51\fs24\qj Establishment of a Trust\plain\li396\cf1\f51\fs24\qj . In the event of a Potential Change in Control or a Change in\plain\li396\cf1\f51\fs24\qj Control, the Company shall, upon written request by Indemnitee, create a trust for the benefit of\plain\li396\cf1\f51\fs24\qj Indemnitee (the \u8220?Trust\u8221?) and from time to time upon written request of Indemnitee shall\plain\li396\cf1\f51\fs24\qj fund the Trust in an amount sufficient to satisfy any and all Expenses reasonably anticipated at the time\plain\li396\cf1\f51\fs24\qj of each such request to be incurred in connection with investigating, preparing for, and defending any\plain\li396\cf1\f51\fs24\qj Claim, and any and all judgments, fines, penalties, and settlement amounts of any and all Claims from\plain\li396\cf1\f51\fs24\qj time to time actually paid or claimed, reasonably anticipated, or proposed to be paid. The amount to be\plain\li396\cf1\f51\fs24\qj deposited in the Trust pursuant to the foregoing funding obligation shall be determined by the\plain\li396\cf1\f51\fs24\qj Independent Counsel (or other person(s) making the determination of whether Indemnitee is permitted to\plain\li396\cf1\f51\fs24\qj be indemnified by applicable law). The terms of the Trust shall provide that, upon a Change in Control,\plain\li396\cf1\f51\fs24\qj (i) the Trust shall not be revoked or the principal thereof invaded, without the written consent of\plain\li396\cf1\f51\fs24\qj Indemnitee; (ii) the trustee of the Trust shall advance to Indemnitee, within ten days of a request by\plain\li396\cf1\f51\fs24\qj Indemnitee, any and all Expenses reasonably incurred by, or in case of retainer to be incurred by, or on\plain\li396\cf1\f51\fs24\qj behalf of Indemnitee (or, if applicable, reimburse Indemnitee for any Expense reasonably incurred by\plain\li396\sa264\cf1\f51\fs24\qj Indemnitee and previously paid by Indemnitee), with any required \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 8\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj determination concerning the reasonableness of the Expenses to be made by the Independent Counsel\plain\li396\cf1\f51\fs24\qj (and Indemnitee hereby agrees to reimburse the Trust under the circumstances in which Indemnitee\plain\li396\cf1\f51\fs24\qj would be required to reimburse the Company for Expense Advances under Section 3.3 of this\plain\li396\cf1\f51\fs24\qj Agreement); (iii) the Trust shall continue to be funded by the Company in accordance with the funding\plain\li396\cf1\f51\fs24\qj obligation set forth above; (iv) the trustee of the Trust shall promptly pay to Indemnitee all amounts for\plain\li396\cf1\f51\fs24\qj which Indemnitee shall be entitled to indemnification pursuant to this Agreement; and (v) all unexpended\plain\li396\cf1\f51\fs24\qj funds in the Trust shall revert to the Company upon a final determination by the Independent Counsel or\plain\li396\cf1\f51\fs24\qj a court of competent jurisdiction, as the case may be, that Indemnitee has been fully indemnified under\plain\li396\cf1\f51\fs24\qj the terms of this Agreement. The trustee of the Trust shall be chosen by Indemnitee and shall be an\plain\li396\cf1\f51\fs24\qj institution that is not affiliated with Indemnitee. Nothing in this Section 4.4 shall relieve the Company of\plain\li396\sa264\cf1\f51\fs24\qj any of its obligations under this Agreement.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 4.5\~\~\~\~\plain\li396\cf1\f51\fs24\qj Presumptions and Effect of Certain Proceedings\plain\li396\sa264\cf1\f51\fs24\qj .\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (a)Indemnitee shall be presumed to be entitled to indemnification under this Agreement upon\plain\li792\cf1\f51\fs24\qj submission of a request for indemnification under Section 4.1, and the Company shall have the\plain\li792\cf1\f51\fs24\qj burden of proof in overcoming that presumption in reaching a determination contrary to that\plain\li792\cf1\f51\fs24\qj presumption. Such presumption shall be used by Independent Counsel (or other person or persons\plain\li792\cf1\f51\fs24\qj determining entitlement to indemnification) as a basis for a determination of entitlement to\plain\li792\cf1\f51\fs24\qj indemnification unless the Company provides information sufficient to overcome such presumption\plain\li792\cf1\f51\fs24\qj by clear and convincing evidence or unless the investigation, review and analysis of Independent\plain\li792\cf1\f51\fs24\qj Counsel (or such other person or persons) convinces Independent Counsel by clear and convincing\plain\li792\sa264\cf1\f51\fs24\qj evidence that the presumption should not apply.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (b)If the person or persons empowered or selected under Article IV of this Agreement to\plain\li792\cf1\f51\fs24\qj determine whether Indemnitee is entitled to indemnification shall not have made a determination\plain\li792\cf1\f51\fs24\qj within 60 days after receipt by the Company of the request by Indemnitee therefor, the determination\plain\li792\cf1\f51\fs24\qj of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled\plain\li792\cf1\f51\fs24\qj to such indemnification; provided, however, that such 60-day period may be extended for a\plain\li792\cf1\f51\fs24\qj reasonable time, not to exceed an additional 30 days, if the person making the determination with\plain\li792\cf1\f51\fs24\qj respect to entitlement to indemnification in good faith requires such additional time for the obtaining\plain\li792\cf1\f51\fs24\qj or evaluating of documentation and/or information relating to such determination; and provided,\plain\li792\cf1\f51\fs24\qj further, that the 60-day limitation set forth in this Section 4.5(b) shall not apply and such period\plain\li792\cf1\f51\fs24\qj shall be extended as necessary (i) if within 30 days after receipt by the Company of the request for\plain\li792\cf1\f51\fs24\qj indemnification under Section 4.1 Indemnitee and the Company have agreed, and the Board has\plain\li792\cf1\f51\fs24\qj resolved, to submit such determination to the stockholders of the Company pursuant to Section 4.2(b)\plain\li792\cf1\f51\fs24\qj for their consideration at an annual meeting of stockholders to be held within 90 days after such\plain\li792\cf1\f51\fs24\qj agreement and such determination is made thereat, or a special meeting of stockholders is called\plain\li792\cf1\f51\fs24\qj within 30\~days after such receipt for the purpose of making such determination, such meeting is held\plain\li792\cf1\f51\fs24\qj for such purpose within 60 days after having been so called and such determination is made thereat,\plain\li792\cf1\f51\fs24\qj or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel\plain\li792\cf1\f51\fs24\qj pursuant to Section 4.2(a) of this Agreement, in which case the applicable period shall be as set forth\plain\li792\sa264\cf1\f51\fs24\qj in Section 5.1(c).\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (c)The termination of any Proceeding or of any Claim, issue or matter by judgment, order,\plain\li792\cf1\f51\fs24\qj settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere\plain\li792\cf1\f51\fs24\qj or its equivalent, shall not (except as otherwise expressly provided in this Agreement) by itself\plain\li792\cf1\f51\fs24\qj adversely affect the rights of Indemnitee to indemnification or create a presumption that Indemnitee\plain\li792\sa264\cf1\f51\fs24\qj failed to meet any particular standard of conduct, that Indemnitee had any particular \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 9\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li792\cf1\f51\fs24\qj belief, or that a court has determined that indemnification is not permitted by applicable law.\plain\li792\cf1\f51\fs24\qj Indemnitee shall be deemed to have been found liable in respect of any Claim, issue or matter only\plain\li792\sa264\cf1\f51\fs24\qj after Indemnitee shall have been so adjudged by the Court after exhaustion of all appeals therefrom.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (d)For purposes of the second sentence of Section 3.5, a settlement or other resolution of a\plain\li792\cf1\f51\fs24\qj Proceeding short of final judgment may be successful if it permits a party to avoid expense, delay,\plain\li792\cf1\f51\fs24\qj distraction, disruption and uncertainty. For purposes of the second sentence of Section 3.5, in the\plain\li792\cf1\f51\fs24\qj event that any Proceeding to which Indemnitee is a party is resolved in any manner other than by\plain\li792\cf1\f51\fs24\qj adverse judgment against Indemnitee (including settlement of such Proceeding with or without\plain\li792\cf1\f51\fs24\qj payment of money or other consideration), it shall be presumed that Indemnitee has been successful\plain\li792\cf1\f51\fs24\qj on the merits or otherwise in such Proceeding. Anyone seeking to overcome this presumption shall\plain\li792\sa264\cf1\f51\fs24\qj have the burden of proof by clear and convincing evidence.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (e)The failure of the Company (including by its directors or Independent Counsel) to have\plain\li792\cf1\f51\fs24\qj made a determination before the commencement of any action pursuant to this Agreement that\plain\li792\cf1\f51\fs24\qj indemnification is proper because Indemnitee has met the applicable standard of conduct shall not be\plain\li792\sa264\cf1\f51\fs24\qj a defense to the action or create a presumption that Indemnitee has not met the standard of conduct.\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc ARTICLE V\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc Certain Remedies of Indemnitee\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 5.1\~\~\~\~\plain\li396\cf1\f51\fs24\qj Indemnitee Entitled to Adjudication in an Appropriate Court\plain\li396\cf1\f51\fs24\qj . If (a) a determination is\plain\li396\cf1\f51\fs24\qj made pursuant to Article IV that Indemnitee is not entitled to indemnification under this Agreement; (b)\plain\li396\cf1\f51\fs24\qj there has been any failure by the Company to make timely payment or advancement of any amounts due\plain\li396\cf1\f51\fs24\qj hereunder (including, without limitation, any Expense Advances); or (c) the determination of entitlement\plain\li396\cf1\f51\fs24\qj to indemnification is to be made by Independent Counsel pursuant to Section 4.2 and such determination\plain\li396\cf1\f51\fs24\qj shall not have been made and delivered in a written opinion within 90 days after the latest of (i) such\plain\li396\cf1\f51\fs24\qj Independent Counsel\u8217?s being appointed, (ii) the overruling by the Court of objections to such\plain\li396\cf1\f51\fs24\qj counsel\u8217?s selection, or (iii) expiration of all periods for the Company or Indemnitee to object to\plain\li396\cf1\f51\fs24\qj such counsel\u8217?s selection, Indemnitee shall be entitled to commence an action seeking an\plain\li396\cf1\f51\fs24\qj adjudication in the Court of Indemnitee\u8217?s entitlement to such indemnification or advancements\plain\li396\cf1\f51\fs24\qj due hereunder, including, without limitation, Expense Advances. Alternatively, Indemnitee, at\plain\li396\cf1\f51\fs24\qj Indemnitee\u8217?s option, may seek an award in arbitration to be conducted by a single arbitrator\plain\li396\cf1\f51\fs24\qj pursuant to the commercial arbitration rules of the American Arbitration Association. Indemnitee shall\plain\li396\cf1\f51\fs24\qj commence such action seeking an adjudication or an award in arbitration within 180 days following the\plain\li396\cf1\f51\fs24\qj date on which Indemnitee first has the right to commence such action pursuant to this Section 5.1, or\plain\li396\cf1\f51\fs24\qj such right shall expire. The Company agrees not to oppose Indemnitee\u8217?s right to seek any such\plain\li396\cf1\f51\fs24\qj adjudication or award in arbitration and it shall continue to pay Expense Advances pursuant to Section\plain\li396\cf1\f51\fs24\qj 3.3 until it shall ultimately be determined (in a final adjudication by a court from which there is no\plain\li396\cf1\f51\fs24\qj further right of appeal or in a final adjudication of an arbitration pursuant to this Section 5.1 if\plain\li396\cf1\f51\fs24\qj Indemnitee elects to seek such arbitration) that Indemnitee is not entitled to be indemnified by the\plain\li396\sa264\cf1\f51\fs24\qj Company against such Expenses.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 5.2\~\~\~\~\plain\li396\cf1\f51\fs24\qj Adverse Determination Not to Affect any Judicial Proceeding\plain\li396\cf1\f51\fs24\qj . If a determination shall\plain\li396\cf1\f51\fs24\qj have been made pursuant to Article IV that Indemnitee is not entitled to indemnification under this\plain\li396\cf1\f51\fs24\qj Agreement, any judicial proceeding or arbitration commenced pursuant to this Article V shall be\plain\li396\sa264\cf1\f51\fs24\qj conducted in all respects as a de novo trial or arbitration on the merits, and Indemnitee shall not \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 10\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj be prejudiced by reason of such initial adverse determination. In any judicial proceeding or arbitration\plain\li396\cf1\f51\fs24\qj commenced pursuant to this Article V, Indemnitee shall be presumed to be entitled to indemnification or\plain\li396\cf1\f51\fs24\qj advancement of Expenses, as the case may be, under this Agreement and the Company shall have the\plain\li396\cf1\f51\fs24\qj burden of proof in overcoming such presumption and to show by clear and convincing evidence that\plain\li396\sa264\cf1\f51\fs24\qj Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 5.3\~\~\~\~\plain\li396\cf1\f51\fs24\qj Company Bound by Determination Favorable to Indemnitee in any Judicial Proceeding\plain\li396\cf1\f51\fs24\qj or Arbitration\plain\li396\cf1\f51\fs24\qj . If a determination shall have been made or deemed to have been made pursuant to\plain\li396\cf1\f51\fs24\qj Article IV that Indemnitee is entitled to indemnification, the Company shall be irrevocably bound by\plain\li396\cf1\f51\fs24\qj such determination in any judicial proceeding or arbitration commenced pursuant to this Article V, and\plain\li396\cf1\f51\fs24\qj shall be precluded from asserting that such determination has not been made or that the procedure by\plain\li396\sa264\cf1\f51\fs24\qj which such determination was made is not valid, binding and enforceable.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 5.4\~\~\~\~\plain\li396\cf1\f51\fs24\qj Company Bound by the Agreement\plain\li396\cf1\f51\fs24\qj . The Company shall be precluded from asserting in\plain\li396\cf1\f51\fs24\qj any judicial proceeding or arbitration commenced pursuant to this Article V that the procedures and\plain\li396\cf1\f51\fs24\qj presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such\plain\li396\cf1\f51\fs24\qj court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.\plain\li396\cf1\f51\fs24\qj Without limiting the generality of the preceding sentence, the Company shall not seek from a court, or\plain\li396\cf1\f51\fs24\qj agree to, a \u8220?bar order\u8221? that would have the effect of prohibiting or limiting\plain\li396\sa264\cf1\f51\fs24\qj Indemnitee\u8217?s rights to advancement of any Expenses under this Agreement.\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc ARTICLE VI\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc Contribution\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 6.1\~\~\~\~\plain\li396\cf1\f51\fs24\qj Contribution Payment\plain\li396\sa264\cf1\f51\fs24\qj .\par\pard\plain\li792\fi792\cf1\f51\fs20\qj (a)\plain\li792\cf1\f51\fs24\qj Whether or not the indemnification provided in Article III hereof is available, in respect of\plain\li792\cf1\f51\fs24\qj any threatened, pending or completed action, suit or Proceeding in which the Company is jointly\plain\li792\cf1\f51\fs24\qj liable with Indemnitee (or would be if joined in such action, or Proceeding), the Company shall pay,\plain\li792\cf1\f51\fs24\qj in the first instance, the entire amount of any judgment or settlement of such action, suit or\plain\li792\cf1\f51\fs24\qj Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby\plain\li792\cf1\f51\fs24\qj waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall\plain\li792\cf1\f51\fs24\qj not enter into any settlement of any action, suit or Proceeding in which the Company is jointly liable\plain\li792\cf1\f51\fs24\qj with Indemnitee (or would be if joined in such action, suit or Proceeding) unless such settlement\plain\li792\sa264\cf1\f51\fs24\qj provides for a full and final release of all claims asserted against Indemnitee.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (b)Without diminishing or impairing the obligations of the Company set forth in the\plain\li792\cf1\f51\fs24\qj preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any\plain\li792\cf1\f51\fs24\qj portion of any judgment or settlement in any threatened, pending or completed action, suit or\plain\li792\cf1\f51\fs24\qj Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such\plain\li792\cf1\f51\fs24\qj action, suit or Proceeding), the Company shall contribute to the amount of Expenses, judgments,\plain\li792\cf1\f51\fs24\qj fines and amounts paid in settlement actually and reasonably incurred and paid or payable by\plain\li792\cf1\f51\fs24\qj Indemnitee in proportion to the relative benefits received by the Company and all officers, directors\plain\li792\cf1\f51\fs24\qj or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or\plain\li792\cf1\f51\fs24\qj would be if joined in such action, suit or Proceeding), on the one hand, and Indemnitee, on the other\plain\li792\cf1\f51\fs24\qj hand, from the transaction or events from which such action, suit or Proceeding arose; provided,\plain\li792\cf1\f51\fs24\qj however, that the proportion determined on the basis of relative benefit may, to the extent necessary\plain\li792\sa264\cf1\f51\fs24\qj to conform to law, be further adjusted by reference to the \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 11\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li792\cf1\f51\fs24\qj relative fault of the Company and all officers, directors or employees of the Company other than\plain\li792\cf1\f51\fs24\qj Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or\plain\li792\cf1\f51\fs24\qj Proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the transaction\plain\li792\cf1\f51\fs24\qj or events that resulted in such Expenses, judgments, fines or settlement amounts, as well as any other\plain\li792\sa264\cf1\f51\fs24\qj equitable considerations which applicable law may require to be considered.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (c)The Company hereby agrees, to the fullest extent permitted by applicable law, to fully\plain\li792\cf1\f51\fs24\qj indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by\plain\li792\cf1\f51\fs24\qj officers, directors or employees of the Company, other than Indemnitee, who may be jointly liable\plain\li792\sa264\cf1\f51\fs24\qj with Indemnitee.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (d)To the fullest extent permissible under applicable law and without diminishing or\plain\li792\cf1\f51\fs24\qj impairing the obligations of the Company set forth in the preceding subparagraphs of this Section\plain\li792\cf1\f51\fs24\qj 6.1, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason\plain\li792\cf1\f51\fs24\qj whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount\plain\li792\cf1\f51\fs24\qj incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be\plain\li792\cf1\f51\fs24\qj paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable\plain\li792\cf1\f51\fs24\qj event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the\plain\li792\cf1\f51\fs24\qj circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company\plain\li792\cf1\f51\fs24\qj and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding;\plain\li792\cf1\f51\fs24\qj and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and\plain\li792\sa264\cf1\f51\fs24\qj Indemnitee in connection with such event(s) and/or transaction(s).\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 6.2\~\~\~\~\plain\li396\cf1\f51\fs24\qj Relative Fault\plain\li396\cf1\f51\fs24\qj . The relative fault of the Indemnitee, on the one hand, and of the\plain\li396\cf1\f51\fs24\qj Company and any and all other parties (including officers and directors of the Company other than\plain\li396\cf1\f51\fs24\qj Indemnitee) who may be at fault with respect to such matter shall be determined (i) by reference to the\plain\li396\cf1\f51\fs24\qj relative fault of Indemnitee as determined by the court or other governmental agency assessing the\plain\li396\cf1\f51\fs24\qj contribution amounts or (ii) to the extent such court or other governmental agency does not apportion\plain\li396\cf1\f51\fs24\qj relative fault, by the Independent Counsel (or such other party which makes a determination under\plain\li396\cf1\f51\fs24\qj Article IV) after giving effect to, among other things, the degree of which their actions were motivated\plain\li396\cf1\f51\fs24\qj by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary,\plain\li396\cf1\f51\fs24\qj the degree to which their conduct is active or passive, the degree of the knowledge, access to\plain\li396\cf1\f51\fs24\qj information, and opportunity to prevent or correct the subject matter of the Proceedings and other\plain\li396\cf1\f51\fs24\qj relevant equitable considerations of each party. The Company and Indemnitee agree that it would not be\plain\li396\cf1\f51\fs24\qj just and equitable if contribution pursuant to this Section 6.2 were determined by pro rata allocation or\plain\li396\cf1\f51\fs24\qj by any other method of allocation which does not take account of the equitable considerations referred to\plain\li396\sa264\cf1\f51\fs24\qj in this Section 6.2.\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc ARTICLE VII\par\pard\plain\li396\sa264\cf1\f51\fs24\b\qc Miscellaneous\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.1\~\~\~\~\plain\li396\cf1\f51\fs24\qj Non-Exclusivity\plain\li396\cf1\f51\fs24\qj . The rights of Indemnitee to receive indemnification and advancement\plain\li396\cf1\f51\fs24\qj of Expenses under this Agreement shall be in addition to, and shall not be deemed exclusive of, any\plain\li396\cf1\f51\fs24\qj other rights Indemnitee shall under the DGCL or other applicable law, the charter or bylaws of the\plain\li396\cf1\f51\fs24\qj Company, any other agreement, vote of stockholders or a resolution of directors, or otherwise. Every\plain\li396\cf1\f51\fs24\qj other right or remedy of Indemnitee shall be cumulative of the rights and remedies granted Indemnitee\plain\li396\cf1\f51\fs24\qj hereunder. No amendment or alteration of the charter or bylaws of the Company or any provision thereof\plain\li396\sa264\cf1\f51\fs24\qj shall adversely affect Indemnitee\u8217?s rights hereunder, and such \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 12\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj rights shall be in addition to any rights Indemnitee may have under the charter, bylaws and the DGCL or\plain\li396\cf1\f51\fs24\qj other applicable law. To the extent that there is a change in the DGCL or other applicable law (whether\plain\li396\cf1\f51\fs24\qj by statute or judicial decision) that allows greater indemnification by agreement than would be afforded\plain\li396\cf1\f51\fs24\qj currently under the Company\u8217?s charter or bylaws and this Agreement, it is the intent of the parties\plain\li396\cf1\f51\fs24\qj hereto that Indemnitee shall enjoy by virtue of this Agreement the greater benefit so afforded by such\plain\li396\cf1\f51\fs24\qj change. Any amendment, alteration or repeal of the DGCL that adversely affects any right of Indemnitee\plain\li396\cf1\f51\fs24\qj shall be prospective only and shall not limit or eliminate any such right with respect to any Proceeding\plain\li396\cf1\f51\fs24\qj involving any occurrence or alleged occurrence of any action or omission to act that took place before\plain\li396\sa264\cf1\f51\fs24\qj the effective date of such amendment or repeal.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.2\~\~\~\~\plain\li396\cf1\f51\fs24\qj Insurance and Subrogation\plain\li396\sa264\cf1\f51\fs24\qj .\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (a)To the extent that the Company maintains an insurance policy or policies providing\plain\li792\cf1\f51\fs24\qj liability insurance for directors, officers, employees, agents or fiduciaries of the Company or for\plain\li792\cf1\f51\fs24\qj individuals serving at the request of the Company as directors, officers, partners, members, venturers,\plain\li792\cf1\f51\fs24\qj proprietors, trustees, employees, agents, fiduciaries or similar functionaries of another foreign or\plain\li792\cf1\f51\fs24\qj domestic corporation, partnership, limited liability company, joint venture, sole proprietorship, trust,\plain\li792\cf1\f51\fs24\qj employee benefit plan or other enterprise, Indemnitee shall be covered by such policy or policies in\plain\li792\cf1\f51\fs24\qj accordance with its or their terms to the maximum extent of the coverage available for any such\plain\li792\sa264\cf1\f51\fs24\qj director, officer, employee, agent or fiduciary under such policy or policies.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (b)In the event of any payment by the Company under this Agreement for which\plain\li792\cf1\f51\fs24\qj reimbursement is available under any insurance policy or policies obtained by the Company, the\plain\li792\cf1\f51\fs24\qj Company shall be subrogated to the extent of such payment to all of the rights of recovery of\plain\li792\cf1\f51\fs24\qj Indemnitee under such insurance policy or policies, who shall execute all papers required and take all\plain\li792\cf1\f51\fs24\qj action necessary to secure such rights, including execution of such documents as are necessary to\plain\li792\cf1\f51\fs24\qj enable the Company to bring suit to enforce such rights, provided that all Expenses relating to such\plain\li792\sa264\cf1\f51\fs24\qj action shall be borne by the Company.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (c)The Company shall not be liable under this Agreement to make any payment of amounts\plain\li792\cf1\f51\fs24\qj otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually\plain\li792\cf1\f51\fs24\qj received such payment under the Company\u8217?s charter or bylaws or any insurance policy,\plain\li792\sa264\cf1\f51\fs24\qj contract, agreement or otherwise.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (d)If Indemnitee is a director of the Company, the Company will advise the Board of any\plain\li792\cf1\f51\fs24\qj proposed material reduction in the coverage for Indemnitee to be provided by the Company\u8217?s\plain\li792\cf1\f51\fs24\qj directors\u8217? and officers\u8217? liability insurance policy and will not effect such a reduction\plain\li792\cf1\f51\fs24\qj with respect to Indemnitee without the prior approval of at least 80% of the Independent Directors of\plain\li792\sa264\cf1\f51\fs24\qj the Company.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (e)If Indemnitee is a director of the Company during the term of this Agreement and if\plain\li792\cf1\f51\fs24\qj Indemnitee ceases to be a director of the Company for any reason, the Company shall procure a\plain\li792\cf1\f51\fs24\qj run-off directors\u8217? and officers\u8217? liability insurance policy with respect to claims arising\plain\li792\cf1\f51\fs24\qj from facts or events that occurred before the time Indemnitee ceased to be a director of the Company\plain\li792\cf1\f51\fs24\qj and covering Indemnitee, which policy, without any lapse in coverage, will provide coverage for a\plain\li792\cf1\f51\fs24\qj period of six years after the time Indemnitee ceased to be a director of the Company and will\plain\li792\cf1\f51\fs24\qj provide coverage (including amount and type of coverage and size of deductibles) that are\plain\li792\cf1\f51\fs24\qj substantially comparable to the Company\u8217?s directors\u8217? and officers\u8217? liability\plain\li792\cf1\f51\fs24\qj insurance policy that was most protective of Indemnitee in the 12 months preceding the time\plain\li792\sa264\cf1\f51\fs24\qj Indemnitee ceased to be a director of the Company; provided, however, that: \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 13\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li2376\fi396\cf1\f51\fs24\qj (i)\~\~\~\~this obligation shall be suspended during the period immediately following the\plain\li2376\cf1\f51\fs24\qj time Indemnitee ceases to be a director of the Company if and only so long as the\plain\li2376\cf1\f51\fs24\qj Company has a directors\u8217? and officers\u8217? liability insurance policy in\plain\li2376\cf1\f51\fs24\qj effect covering Indemnitee for such claims that, if it were a run-off policy, would\plain\li2376\cf1\f51\fs24\qj meet or exceed the foregoing standards, but in any event this suspension period shall\plain\li2376\sa264\cf1\f51\fs24\qj end when a Change in Control occurs; and\par\pard\plain\li2376\fi396\cf1\f51\fs24\qj (ii)\~\~\~\~no later than the end of the suspension period provided in the preceding\plain\li2376\cf1\f51\fs24\qj clause (i) (whether because of failure to have a policy meeting the foregoing standards\plain\li2376\cf1\f51\fs24\qj or because a Change in Control occurs), the Company shall procure a run-off\plain\li2376\cf1\f51\fs24\qj directors\u8217? and officers\u8217? liability insurance policy meeting the foregoing\plain\li2376\sa264\cf1\f51\fs24\qj standards and lasting for the remainder of the six-year period.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (f)\~\~\~\~Notwithstanding the preceding clause (e) including the suspension provisions therein, if\plain\li792\cf1\f51\fs24\qj Indemnitee ceases to be an officer or a director of the Company in connection with a Change in\plain\li792\cf1\f51\fs24\qj Control or at or during the one-year period following the occurrence of a Change in Control, the\plain\li792\cf1\f51\fs24\qj Company shall procure a run-off directors\u8217? and officers\u8217? liability insurance policy\plain\li792\cf1\f51\fs24\qj covering Indemnitee and meeting the foregoing standards in clause (e) and lasting for a six-year\plain\li792\cf1\f51\fs24\qj period upon the Indemnitee\u8217?s ceasing to be an officer or a director of the Company in such\plain\li792\sa264\cf1\f51\fs24\qj circumstances.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (g)\~\~\~\~If at the time of the receipt of a notice of a Claim or Proceeding pursuant to the terms\plain\li792\cf1\f51\fs24\qj hereof, the Company has directors\u8217? and officers\u8217? liability insurance in effect, the\plain\li792\cf1\f51\fs24\qj Company shall give prompt notice of the commencement of such Claim or Proceeding to the insurers\plain\li792\cf1\f51\fs24\qj in accordance with the procedures set forth in the respective policies. The Company shall thereafter\plain\li792\cf1\f51\fs24\qj take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all\plain\li792\cf1\f51\fs24\qj amounts payable as a result of such Claim or Proceeding in accordance with the terms of such\plain\li792\sa264\cf1\f51\fs24\qj policies.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.3\~\~\~\~\plain\li396\cf1\f51\fs24\qj Self Insurance of the Company; Other Arrangements\plain\li396\cf1\f51\fs24\qj . The parties hereto recognize that\plain\li396\cf1\f51\fs24\qj the Company may, but except as provided in Section 7.2(d), Section 7.2(e), and Section 7.2(f) is not\plain\li396\cf1\f51\fs24\qj required to, procure or maintain insurance or other similar arrangements, at its expense, to protect itself\plain\li396\cf1\f51\fs24\qj and any person, including Indemnitee, who is or was a director, officer, employee, agent or fiduciary of\plain\li396\cf1\f51\fs24\qj the Company or who is or was serving at the request of the Company as a director, officer, partner,\plain\li396\cf1\f51\fs24\qj member, venturer, proprietor, trustee, employee, agent, fiduciary or similar functionary of another foreign\plain\li396\cf1\f51\fs24\qj or domestic corporation, partnership, limited liability company, joint venture, sole proprietorship, trust,\plain\li396\cf1\f51\fs24\qj employee benefit plan or other enterprise against any expense, liability or loss asserted against or\plain\li396\cf1\f51\fs24\qj incurred by such person, in such a capacity or arising out of the person\u8217?s status as such a person,\plain\li396\cf1\f51\fs24\qj whether or not the Company would have the power to indemnify such person against such expense or\plain\li396\sa264\cf1\f51\fs24\qj liability or loss.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Except as provided in Section 7.2(d), Section 7.2(e) and Section 7.2(f), in considering the cost and\plain\li396\cf1\f51\fs24\qj availability of such insurance, the Company (through the exercise of the business judgment of its\plain\li396\cf1\f51\fs24\qj directors and officers) may, from time to time, purchase insurance which provides for certain (i)\plain\li396\cf1\f51\fs24\qj deductibles, (ii) limits on payments required to be made by the insurer, or (iii) coverage which may not\plain\li396\cf1\f51\fs24\qj be as comprehensive as that previously included in insurance purchased by the Company or its\plain\li396\cf1\f51\fs24\qj predecessors. The purchase of insurance with deductibles, limits on payments and coverage exclusions,\plain\li396\cf1\f51\fs24\qj even if in the best interest of the Company, may not be in the best interest of Indemnitee. As to the\plain\li396\cf1\f51\fs24\qj Company, purchasing insurance with deductibles, limits on payments and coverage exclusions is similar\plain\li396\sa264\cf1\f51\fs24\qj to the Company\u8217?s practice of self-insurance in other areas. In order to protect \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 14\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj Indemnitee who would otherwise be more fully or entirely covered under such policies, the Company\plain\li396\cf1\f51\fs24\qj shall, to the maximum extent permitted by applicable law, indemnify and hold Indemnitee harmless to\plain\li396\cf1\f51\fs24\qj the extent (i) of such deductibles, (ii)\~of amounts exceeding payments required to be made by an insurer,\plain\li396\cf1\f51\fs24\qj or (iii) of amounts that prior policies of directors\u8217? and officers\u8217? liability insurance held by\plain\li396\cf1\f51\fs24\qj the Company or its predecessors have provided for payment to Indemnitee, if by reason of\plain\li396\cf1\f51\fs24\qj Indemnitee\u8217?s Corporate Status Indemnitee is or is threatened to be made a party to any\plain\li396\cf1\f51\fs24\qj Proceeding. The obligation of the Company in the preceding sentence shall be without regard to whether\plain\li396\cf1\f51\fs24\qj the Company would otherwise be required to indemnify such officer or director under the other\plain\li396\cf1\f51\fs24\qj provisions of this Agreement, or under any law, agreement, vote of stockholders or directors or other\plain\li396\cf1\f51\fs24\qj arrangement. Without limiting the generality of any provision of this Agreement, the procedures in\plain\li396\cf1\f51\fs24\qj Article IV hereof shall, to the extent applicable, be used for determining entitlement to indemnification\plain\li396\sa264\cf1\f51\fs24\qj under this Section 7.3.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.4\~\~\~\~\plain\li396\cf1\f51\fs24\qj Certain Settlement Provisions\plain\li396\cf1\f51\fs24\qj . The Company shall have no obligation to indemnify\plain\li396\cf1\f51\fs24\qj Indemnitee under this Agreement for amounts paid in settlement of a Proceeding or Claim without the\plain\li396\cf1\f51\fs24\qj Company\u8217?s prior written consent. The Company shall not settle any Proceeding or Claim in any\plain\li396\cf1\f51\fs24\qj manner that would impose any fine or other obligation on Indemnitee without Indemnitee\u8217?s prior\plain\li396\cf1\f51\fs24\qj written consent. Neither the Company nor Indemnitee shall unreasonably withhold their consent to any\plain\li396\sa264\cf1\f51\fs24\qj proposed settlement.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.5\~\~\~\~\plain\li396\cf1\f51\fs24\qj Duration of Agreement\plain\li396\cf1\f51\fs24\qj . This Agreement shall continue for so long as Indemnitee\plain\li396\cf1\f51\fs24\qj serves as a director, officer, employee, agent or fiduciary of the Company or, at the request of the\plain\li396\cf1\f51\fs24\qj Company, as a director, officer, partner, member, venturer, proprietor, trustee, employee, agent, fiduciary\plain\li396\cf1\f51\fs24\qj or similar functionary of another foreign or domestic corporation, partnership, limited liability company,\plain\li396\cf1\f51\fs24\qj joint venture, sole proprietorship, trust, employee benefit plan or other enterprise, and thereafter shall\plain\li396\cf1\f51\fs24\qj survive until and terminate upon the later to occur of: (a) the expiration of 20 years after the latest date\plain\li396\cf1\f51\fs24\qj that Indemnitee shall have ceased to serve in any such capacity; (b) the final termination of all pending\plain\li396\cf1\f51\fs24\qj Proceedings in respect of which Indemnitee is granted rights of indemnification or advancement of\plain\li396\cf1\f51\fs24\qj Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Article IV relating\plain\li396\cf1\f51\fs24\qj thereto; or (c) the expiration of all statutes of limitation applicable to possible Claims arising out of\plain\li396\sa264\cf1\f51\fs24\qj Indemnitee\u8217?s Corporate Status.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.6\~\~\~\~\plain\li396\cf1\f51\fs24\qj Notice by Each Party\plain\li396\cf1\f51\fs24\qj . Indemnitee shall promptly notify the Company in writing upon\plain\li396\cf1\f51\fs24\qj being served with any summons, citation, subpoena, complaint, indictment, information or other\plain\li396\cf1\f51\fs24\qj document or communication relating to any Proceeding or Claim for which Indemnitee may be entitled\plain\li396\cf1\f51\fs24\qj to indemnification or advancement of Expenses hereunder; provided, however, that any failure of\plain\li396\cf1\f51\fs24\qj Indemnitee to so notify the Company shall not adversely affect Indemnitee\u8217?s rights under this\plain\li396\cf1\f51\fs24\qj Agreement except to the extent the Company shall have been materially prejudiced as a direct result of\plain\li396\cf1\f51\fs24\qj such failure. The Company shall promptly notify Indemnitee in writing as to the pendency of any\plain\li396\cf1\f51\fs24\qj Proceeding or Claim that may involve a claim against Indemnitee for which Indemnitee may be entitled\plain\li396\sa264\cf1\f51\fs24\qj to indemnification or advancement of Expenses hereunder.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.7\~\~\~\~\plain\li396\cf1\f51\fs24\qj Amendment\plain\li396\cf1\f51\fs24\qj . This Agreement may not be modified or amended except by a written\plain\li396\sa264\cf1\f51\fs24\qj instrument executed by or on behalf of each of the parties hereto.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.8\~\~\~\~\plain\li396\cf1\f51\fs24\qj Waivers\plain\li396\cf1\f51\fs24\qj . The observance of any term of this Agreement may be waived (either\plain\li396\cf1\f51\fs24\qj generally or in a particular instance and either retroactively or prospectively) by the party entitled to\plain\li396\cf1\f51\fs24\qj enforce such term only by a writing signed by the party against which such waiver is to be asserted.\plain\li396\cf1\f51\fs24\qj Unless otherwise expressly provided herein, no delay on the part of any party hereto in exercising any\plain\li396\sa264\cf1\f51\fs24\qj right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 15\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other\plain\li396\cf1\f51\fs24\qj right, power or privilege hereunder nor shall any single or partial exercise of any right, power or\plain\li396\cf1\f51\fs24\qj privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,\plain\li396\sa264\cf1\f51\fs24\qj power or privilege hereunder.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.9\~\~\~\~\plain\li396\cf1\f51\fs24\qj Entire Agreement\plain\li396\cf1\f51\fs24\qj . This Agreement and the documents expressly referred to herein\plain\li396\cf1\f51\fs24\qj constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and\plain\li396\cf1\f51\fs24\qj any other prior or contemporaneous oral or written understandings or agreements with respect to the\plain\li396\cf1\f51\fs24\qj matters covered hereby, including without limitation any prior indemnification agreements, are expressly\plain\li396\sa264\cf1\f51\fs24\qj superseded by this Agreement.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.10\~\~\~\~\plain\li396\cf1\f51\fs24\qj Severability\plain\li396\cf1\f51\fs24\qj . If any provision of this Agreement (including any provision within a\plain\li396\cf1\f51\fs24\qj single section, paragraph or sentence) or the application of such provision to any Person or circumstance,\plain\li396\cf1\f51\fs24\qj shall be judicially declared to be invalid, unenforceable or void, such decision will not have the effect of\plain\li396\cf1\f51\fs24\qj invalidating or voiding the remainder of this Agreement or affect the application of such provision to\plain\li396\cf1\f51\fs24\qj other Persons or circumstances, it being the intent and agreement of the parties that this Agreement shall\plain\li396\cf1\f51\fs24\qj be deemed amended by modifying such provision to the extent necessary to render it valid, legal and\plain\li396\cf1\f51\fs24\qj enforceable while preserving its intent, or if such modification is not possible, by substituting therefor\plain\li396\cf1\f51\fs24\qj another provision that is valid, legal and enforceable and that achieves the same objective. Any such\plain\li396\cf1\f51\fs24\qj finding of invalidity or unenforceability shall not prevent the enforcement of such provision in any other\plain\li396\sa264\cf1\f51\fs24\qj jurisdiction to the maximum extent permitted by applicable law.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.11\~\~\~\~\plain\li396\cf1\f51\fs24\qj Notices\plain\li396\cf1\f51\fs24\qj . All notices and other communications hereunder shall be in writing and shall\plain\li396\cf1\f51\fs24\qj be deemed given upon (a) transmitter\u8217?s confirmation of a receipt of a facsimile transmission if\plain\li396\cf1\f51\fs24\qj during normal business hours of the recipient, otherwise on the next business day, (b) confirmed delivery\plain\li396\cf1\f51\fs24\qj of a standard overnight courier or when delivered by hand or (c) the expiration of five business days\plain\li396\cf1\f51\fs24\qj after the date mailed by certified or registered mail (return receipt requested), postage prepaid, to the\plain\li396\cf1\f51\fs24\qj parties at the following addresses (or at such other addresses for a party as shall be specified by like\plain\li396\sa264\cf1\f51\fs24\qj notice):\par\pard\plain\li396\sa264\fi396\cf1\f51\fs24\qj If to the Company, to it at:\par\pard\plain\li396\fi792\cf1\f51\fs24\qj Pioneer Natural Resources Company\par\pard\plain\li396\fi792\cf1\f51\fs24\qj 5205 North O\u8217?Connor Blvd.\par\pard\plain\li396\fi792\cf1\f51\fs24\qj Suite 200\par\pard\plain\li396\fi792\cf1\f51\fs24\qj Irving, Texas 75039-3746\par\pard\plain\li396\fi792\cf1\f51\fs24\qj Attn: Corporate Secretary\par\pard\plain\li396\fi792\cf1\f51\fs24\qj Facsimile: (972) 969-3552 \par\pard\plain\fs16\par\pard\plain\li396\sa264\cf1\f51\fs24\qj If to Indemnitee, to Indemnitee at:\par\pard\plain\li396\sa264\fi396\cf1\f51\fs24\qj _______________________\par\pard\plain\li396\sa264\fi396\cf1\f51\fs24\qj _______________________\par\pard\plain\li396\cf1\f51\fs24\qj or to such other address or to such other individuals as any party shall have last designated by notice to\plain\li396\cf1\f51\fs24\qj the other parties. All notices and other communications given to any party in accordance with the\plain\li396\cf1\f51\fs24\qj provisions of this Agreement shall be deemed to have been given when delivered or sent to the intended\plain\li396\sa264\cf1\f51\fs24\qj recipient thereof in accordance with and as provided in the provisions of this Section 7.11. \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 16\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.12\~\~\~\~\plain\li396\cf1\f51\fs24\qj Governing Law\plain\li396\cf1\f51\fs24\qj . This Agreement shall be construed in accordance with and governed\plain\li396\sa264\cf1\f51\fs24\qj by the laws of the State of Delaware without regard to the principles of conflict of laws.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.13\~\~\~\~\plain\li396\cf1\f51\fs24\qj Certain Construction Rules\plain\li396\sa264\cf1\f51\fs24\qj .\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (a)The article and section headings contained in this Agreement are for reference purposes\plain\li792\cf1\f51\fs24\qj only and shall not affect in any way the meaning or interpretation of this Agreement. As used in this\plain\li792\cf1\f51\fs24\qj Agreement, unless otherwise provided to the contrary, (1) all references to days shall be deemed\plain\li792\cf1\f51\fs24\qj references to calendar days and (2) any reference to a \u8220?Section\u8221? or\plain\li792\cf1\f51\fs24\qj \u8220?Article\u8221? shall be deemed to refer to a section or article of this Agreement. The words\plain\li792\cf1\f51\fs24\qj \u8220?hereof,\u8221? \u8220?herein\u8221? and \u8220?hereunder\u8221? and words of similar\plain\li792\cf1\f51\fs24\qj import referring to this Agreement refer to this Agreement as a whole and not to any particular\plain\li792\cf1\f51\fs24\qj provision of this Agreement. Whenever the words \u8220?include,\u8221? \u8220?includes\u8221? or\plain\li792\cf1\f51\fs24\qj \u8220?including\u8221? are used in this Agreement, they shall be deemed to be followed by the\plain\li792\cf1\f51\fs24\qj words \u8220?without limitation.\u8221? Unless otherwise specifically provided for herein, the term\plain\li792\cf1\f51\fs24\qj \u8220?or\u8221? shall not be deemed to be exclusive. Whenever the context may require, any\plain\li792\cf1\f51\fs24\qj pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms,\plain\li792\sa264\cf1\f51\fs24\qj and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (b)For purposes of this Agreement, references to \u8220?other enterprises\u8221? shall\plain\li792\cf1\f51\fs24\qj include employee benefit plans; references to \u8220?fines\u8221? shall include any excise taxes\plain\li792\cf1\f51\fs24\qj assessed on a person with respect to any employee benefit plan; references to \u8220?serving at the\plain\li792\cf1\f51\fs24\qj request of the Company\u8221? shall include any service as a director, officer, employee or agent of\plain\li792\cf1\f51\fs24\qj the Company which imposes duties on, or involves services by, such director, nominee, officer,\plain\li792\cf1\f51\fs24\qj employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a\plain\li792\cf1\f51\fs24\qj person who acted in good faith and in a manner the person reasonably believed to be in the interests\plain\li792\cf1\f51\fs24\qj of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a\plain\li792\cf1\f51\fs24\qj manner \u8220?not opposed to the best interest of the Company\u8221? for purposes of this\plain\li792\sa264\cf1\f51\fs24\qj Agreement and the DGCL.\par\pard\plain\li792\fi792\cf1\f51\fs24\qj (c)In the event of a merger, consolidation or amalgamation of the Company with or into any\plain\li792\cf1\f51\fs24\qj other entity, references to the \u8220?Company\u8221? shall include the entity surviving or resulting\plain\li792\cf1\f51\fs24\qj from the merger, consolidation or amalgamation as well as the Company, and Indemnitee shall stand\plain\li792\cf1\f51\fs24\qj in the same position under this Agreement with respect to the surviving or resulting entity as\plain\li792\cf1\f51\fs24\qj Indemnitee would stand with respect to the Company if its existence had continued upon and after\plain\li792\sa264\cf1\f51\fs24\qj the merger, consolidation or amalgamation.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.14\~\~\~\~\plain\li396\cf1\f51\fs24\qj Counterparts\plain\li396\cf1\f51\fs24\qj . This Agreement may be executed in two or more counterparts, each of\plain\li396\cf1\f51\fs24\qj which shall be deemed to be an original and all of which together shall be deemed to be one and the\plain\li396\sa264\cf1\f51\fs24\qj same instrument, notwithstanding that both parties are not signatories to the original or same counterpart.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.15\~\~\~\~\plain\li396\cf1\f51\fs24\qj Certain Persons Not Entitled to Indemnification\plain\li396\cf1\f51\fs24\qj . Notwithstanding any other provision\plain\li396\cf1\f51\fs24\qj of this Agreement (but subject to Section 7.1), Indemnitee shall not be entitled to indemnification or\plain\li396\cf1\f51\fs24\qj advancement of Expenses pursuant to the terms of this Agreement with respect to any Proceeding or any\plain\li396\cf1\f51\fs24\qj Claim, issue or matter therein, brought or made by Indemnitee against the Company, except as\plain\li396\cf1\f51\fs24\qj specifically provided in Article III, Article\~IV or Section 7.3. In addition, the Company shall not be\plain\li396\sa264\cf1\f51\fs24\qj obligated pursuant to the terms of this Agreement:\par\pard\plain\li792\fi682\cf1\f51\fs24\qj (a)To indemnify Indemnitee if (and to the extent that) a final decision by a court or arbitration\plain\li792\sa264\cf1\f51\fs24\qj body having jurisdiction in the matter shall determine that such indemnification is not lawful; or \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 17\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li792\fi682\cf1\f51\fs24\qj (b)To indemnify Indemnitee for the payment to the Company of profits pursuant to Section\plain\li792\cf1\f51\fs24\qj 16(b) of the Exchange Act, or Expenses incurred by Indemnitee for Proceedings in connection with\plain\li792\sa264\cf1\f51\fs24\qj such payment under Section 16(b) of the Exchange Act.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.16\~\~\~\~\plain\li396\cf1\f51\fs24\qj Indemnification for Negligence, Gross Negligence, etc\plain\li396\cf1\f51\fs24\qj . Without limiting the generality\plain\li396\cf1\f51\fs24\qj of any other provision hereunder, it is the express intent of this Agreement that Indemnitee be\plain\li396\cf1\f51\fs24\qj indemnified and Expenses be advanced regardless of Indemnitee\u8217?s acts of negligence, gross\plain\li396\cf1\f51\fs24\qj negligence, intentional or willful misconduct to the extent that indemnification and advancement of\plain\li396\sa264\cf1\f51\fs24\qj Expenses is allowed pursuant to the terms of this Agreement and under applicable law.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.17\~\~\~\~\plain\li396\cf1\f51\fs24\qj Mutual Acknowledgments\plain\li396\cf1\f51\fs24\qj . Both the Company and Indemnitee acknowledge that in\plain\li396\cf1\f51\fs24\qj certain instances, applicable law (including applicable federal law that may preempt or override\plain\li396\cf1\f51\fs24\qj applicable state law) or public policy may prohibit the Company from indemnifying the directors,\plain\li396\cf1\f51\fs24\qj officers, employees, agents or fiduciaries of the Company under this Agreement or otherwise. For\plain\li396\cf1\f51\fs24\qj example, the Company and Indemnitee acknowledge that the U.S. Securities and Exchange Commission\plain\li396\cf1\f51\fs24\qj has taken the position that indemnification of directors, officers and controlling Persons of the Company\plain\li396\cf1\f51\fs24\qj for liabilities arising under federal securities laws is against public policy and, therefore, unenforceable.\plain\li396\cf1\f51\fs24\qj Indemnitee understands and acknowledges that the Company has undertaken or may be required in the\plain\li396\cf1\f51\fs24\qj future to undertake with the Securities and Exchange Commission to submit the question of\plain\li396\cf1\f51\fs24\qj indemnification to a court in certain circumstances for a determination of the Company\u8217?s right\plain\li396\cf1\f51\fs24\qj under public policy to indemnify Indemnitee. In addition, the Company and Indemnitee acknowledge\plain\li396\cf1\f51\fs24\qj that federal law prohibits indemnifications for certain violations of the Employee Retirement Income\plain\li396\sa264\cf1\f51\fs24\qj Security Act of 1974, as amended.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.18\~\~\~\~\plain\li396\cf1\f51\fs24\qj Enforcement\plain\li396\cf1\f51\fs24\qj . The Company agrees that its execution of this Agreement shall\plain\li396\cf1\f51\fs24\qj constitute a stipulation by which it shall be irrevocably bound in any court or arbitration in which a\plain\li396\cf1\f51\fs24\qj proceeding by Indemnitee for enforcement of Indemnitee\u8217?s rights hereunder shall have been\plain\li396\cf1\f51\fs24\qj commenced, continued or appealed, that its obligations set forth in this Agreement are unique and\plain\li396\cf1\f51\fs24\qj special, and that failure of the Company to comply with the provisions of this Agreement will cause\plain\li396\cf1\f51\fs24\qj irreparable and irremediable injury to Indemnitee, for which a remedy at law will be inadequate. As a\plain\li396\cf1\f51\fs24\qj result, in addition to any other right or remedy Indemnitee may have at law or in equity with respect to\plain\li396\cf1\f51\fs24\qj breach of this Agreement, Indemnitee shall be entitled to injunctive or mandatory relief directing specific\plain\li396\cf1\f51\fs24\qj performance by the Company of its obligations under this Agreement. The Company agrees not to seek,\plain\li396\cf1\f51\fs24\qj and agrees to waive any requirement for the securing or posting of, a bond in connection with\plain\li396\sa264\cf1\f51\fs24\qj Indemnitee\u8217?s seeking or obtaining such relief.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.19\~\~\~\~\plain\li396\cf1\f51\fs24\qj Successors and Assigns\plain\li396\cf1\f51\fs24\qj . All of the terms and provisions of this Agreement shall be\plain\li396\cf1\f51\fs24\qj binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their\plain\li396\sa264\cf1\f51\fs24\qj respective successors, assigns, heirs, executors, administrators, legal representatives.\par\pard\plain\li396\fi396\cf1\f51\fs24\qj Section 7.20\~\~\~\~\plain\li396\cf1\f51\fs24\qj Period of Limitations\plain\li396\cf1\f51\fs24\qj . No legal action shall be brought and no cause of action shall be\plain\li396\cf1\f51\fs24\qj asserted by or on behalf of the Company or any affiliate of the Company against Indemnitee or\plain\li396\cf1\f51\fs24\qj Indemnitee\u8217?s spouse, heirs, executors, or personal or legal representatives after the expiration of\plain\li396\cf1\f51\fs24\qj one year from the date of accrual of that cause of action, and any claim or cause of action of the\plain\li396\cf1\f51\fs24\qj Company or its affiliate shall be extinguished and deemed released unless asserted by the timely filing of\plain\li396\cf1\f51\fs24\qj a legal action within that one-year period; provided, however, that for any claim based on\plain\li396\cf1\f51\fs24\qj Indemnitee\u8217?s breach of fiduciary duties to the Company or its stockholders, the period set forth in\plain\li396\cf1\f51\fs24\qj the preceding sentence shall be three years instead of one year; and provided, further, that, if any shorter\plain\li396\sa264\cf1\f51\fs24\qj period of limitations is otherwise applicable to any such cause of action, the shorter period shall govern. \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 18\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\sa264\cf1\f51\fs24\i\qc [signatures on following page] \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 19\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\cf1\f51\fs24\qj IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of\plain\li396\sa264\cf1\f51\fs24\qj the date first above written.\par\pard\plain\li396\sa264\fi3960\cf1\f51\fs24\b\qj PIONEER NATURAL RESOURCES COMPANY \par\pard\plain {\trowd\clvertalc\cellx5355\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5355\trrh66\row}}} {\trowd\clvertalc\cellx749\clvertalc\cellx5355\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx749\clvertalc\cellx5355\trrh66\row}}} {\trowd\clvertalb\cellx749\clvertalb\cellx5355\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Mark H. Kleinman\cell{ {\trowd\clvertalb\cellx749\clvertalb\cellx5355\trrh281\row}}} {\trowd\clvertalb\cellx749\clvertalb\cellx5355\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Name:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Mark H. Kleinman\cell{ {\trowd\clvertalb\cellx749\clvertalb\cellx5355\trrh281\row}}} {\trowd\clvertalb\cellx749\clvertalb\cellx5355\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Title:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Executive Vice President and General Counsel\cell{ {\trowd\clvertalb\cellx749\clvertalb\cellx5355\trrh281\row}}} \par\pard\plain\fs16\pard\plain\li396\sa264\fi3960\cf1\f51\fs24\b\qj INDEMNITEE\plain\li396\sa264\cf1\f51\fs24\qj :\par\pard\plain\li396\fi3960\cf1\f51\fs24\qj /s/ Craig A. Kuiper\par\pard\plain\li396\sa264\fi3960\cf1\f51\fs24\qj Craig A. Kuiper \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 20\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li396\sa264\cf1\f51\fs24\qc Schedule I \par\pard\plain\fs16\par\pard\plain\li396\sa264\cf1\f51\fs24\ql 1. The Company entered into an Indemnification Agreement with each of Elizabeth A. McDonald and\plain\li396\sa264\cf1\f51\fs24\ql Tyson L. Taylor that is otherwise identical to the one entered into with Craig A. Kuiper. \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\sb176\cf1\f51\fs20\qc 21 \page{\*\bkmkstart doc_1_4}{\*\bkmkend doc_1_4}{\*\bkmkstart s1cd01e8ac32d4c5ab4184da75620fc1}{\*\bkmkend s1cd01e8ac32d4c5ab4184da75620fc1} \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f52\fs20\b\qr EXHIBIT 10.3\par\pard\plain\cf1\f52\fs22\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f52\fs22\b\qc CHANGE IN CONTROL AGREEMENT \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\qj This Change in Control Agreement (\plain\cf1\f52\fs22\b\i\qj \u8220?Agreement\u8221?\plain\cf1\f52\fs22\qj ) is entered into, as of February\~21,\plain\cf1\f52\fs22\qj 2019\plain\cf1\f52\fs22\b\qj ,\plain\cf1\f52\fs22\qj among Pioneer Natural Resources Company, a Delaware corporation (\plain\cf1\f52\fs22\b\i\qj \u8220?Parent\u8221?\plain\cf1\f52\fs22\qj ),\plain\cf1\f52\fs22\qj Pioneer Natural Resources USA, Inc., a Delaware corporation that is a wholly-owned subsidiary of Parent\plain\cf1\f52\fs22\qj (\plain\cf1\f52\fs22\b\i\qj \u8220?Employer\u8221?\plain\cf1\f52\fs22\qj ), and Scott D. Sheffield (\plain\cf1\f52\fs22\b\i\qj \u8220?Employee\u8221?\plain\cf1\f52\fs22\qj ). As henceforth used in\plain\cf1\f52\fs22\qj this Agreement, the term\plain\cf1\f52\fs22\b\i\qj \u8220?Company\u8221?\plain\cf1\f52\fs22\qj shall be deemed to include Parent and its direct or\plain\cf1\f52\fs22\qj indirect majority-owned subsidiaries. \par\pard\plain\fs16\par\pard\plain\cf1\f52\fs22\b\i\qc Recitals \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\qj Parent and Employer acknowledge that Employee possesses skills and knowledge instrumental to\plain\cf1\f52\fs22\qj the successful conduct of the Company\u8217?s business. Parent and Employer are willing to enter into\plain\cf1\f52\fs22\qj this Agreement with Employee in order to better ensure themselves of access to the continued services of\plain\cf1\f52\fs22\qj Employee both before and after a Change in Control. \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\qj NOW, THEREFORE, for and in consideration of the mutual covenants and agreements set forth\plain\cf1\f52\fs22\qj herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby\plain\cf1\f52\fs22\qj acknowledged, the parties to this Agreement hereby agree as follows: \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\b\qj 1.\~\plain\cf1\f51\fs20\qj \~\~\~\~\plain\cf1\f52\fs22\b\i\qj Term\plain\cf1\f52\fs22\qj . The term of this Agreement shall commence on the date indicated above (the\plain\cf1\f52\fs22\b\i\qj \u8220?Effective Date\u8221?\plain\cf1\f52\fs22\qj ) and end on September\~30, 2020. Thereafter, on the date on which the\plain\cf1\f52\fs22\qj term of this Agreement (as it may be extended from time to time under this paragraph\~1) would otherwise\plain\cf1\f52\fs22\qj expire, so long as Employee is still an employee of the Company on such date, such term will be\plain\cf1\f52\fs22\qj automatically extended for 12\~months, unless Parent shall have provided written notice to Employee at least\plain\cf1\f52\fs22\qj 6\~months before the date that the term would otherwise expire that it does not want the term to be\plain\cf1\f52\fs22\qj extended. Parent may deliver a conditional notice of non-renewal that will be effective only if Employee\plain\cf1\f52\fs22\qj does not agree, within the time period specified by Parent, to any amendment or modification of this\plain\cf1\f52\fs22\qj Agreement that Parent shall request be executed as a condition to allowing the term hereof to be extended.\plain\cf1\f52\fs22\qj Notwithstanding the foregoing, and regardless of whether Parent has theretofore delivered a notice of\plain\cf1\f52\fs22\qj non-renewal and/or sought agreement from Employee to amendments to this Agreement, if a Potential\plain\cf1\f52\fs22\qj Change in Control or a Change in Control occurs during the term hereof, the term of this Agreement shall\plain\cf1\f52\fs22\qj be automatically extended to the second anniversary of the date on which the Change in Control occurs\plain\cf1\f52\fs22\qj (the\plain\cf1\f52\fs22\b\i\qj \u8220?Change in Control Date\u8221?\plain\cf1\f52\fs22\qj );\plain\cf1\f52\fs22\i\qj provided, however, that\plain\cf1\f52\fs22\qj if no Change in Control has\plain\cf1\f52\fs22\qj occurred prior to the first anniversary of the occurrence of a Potential Change in Control and the Board of\plain\cf1\f52\fs22\qj Directors of Parent (the\plain\cf1\f52\fs22\b\i\qj \u8220?Board\u8221?\plain\cf1\f52\fs22\qj ), acting in good faith, thereafter adopts a resolution that\plain\cf1\f52\fs22\qj such Potential Change in Control will not result in the occurrence of a Change in Control, the term of this\plain\cf1\f52\fs22\qj Agreement shall expire on a date specified by the Board not earlier than the first anniversary of the\plain\cf1\f52\fs22\qj adoption of such resolution (unless otherwise extended pursuant to the second sentence of this\plain\cf1\f52\fs22\qj paragraph\~1). \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\b\qj 2.\~\plain\cf1\f51\fs20\qj \~\~\~\~\plain\cf1\f52\fs22\b\i\qj Operation of Agreement\plain\cf1\f52\fs22\qj . Except as expressly provided below, no benefits shall be payable\plain\cf1\f52\fs22\qj under this Agreement if Employee is not employed by the Company on the Change in Control Date.\plain\cf1\f52\fs22\qj Notwithstanding anything else contained herein to the contrary, if Employee\u8217?s employment is\plain\cf1\f52\fs22\qj terminated (a)\~by the Company and such termination is not a Termination for Cause and (b)\~after the\plain\cf1\f52\fs22\qj occurrence of a Potential Change in Control but prior to a Change in Control and a Change in Control\plain\cf1\f52\fs22\qj occurs within 12\~months after such termination, Employee shall be deemed, solely for purposes of\plain\cf1\f52\fs22\qj determining Employee\u8217?s rights under this Agreement, to have remained employed until the Change\plain\cf1\f52\fs22\qj in Control Date and to have been terminated by the Company without cause immediately thereafter;\plain\cf1\f52\fs22\i\qj provided, however, that\plain\cf1\f52\fs22\qj , in such case, the Separation Payment payable hereunder shall be reduced by the\plain\cf1\f52\fs22\qj amount of any other cash severance benefits theretofore paid to Employee in connection with such\plain\cf1\f52\fs22\qj termination. If Employee is still an employee of the Company on the Change in Control Date, or Employee\plain\cf1\f52\fs22\qj is deemed, for purposes of this Agreement, to continue to be in the employ of the Company until the\plain\cf1\f52\fs22\qj Change in Control Date pursuant to the immediately preceding sentence, upon the occurrence of a Change\plain\cf1\f52\fs22\qj in Control this Agreement shall supercede any other \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 1\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f52\fs22\qj individual agreement between Parent and Employer and Employee the primary purpose of which is to\plain\cf1\f52\fs22\qj provide Employee the right to receive severance benefits and certain other benefits ancillary to such\plain\cf1\f52\fs22\qj severance benefits in connection with the termination of Employee\u8217?s employment (the\plain\cf1\f52\fs22\qj \u8220?\plain\cf1\f52\fs22\b\i\qj Severance Agreement\plain\cf1\f52\fs22\qj \u8221?), subject, if applicable, to the offset set forth in the immediately\plain\cf1\f52\fs22\qj preceding sentence. \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\b\qj 3.\~\plain\cf1\f51\fs20\qj \~\~\~\~\plain\cf1\f52\fs22\b\i\qj Certain Definitions\plain\cf1\f52\fs22\qj . As used in this Agreement, the following terms shall have the meanings\plain\cf1\f52\fs22\qj set forth below: \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Accrued Obligations\u8221?\plain\li792\cf1\f52\fs22\qj shall mean any vested amounts or benefits owing to\plain\li792\cf1\f52\fs22\qj Employee under any of the Company\u8217?s employee benefit plans and programs in which\plain\li792\cf1\f52\fs22\qj Employee has participated, including any compensation previously deferred by Employee (together\plain\li792\cf1\f52\fs22\qj with any accrued earnings thereon) and not yet paid. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Base Salary\u8221?\plain\li792\cf1\f52\fs22\qj shall mean Employee\u8217?s annualized base salary at the\plain\li792\cf1\f52\fs22\qj rate in effect at the relevant date or event as reflected in Employer\u8217?s regular payroll records. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Change in Control\u8221?\plain\li792\cf1\f52\fs22\qj shall mean an event that constitutes a \u8220?change in\plain\li792\cf1\f52\fs22\qj control\u8221? as defined in Parent\u8217?s LTIP, except that, solely for purposes of determining\plain\li792\cf1\f52\fs22\qj whether Employee is eligible for benefits under this Agreement due to a termination of employment\plain\li792\cf1\f52\fs22\qj occurring after a Potential Change in Control, but prior to the occurrence of a Change in Control, an\plain\li792\cf1\f52\fs22\qj event shall only constitute a Change in Control if it both qualifies as such under Parent\u8217?s\plain\li792\cf1\f52\fs22\qj LTIP and is a change in the ownership or effective control or in the ownership of a substantial\plain\li792\cf1\f52\fs22\qj portion of the assets of the Parent for purposes of Section\~409A of the Code. Any modification to\plain\li792\cf1\f52\fs22\qj the definition of \u8220?change in control\u8221? in Parent\u8217?s LTIP (including by virtue of the\plain\li792\cf1\f52\fs22\qj adoption by the Parent of a successor plan thereto setting forth a modified definition of\plain\li792\cf1\f52\fs22\qj \u8220?change in control\u8221?) adopted after the Effective Date shall apply for purposes of this\plain\li792\cf1\f52\fs22\qj Agreement, except that any modification to such definition adopted on or after, or within 180 days\plain\li792\cf1\f52\fs22\qj prior to, a Change in Control or Potential Change in Control shall not apply in determining the\plain\li792\cf1\f52\fs22\qj definition of such term under this Agreement unless such amendment is favorable to Employee. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj \u8220?\plain\li792\cf1\f52\fs22\b\qj Code\plain\li792\cf1\f52\fs22\qj \u8221? shall mean the Internal Revenue Code of 1986, as amended, or any\plain\li792\cf1\f52\fs22\qj successor provision thereto. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?\plain\li792\cf1\f52\fs22\b\qj Date of Termination\plain\li792\cf1\f52\fs22\b\i\qj \u8221?\plain\li792\cf1\f52\fs22\qj shall mean \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj In the case of a termination for which a Notice of Termination is required, the\plain\li1584\cf1\f52\fs22\qj date of receipt of such Notice of Termination or, if later, the date specified therein; and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj In all other cases, the actual date on which Employee\u8217?s employment\plain\li1584\cf1\f52\fs22\qj terminates; \par\pard\plain\fs16\par\pard\plain\li792\cf1\f52\fs22\qj provided, however, that if Employee continues to provide or, in the 12 month period following such\plain\li792\cf1\f52\fs22\qj termination of employment, Employee is expected to provide, sufficient services that, under the\plain\li792\cf1\f52\fs22\qj Parent\u8217?s written and generally applicable policies regarding what constitutes a\plain\li792\cf1\f52\fs22\qj \u8220?separation from service\u8221? for purpose of Section\~409A of the Code, Employee does\plain\li792\cf1\f52\fs22\qj not incur a separation of service for purposes of such Section\~409A on the date of termination,\plain\li792\cf1\f52\fs22\qj Employee\u8217?s Date of Termination for purposes of this Agreement shall be the date on which\plain\li792\cf1\f52\fs22\qj such Employee incurs a separation from service under such policies. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Disability\u8221?\plain\li792\cf1\f52\fs22\qj shall mean Employee\u8217?s physical or mental impairment or\plain\li792\cf1\f52\fs22\qj incapacity of sufficient severity such that \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj In the opinion of a qualified physician selected by Parent with the consent of\plain\li1584\cf1\f52\fs22\qj Employee or Employee\u8217?s legal representative (which consent shall not be\plain\li1584\cf1\f52\fs22\qj unreasonably withheld), after taking into account all reasonable accommodations that the\plain\li1584\cf1\f52\fs22\qj Company has \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 2\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\cf1\f52\fs22\qj made or could make, Employee is unable to continue to perform Employee\u8217?s duties\plain\li1584\cf1\f52\fs22\qj and responsibilities as an employee of the Company; and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s condition entitles Employee to long-term disability benefits\plain\li1584\cf1\f52\fs22\qj under any employee benefit plan maintained by the Company or any of its affiliates that are\plain\li1584\cf1\f52\fs22\qj at least comparable to those made available to Employee by the Company prior to the\plain\li1584\cf1\f52\fs22\qj Change in Control. \par\pard\plain\fs16\par\pard\plain\li792\cf1\f52\fs22\qj For purposes of subparagraph\~(1) of this definition, Employee agrees to provide such access to\plain\li792\cf1\f52\fs22\qj Employee\u8217?s medical records and to submit to such physical examinations and medical tests\plain\li792\cf1\f52\fs22\qj as, in the opinion of the physician selected by Parent, is reasonably necessary to make the\plain\li792\cf1\f52\fs22\qj determination required as to Employee\u8217?s ability to perform Employee\u8217?s duties and\plain\li792\cf1\f52\fs22\qj responsibilities. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Earned Salary\u8221?\plain\li792\cf1\f52\fs22\qj shall mean the Base Salary earned by Employee, but\plain\li792\cf1\f52\fs22\qj unpaid, through Employee\u8217?s Date of Termination. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Normal Retirement Date\u8221?\plain\li792\cf1\f52\fs22\qj shall mean the date on which Employee attains\plain\li792\cf1\f52\fs22\qj age 60. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Notice of Termination\u8221?\plain\li792\cf1\f52\fs22\qj shall mean a written notice given, in the case of a\plain\li792\cf1\f52\fs22\qj Termination for Cause, within 45\~days of Parent\u8217?s or Employer\u8217?s having actual\plain\li792\cf1\f52\fs22\qj knowledge of the events giving rise to such termination, and in the case of a Termination for Good\plain\li792\cf1\f52\fs22\qj Reason, within 90\~days of the later to occur of (x)\~the Change in Control Date or (y)\plain\li792\cf1\f52\fs22\qj Employee\u8217?s having actual knowledge of the events giving rise to such termination. Any such\plain\li792\cf1\f52\fs22\qj Notice of Termination shall \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Indicate the specific termination provision in this Agreement relied upon; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Set forth in reasonable detail the facts and circumstances claimed to provide a\plain\li1584\cf1\f52\fs22\qj basis for termination of Employee\u8217?s employment under the provision so indicated; and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj If the Date of Termination is other than the date of receipt of such notice,\plain\li1584\cf1\f52\fs22\qj specify the Date of Termination (which date shall be not more than 30\~days after the giving\plain\li1584\cf1\f52\fs22\qj of such notice). \par\pard\plain\fs16\par\pard\plain\li792\cf1\f52\fs22\qj The failure by Employee to set forth in the Notice of Termination any fact or circumstance which\plain\li792\cf1\f52\fs22\qj contributes to a showing of Termination for Good Reason shall not waive any right of Employee\plain\li792\cf1\f52\fs22\qj hereunder or preclude Employee from asserting such fact or circumstance in enforcing\plain\li792\cf1\f52\fs22\qj Employee\u8217?s rights hereunder. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj \u8220?\plain\li792\cf1\f52\fs22\b\i\qj Parent\u8217?s LTIP\plain\li792\cf1\f52\fs22\qj \u8221? shall mean the Parent\u8217?s Amended and\plain\li792\cf1\f52\fs22\qj Restated 2006 Long Term Incentive Plan, as the same may be amended, modified, supplemented,\plain\li792\cf1\f52\fs22\qj or restated from time to time, or any successor plan thereto. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Potential Change in Control\u8221?\plain\li792\cf1\f52\fs22\qj shall mean the occurrence of any of the\plain\li792\cf1\f52\fs22\qj following events: \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Any person or group shall have announced publicly an intention to effect a\plain\li1584\cf1\f52\fs22\qj Change in Control, or commenced any action (such as the commencement of a tender offer\plain\li1584\cf1\f52\fs22\qj for Parent\u8217?s common stock or the solicitation of proxies for the election of any of\plain\li1584\cf1\f52\fs22\qj Parent\u8217?s directors) that, if successful, could reasonably be expected to result in the\plain\li1584\cf1\f52\fs22\qj occurrence of a Change in Control; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Parent enters into an agreement the consummation of which would constitute a\plain\li1584\cf1\f52\fs22\qj Change in Control; or \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 3\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Any other event occurs which the Board declares to be a Potential Change in\plain\li1584\cf1\f52\fs22\qj Control. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Separation Payment\u8221?\plain\li792\cf1\f52\fs22\qj shall mean any lump sum cash payment in excess of\plain\li792\cf1\f52\fs22\qj Earned Salary and Accrued Obligations payable to Employee under this Agreement. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\qj \u8220?\plain\li792\cf1\f52\fs22\b\i\qj Target Bonus\plain\li792\cf1\f52\fs22\b\qj \u8221?\plain\li792\cf1\f52\fs22\qj shall mean the greater of \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj the average of the target bonuses made available to Employee under any\plain\li1584\cf1\f52\fs22\qj Company annual bonus program (which, if not stated as the target for a full year of service,\plain\li1584\cf1\f52\fs22\qj shall be annualized) for the year in which the Change in Control Date occurs and for each of\plain\li1584\cf1\f52\fs22\qj the last 2\~years ended prior to the year in which the Change in Control Date occurs (or, if\plain\li1584\cf1\f52\fs22\qj less, the number of years prior to the year in which the Change in Control Date occurs\plain\li1584\cf1\f52\fs22\qj during which Employee was employed by the Company); and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s highest target bonus made available to Employee under the\plain\li1584\cf1\f52\fs22\qj annual bonus program in which Employee participated for services rendered or to be\plain\li1584\cf1\f52\fs22\qj rendered by Employee in any calendar year after the calendar year in which the Change in\plain\li1584\cf1\f52\fs22\qj Control Date occurs; \par\pard\plain\fs16\par\pard\plain\li792\cf1\f52\fs22\qj in either case as reflected in Employer\u8217?s records. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Termination for Cause\u8221?\plain\li792\cf1\f52\fs22\qj shall mean a termination of Employee\u8217?s\plain\li792\cf1\f52\fs22\qj employment by Parent and Employer due to the occurrence of any of the following \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s continued failure (i)\~to substantially perform\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s duties and responsibilities (other than any such failure resulting from\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s physical or mental impairment or incapacity) or (ii)\~to comply with any\plain\li1584\cf1\f52\fs22\qj material written policy of the Company generally applicable to all officers of the Company\plain\li1584\cf1\f52\fs22\qj and, if applicable, the successor in interest to Parent or, if such successor is a subsidiary of\plain\li1584\cf1\f52\fs22\qj any other entity, the direct or indirect ultimate parent of such successor (such successor or\plain\li1584\cf1\f52\fs22\qj such ultimate parent entity, the\plain\li1584\cf1\f52\fs22\b\i\qj \u8220?Parent Successor\u8221?\plain\li1584\cf1\f52\fs22\qj ), which specifically\plain\li1584\cf1\f52\fs22\qj provides that Employee may be dismissed (or Employee\u8217?s employment terminated) as\plain\li1584\cf1\f52\fs22\qj a consequence of any such failure to comply, in either case more than 10 business days\plain\li1584\cf1\f52\fs22\qj after written demand for substantial performance or compliance with the policy is delivered by\plain\li1584\cf1\f52\fs22\qj Parent specifically identifying the manner in which Parent believes Employee has not\plain\li1584\cf1\f52\fs22\qj substantially performed Employee\u8217?s duties and responsibilities or not complied with\plain\li1584\cf1\f52\fs22\qj the written policy; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s engaging in an act or acts of gross misconduct which result\plain\li1584\cf1\f52\fs22\qj in, or are intended to result in, material damage to the Company\u8217?s business or\plain\li1584\cf1\f52\fs22\qj reputation; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s failure, following a written request from Parent, reasonably to\plain\li1584\cf1\f52\fs22\qj cooperate (including, without limitation, the refusal by Employee to be interviewed or\plain\li1584\cf1\f52\fs22\qj deposed, or to give testimony) in connection with any investigation or proceeding, whether\plain\li1584\cf1\f52\fs22\qj internal or external (including, without limitation, by any governmental or quasi-governmental\plain\li1584\cf1\f52\fs22\qj agency), into the business practices or operations of the Company; or \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (4)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s conviction of (or plea of guilty or\plain\li1584\cf1\f52\fs22\i\qj nolo contendere\plain\li1584\cf1\f52\fs22\qj to a\plain\li1584\cf1\f52\fs22\qj charge of) any felony or any crime or misdemeanor, in either case, involving moral turpitude\plain\li1584\cf1\f52\fs22\qj or financial misconduct which results in significant monetary damage to the Company. \par\pard\plain\fs16\par\pard\plain\li792\cf1\f52\fs22\qj For purposes of subparagraph\~(2) of this definition, an act, or failure to act, on Employee\u8217?s\plain\li792\cf1\f52\fs22\qj part shall only be considered \u8220?misconduct\u8221? if done, or omitted, by Employee not in\plain\li792\cf1\f52\fs22\qj good faith and without reasonable belief that such act, or failure to act, was in the best interest of\plain\li792\cf1\f52\fs22\qj the Company. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 4\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\b\i\qj \u8220?Termination for Good Reason\u8221?\plain\li792\cf1\f52\fs22\qj shall mean a termination of\plain\li792\cf1\f52\fs22\qj Employee\u8217?s employment by Employee due to the occurrence of any of the following, without\plain\li792\cf1\f52\fs22\qj the express written consent of Employee, after the occurrence of a Potential Change in Control or a\plain\li792\cf1\f52\fs22\qj Change in Control: \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj (i)\~The assignment to Employee of any duties inconsistent in any material\plain\li1584\cf1\f52\fs22\qj adverse respect with Employee\u8217?s position, authority or responsibilities as in effect\plain\li1584\cf1\f52\fs22\qj immediately prior to a Potential Change in Control or a Change in Control, or (ii)\~any other\plain\li1584\cf1\f52\fs22\qj material adverse change in such position, including (A)\~titles, authority, responsibilities,\plain\li1584\cf1\f52\fs22\qj status, powers or functions, (B)\~the position to which Employee reports or the principal\plain\li1584\cf1\f52\fs22\qj departmental functions that report to Employee, or (C)\~the budget over which Employee\plain\li1584\cf1\f52\fs22\qj retains authority, which, in the case of any officer of Parent, shall be deemed to have\plain\li1584\cf1\f52\fs22\qj occurred unless, following the Change in Control Date, Employee holds such position or\plain\li1584\cf1\f52\fs22\qj positions with the Parent Successor that are substantially comparable to the position or\plain\li1584\cf1\f52\fs22\qj positions held by Employee with Parent immediately prior to the Change in Control Date (or,\plain\li1584\cf1\f52\fs22\qj if higher, immediately prior to the occurrence of a Potential Change in Control);\plain\li1584\cf1\f52\fs22\qj provided that\plain\li1584\cf1\f52\fs22\qj there shall be excluded for the purpose of this subparagraph\~(1) any isolated, insubstantial\plain\li1584\cf1\f52\fs22\qj and inadvertent action remedied promptly after receipt of notice thereof given by Employee; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Any failure by the Company or the Parent Successor, other than an\plain\li1584\cf1\f52\fs22\qj insubstantial or inadvertent failure remedied promptly after receipt of notice thereof given by\plain\li1584\cf1\f52\fs22\qj Employee, to provide Employee with an annual Base Salary which is at least equal to the\plain\li1584\cf1\f52\fs22\qj Base Salary payable to Employee immediately prior to the Change in Control Date (or, if\plain\li1584\cf1\f52\fs22\qj higher, immediately prior to the occurrence of a Potential Change in Control) or, if more\plain\li1584\cf1\f52\fs22\qj favorable to Employee, at the rate made available to Employee at any time thereafter (the\plain\li1584\cf1\f52\fs22\b\i\qj \u8220?Protected Base Salary\u8221?\plain\li1584\cf1\f52\fs22\qj ); \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Any failure by the Company or the Parent Successor, other than an insubstantial\plain\li1584\cf1\f52\fs22\qj or inadvertent failure remedied promptly after receipt of notice thereof given by Employee, to\plain\li1584\cf1\f52\fs22\qj provide Employee with a reasonably achievable opportunity (determined in a manner\plain\li1584\cf1\f52\fs22\qj consistent with the Company\u8217?s practices prior to the Change in Control) to receive an\plain\li1584\cf1\f52\fs22\qj annual bonus ranging from 100%, at targeted levels of performance, to 200%, at superior\plain\li1584\cf1\f52\fs22\qj levels of performance, of Employee\u8217?s Target Bonus; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (4)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Any failure by the Company or the Parent Successor, other than an insubstantial\plain\li1584\cf1\f52\fs22\qj or inadvertent failure remedied promptly after receipt of notice thereof given by Employee, to\plain\li1584\cf1\f52\fs22\qj provide Employee with annual awards of long-term incentive compensation that have a value\plain\li1584\cf1\f52\fs22\qj (using the same valuation methodologies used for valuing long-term incentive compensation\plain\li1584\cf1\f52\fs22\qj awards of a similar type made to senior officers of Parent and, if applicable, the Parent\plain\li1584\cf1\f52\fs22\qj Successor) at least equal to the average dollar value assigned thereto by the Company at\plain\li1584\cf1\f52\fs22\qj the date of grant of the last three annual long-term incentive compensation awards\plain\li1584\cf1\f52\fs22\qj (including, without limitation, equity and equity-based awards) granted to Employee in\plain\li1584\cf1\f52\fs22\qj respect of Employee\u8217?s employment with the Company (or if Employee has received\plain\li1584\cf1\f52\fs22\qj less than three such annual grants, the average of the value of the number of grants\plain\li1584\cf1\f52\fs22\qj received by Employee prior to the Change in Control Date); \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (5)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Any failure by the Company or the Parent Successor, other than an insubstantial\plain\li1584\cf1\f52\fs22\qj or inadvertent failure remedied promptly after receipt of notice thereof given by Employee, to\plain\li1584\cf1\f52\fs22\qj permit Employee (and, to the extent applicable, Employee\u8217?s dependents) to\plain\li1584\cf1\f52\fs22\qj participate in or be covered under all pension, retirement, deferred compensation, savings,\plain\li1584\cf1\f52\fs22\qj medical, dental, health, disability, group life, accidental death and travel accident insurance\plain\li1584\cf1\f52\fs22\qj plans and programs at a level that is at least as favorable, in the aggregate, as the benefits\plain\li1584\cf1\f52\fs22\qj provided under the plans of the Company and its affiliated companies prior to the Change \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 5\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\cf1\f52\fs22\qj in Control Date (or, if more favorable to Employee, at the level made available to Employee\plain\li1584\cf1\f52\fs22\qj or other similarly situated officers at any time thereafter); or \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (6)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj If, not later than the Change in Control Date, any Parent Successor shall have\plain\li1584\cf1\f52\fs22\qj failed to agree in writing to assume and perform this Agreement as required by\plain\li1584\cf1\f52\fs22\qj paragraph\~7(h) hereof. \par\pard\plain\fs16\par\pard\plain\li792\cf1\f52\fs22\qj For purposes of this definition, any determination made by Employee that an event or events give\plain\li792\cf1\f52\fs22\qj rise to a right to Termination for Good Reason shall be presumed to be valid unless such\plain\li792\cf1\f52\fs22\qj determination, pursuant to paragraph\~7(b), is deemed by an arbitrator to be unreasonable and not to\plain\li792\cf1\f52\fs22\qj have been made in good faith by Employee. \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\b\qj 4.\~\plain\cf1\f51\fs20\qj \~\~\~\~\plain\cf1\f52\fs22\b\i\qj Termination of Employment\plain\cf1\f52\fs22\i\qj . \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (a)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Right to Terminate\plain\li792\cf1\f52\fs22\qj . Nothing in this Agreement shall be construed in any way to limit\plain\li792\cf1\f52\fs22\qj the right of the Company to terminate Employee\u8217?s employment, with or without cause, or for\plain\li792\cf1\f52\fs22\qj Employee to terminate Employee\u8217?s employment with the Company, with or without reason;\plain\li792\cf1\f52\fs22\i\qj provided, however, that\plain\li792\cf1\f52\fs22\qj the Company and Employee must nonetheless comply with any duty or\plain\li792\cf1\f52\fs22\qj obligation such party has at law or under any agreement (including paragraph\~6 of this Agreement)\plain\li792\cf1\f52\fs22\qj between the parties. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (b)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Termination due to Death or Disability\plain\li792\cf1\f52\fs22\qj . Employee\u8217?s employment with the\plain\li792\cf1\f52\fs22\qj Company shall be terminated upon Employee\u8217?s death. By written notice to the other party,\plain\li792\cf1\f52\fs22\qj either the Company or Employee may terminate Employee\u8217?s employment due to Disability. \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\b\qj 5.\~\plain\cf1\f51\fs20\qj \~\~\~\~\plain\cf1\f52\fs22\b\i\qj Amounts Payable Upon Termination of Employment\plain\cf1\f52\fs22\qj . The following provisions shall apply to\plain\cf1\f52\fs22\qj any termination of Employee\u8217?s employment occurring (or which, pursuant to paragraph\~2, is deemed\plain\cf1\f52\fs22\qj to occur) at the time of, or at any time within 2\~years following, a Change in Control: \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (a)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Death or Disability\plain\li792\cf1\f52\fs22\qj . In the event that Employee\u8217?s employment terminates due\plain\li792\cf1\f52\fs22\qj to Employee\u8217?s death or Disability (regardless of whether such Disability termination is\plain\li792\cf1\f52\fs22\qj initiated by Employee or the Company) , Parent or Employer shall pay Employee (or, if applicable,\plain\li792\cf1\f52\fs22\qj Employee\u8217?s beneficiaries or legal representative(s)): \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Earned Salary, as soon as practicable (but not more than 10\~days) following\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Date of Termination; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Accrued Obligations, in accordance with applicable law and the provisions of\plain\li1584\cf1\f52\fs22\qj any applicable plan, program, policy or practice; and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj A Separation Payment in an amount equal to Employee\u8217?s Base Salary,\plain\li1584\cf1\f52\fs22\qj which shall be paid 10 days following Employee\u8217?s Date of Termination,\plain\li1584\cf1\f52\fs22\qj provided that\plain\li1584\cf1\f52\fs22\qj ,\plain\li1584\cf1\f52\fs22\qj if, at the Date of Termination, Employee is a \u8220?specified employee\u8221? within the\plain\li1584\cf1\f52\fs22\qj meaning of Section\~409A of the Code, as determined in accordance with the procedures\plain\li1584\cf1\f52\fs22\qj specified or established by the Parent in accordance with such Section\~409A and the\plain\li1584\cf1\f52\fs22\qj regulations thereunder (a \u8220?\plain\li1584\cf1\f52\fs22\b\i\qj Specified Employee\plain\li1584\cf1\f52\fs22\qj \u8221?), and the Separation\plain\li1584\cf1\f52\fs22\qj Payment is payable due to Disability, the Separation Payment shall be made six months and\plain\li1584\cf1\f52\fs22\qj one day after Employee\u8217?s Date of Termination. In the event that the Separation\plain\li1584\cf1\f52\fs22\qj Payment is made six months and one day after the Date of Termination, it shall be paid with\plain\li1584\cf1\f52\fs22\qj interest from the Date of Termination at a rate equal to Employer\u8217?s cost of borrowing\plain\li1584\cf1\f52\fs22\qj under its principal credit facility as in effect at the Date of Termination, as determined by the\plain\li1584\cf1\f52\fs22\qj Parent\u8217?s Chief Financial Officer. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (b)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Cause and Voluntary Termination\plain\li792\cf1\f52\fs22\qj . If Employee\u8217?s employment is terminated by\plain\li792\cf1\f52\fs22\qj the Company in a Termination for Cause or voluntarily by Employee\plain\li792\cf1\f52\fs22\qj (which is not a Termination for\plain\li792\cf1\f52\fs22\qj Good Reason), Parent or Employer shall pay Employee: \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 6\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Earned Salary as soon as practicable (but not more than 10\~days) following\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Date of Termination; and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Accrued Obligations in accordance with applicable law and the provisions of\plain\li1584\cf1\f52\fs22\qj any applicable plan, program, policy or practice. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (c)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Termination After Normal Retirement\plain\li792\cf1\f52\fs22\qj . If Employee\u8217?s employment terminates\plain\li792\cf1\f52\fs22\qj after Employee\u8217?s Normal Retirement Date due to Employee\u8217?s voluntary retirement,\plain\li792\cf1\f52\fs22\qj Parent or Employer shall pay Employee: \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Earned Salary as soon as practicable (but not more than 10\~days) following\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Date of Termination; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Accrued Obligations in accordance with applicable law and the provisions of\plain\li1584\cf1\f52\fs22\qj any applicable plan, program, policy or practice; and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj a Separation Payment in an amount equal to Employee\u8217?s Base Salary,\plain\li1584\cf1\f52\fs22\qj which shall be paid 10 days following Employee\u8217?s Date of Termination,\plain\li1584\cf1\f52\fs22\qj provided that\plain\li1584\cf1\f52\fs22\qj ,\plain\li1584\cf1\f52\fs22\qj if, at the Date of Termination, Employee is a Specified Employee, the Separation Payment\plain\li1584\cf1\f52\fs22\qj shall be made six months and one day after Employee\u8217?s Date of Termination. In the\plain\li1584\cf1\f52\fs22\qj event that the Separation Payment is made six months and one day after the Date of\plain\li1584\cf1\f52\fs22\qj Termination, an amount equal to such Separation Payment shall be contributed by the\plain\li1584\cf1\f52\fs22\qj Company or Employer within five business days following the Date of Termination to a\plain\li1584\cf1\f52\fs22\qj grantor trust in the United States subject to the claims of the grantor\u8217?s creditors (a\plain\li1584\cf1\f52\fs22\qj \u8220?\plain\li1584\cf1\f52\fs22\b\i\qj Grantor Trust\plain\li1584\cf1\f52\fs22\qj \u8221?), with such amount to be invested through the trust in U.S.\plain\li1584\cf1\f52\fs22\qj Treasury securities or money market investments, with the principal investment purpose\plain\li1584\cf1\f52\fs22\qj being to preserve principal (\u8220?\plain\li1584\cf1\f52\fs22\b\i\qj Fixed Income Securities\plain\li1584\cf1\f52\fs22\qj \u8221?). When payment of\plain\li1584\cf1\f52\fs22\qj any such deferred portion of the Separation Payment is made in accordance with the second\plain\li1584\cf1\f52\fs22\qj preceding sentence, it shall be increased by an amount equal to the earnings on the\plain\li1584\cf1\f52\fs22\qj amounts contributed to such Grantor Trust in respect of such deferred Separation Payment. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (d)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Termination for Good Reason or Without Cause\plain\li792\cf1\f52\fs22\qj . If Employee terminates\plain\li792\cf1\f52\fs22\qj Employee\u8217?s employment in a Termination for Good Reason or the Company terminates\plain\li792\cf1\f52\fs22\qj Employee\u8217?s employment for any reason other than those described in paragraphs\~5(a) and\plain\li792\cf1\f52\fs22\qj (b) above, Parent or Employer shall pay or shall provide to Employee the following benefits and\plain\li792\cf1\f52\fs22\qj compensation: \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Earned Salary, as soon as practicable (but not more than 10\~days) following\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Date of Termination; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Accrued Obligations, in accordance with applicable law and the provisions of\plain\li1584\cf1\f52\fs22\qj any applicable plan, program, policy or practice; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Continued coverage, at the same costs that apply to similarly situated active\plain\li1584\cf1\f52\fs22\qj employees, for Employee and Employee\u8217?s eligible dependents under the\plain\li1584\cf1\f52\fs22\qj Employer\u8217?s group medical plans or, to the extent such continued coverage cannot be\plain\li1584\cf1\f52\fs22\qj provided under such plan without adverse consequences for the Company or Employee due\plain\li1584\cf1\f52\fs22\qj to non-discrimination requirements, then under an individual or group insurance policy that is\plain\li1584\cf1\f52\fs22\qj substantially similar in all material respects to the coverage made available under such group\plain\li1584\cf1\f52\fs22\qj health plans, for each of the following two periods (i)\~from Employee\u8217?s Date of\plain\li1584\cf1\f52\fs22\qj Termination until and including the 18 month anniversary of such termination; and (ii)\~from\plain\li1584\cf1\f52\fs22\qj the day after the 18 month anniversary of Employee\u8217?s Date of Termination and\plain\li1584\cf1\f52\fs22\qj continuing until the earlier of (x) the lifetime of Employee (and, if she shall survive him,\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Spouse) or (y) until the date Employee (and, in respect of any coverage\plain\li1584\cf1\f52\fs22\qj available to Employee\u8217?s spouse, until such spouse) is eligible for full medical benefits\plain\li1584\cf1\f52\fs22\qj under the provisions of Medicare; it being \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 7\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\cf1\f52\fs22\qj understood that standard coordination of benefits provisions apply so that any coverage\plain\li1584\cf1\f52\fs22\qj made available to Employee hereunder shall be secondary to any such coverage made\plain\li1584\cf1\f52\fs22\qj available to Employee by a subsequent employer or other entity providing such coverage in\plain\li1584\cf1\f52\fs22\qj respect of Employee\u8217?s services and that Employee must accept that available\plain\li1584\cf1\f52\fs22\qj coverage; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (4)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj If Employee shall have relocated Employee\u8217?s principal residence to enter\plain\li1584\cf1\f52\fs22\qj into the Company\u8217?s employ, or otherwise relocated such residence at the request of\plain\li1584\cf1\f52\fs22\qj the Company, within 1 year of the Change in Control Date, and if Employee elects to\plain\li1584\cf1\f52\fs22\qj relocate to Employee\u8217?s original location following Employee\u8217?s Date of\plain\li1584\cf1\f52\fs22\qj Termination, relocation benefits under the same relocation policy as applied to\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s initial relocation; provided that the benefits provided hereunder shall (i)\~be\plain\li1584\cf1\f52\fs22\qj paid to Employee not later than the end of the calendar year following the year in which\plain\li1584\cf1\f52\fs22\qj such the corresponding reimbursable relocation expenses are incurred and (ii)\~not be\plain\li1584\cf1\f52\fs22\qj duplicative of any relocation benefits to which Employee is entitled in connection with the\plain\li1584\cf1\f52\fs22\qj plan, policy, program or practice of any subsequent employer; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (5)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj To the extent that any award granted to Employee under Parent\u8217?s LTIP\plain\li1584\cf1\f52\fs22\qj and outstanding on the Change in Control Date shall not have previously become fully\plain\li1584\cf1\f52\fs22\qj vested and, as applicable, exercisable, payable, distributable and free of any transfer\plain\li1584\cf1\f52\fs22\qj restrictions, such award shall be and become fully vested and, as applicable, exercisable,\plain\li1584\cf1\f52\fs22\qj payable or distributable to, and transferable by, Employee on Employee\u8217?s Date of\plain\li1584\cf1\f52\fs22\qj Termination, without any further action by the Company or any other person(s); provided,\plain\li1584\cf1\f52\fs22\qj however, that (i)\~in the case of any award that vests upon the attainment of specified\plain\li1584\cf1\f52\fs22\qj performance conditions and the agreement or plan pertaining to such award does not\plain\li1584\cf1\f52\fs22\qj expressly provide for the treatment of such award upon or following a Change in Control, the\plain\li1584\cf1\f52\fs22\qj extent to which such award becomes vested and payable will be contingent (to the extent\plain\li1584\cf1\f52\fs22\qj specified in the applicable award agreement) upon the achievement of such criteria, as\plain\li1584\cf1\f52\fs22\qj measured at the time of the Change in Control and (ii)\~if the award is deferred compensation\plain\li1584\cf1\f52\fs22\qj subject to Section\~409A that does not qualify for an otherwise available exemption from such\plain\li1584\cf1\f52\fs22\qj Section\~409A, payment thereof shall be made to Employee at the same time as the\plain\li1584\cf1\f52\fs22\qj Separation Payment referenced in subparagraph\~5(d)(6) and, if such payment is delayed for\plain\li1584\cf1\f52\fs22\qj six months and one day following the Date of Termination, the Employer shall be required to\plain\li1584\cf1\f52\fs22\qj contribute the amount payable in respect of such award to the grantor trust referenced in the\plain\li1584\cf1\f52\fs22\qj paragraph following such subparagraph\~5(d)(6) at the same time, and subject to the same\plain\li1584\cf1\f52\fs22\qj conditions, as apply with respect to such Separation Payment; and\par\pard\plain\li792\fi792\cf1\f52\fs22\qj \~\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (6)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj A Separation Payment in an amount equal to the sum of\par\pard\plain\li2376\sb132\fi792\cf1\f52\fs22\qj (i)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj the sum of 1.99 times Employee\u8217?s Protected Base Salary and 2.99\plain\li2376\sa88\cf1\f52\fs22\qj times Employee\u8217?s Target Bonus;\par\pard\plain\li2376\sb132\fi792\cf1\f52\fs22\qj (ii)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj Employee shall also receive the Separation Payment payable under\plain\li2376\cf1\f52\fs22\qj subparagraph\plain\li2376\cf1\f52\fs22\b\qj \~\plain\li2376\cf1\f52\fs22\qj 5(c)(3), on the same basis as though Employee had attained Normal\plain\li2376\cf1\f52\fs22\qj Retirement Date immediately prior to the Date of Termination, regardless of whether\plain\li2376\cf1\f52\fs22\qj Employee shall have attained Normal Retirement Date on or prior to the Date of\plain\li2376\sa88\cf1\f52\fs22\qj Termination;\par\pard\plain\li2376\sb132\fi792\cf1\f52\fs22\qj (iii)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj the product of (A)\~the amount of the Target Bonus and (B)\~a fraction, the\plain\li2376\cf1\f52\fs22\qj numerator of which is the number of days in the then current calendar year which\plain\li2376\sa88\cf1\f52\fs22\qj have elapsed as of the Date of Termination, and the denominator of which is 365;\par\pard\plain\li2376\sb132\fi792\cf1\f52\fs22\qj (iv)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj if Employee\u8217?s employment was terminated prior to the Change in\plain\li2376\cf1\f52\fs22\qj Control Date, but Employee is deemed to have continued in the Company\u8217?s\plain\li2376\cf1\f52\fs22\qj employment for purposes of this Agreement until the Change in Control Date pursuant\plain\li2376\cf1\f52\fs22\qj to paragraph\~2 hereof, an amount equal to the value (as determined based on the fair\plain\li2376\cf1\f52\fs22\qj market value of the Parent\u8217?s common stock on the Change in Control Date,\plain\li2376\sa88\cf1\f52\fs22\qj but debiting therefrom any amount Employee would be required to pay to receive the \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 8\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li2376\sb132\cf1\f52\fs22\qj benefit of such award) of any equity awards (including, without limitation, stock\plain\li2376\cf1\f52\fs22\qj options, restricted stock units and restricted stock) granted to Employee under\plain\li2376\cf1\f52\fs22\qj Parent\u8217?s LTIP that were outstanding but unvested (after taking into account\plain\li2376\cf1\f52\fs22\qj any accelerated vesting thereof in connection with such termination of employment)\plain\li2376\sa88\cf1\f52\fs22\qj on Employee\u8217?s Date of Termination; and\par\pard\plain\li2376\sb132\fi792\cf1\f52\fs22\qj (v)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj if the termination of employment is by the Company and if the Date of\plain\li2376\cf1\f52\fs22\qj Termination is less than 30 days after the date Notice of Termination is given, an\plain\li2376\sa88\cf1\f52\fs22\qj amount equal to one-twelfth (1/12) of the Protected Base Salary.\par\pard\plain\li1584\cf1\f52\fs22\qj Payment of the Separation Payment shall be made within 10\~business days after\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Date of Termination, provided that, if, at the Date of Termination,\plain\li1584\cf1\f52\fs22\qj Employee is a Specified Employee, the portion of the Separation Payment described in\plain\li1584\cf1\f52\fs22\qj subclauses\~(i), (ii), (iv) and (v) above shall be made six months and one day after\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Date of Termination. Any such deferred portion of the Separation\plain\li1584\cf1\f52\fs22\qj Payment payable to Employee shall be contributed by the Company or Employer within five\plain\li1584\cf1\f52\fs22\qj business days following the Date of Termination to a Grantor Trust, with such amount to be\plain\li1584\cf1\f52\fs22\qj invested through the trust in Fixed Income Securities. When payment of any such deferred\plain\li1584\cf1\f52\fs22\qj portion of the Separation Payment is made in accordance with the second preceding\plain\li1584\cf1\f52\fs22\qj sentence, it shall be increased by an amount equal to the earnings on the amounts\plain\li1584\cf1\f52\fs22\qj contributed to such Grantor Trust in respect of such deferred Separation Payment. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (e)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Benefits Payable Due to Forced Relocation.\plain\li792\cf1\f52\fs22\qj If Employee is not otherwise entitled to\plain\li792\cf1\f52\fs22\qj terminate Employee\u8217?s employment in a Termination for Good Reason and terminates\plain\li792\cf1\f52\fs22\qj employment voluntarily because Parent or Parent Successor requires (or notifies Employee in writing\plain\li792\cf1\f52\fs22\qj that it will require) Employee to be based at any office or location more than 50 miles from that\plain\li792\cf1\f52\fs22\qj location at which Employee principally performed services for the Company immediately prior to the\plain\li792\cf1\f52\fs22\qj Change in Control Date, except for travel reasonably required in the performance of\plain\li792\cf1\f52\fs22\qj Employee\u8217?s responsibilities\plain\li792\cf1\f52\fs22\qj to an extent substantially consistent with Employee\u8217?s\plain\li792\cf1\f52\fs22\qj business travel obligations immediately prior to the Change in Control, Parent or Employer shall pay\plain\li792\cf1\f52\fs22\qj or shall provide to Employee the following benefits and compensation: \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Earned Salary, as soon as practicable (but not more than 10\~days) following\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Date of Termination; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj The Accrued Obligations, in accordance with applicable law and the provisions of\plain\li1584\cf1\f52\fs22\qj any applicable plan, program, policy or practice; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Continued coverage, at the same costs that apply to similarly situated active\plain\li1584\cf1\f52\fs22\qj employees, for Employee and Employee\u8217?s eligible dependents under\plain\li1584\cf1\f52\fs22\qj Employer\u8217?s group health plan(s) (within the meaning of the Consolidated Omnibus\plain\li1584\cf1\f52\fs22\qj Budget Reconciliation Act of 1985 (\u8220?\plain\li1584\cf1\f52\fs22\b\i\qj COBRA\plain\li1584\cf1\f52\fs22\qj \u8221?)) in which Employee was\plain\li1584\cf1\f52\fs22\qj participating prior to the Date of Termination for a period of 12\~months following\plain\li1584\cf1\f52\fs22\qj Employee\u8217?s Date of Termination (or, if earlier, until Employee is eligible for\plain\li1584\cf1\f52\fs22\qj comparable coverage under the group health plan(s) of a subsequent employer); and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (4)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj A Separation Payment in an amount equal to Employee\u8217?s Protected Base\plain\li1584\cf1\f52\fs22\qj Salary, which shall be payable within 10 business days after Employee\u8217?s Date of\plain\li1584\cf1\f52\fs22\qj Termination, provided that, if, at the Date of Termination, Employee is a Specified Employee,\plain\li1584\cf1\f52\fs22\qj the portion of the Separation Payment due pursuant to this subparagraph\~5(e)(4) shall be\plain\li1584\cf1\f52\fs22\qj made six months and one day after Employee\u8217?s Date of Termination. Any such\plain\li1584\cf1\f52\fs22\qj deferred portion of the Separation Payment payable to Employee shall be contributed by the\plain\li1584\cf1\f52\fs22\qj Company or Employer within five business days following the Date of Termination to a\plain\li1584\cf1\f52\fs22\qj Grantor Trust, with such amount to be invested through the trust in Fixed Income Securities.\plain\li1584\cf1\f52\fs22\qj When payment of any such deferred portion of the Separation Payment is made in\plain\li1584\cf1\f52\fs22\qj accordance with the second \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 9\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\cf1\f52\fs22\qj preceding sentence, it shall be increased by an amount equal to the earnings on the\plain\li1584\cf1\f52\fs22\qj amounts contributed to such Grantor Trust in respect of such deferred Separation Payment. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (f)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Limit on Payments by Parent and Employer\plain\li792\cf1\f52\fs22\i\qj . \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Application of this Paragraph\~5(f)\plain\li1584\cf1\f52\fs22\qj . In the event that \par\pard\plain\fs16\par\pard\plain\li2376\fi792\cf1\f52\fs22\qj (i)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj Any amount or benefit paid or distributed to Employee pursuant to this\plain\li2376\cf1\f52\fs22\qj Agreement, taken together with any amounts or benefits otherwise paid or distributed\plain\li2376\cf1\f52\fs22\qj to Employee by the Company or any affiliated company in connection with the\plain\li2376\cf1\f52\fs22\qj Change in Control that are treated as parachute payments under Section\~280G of the\plain\li2376\cf1\f52\fs22\qj Code and such payments (collectively, the \u8220?\plain\li2376\cf1\f52\fs22\b\i\qj Covered Payments\plain\li2376\cf1\f52\fs22\qj \u8221?)\plain\li2376\cf1\f52\fs22\qj would be or become subject to the tax (the \u8220?\plain\li2376\cf1\f52\fs22\b\i\qj Excise Tax\plain\li2376\cf1\f52\fs22\qj \u8221?) imposed\plain\li2376\cf1\f52\fs22\qj under Section\~4999 of the Code or any similar tax that may hereafter be imposed,\plain\li2376\cf1\f52\fs22\qj and \par\pard\plain\fs16\par\pard\plain\li2376\fi792\cf1\f52\fs22\qj (ii)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj Employee would receive a greater net-after tax benefit by limiting the\plain\li2376\cf1\f52\fs22\qj Covered Payments, so that the portion thereof that are parachute payments do not\plain\li2376\cf1\f52\fs22\qj exceed the maximum amount of such parachute payments that could be paid to\plain\li2376\cf1\f52\fs22\qj Employee without Employee\u8217?s being subject to any Excise Tax (the\plain\li2376\cf1\f52\fs22\qj \u8220?\plain\li2376\cf1\f52\fs22\b\i\qj Safe Harbor Amount\plain\li2376\cf1\f52\fs22\qj \u8221?), \par\pard\plain\fs16\par\pard\plain\li2376\fi792\cf1\f52\fs22\qj (iii)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj then the amounts payable to Employee under this paragraph\~5 shall be\plain\li2376\cf1\f52\fs22\qj reduced (but not below zero) so that the aggregate amount of parachute payments\plain\li2376\cf1\f52\fs22\qj that Employee receives does not exceed the Safe Harbor Amount. In the event that\plain\li2376\cf1\f52\fs22\qj Employee receives reduced payments and benefits hereunder, such payments and\plain\li2376\cf1\f52\fs22\qj benefits shall be reduced in connection with the application of the Safe Harbor\plain\li2376\cf1\f52\fs22\qj Amount in the following manner: first, any portion of Employee\u8217?s Separation\plain\li2376\cf1\f52\fs22\qj Payment payable other than on account of Employee\u8217?s having attained Normal\plain\li2376\cf1\f52\fs22\qj Retirement Date shall be reduced, followed by, to the extent necessary and in order,\plain\li2376\cf1\f52\fs22\qj any relocation reimbursement payable, the continuation of welfare benefits, any\plain\li2376\cf1\f52\fs22\qj awards under the LTIP in which Employee becomes vested under this Agreement and\plain\li2376\cf1\f52\fs22\qj finally, the Accrued Obligations. \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Assumptions for Calculation\plain\li1584\cf1\f52\fs22\qj . For purposes of determining whether any of the\plain\li1584\cf1\f52\fs22\qj Covered Payments will be subject to the Excise Tax, \par\pard\plain\fs16\par\pard\plain\li2376\fi792\cf1\f52\fs22\qj (i)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj such Covered Payments will be treated as \u8220?parachute\plain\li2376\cf1\f52\fs22\qj payments\u8221? within the meaning of Section\~280G of the Code, and all\plain\li2376\cf1\f52\fs22\qj \u8220?parachute payments\u8221? in excess of the \u8220?base amount\u8221?\plain\li2376\cf1\f52\fs22\qj (as defined under Section\~280G(b)(3) of the Code) shall be treated as subject to the\plain\li2376\cf1\f52\fs22\qj Excise Tax, unless, and except to the extent that, in the good faith judgment of a\plain\li2376\cf1\f52\fs22\qj public accounting firm appointed by Parent prior to the Change in Control Date or tax\plain\li2376\cf1\f52\fs22\qj counsel selected by such accounting firm (the \u8220?\plain\li2376\cf1\f52\fs22\b\i\qj Accountants\plain\li2376\cf1\f52\fs22\qj \u8221?), the\plain\li2376\cf1\f52\fs22\qj Company has a reasonable basis to conclude that such Covered Payments (in whole\plain\li2376\cf1\f52\fs22\qj or in part) either do not constitute \u8220?parachute payments\u8221? or represent\plain\li2376\cf1\f52\fs22\qj reasonable compensation for personal services actually rendered (within the meaning\plain\li2376\cf1\f52\fs22\qj of Section\~280G(b)(4)(B) of the Code) in excess of the \u8220?base amount,\u8221?\plain\li2376\cf1\f52\fs22\qj or such \u8220?parachute payments\u8221? are otherwise not subject to such Excise\plain\li2376\cf1\f52\fs22\qj Tax, and \par\pard\plain\fs16\par\pard\plain\li2376\fi792\cf1\f52\fs22\qj (ii)\plain\li2376\cf1\f51\fs20\qj \~\~\~\~\plain\li2376\cf1\f52\fs22\qj the value of any non-cash benefits or any deferred payment or benefit\plain\li2376\cf1\f52\fs22\qj shall be determined by the Accountants in accordance with the principles of\plain\li2376\cf1\f52\fs22\qj Section\~280G of the Code. \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Adjustments in Respect of the Safe Harbor Amount\plain\li1584\cf1\f52\fs22\qj . If Employee receives\plain\li1584\cf1\f52\fs22\qj reduced payments and benefits under this paragraph\~5(f) (or this paragraph\~5(f) is\plain\li1584\cf1\f52\fs22\qj determined \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 10\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\cf1\f52\fs22\qj not to be applicable to Employee because the Accountants conclude that Employee is not\plain\li1584\cf1\f52\fs22\qj subject to any Excise Tax) and it is established pursuant to a final determination of a court or\plain\li1584\cf1\f52\fs22\qj an Internal Revenue Service proceeding (a \u8220?\plain\li1584\cf1\f52\fs22\b\i\qj Final Determination\plain\li1584\cf1\f52\fs22\qj \u8221?) that,\plain\li1584\cf1\f52\fs22\qj notwithstanding the good faith of Employee and the Company in applying the terms of this\plain\li1584\cf1\f52\fs22\qj Agreement, the aggregate \u8220?parachute payments\u8221? within the meaning of\plain\li1584\cf1\f52\fs22\qj Section\~280G of the Code paid to Employee or for Employee\u8217?s benefit exceed the\plain\li1584\cf1\f52\fs22\qj Safe Harbor Amount and the provisions of this paragraph\~5(f) would otherwise have applied,\plain\li1584\cf1\f52\fs22\qj then the amount of such parachute payment in excess of such Safe Harbor Amount shall be\plain\li1584\cf1\f52\fs22\qj deemed for all purposes to be a loan to Employee made on the date of receipt of such\plain\li1584\cf1\f52\fs22\qj excess payments, which Employee shall have an obligation to repay to the Company on\plain\li1584\cf1\f52\fs22\qj demand, together with interest on such amount at the applicable Federal rate (as defined in\plain\li1584\cf1\f52\fs22\qj Section\~1274(d) of the Code) from the date of the payment hereunder to the date of\plain\li1584\cf1\f52\fs22\qj repayment by Employee. \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\b\qj 6.\~\plain\cf1\f51\fs20\qj \~\~\~\~\plain\cf1\f52\fs22\b\i\qj Nonpublic Information\plain\cf1\f52\fs22\i\qj . \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (a)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Acknowledgement of Access\plain\li792\cf1\f52\fs22\i\qj .\plain\li792\cf1\f52\fs22\qj Employee hereby acknowledges that, in connection\plain\li792\cf1\f52\fs22\qj with Employee\u8217?s employment with the Company, Employee has received, and will continue to\plain\li792\cf1\f52\fs22\qj receive, various information regarding the Company and its business, operations and affairs\plain\li792\cf1\f52\fs22\qj (\plain\li792\cf1\f52\fs22\b\i\qj \u8220?Nonpublic Information\u8221?\plain\li792\cf1\f52\fs22\qj ). Nonpublic Information shall not include information that\plain\li792\cf1\f52\fs22\qj (A)\~is already properly in the public domain or enters the public domain with the express consent of\plain\li792\cf1\f52\fs22\qj the Company, or (B)\~is intentionally made available by the Company to third parties without any\plain\li792\cf1\f52\fs22\qj expectation of confidentiality. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (b)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Agreement to Keep Confidential\plain\li792\cf1\f52\fs22\qj . Employee hereby agrees that, from and after the\plain\li792\cf1\f52\fs22\qj Effective Date and continuing until 3\~years following Employee\u8217?s Date of Termination,\plain\li792\cf1\f52\fs22\qj Employee will keep all Nonpublic Information confidential and will not, without the prior written\plain\li792\cf1\f52\fs22\qj consent of the Board, Chief Executive Officer or the President of Parent, disclose any Nonpublic\plain\li792\cf1\f52\fs22\qj Information in any manner whatsoever or use any Nonpublic Information other than in connection\plain\li792\cf1\f52\fs22\qj with the performance of Employee\u8217?s services to the Company;\plain\li792\cf1\f52\fs22\i\qj provided, however, that\plain\li792\cf1\f52\fs22\qj the\plain\li792\cf1\f52\fs22\qj provisions of this paragraph shall not prevent Employee from \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Disclosing any Nonpublic Information to any other employee of the Company or\plain\li1584\cf1\f52\fs22\qj to any representative or agent of the Company (such as an independent accountant,\plain\li1584\cf1\f52\fs22\qj engineer, attorney or financial advisor) when such disclosure is reasonably necessary or\plain\li1584\cf1\f52\fs22\qj appropriate (in Employee\u8217?s judgment) in connection with the performance by\plain\li1584\cf1\f52\fs22\qj Employee of Employee\u8217?s duties and responsibilities; \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Disclosing any Nonpublic Information as required by applicable law, rule,\plain\li1584\cf1\f52\fs22\qj regulation or legal process (but only after compliance with the provisions of paragraph\~(c) of\plain\li1584\cf1\f52\fs22\qj this paragraph); and \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Disclosing any information about this Agreement and Employee\u8217?s other\plain\li1584\cf1\f52\fs22\qj compensation arrangement to Employee\u8217?s spouse, financial advisors or attorneys, or\plain\li1584\cf1\f52\fs22\qj to enforce any of Employee\u8217?s rights under this Agreement. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (c)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Commitment to Seek Protective Order\plain\li792\cf1\f52\fs22\qj . If Employee is requested pursuant to, or\plain\li792\cf1\f52\fs22\qj required by, applicable law, rule, regulation or legal process to disclose any Nonpublic Information,\plain\li792\cf1\f52\fs22\qj Employee will notify Parent promptly so that the Company may seek a protective order or other\plain\li792\cf1\f52\fs22\qj appropriate remedy or, in Parent\u8217?s sole discretion, waive compliance with the terms of this\plain\li792\cf1\f52\fs22\qj paragraph, and Employee will fully cooperate in any attempt by the Company to obtain any such\plain\li792\cf1\f52\fs22\qj protective order or other remedy. If no such protective order or other remedy is obtained, or Parent\plain\li792\cf1\f52\fs22\qj waives compliance with the terms of this paragraph, Employee will furnish or disclose only that\plain\li792\cf1\f52\fs22\qj portion of the Nonpublic Information as is legally required and will exercise all reasonable efforts to\plain\li792\cf1\f52\fs22\qj obtain reliable assurance that confidential treatment will be accorded the Nonpublic Information that\plain\li792\cf1\f52\fs22\qj is so disclosed. \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 11\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (d)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Protective Provisions.\plain\li792\cf1\f52\fs22\qj Nothing in paragraph\~6 or any other provision of this Agreement\plain\li792\cf1\f52\fs22\qj shall prevent or restrict in any way (1)\~Employee from exercising any rights that cannot be lawfully\plain\li792\cf1\f52\fs22\qj waived or restricted, (2)\~Employee from testifying at a hearing, deposition, or in court in response to\plain\li792\cf1\f52\fs22\qj a lawful subpoena or (3)\~Employee\u8217?s ability to file a charge or complaint with the Equal\plain\li792\cf1\f52\fs22\qj Employment Opportunity Commission, the Occupational Safety and Health Administration, the\plain\li792\cf1\f52\fs22\qj Securities and Exchange Commission, the United States Department of Justice, Congress, any\plain\li792\cf1\f52\fs22\qj agency Inspector General or any other federal, state or local governmental agency or commission\plain\li792\cf1\f52\fs22\qj (\u8220?\plain\li792\cf1\f52\fs22\b\i\qj Government Agencies\plain\li792\cf1\f52\fs22\qj \u8221?). Further, nothing in paragraph\~6 or any other provision of\plain\li792\cf1\f52\fs22\qj this Agreement shall prevent or restrict in any way (i)\~Employee\u8217?s ability to communicate with\plain\li792\cf1\f52\fs22\qj any Government Agencies or otherwise participate in any investigation or proceeding that may be\plain\li792\cf1\f52\fs22\qj conducted by any Government Agency, including providing documents or other information, without\plain\li792\cf1\f52\fs22\qj notice to the Company or the Company, or (ii)\~the right of Employee to receive an award from a\plain\li792\cf1\f52\fs22\qj Government Agency for information provided to any Government Agencies. \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\b\qj 7.\plain\cf1\f51\fs20\qj \~\~\~\~\plain\cf1\f52\fs22\b\i\qj Miscellaneous Provisions\plain\cf1\f52\fs22\qj . \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (a)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj No Mitigation, No Offset\plain\li792\cf1\f52\fs22\qj . Employee shall not be required to mitigate the amount of\plain\li792\cf1\f52\fs22\qj any payment provided for in this Agreement by seeking other employment or otherwise, and the\plain\li792\cf1\f52\fs22\qj amount of any payment provided for in this Agreement shall not be reduced by any compensation\plain\li792\cf1\f52\fs22\qj earned by Employee as the result of employment by another employer after the Date of\plain\li792\cf1\f52\fs22\qj Termination. Except as provided in subparagraph\~5(d)(3), Parent\u8217?s or Employer\u8217?s\plain\li792\cf1\f52\fs22\qj obligation to make the payments provided for in this Agreement and otherwise to perform its\plain\li792\cf1\f52\fs22\qj obligations hereunder shall not be affected by any circumstances, including, without limitation, any\plain\li792\cf1\f52\fs22\qj set-off, counterclaim, recoupment, defense or other right which the Company may have against\plain\li792\cf1\f52\fs22\qj Employee or others whether by reason of the subsequent employment of Employee or otherwise. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (b)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Arbitration\plain\li792\cf1\f52\fs22\qj . Except to the extent provided in paragraph\~7(d), any dispute or controversy\plain\li792\cf1\f52\fs22\qj arising under or in connection with this Agreement shall be resolved by binding arbitration. The\plain\li792\cf1\f52\fs22\qj arbitration shall be held in Dallas, Texas and except to the extent inconsistent with this Agreement,\plain\li792\cf1\f52\fs22\qj shall be conducted in accordance with the Expedited Employment Arbitration Rules of the American\plain\li792\cf1\f52\fs22\qj Arbitration Association then in effect at the time of the arbitration, and otherwise in accordance with\plain\li792\cf1\f52\fs22\qj principles which would be applied by a court of law or equity. The arbitrator shall be acceptable to\plain\li792\cf1\f52\fs22\qj both Parent and Employee. If the parties cannot agree on an acceptable arbitrator, the dispute shall\plain\li792\cf1\f52\fs22\qj be heard by a panel of three arbitrators, one appointed by each of the parties and the third\plain\li792\cf1\f52\fs22\qj appointed by the other two arbitrators. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (c)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Interest\plain\li792\cf1\f52\fs22\qj . Until paid, all past due amounts required to be paid to Employee under any\plain\li792\cf1\f52\fs22\qj provision of this Agreement shall bear interest at the per annum rate equal to the higher of (1)\~12%\plain\li792\cf1\f52\fs22\qj or (2)\~the prime rate announced from time to time by the Company\u8217?s primary bank lender,\plain\li792\cf1\f52\fs22\qj plus 3%, in either case subject to the maximum rate allowed by law. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (d)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Equitable Relief Available\plain\li792\cf1\f52\fs22\qj . Employee acknowledges that remedies at law may be\plain\li792\cf1\f52\fs22\qj inadequate to protect the Company against any actual or threatened breach of the provisions of\plain\li792\cf1\f52\fs22\qj paragraph\~6 by Employee. Accordingly, without prejudice to any other rights or remedies otherwise\plain\li792\cf1\f52\fs22\qj available to the Company, Employee agrees that the Company shall have the right to equitable and\plain\li792\cf1\f52\fs22\qj injunctive relief to prevent any breach of the provisions of paragraph\~6 (without the requirement to\plain\li792\cf1\f52\fs22\qj post any bond), as well as to such damages or other relief as may be available to the Company by\plain\li792\cf1\f52\fs22\qj reason of any such breach as does occur. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (e)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Not A Contract of Employment\plain\li792\cf1\f52\fs22\qj . Employee acknowledges that this Agreement is\plain\li792\cf1\f52\fs22\b\i\qj not\plain\li792\cf1\f52\fs22\qj an \u8220?employment agreement\u8221? or \u8220?employment contract\u8221? (written or\plain\li792\cf1\f52\fs22\qj otherwise), as either term is used or defined in, or contemplated by or under \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Parent's LTIP; \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 12\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Any other plan or agreement to which the Company is a party; or \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (3)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj Applicable statutory, common or case law. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (f)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Breach Not a Defense\plain\li792\cf1\f52\fs22\qj . The representations and covenants on the part of Employee\plain\li792\cf1\f52\fs22\qj contained in paragraph\~6 shall be construed as ancillary to and independent of any other provision\plain\li792\cf1\f52\fs22\qj of this Agreement, and the existence of any claim or cause of action of Employee against the\plain\li792\cf1\f52\fs22\qj Company or any officer, director, stockholder or representative of the Company, whether predicated\plain\li792\cf1\f52\fs22\qj on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company\plain\li792\cf1\f52\fs22\qj of the covenants on the part of Employee contained in paragraph\~6. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (g)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Notices\plain\li792\cf1\f52\fs22\qj . Any Notice of Termination or other communication called for by the terms of\plain\li792\cf1\f52\fs22\qj this Agreement shall be in writing and either delivered personally or by registered or certified mail\plain\li792\cf1\f52\fs22\qj (postage prepaid and return receipt requested) and shall be deemed given when received at the\plain\li792\cf1\f52\fs22\qj following addresses (or at such other address for a party as shall be specified by like notice): \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (1)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj If to Parent, Employer or the Company, 5205 North O\u8217?Connor Boulevard,\plain\li1584\cf1\f52\fs22\qj Suite\~200, Irving, Texas 75039, Attention: General Counsel. \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs22\qj (2)\plain\li1584\cf1\f51\fs20\qj \~\~\~\~\plain\li1584\cf1\f52\fs22\qj If to Employee, the address of Employee set forth below Employee\u8217?s\plain\li1584\cf1\f52\fs22\qj signature on the signature page of this Agreement. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (h)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Assumption by Parent Successor\plain\li792\cf1\f52\fs22\qj . Parent shall require any Parent Successor\plain\li792\cf1\f52\fs22\qj (regardless of whether the Parent Successor is the direct or indirect successor to all or substantially\plain\li792\cf1\f52\fs22\qj all of the business or assets of Parent and regardless of whether it became the Parent Successor\plain\li792\cf1\f52\fs22\qj by purchase of securities, merger, consolidation, sale of assets or otherwise), to expressly assume\plain\li792\cf1\f52\fs22\qj and agree to perform the obligations to be performed by the Company under this Agreement in the\plain\li792\cf1\f52\fs22\qj same manner and to the same extent that the Company would be required to perform if no such\plain\li792\cf1\f52\fs22\qj succession had taken place. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (i)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Assignment\plain\li792\cf1\f52\fs22\qj . Employer may assign its duties and obligations hereunder to any other\plain\li792\cf1\f52\fs22\qj direct or indirect majority-owned subsidiary of Parent, but shall remain secondarily liable for the\plain\li792\cf1\f52\fs22\qj performance of this Agreement by Parent and/or any such assignee. Except pursuant to either the\plain\li792\cf1\f52\fs22\qj immediately preceding sentence or an assumption by a Parent Successor, the rights and obligations\plain\li792\cf1\f52\fs22\qj of Parent and Employer pursuant to this Agreement may not be assigned, in whole or in part, by\plain\li792\cf1\f52\fs22\qj Parent or Employer to any other person or entity without the express written consent of Employee.\plain\li792\cf1\f52\fs22\qj The rights and obligations of Employee pursuant to this Agreement may not be assigned, in whole\plain\li792\cf1\f52\fs22\qj or in part, by Employee to any other person or entity without the express written consent of the\plain\li792\cf1\f52\fs22\qj Board. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (j)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Successors\plain\li792\cf1\f52\fs22\qj . This Agreement shall be binding on, and shall inure to the benefit of,\plain\li792\cf1\f52\fs22\qj Parent, Employer, the Company, Employee and their respective successors, permitted assigns,\plain\li792\cf1\f52\fs22\qj personal and legal representatives, executors, administrators, heirs, distributees, devisees and\plain\li792\cf1\f52\fs22\qj legatees, as applicable. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (k)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Amendments and Waivers\plain\li792\cf1\f52\fs22\qj . No provision of this Agreement may be amended or\plain\li792\cf1\f52\fs22\qj otherwise modified, and no right of any party to this Agreement may be waived, unless such\plain\li792\cf1\f52\fs22\qj amendment, modification or waiver is agreed to in a written instrument signed by Employee, Parent\plain\li792\cf1\f52\fs22\qj and Company. No waiver by either party hereto of, or compliance with, any condition or provision of\plain\li792\cf1\f52\fs22\qj this Agreement to be performed by the other party hereto shall be deemed a waiver of similar or\plain\li792\cf1\f52\fs22\qj dissimilar provisions or conditions at the same or at any prior or subsequent time. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (l)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Complete Agreement\plain\li792\cf1\f52\fs22\qj . This Agreement replaces and supersedes all prior agreements, if\plain\li792\cf1\f52\fs22\qj any, among the parties with respect to the payments to be made to Employee upon \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 13\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li792\cf1\f52\fs22\qj termination of employment following a Change in Control, and the provisions of this Agreement\plain\li792\cf1\f52\fs22\qj constitute the complete understanding and agreement among the parties with respect to the subject\plain\li792\cf1\f52\fs22\qj matter hereof. Nothing in this paragraph\~(l) is intended to, or shall be construed to, (1)\~supercede\plain\li792\cf1\f52\fs22\qj the Severance Agreement at any time prior to the time expressly provided in paragraph\~2 hereof or\plain\li792\cf1\f52\fs22\qj (2)\~limit Employee\u8217?s rights upon the occurrence of a Change in Control under\plain\li792\cf1\f52\fs22\qj Parent\u8217?s LTIP or any other Company plan, policy, program or practice (other than any plan,\plain\li792\cf1\f52\fs22\qj policy, program or practice primarily providing severance or other termination benefits) generally\plain\li792\cf1\f52\fs22\qj applicable to similarly situated employees. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (m)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Governing Law\plain\li792\cf1\f52\fs22\b\qj . THIS AGREEMENT IS BEING MADE AND EXECUTED IN, AND IS\plain\li792\cf1\f52\fs22\b\qj INTENDED TO BE PERFORMED IN, THE STATE OF TEXAS AND SHALL BE GOVERNED,\plain\li792\cf1\f52\fs22\b\qj CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE SUBSTANTIVE\plain\li792\cf1\f52\fs22\b\qj LAWS OF THE STATE OF TEXAS. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (n)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Attorney Fees\plain\li792\cf1\f52\fs22\qj . All legal fees and other costs incurred by Employee in connection with\plain\li792\cf1\f52\fs22\qj the resolution of any dispute or controversy under or in connection with this Agreement shall be\plain\li792\cf1\f52\fs22\qj reimbursed by Parent and Employer to Employee, on a quarterly basis, upon presentation of proof\plain\li792\cf1\f52\fs22\qj of such expenses, but in no event later than the end of the calendar year following the calendar\plain\li792\cf1\f52\fs22\qj year in which such legal fees and expenses are incurred;\plain\li792\cf1\f52\fs22\i\qj provided, however, that\plain\li792\cf1\f52\fs22\qj if Employee\plain\li792\cf1\f52\fs22\qj asserts any claim in any contest and Employee shall not prevail, in whole or in part, as to at least\plain\li792\cf1\f52\fs22\qj one material issue as to the validity, enforceability or interpretation of any provision of this\plain\li792\cf1\f52\fs22\qj Agreement, Employee shall reimburse Parent and Employer for such amounts, plus simple interest\plain\li792\cf1\f52\fs22\qj thereon at the 90-day United States Treasury Bill rate as in effect from time to time, compounded\plain\li792\cf1\f52\fs22\qj annually. The Company shall be responsible for, and shall pay, all legal fees and other costs\plain\li792\cf1\f52\fs22\qj incurred by the Company in connection with the resolution of any dispute or controversy under or in\plain\li792\cf1\f52\fs22\qj connection with this Agreement, regardless of whether such dispute or controversy is resolved in\plain\li792\cf1\f52\fs22\qj favor of the Company or Employee. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (o)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Counterparts\plain\li792\cf1\f52\fs22\qj . This Agreement may be executed in several counterparts, each of which\plain\li792\cf1\f52\fs22\qj shall be deemed to be an original, but all of which together will constitute one and the same\plain\li792\cf1\f52\fs22\qj agreement. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (p)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Construction\plain\li792\cf1\f52\fs22\qj . The captions of the paragraphs, subparagraphs and sections of this\plain\li792\cf1\f52\fs22\qj Agreement have been inserted as a matter of convenience of reference only and shall not affect the\plain\li792\cf1\f52\fs22\qj meaning or construction of any of the terms or provisions of this Agreement. Unless otherwise\plain\li792\cf1\f52\fs22\qj specified, references in this Agreement to a \u8220?paragraph,\u8221?\plain\li792\cf1\f52\fs22\qj \u8220?subparagraph,\u8221? \u8220?section,\u8221? \u8220?subsection,\u8221? or\plain\li792\cf1\f52\fs22\qj \u8220?schedule\u8221? shall be considered to be references to the appropriate paragraph,\plain\li792\cf1\f52\fs22\qj subparagraph, section, subsection, or schedule, respectively, of this Agreement. As used in this\plain\li792\cf1\f52\fs22\qj Agreement, the term \u8220?including\u8221? shall mean \u8220?including, but not limited\plain\li792\cf1\f52\fs22\qj to.\u8221? \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (q)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Validity and Severability\plain\li792\cf1\f52\fs22\qj . If any term or provision of this Agreement is held to be\plain\li792\cf1\f52\fs22\qj illegal, invalid or unenforceable under the present or future laws effective during the term of this\plain\li792\cf1\f52\fs22\qj Agreement, (1)\~such term or provision shall be fully severable, (2)\~this Agreement shall be construed\plain\li792\cf1\f52\fs22\qj and enforced as if such term or provision had never comprised a part of this Agreement and (3)\~the\plain\li792\cf1\f52\fs22\qj remaining terms and provisions of this Agreement shall remain in full force and effect and shall not\plain\li792\cf1\f52\fs22\qj be affected by the illegal, invalid or unenforceable term or provision or by its severance from this\plain\li792\cf1\f52\fs22\qj Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable term or provision, there\plain\li792\cf1\f52\fs22\qj shall be added automatically as a part of this Agreement, a term or provision as similar to such\plain\li792\cf1\f52\fs22\qj illegal, invalid or unenforceable term or provision as may be possible and be legal, valid and\plain\li792\cf1\f52\fs22\qj enforceable. \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (r)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Survival\plain\li792\cf1\f52\fs22\qj . Notwithstanding anything else in this Agreement to the contrary (including,\plain\li792\cf1\f52\fs22\qj without limitation, the termination of this Agreement in accordance with paragraph\~1), paragraphs\~6\plain\li792\cf1\f52\fs22\qj and 7, and, to the extent that any of Parent\u8217?s and Employer\u8217?s obligations thereunder\plain\li792\cf1\f52\fs22\qj have not theretofore been satisfied, paragraph\~5 of this Agreement shall survive the termination\plain\li792\cf1\f52\fs22\qj hereof. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 14\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (s)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Joint and Several Liability\plain\li792\cf1\f52\fs22\qj . Parent and Employer (or any assignee of Employer\plain\li792\cf1\f52\fs22\qj pursuant to paragraph\~7(i)) shall each be jointly and severally liable to Employee hereunder with\plain\li792\cf1\f52\fs22\qj regard to any obligation imposed by the terms hereof on Parent or Employer. \par\pard\plain\fs16\par\pard\plain\cf1\f52\fs22\qc (SIGNATURE PAGE ATTACHED) \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 15\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\ql In witness whereof, the parties have executed this Agreement effective as of the date first written\plain\sa264\cf1\f52\fs22\ql above.\par\pard\plain\li4752\cf1\f52\fs22\ql PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li4752\cf1\f52\fs22\ql By:\plain\li4752\cf1\f51\fs20\ql \~\~\~\~\plain\li4752\cf1\f52\fs22\ql /s/ Mark H. Kleinman \par\pard\plain {\trowd\clvertalc\cellx1092\clvertalc\cellx2556\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1092\clvertalc\cellx2556\trrh66\row}}} {\trowd\cellx1092\cellx2556\trrh544 \pard\plain\intbl\li4708\cf1\f52\fs22\ql Name:\cell\pard\plain\intbl\cf1\f52\fs22\ql Mark H.\plain\intbl\cf1\f52\fs22\ql Kleinman\cell{ {\trowd\cellx1092\cellx2556\trrh544\row}}} \pard\plain {\trowd\clvertalc\cellx2232\clvertalc\cellx5011\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx2232\clvertalc\cellx5011\trrh66\row}}} {\trowd\cellx2232\cellx5011\trrh544 \pard\plain\intbl\li4708\cf1\f52\fs22\ql Title:\cell\pard\plain\intbl\cf1\f52\fs22\ql Senior Vice President and\plain\intbl\cf1\f52\fs22\ql General Counsel\cell{ {\trowd\cellx2232\cellx5011\trrh544\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\li5610\fi-902\cf1\f52\fs22\ql PIONEER NATURAL RESOURCES USA, INC \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li4752\cf1\f52\fs22\ql By:\plain\li4752\cf1\f51\fs20\ql \~\~\~\~\plain\li4752\cf1\f52\fs22\ql /s/ Mark H. Kleinman \par\pard\plain {\trowd\clvertalc\cellx1092\clvertalc\cellx2556\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx1092\clvertalc\cellx2556\trrh66\row}}} {\trowd\cellx1092\cellx2556\trrh545 \pard\plain\intbl\li4708\cf1\f52\fs22\ql Name:\cell\pard\plain\intbl\cf1\f52\fs22\ql Mark H.\plain\intbl\cf1\f52\fs22\ql Kleinman\cell{ {\trowd\cellx1092\cellx2556\trrh545\row}}} \pard\plain {\trowd\clvertalc\cellx2232\clvertalc\cellx5011\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx2232\clvertalc\cellx5011\trrh66\row}}} {\trowd\cellx2232\cellx5011\trrh545 \pard\plain\intbl\li4708\cf1\f52\fs22\ql Title:\cell\pard\plain\intbl\cf1\f52\fs22\ql Senior Vice President and\plain\intbl\cf1\f52\fs22\ql General Counsel\cell{ {\trowd\cellx2232\cellx5011\trrh545\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\li4752\cf1\f52\fs22\ql EMPLOYEE: \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li4752\cf1\f52\fs22\ql /s/ Scott D. Sheffield\par\pard\plain\li5610\fi-902\cf1\f52\fs22\ql Scott D. Sheffield \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 16\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f52\fs22\qc Schedule I \par\pard\plain\fs16\par\pard\plain\cf1\f52\fs22\qj The document to which this Schedule I is attached is the form of Change in Control Agreement between\plain\cf1\f52\fs22\qj the Company and Scott D. Sheffield. The Company entered into a Change in Control Agreement with each\plain\cf1\f52\fs22\qj of Craig A. Kuiper, Elizabeth A. McDonald and Tyson L. Taylor, dated as of March 21, 2019, which varied\plain\cf1\f52\fs22\qj from the form as filed in the following respects: \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\qj a. Section 5(d)(3) provides, in its entirety, the following: \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (3)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\qj Continued coverage following Employee\u8217?s Date of Termination, at the same\plain\li792\cf1\f52\fs22\qj costs that apply to similarly situated active employees, for Employee and Employee\u8217?s eligible\plain\li792\cf1\f52\fs22\qj dependents under whichever of the Company\u8217?s group medical plans in which Employee was\plain\li792\cf1\f52\fs22\qj participating prior to the Date of Termination or, to the extent such continued coverage cannot be\plain\li792\cf1\f52\fs22\qj provided under such plan without adverse consequences for the Company or Employee due to\plain\li792\cf1\f52\fs22\qj non-discrimination requirements, then under an individual or group insurance policy that is\plain\li792\cf1\f52\fs22\qj substantially similar in all material respects to the coverage made available under such group health\plain\li792\cf1\f52\fs22\qj plan(s), for each of the following two periods (i)\~from Employee\u8217?s Date of Termination until\plain\li792\cf1\f52\fs22\qj and including the 18 month anniversary of such termination; and (ii)\~from the day after the 18 month\plain\li792\cf1\f52\fs22\qj anniversary of Employee\u8217?s Date of Termination and continuing until the day before the\plain\li792\cf1\f52\fs22\qj second anniversary of the Employee\u8217?s Date of Termination; provided, however, that such\plain\li792\cf1\f52\fs22\qj continued coverage shall cease if and when Employee becomes eligible for comparable coverage\plain\li792\cf1\f52\fs22\qj under the group health plan(s) of a subsequent employer; \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\qj b. Section 5(d)(6)(i) provides, in its entirety, the following: \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (i)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\qj the sum of 1\~times Employee\u8217?s Protected Base Salary and 2\~times\plain\li792\cf1\f52\fs22\qj Employee\u8217?s Target Bonus; \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs22\qj c. Section 7(l) provides, in its entirety, the following: \par\pard\plain\fs16\par\pard\plain\li792\fi792\cf1\f52\fs22\qj (l)\plain\li792\cf1\f51\fs20\qj \~\~\~\~\plain\li792\cf1\f52\fs22\b\i\qj Complete Agreement\plain\li792\cf1\f52\fs22\qj . This Agreement replaces and supersedes all prior agreements, if\plain\li792\cf1\f52\fs22\qj any, among the parties with respect to the payments to be made to Employee upon termination of\plain\li792\cf1\f52\fs22\qj employment following a Change in Control, including, but not limited to, the Change in Control\plain\li792\cf1\f52\fs22\qj Agreement between Parent, Employer and Employee, as in effect immediately prior to the date\plain\li792\cf1\f52\fs22\qj hereof, and the provisions of this Agreement constitute the complete understanding and agreement\plain\li792\cf1\f52\fs22\qj among the parties with respect to the subject matter hereof. Nothing in this paragraph\~(l) is intended\plain\li792\cf1\f52\fs22\qj to, or shall be construed to, (1)\~supercede the Severance Agreement at any time prior to the time\plain\li792\cf1\f52\fs22\qj expressly provided in paragraph\~2 hereof or (2)\~limit Employee\u8217?s rights upon the occurrence\plain\li792\cf1\f52\fs22\qj of a Change in Control under Parent\u8217?s LTIP or any other Company plan, policy, program or\plain\li792\cf1\f52\fs22\qj practice (other than any plan, policy, program or practice primarily providing severance or other\plain\li792\cf1\f52\fs22\qj termination benefits) generally applicable to similarly situated employees. \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 17 \page{\*\bkmkstart doc_1_5}{\*\bkmkend doc_1_5}{\*\bkmkstart s0a68f5680016494f9afc384b719f4a4}{\*\bkmkend s0a68f5680016494f9afc384b719f4a4} \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f52\fs20\b\qr EXHIBIT 10.4\par\pard\plain\cf1\f52\fs20\b\qc PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\sa264\cf1\f52\fs20\b\qc SEVERANCE AGREEMENT\par\pard\plain\fi792\cf1\f52\fs20\qj This Severance Agreement (\plain\cf1\f52\fs20\b\i\qj \u8220?Agreement\u8221?\plain\cf1\f52\fs20\qj ) is entered into, as of February 21, 2019, among\plain\cf1\f52\fs20\qj Pioneer Natural Resources Company, a Delaware corporation (\plain\cf1\f52\fs20\b\i\qj \u8220?Parent\u8221?\plain\cf1\f52\fs20\qj ), Pioneer Natural Resources\plain\cf1\f52\fs20\qj USA, Inc., a Delaware corporation that is a wholly-owned subsidiary of Parent (\plain\cf1\f52\fs20\b\i\qj \u8220?Employer\u8221?\plain\cf1\f52\fs20\qj ) and Scott\plain\cf1\f52\fs20\qj D. Sheffield (\plain\cf1\f52\fs20\b\i\qj \u8220?Employee\u8221?\plain\cf1\f52\fs20\qj ). As used henceforth in this Agreement, the term\plain\cf1\f52\fs20\b\i\qj \u8220?Company\u8221?\plain\sa264\cf1\f52\fs20\qj shall be deemed to include Parent and its direct or indirect majority-owned subsidiaries.\par\pard\plain\sa264\cf1\f52\fs20\b\i\qc Recitals\par\pard\plain\fi792\cf1\f52\fs20\qj Parent and Employer acknowledge that Employee possesses skills and knowledge instrumental to the\plain\cf1\f52\fs20\qj successful conduct of the Company\u8217?s business. Parent and Employer are willing to enter into this Agreement\plain\sa264\cf1\f52\fs20\qj with Employee in order to better ensure themselves of access to the continued services of Employee.\par\pard\plain\fi792\cf1\f52\fs20\qj NOW, THEREFORE, for and in consideration of the mutual covenants and agreements set forth herein and\plain\cf1\f52\fs20\qj for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties\plain\sa264\cf1\f52\fs20\qj to this Agreement hereby agree as follows:\par\pard\plain\fi792\cf1\f52\fs20\b\i\qj 1.\~\~\~\~Term\plain\cf1\f52\fs20\qj . The term of this Agreement shall commence on the date indicated above (the\plain\cf1\f52\fs20\b\i\qj \u8220?Effective\plain\cf1\f52\fs20\b\i\qj Date\u8221?\plain\cf1\f52\fs20\qj ) and end on September 30, 2020. Thereafter, on the date on which the term of this Agreement (as it\plain\cf1\f52\fs20\qj may be extended from time to time under this paragraph 1) would otherwise expire, so long as Employee is still an\plain\cf1\f52\fs20\qj employee of the Company on such date, such term will be automatically extended for 12 months, unless Parent shall\plain\cf1\f52\fs20\qj have provided written notice to Employee at least 6 months before the date that the term would otherwise expire that\plain\cf1\f52\fs20\qj it does not want the term to be extended. Parent may deliver a conditional notice of non-renewal that will be effective\plain\cf1\f52\fs20\qj only if Employee does not agree, within the time period specified by Parent, to any amendment or modification of this\plain\cf1\f52\fs20\qj Agreement that Parent shall request be executed as a condition to allowing the term hereof to be extended.\plain\cf1\f52\fs20\qj Notwithstanding the foregoing, so long as Employee is in the employ of the Company on the date on which a\plain\cf1\f52\fs20\qj Potential Change in Control occurs, the term of this Agreement shall continue in effect following such Potential\plain\cf1\f52\fs20\qj Change in Control until the date on which the term of any separate agreement between Parent and Employer and\plain\cf1\f52\fs20\qj Employee relating to the provision of severance and other benefits after a Change in Control (the \u8220?\plain\cf1\f52\fs20\b\i\qj Change in\plain\cf1\f52\fs20\b\i\qj Control Agreement\plain\cf1\f52\fs20\qj \u8221?) expires;\plain\cf1\f52\fs20\i\qj provided, however, that\plain\cf1\f52\fs20\qj upon the occurrence of such a Change in Control, this\plain\cf1\f52\fs20\qj Agreement shall terminate and such Change in Control Agreement shall govern the rights of Employee to, or\plain\sa264\cf1\f52\fs20\qj obligations of Parent and Employer to provide, severance and other benefits to Employee.\par\pard\plain\fi792\cf1\f52\fs20\b\i\qj 2.\~\~\~\~Certain Definitions\plain\cf1\f52\fs20\qj . As used in this Agreement, the following terms shall have the meanings set forth\plain\sa264\cf1\f52\fs20\qj below:\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (a)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Accrued Obligations\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean any vested amounts or benefits owing to\plain\li1188\cf1\f52\fs20\qj Employee under any of the Company\u8217?s employee benefit plans and programs in which Employee\plain\li1188\cf1\f52\fs20\qj has participated, including any compensation previously deferred by Employee (together with any accrued\plain\li1188\sa264\cf1\f52\fs20\qj earnings thereon) and not yet paid.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (b)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Base Salary\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean Employee\u8217?s annualized base salary at the\plain\li1188\sa264\cf1\f52\fs20\qj rate in effect at the relevant date or event as reflected in Employer\u8217?s regular payroll records.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (c)\plain\li1188\cf1\f52\fs20\i\qj "\plain\li1188\cf1\f52\fs20\b\i\qj Change in Control\plain\li1188\cf1\f52\fs20\i\qj "\plain\li1188\cf1\f52\fs20\qj shall mean an event that constitutes a "change in control" as defined in\plain\li1188\cf1\f52\fs20\qj Parent's LTIP. Any modification to the definition of "change in control" in Parent's LTIP (including by virtue\plain\li1188\cf1\f52\fs20\qj of the adoption by the Parent of a successor plan thereto setting forth a modified definition of "change in\plain\li1188\cf1\f52\fs20\qj control") adopted after the Effective Date shall apply for purposes of this Agreement,\plain\li1188\cf1\f52\fs20\qj except that\plain\li1188\cf1\f52\fs20\qj any\plain\li1188\cf1\f52\fs20\qj modification to such definition adopted on or after, or within 180 days prior to, a Change of Control or\plain\li1188\cf1\f52\fs20\qj Potential Change of Control shall not apply in determining the definition of such term under this\plain\li1188\cf1\f52\fs20\qj Agreement unless such amendment is favorable to Employee;\plain\li1188\cf1\f52\fs20\qj and provided further that\plain\li1188\cf1\f52\fs20\qj any change to the\plain\li1188\cf1\f52\fs20\qj definition of a change in control in Parent's LTIP adopted in 2008 to comply with the requirements of\plain\li1188\sa264\cf1\f52\fs20\qj Section 409A of the Code shall be deemed to be favorable to Employee.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (d)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Date of Termination\u8221?\plain\li1188\sa264\cf1\f52\fs20\qj shall mean \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 1\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1) In the case of a termination for which a Notice of Termination is required, the date of\plain\li1584\sa264\cf1\f52\fs20\qj receipt of such Notice of Termination or, if later, the date specified therein; and\par\pard\plain\li1584\sa264\fi792\cf1\f52\fs20\qj (2) In all other cases, the actual date on which Employee's employment terminates;\par\pard\plain\li1584\cf1\f52\fs20\qj provided, however, that if Employee continues to provide or, in the 12 month period following such\plain\li1584\cf1\f52\fs20\qj termination of employment, Employee is expected to provide, sufficient services that, under the\plain\li1584\cf1\f52\fs20\qj Parent's written and generally applicable policies regarding what constitutes a "separation from\plain\li1584\cf1\f52\fs20\qj service" for purpose of Section 409A of the Code, Employee does not incur a separation of service for\plain\li1584\cf1\f52\fs20\qj purposes of such Section 409A on the date of termination, Employee's Date of Termination for\plain\li1584\cf1\f52\fs20\qj purposes of this Agreement shall be the date on which such Employee incurs a separation from\plain\li1584\sa264\cf1\f52\fs20\qj service under such policies.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (e)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Disability\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean Employee\u8217?s physical or mental impairment or\plain\li1188\sa264\cf1\f52\fs20\qj incapacity of sufficient severity such that\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1) In the opinion of a qualified physician selected by Parent, after taking into account all\plain\li1584\cf1\f52\fs20\qj reasonable accommodations that the Company has made or could make, Employee is unable to\plain\li1584\sa264\cf1\f52\fs20\qj continue to perform Employee\u8217?s duties and responsibilities as an employee of the Company; or\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2) Employee\u8217?s condition entitles Employee to long-term disability benefits under any\plain\li1584\sa264\cf1\f52\fs20\qj employee benefit plan maintained by the Company in which Employee participates.\par\pard\plain\li792\cf1\f52\fs20\qj For purposes of subparagraph (e)(1), Employee agrees to provide such access to Employee\u8217?s medical\plain\li792\cf1\f52\fs20\qj records and to submit to such physical examinations or medical tests as, in the opinion of the physician\plain\li792\cf1\f52\fs20\qj selected by Parent, is reasonably necessary to make the determination required as to Employee\u8217?s\plain\li792\cf1\f52\fs20\qj ability to perform Employee\u8217?s duties and responsibilities. If such physician is unable to render an\plain\li792\cf1\f52\fs20\qj opinion as to Employee\u8217?s ability to perform such duties and responsibilities due to Employee\u8217?s\plain\li792\cf1\f52\fs20\qj failure to provide such access to any of Employee\u8217?s medical records or to submit to any such\plain\li792\cf1\f52\fs20\qj examination or test (unless, in the opinion of such physician such failure is a direct result of\plain\li792\cf1\f52\fs20\qj Employee\u8217?s physical or mental impairment), any failure by Employee to perform Employee\u8217?s\plain\li792\cf1\f52\fs20\qj duties and responsibilities shall be deemed not to be on account of Employee\u8217?s physical or mental\plain\li792\sa264\cf1\f52\fs20\qj impairment or incapacity.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (f)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Earned Salary\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean the Base Salary earned by Employee, but unpaid,\plain\li1188\sa264\cf1\f52\fs20\qj through Employee\u8217?s Date of Termination.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (g)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Normal Retirement Date\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean the date on which Employee attains age\plain\li1188\sa264\cf1\f52\fs20\qj 60.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (h)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Notice of Termination\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean a written notice given by the party effecting\plain\li1188\sa264\cf1\f52\fs20\qj the termination of Employee\u8217?s employment which shall\par\pard\plain\li1584\sa264\fi792\cf1\f52\fs20\qj (1) Indicate the specific termination provision in this Agreement relied upon;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2) Set forth in reasonable detail the facts and circumstances claimed to provide a basis for\plain\li1584\sa264\cf1\f52\fs20\qj termination of Employee\u8217?s employment under the provision so indicated; and\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (3) If the Date of Termination is other than the date of receipt of such notice, specify the Date\plain\li1584\sa264\cf1\f52\fs20\qj of Termination (which date shall be not more than 30 days after the giving of such notice).\par\pard\plain\li792\cf1\f52\fs20\qj The failure by Employee or Parent or Employer to set forth in the Notice of Termination any fact or\plain\li792\cf1\f52\fs20\qj circumstance which contributes to a showing of Termination for Good Reason or Termination for Cause shall\plain\li792\cf1\f52\fs20\qj not waive any right of such party hereunder or preclude such party from asserting such fact or circumstance\plain\li792\cf1\f52\fs20\qj in enforcing such party\u8217?s rights hereunder. In the event that a Potential Change in Control has\plain\li792\cf1\f52\fs20\qj occurred, any Notice of Termination by Parent or Employer intended to effect a Termination for Cause must\plain\li792\cf1\f52\fs20\qj be given with 45 days of Parent or Employer\u8217?s having actual knowledge of the events giving rise to\plain\li792\sa264\cf1\f52\fs20\qj Termination for Cause.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (i)\plain\li1188\cf1\f52\fs20\i\qj "\plain\li1188\cf1\f52\fs20\b\i\qj Parent's LTIP\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean the Parent's 2006 Long Term Incentive Plan, as the same\plain\li1188\sa264\cf1\f52\fs20\qj may be amended from time to time, or any successor plan thereto. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 2\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (j)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Potential Change in Control\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean the occurrence of any of the\plain\li1188\sa264\cf1\f52\fs20\qj following events:\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1) Any person or group shall have announced publicly an intention to effect a Change in\plain\li1584\cf1\f52\fs20\qj Control, or commenced any action (such as the commencement of a tender offer for Parent\u8217?s\plain\li1584\cf1\f52\fs20\qj common stock or the solicitation of proxies for the election of any of Parent\u8217?s directors) that, if\plain\li1584\sa264\cf1\f52\fs20\qj successful, could reasonably be expected to result in the occurrence of a Change in Control;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2) Parent enters into an agreement the consummation of which would constitute a Change in\plain\li1584\sa264\cf1\f52\fs20\qj Control; or\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (3) Any other event occurs which the Board of Directors of Parent (the\plain\li1584\cf1\f52\fs20\b\i\qj \u8220?Board\u8221?\plain\li1584\sa264\cf1\f52\fs20\qj ) declares to be a Potential Change in Control.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (k)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Separation Payment\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean any lump sum payment in excess of Earned\plain\li1188\sa264\cf1\f52\fs20\qj Salary and Accrued Obligations payable to Employee under this Agreement.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (l)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Termination for Cause\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean a termination of Employee\u8217?s\plain\li1188\sa264\cf1\f52\fs20\qj employment by the Company following the occurrence of any of the following:\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1) Employee\u8217?s continued failure to substantially perform Employee\u8217?s duties and\plain\li1584\cf1\f52\fs20\qj responsibilities (other than any such failure resulting from Employee\u8217?s physical or mental\plain\li1584\sa264\cf1\f52\fs20\qj impairment or incapacity);\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2) Employee\u8217?s engaging in fraud or other misconduct that is injurious to the Company,\plain\li1584\sa264\cf1\f52\fs20\qj monetarily or otherwise;\par\pard\plain\li1584\sa264\fi792\cf1\f52\fs20\qj (3) Employee\u8217?s engaging in insubordination;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (4) Employee\u8217?s violation of, or failure to comply with, any material written policy,\plain\li1584\sa264\cf1\f52\fs20\qj guideline, rule or regulation of the Company;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (5) Employee\u8217?s conviction of (or plea of guilty or nolo contendere to a charge of) any\plain\li1584\sa264\cf1\f52\fs20\qj felony, or any crime or misdemeanor involving moral turpitude or financial misconduct;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (6) Employee\u8217?s failure, following a written request from Parent, reasonably to cooperate\plain\li1584\cf1\f52\fs20\qj (including, without limitation, the refusal by Employee to be interviewed or deposed, or to give\plain\li1584\cf1\f52\fs20\qj testimony) in connection with any investigation or proceeding, whether internal or external (including,\plain\li1584\cf1\f52\fs20\qj without limitation, by any governmental or quasi-governmental agency) into the business practices or\plain\li1584\sa264\cf1\f52\fs20\qj operations of the Company; or\par\pard\plain\li1584\sa264\fi792\cf1\f52\fs20\qj (7) A material violation by Employee of the provisions of paragraphs 5 or 6 of this Agreement.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (m)\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Termination for Good Reason\u8221?\plain\li1188\cf1\f52\fs20\qj shall mean a termination of\plain\li1188\cf1\f52\fs20\qj Employee\u8217?s employment by Employee due to the occurrence of any of the following, without the\plain\li1188\sa264\cf1\f52\fs20\qj written consent of Employee:\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1) The assignment to Employee of any duties inconsistent in any material adverse respect\plain\li1584\cf1\f52\fs20\qj with Employee\u8217?s position, authority or responsibilities as of the Effective Date (or as the same\plain\li1584\sa264\cf1\f52\fs20\qj may be enhanced after the Effective Date);\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2) Any other material adverse change in Employee\u8217?s position referenced in subclause\plain\li1584\sa264\cf1\f52\fs20\qj (1), including titles, authority or responsibilities from those in effect immediately prior to such change;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (3) If Employee is serving as a member of the Board at any time during the term of this\plain\li1584\cf1\f52\fs20\qj Agreement, any failure of the Company to nominate Employee for re-election, or any failure of the\plain\li1584\cf1\f52\fs20\qj shareholders to re-elect Employee, as a member of the Board (other than due to Employee\u8217?s\plain\li1584\cf1\f52\fs20\qj death, Disability, Termination for Cause or voluntary resignation from the Board), regardless of\plain\li1584\sa264\cf1\f52\fs20\qj whether any such failure is susceptible of cure; or \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 3\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (4) Any failure by the Company, other than an insubstantial or inadvertent failure remedied by\plain\li1584\cf1\f52\fs20\qj the Company promptly after receipt of notice thereof given by Employee, to provide Employee with\plain\li1584\cf1\f52\fs20\qj Base Salary at the level payable to Employee on the Effective Date or, if more favorable to Employee,\plain\li1584\sa264\cf1\f52\fs20\qj at the highest rate made available to Employee at any time thereafter.\par\pard\plain\sa264\fi792\cf1\f52\fs20\b\i\qj 3.\~\~\~\~Termination of Employment, Relocation.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (a)\plain\li1188\cf1\f52\fs20\b\i\qj Right to Terminate\plain\li1188\cf1\f52\fs20\qj . Nothing in this Agreement shall be construed in any way to limit the right\plain\li1188\cf1\f52\fs20\qj of the Company to terminate Employee\u8217?s employment, with or without cause, or for Employee to\plain\li1188\cf1\f52\fs20\qj terminate Employee\u8217?s employment with the Company, with or without reason; provided, however,\plain\li1188\cf1\f52\fs20\qj that the Company and Employee must nonetheless comply with any duty or obligation such party has at\plain\li1188\sa264\cf1\f52\fs20\qj law or under any agreement (including paragraphs 5 and 6 of this Agreement) between the parties.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (b)\plain\li1188\cf1\f52\fs20\b\i\qj Termination due to Death or Disability\plain\li1188\cf1\f52\fs20\qj . Employee\u8217?s employment with the Company\plain\li1188\cf1\f52\fs20\qj shall be terminated upon Employee\u8217?s death. By written notice to the other party, either the\plain\li1188\sa264\cf1\f52\fs20\qj Company or Employee may terminate Employee\u8217?s employment due to Disability.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (c)\plain\li1188\cf1\f52\fs20\b\i\qj Relocation\plain\li1188\cf1\f52\fs20\b\qj .\plain\li1188\cf1\f52\fs20\qj Nothing in this Agreement shall be construed in any way to limit the right of the\plain\li1188\cf1\f52\fs20\qj Company to require Employee to perform Employee\u8217?s services on behalf of the Company at a\plain\li1188\cf1\f52\fs20\qj different location or locations than the one at which Employee was performing Employee\u8217?s services\plain\li1188\cf1\f52\fs20\qj immediately prior to the date hereof, or to require the Company to pay or provide any benefits to\plain\li1188\cf1\f52\fs20\qj Employee on account of such relocation, other than to the extent benefits would be payable to Employee\plain\li1188\sa264\cf1\f52\fs20\qj under the Company\u8217?s applicable relocation policy as in effect at the relevant time.\par\pard\plain\fi792\cf1\f52\fs20\b\i\qj 4.\~\~\~\~Amounts Payable Upon Termination of Employment\plain\cf1\f52\fs20\qj . The following provisions shall apply to any\plain\sa264\cf1\f52\fs20\qj termination of Employee\u8217?s employment:\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (a)\plain\li1188\cf1\f52\fs20\b\i\qj Death, Disability or Normal Retirement\plain\li1188\cf1\f52\fs20\qj . In the event that Employee\u8217?s employment\plain\li1188\cf1\f52\fs20\qj terminates due to Employee\u8217?s death or Disability (regardless of whether such Disability termination\plain\li1188\cf1\f52\fs20\qj is initiated by Employee or the Company), Parent or Employer shall pay Employee (or, if applicable,\plain\li1188\cf1\f52\fs20\qj Employee\u8217?s beneficiaries or legal representative(s)) the amounts set forth in clauses (1), (2) and\plain\li1188\cf1\f52\fs20\qj (3) below, and in the event that Employee\u8217?s employment terminates due to the voluntary retirement\plain\li1188\cf1\f52\fs20\qj by Employee (which is not a Termination for Good Reason) at or after attaining Employee\u8217?s\plain\li1188\cf1\f52\fs20\qj Normal Retirement Date, Parent or Employer shall pay Employee the amounts set forth in clauses (1) and\plain\li1188\sa264\cf1\f52\fs20\qj (2) below:\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1)The Earned Salary, as soon as practicable (but not more than 10 days) following\plain\li1584\sa264\cf1\f52\fs20\qj Employee\u8217?s Date of Termination;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2)The Accrued Obligations, in accordance with applicable law and the provisions of any\plain\li1584\sa264\cf1\f52\fs20\qj applicable plan, program, policy or practice; and\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (3)A Separation Payment in an amount equal to Employee's Base Salary, which shall be paid\plain\li1584\cf1\f52\fs20\qj 10 days following Employee's Date of Termination,\plain\li1584\cf1\f52\fs20\qj provided that\plain\li1584\cf1\f52\fs20\qj , if, at the Date of Termination,\plain\li1584\cf1\f52\fs20\qj Employee is a "specified employee" within the meaning of Section 409A of the Code, as determined\plain\li1584\cf1\f52\fs20\qj in accordance with the procedures specified or established by the Parent in accordance with such\plain\li1584\cf1\f52\fs20\qj Section 409A and the regulations thereunder (a\plain\li1584\cf1\f52\fs20\i\qj "\plain\li1584\cf1\f52\fs20\b\i\qj Specified Employee\plain\li1584\cf1\f52\fs20\i\qj "),\plain\li1584\cf1\f52\fs20\qj and the Separation Payment\plain\li1584\cf1\f52\fs20\qj is payable due to Disability, the Separation Payment shall be made six months and one day after\plain\li1584\cf1\f52\fs20\qj Employee's Date of Termination. In the event that the Separation Payment is made six months and\plain\li1584\cf1\f52\fs20\qj one day after the Date of Termination, it shall be paid with interest from the Date of Termination at a\plain\li1584\cf1\f52\fs20\qj rate equal to Employer's cost of borrowing under its principal credit facility as in effect at the Date of\plain\li1584\cf1\f52\fs20\qj Termination, as determined in good faith by the Parent's Chief Financial Officer (the\plain\li1584\cf1\f52\fs20\i\qj "\plain\li1584\cf1\f52\fs20\b\i\qj Employer's\plain\li1584\cf1\f52\fs20\b\i\qj Borrowing Cost\plain\li1584\sa264\cf1\f52\fs20\i\qj '').\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (b)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Cause and Voluntary Termination.\plain\li1188\cf1\f52\fs20\qj If Employee\u8217?s employment is terminated by the\plain\li1188\cf1\f52\fs20\qj Company in a Termination for Cause or voluntarily by Employee (other than in a Termination for Good\plain\li1188\sa264\cf1\f52\fs20\qj Reason or at or after Normal Retirement Date), Parent or Employer shall pay Employee\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1)The Earned Salary, as soon as practicable (but not more than 10 days) following\plain\li1584\sa264\cf1\f52\fs20\qj Employee\u8217?s Date of Termination; and \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 4\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2)The Accrued Obligations, in accordance with applicable law and the provisions of any\plain\li1584\sa264\cf1\f52\fs20\qj applicable plan, program, policy or practice.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (c)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Termination for Good Reason or Not for Cause\plain\li1188\cf1\f52\fs20\qj . If Employee terminates\plain\li1188\cf1\f52\fs20\qj Employee\u8217?s employment in a Termination for Good Reason, or the Company terminates\plain\li1188\cf1\f52\fs20\qj Employee\u8217?s employment for any reason other than those described in paragraphs 4(a) and (b)\plain\li1188\cf1\f52\fs20\qj above, Parent or Employer shall pay or shall provide to Employee the following benefits and\plain\li1188\sa264\cf1\f52\fs20\qj compensation:\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1)The Earned Salary, as soon as practicable (but not more than 10 days) following\plain\li1584\sa264\cf1\f52\fs20\qj Employee\u8217?s Date of Termination;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2)The Accrued Obligations, in accordance with applicable law and the provisions of any\plain\li1584\sa264\cf1\f52\fs20\qj applicable plan, program, policy or practice;\par\pard\plain\li1584\sa264\fi792\cf1\f52\fs20\qj (3)A Separation Payment, in an amount equal to the sum of\par\pard\plain\li2376\sa264\fi792\cf1\f52\fs20\qj (i)3 times Employee\u8217?s Base Salary;\par\pard\plain\li2376\fi792\cf1\f52\fs20\qj (ii)The product of (A) the monthly amount that, on the Date of Termination, Employee\plain\li2376\cf1\f52\fs20\qj would be required to pay to continue coverage under the Employer\u8217?s group health\plain\li2376\cf1\f52\fs20\qj plan(s) (as defined by the Consolidated Omnibus Budget Reconciliation Act of 1985\plain\li2376\cf1\f52\fs20\qj (\u8220?\plain\li2376\cf1\f52\fs20\b\i\qj COBRA\plain\li2376\cf1\f52\fs20\qj \u8221?) for Employee and Employee\u8217?s eligible dependents, if any,\plain\li2376\cf1\f52\fs20\qj covered thereunder immediately prior to the Date of Termination and (B) 36; provided,\plain\li2376\cf1\f52\fs20\qj however, that, if Employee is covered under group health plan(s) not subject to COBRA,\plain\li2376\cf1\f52\fs20\qj instead of including this amount as part of the Separation Payment, the Company shall either,\plain\li2376\cf1\f52\fs20\qj at its election, provide Employee and Employee\u8217?s covered dependents continued\plain\li2376\cf1\f52\fs20\qj coverage under such medical plan, at its expense, for a number of months equal to the\plain\li2376\cf1\f52\fs20\qj number specified in this subparagraph (c)(3)(ii)(B) or include in the Separation Payment an\plain\li2376\cf1\f52\fs20\qj amount equal to the value of such continued coverage. For the avoidance of doubt, such\plain\li2376\cf1\f52\fs20\qj payment shall not in any way alter, modify or affect Employee\u8217?s right to (and the\plain\li2376\cf1\f52\fs20\qj conditions upon which, and the period during which, Employee may elect to) continue\plain\li2376\sa264\cf1\f52\fs20\qj coverage for Employee and Employee\u8217?s eligible dependents under COBRA ; and\par\pard\plain\li2376\fi792\cf1\f52\fs20\qj (iii)If the termination of employment is by the Company and if the Date of Termination\plain\li2376\cf1\f52\fs20\qj is less than 30 days after the date Notice of Termination is given, an amount equal to 1/12\plain\li2376\sa264\cf1\f52\fs20\qj (one twelfth) of Employee\u8217?s Base Salary; and\par\pard\plain\li1584\cf1\f52\fs20\qj Payment of such Separation Payment shall be made 10 days following Employee's Date of\plain\li1584\cf1\f52\fs20\qj Termination,\plain\li1584\cf1\f52\fs20\qj provided that\plain\li1584\cf1\f52\fs20\qj , if, at the Date of Termination, Employee is a Specified Employee, the\plain\li1584\cf1\f52\fs20\qj Separation Payment shall be made six months and one day after Employee's Date of Termination. In\plain\li1584\cf1\f52\fs20\qj the event that the Separation Payment is made six months and one day after the Date of Termination,\plain\li1584\cf1\f52\fs20\qj it shall be paid with interest from the Date of Termination at a rate equal to Employer's Borrowing\plain\li1584\sa264\cf1\f52\fs20\qj Cost.\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (4)Full vesting, as of the Date of Termination, of all of the grants (other than stock options\plain\li1584\cf1\f52\fs20\qj granted on or before the date hereof which would not have become vested upon such a termination\plain\li1584\cf1\f52\fs20\qj under the terms thereof in effect immediately prior to the date of this Agreement) made to Employee\plain\li1584\cf1\f52\fs20\qj under Parent\u8217?s LTIP and under the Parent's Long Term Incentive Plan adopted in 1997 that\plain\li1584\cf1\f52\fs20\qj are outstanding on the Date of Termination; provided, however, that in the case of any award that\plain\li1584\cf1\f52\fs20\qj vests upon the attainment of specified performance conditions, the extent to which such award\plain\li1584\cf1\f52\fs20\qj becomes vested and payable will be contingent (to the extent specified in the applicable award\plain\li1584\sa264\cf1\f52\fs20\qj agreement) upon the achievement of such criteria.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (d)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Separation Payment Contingent on Release\plain\li1188\cf1\f52\fs20\qj . Any Separation Payment payable to\plain\li1188\cf1\f52\fs20\qj Employee under subparagraph 4(c) shall be subject to, and contingent upon, Employee\u8217?s\plain\li1188\cf1\f52\fs20\qj execution and delivery within 60 days of Employee's Date of Termination and non-revocation of a\plain\li1188\cf1\f52\fs20\qj General Release Agreement in favor of the Company in substantially the form and substance as the one\plain\li1188\sa264\cf1\f52\fs20\qj attached hereto as Schedule A. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 5\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\fi792\cf1\f52\fs20\b\i\qj 5.\~\~\~\~Nonpublic Information\plain\sa264\cf1\f52\fs20\qj .\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (a)\plain\li1188\cf1\f52\fs20\b\i\qj Acknowledgement of Access\plain\li1188\cf1\f52\fs20\qj . Employee hereby acknowledges that, in connection with\plain\li1188\cf1\f52\fs20\qj Employee\u8217?s employment with the Company, Employee has received, and will continue to receive,\plain\li1188\cf1\f52\fs20\qj various information regarding the Company and its business, operations and affairs. All such information,\plain\li1188\cf1\f52\fs20\qj to the extent not publicly available other than as a result of a disclosure by Employee in violation of this\plain\li1188\cf1\f52\fs20\qj Agreement, is referred to herein as the \u8220?\plain\li1188\cf1\f52\fs20\b\qj Nonpublic Information\plain\li1188\sa264\cf1\f52\fs20\qj .\u8221?\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (b)\plain\li1188\cf1\f52\fs20\b\i\qj Agreement to Keep Confidential\plain\li1188\cf1\f52\fs20\qj . Employee hereby agrees that, from and after the Effective\plain\li1188\cf1\f52\fs20\qj Date and continuing until 3 years following the Employee\u8217?s Date of Termination, Employee will\plain\li1188\cf1\f52\fs20\qj keep all Nonpublic Information confidential and will not, without the prior written consent of the Board or\plain\li1188\cf1\f52\fs20\qj the President of Parent, disclose any Nonpublic Information in any manner whatsoever or use any\plain\li1188\cf1\f52\fs20\qj Nonpublic Information other than in connection with the performance of Employee\u8217?s services to the\plain\li1188\sa264\cf1\f52\fs20\qj Company; provided, however, that the provisions of this subparagraph shall not prevent Employee from\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1)Disclosing any Nonpublic Information to any other employee of the Company or to any\plain\li1584\cf1\f52\fs20\qj representative or agent of the Company (such as an independent accountant, engineer, attorney or\plain\li1584\cf1\f52\fs20\qj financial advisor) when such disclosure is reasonably necessary or appropriate (in Employee\u8217?s\plain\li1584\cf1\f52\fs20\qj judgment) in connection with the performance by Employee of Employee\u8217?s duties and\plain\li1584\sa264\cf1\f52\fs20\qj responsibilities;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2)Disclosing any Nonpublic Information as required by applicable law, rule, regulation or legal\plain\li1584\sa264\cf1\f52\fs20\qj process (but only after compliance with the provisions of subparagraph (c) of this paragraph); and\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (3)Disclosing any information about this Agreement and Employee\u8217?s other\plain\li1584\cf1\f52\fs20\qj compensation arrangement to Employee\u8217?s spouse, financial advisors or attorneys, or to enforce\plain\li1584\sa264\cf1\f52\fs20\qj any of Employee\u8217?s rights under this Agreement.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (c)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Commitment to Seek Protective Order\plain\li1188\cf1\f52\fs20\qj . If Employee is requested pursuant to, or required\plain\li1188\cf1\f52\fs20\qj by, applicable law, rule, regulation or legal process to disclose any Nonpublic Information, Employee will\plain\li1188\cf1\f52\fs20\qj notify Parent promptly so that the Company may seek a protective order or other appropriate remedy or,\plain\li1188\cf1\f52\fs20\qj in Parent\u8217?s sole discretion, waive compliance with the terms of this subparagraph, and Employee\plain\li1188\cf1\f52\fs20\qj will fully cooperate in any attempt by the Company to obtain any such protective order or other remedy. If\plain\li1188\cf1\f52\fs20\qj no such protective order or other remedy is obtained, or if Parent waives compliance with the terms of\plain\li1188\cf1\f52\fs20\qj this subparagraph, Employee will furnish or disclose only that portion of the Nonpublic Information as is\plain\li1188\cf1\f52\fs20\qj legally required and will exercise all reasonable efforts to obtain reliable assurance that confidential\plain\li1188\sa264\cf1\f52\fs20\qj treatment will be accorded the Nonpublic Information that is so disclosed.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (d)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Protective Provisions.\plain\li1188\cf1\f52\fs20\qj Nothing in this paragraph\~5, paragraph 6 or any other provision of\plain\li1188\cf1\f52\fs20\qj this Agreement shall prevent or restrict in any way (1)\~Employee from exercising any rights that cannot be\plain\li1188\cf1\f52\fs20\qj lawfully waived or restricted, (2)\~Employee from testifying at a hearing, deposition, or in court in response\plain\li1188\cf1\f52\fs20\qj to a lawful subpoena or (3)\~Employee\u8217?s ability to file a charge or complaint with the Equal\plain\li1188\cf1\f52\fs20\qj Employment Opportunity Commission, the Occupational Safety and Health Administration, the Securities\plain\li1188\cf1\f52\fs20\qj and Exchange Commission, the United States Department of Justice, Congress, any agency Inspector\plain\li1188\cf1\f52\fs20\qj General or any other federal, state or local governmental agency or commission (\u8220?\plain\li1188\cf1\f52\fs20\b\i\qj Government\plain\li1188\cf1\f52\fs20\b\i\qj Agencies\plain\li1188\cf1\f52\fs20\qj \u8221?). Further, nothing in paragraph\~6 or any other provision of this Agreement shall prevent\plain\li1188\cf1\f52\fs20\qj or restrict in any way (i)\~Employee\u8217?s ability to communicate with any Government Agencies or\plain\li1188\cf1\f52\fs20\qj otherwise participate in any investigation or proceeding that may be conducted by any Government\plain\li1188\cf1\f52\fs20\qj Agency, including providing documents or other information, without notice to the Company or the\plain\li1188\cf1\f52\fs20\qj Company, or (ii)\~the right of Employee to receive an award from a Government Agency for information\plain\li1188\sa264\cf1\f52\fs20\qj provided to any Government Agencies.\par\pard\plain\fi792\cf1\f52\fs20\b\i\qj 6.\~\~\~\~Non-Solicitation and Non-Interference\plain\sa264\cf1\f52\fs20\qj .\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (a)\plain\li1188\cf1\f52\fs20\b\i\qj Non-Solicitation of Employees\plain\li1188\cf1\f52\fs20\qj . During the period of Employee\u8217?s employment with the\plain\li1188\cf1\f52\fs20\qj Company (the\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Employment Period\u8221?\plain\li1188\cf1\f52\fs20\qj ) and during the 2 year period following\plain\li1188\cf1\f52\fs20\qj Employee\u8217?s Date of Termination (the\plain\li1188\cf1\f52\fs20\b\i\qj \u8220?Restriction Period\u8221?\plain\li1188\cf1\f52\fs20\qj ), Employee shall not\plain\li1188\cf1\f52\fs20\qj directly or indirectly induce any employee of the Company to terminate employment with such entity, and\plain\li1188\cf1\f52\fs20\qj shall not directly or indirectly, either individually or as owner, agent, employee, consultant or otherwise,\plain\li1188\sa264\cf1\f52\fs20\qj employ or offer employment to any person who \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 6\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1188\cf1\f52\fs20\qj is or was employed by the Company unless such person shall have ceased to be employed by the\plain\li1188\sa264\cf1\f52\fs20\qj Company for a period of at least 6 months.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (b)\plain\li1188\cf1\f52\fs20\b\i\qj Non-Interference with Business Relationships\plain\li1188\cf1\f52\fs20\qj . During the Employment Period and the\plain\li1188\cf1\f52\fs20\qj Restriction Period, Employee shall not directly or indirectly take any actions which can reasonably be\plain\li1188\cf1\f52\fs20\qj expected to, or are intended to, disrupt or interfere with in any significant way any existing relationship\plain\li1188\sa264\cf1\f52\fs20\qj that the Company has with any third party.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (c)\plain\li1188\cf1\f52\fs20\b\i\qj No Disparaging Comments\plain\li1188\cf1\f52\fs20\qj . Except to the extent otherwise required or compelled at law or\plain\li1188\cf1\f52\fs20\qj under subpoena, during the Employment Period and the Restriction Period, Employee shall refrain from\plain\li1188\cf1\f52\fs20\qj making any public derogatory or disparaging comment concerning the Company or any of the current or\plain\li1188\cf1\f52\fs20\qj former officers, directors or employees of the Company. Notwithstanding the immediately preceding\plain\li1188\cf1\f52\fs20\qj sentence, nothing herein shall be construed to preclude Employee from enforcing any rights or claims\plain\li1188\cf1\f52\fs20\qj Employee may have against the Company (or to defend against any claims by the Company) arising\plain\li1188\sa264\cf1\f52\fs20\qj under this Agreement.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (d)\plain\li1188\cf1\f52\fs20\b\i\qj Company Property\plain\li1188\cf1\f52\fs20\qj . Promptly following Employee\u8217?s Date of Termination, Employee\plain\li1188\cf1\f52\fs20\qj shall return to the Company all property of the Company, and all copies thereof in Employee\u8217?s\plain\li1188\sa264\cf1\f52\fs20\qj possession or under Employee\u8217?s control.\par\pard\plain\fi792\cf1\f52\fs20\b\i\qj 7.\~\~\~\~Miscellaneous Provisions\plain\sa264\cf1\f52\fs20\qj .\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (a)\plain\li1188\cf1\f52\fs20\b\i\qj No Mitigation, No Offset\plain\li1188\cf1\f52\fs20\qj . Employee shall not be required to mitigate the amount of any\plain\li1188\cf1\f52\fs20\qj payment provided for in this Agreement by seeking other employment or otherwise, and the amount of\plain\li1188\cf1\f52\fs20\qj any payment provided for in this Agreement shall not be reduced by any compensation earned by\plain\li1188\cf1\f52\fs20\qj Employee as the result of employment by another employer after the Date of Termination or otherwise.\plain\li1188\cf1\f52\fs20\qj Except as provided in subparagraph 4(d), Parent\u8217?s or Employer\u8217?s obligation to make the\plain\li1188\cf1\f52\fs20\qj payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be\plain\li1188\cf1\f52\fs20\qj affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment,\plain\li1188\cf1\f52\fs20\qj defense or other right which the Company may have against Employee or others whether by reason of\plain\li1188\sa264\cf1\f52\fs20\qj the subsequent employment of Employee or otherwise.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (b)\plain\li1188\cf1\f52\fs20\b\i\qj Arbitration\plain\li1188\cf1\f52\fs20\qj . Except to the extent provided in paragraph 7(d), any dispute or controversy arising\plain\li1188\cf1\f52\fs20\qj under or in connection with this Agreement shall be resolved by binding arbitration. The arbitration shall\plain\li1188\cf1\f52\fs20\qj be held in Dallas, Texas and except to the extent inconsistent with this Agreement, shall be conducted in\plain\li1188\cf1\f52\fs20\qj accordance with the Expedited Employment Arbitration Rules of the American Arbitration Association then\plain\li1188\cf1\f52\fs20\qj in effect at the time of the arbitration, and otherwise in accordance with principles which would be applied\plain\li1188\cf1\f52\fs20\qj by a court of law or equity. The arbitrator shall be acceptable to both Parent and Employee. If the parties\plain\li1188\cf1\f52\fs20\qj cannot agree on an acceptable arbitrator, the dispute shall be heard by a panel of three arbitrators, one\plain\li1188\cf1\f52\fs20\qj appointed by each of the parties and the third appointed by the other two arbitrators. The arbitrator may\plain\li1188\cf1\f52\fs20\qj award pre-judgment interest on any amount found to be due under this Agreement at a rate not in\plain\li1188\sa264\cf1\f52\fs20\qj excess of the rate that would be payable with respect to judgments rendered in a Texas state court.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (c)\plain\li1188\cf1\f52\fs20\b\i\qj Attorney Fees\plain\li1188\cf1\f52\fs20\qj . All legal fees and other costs incurred by Employee in connection with the\plain\li1188\cf1\f52\fs20\qj resolution of any dispute or controversy under or in connection with this Agreement shall be reimbursed\plain\li1188\cf1\f52\fs20\qj by the Company to Employee if such dispute or controversy is resolved in favor of Employee.\plain\li1188\cf1\f52\fs20\qj Reimbursement of such fees shall be made not later than 75 days following final resolution of the matter.\plain\li1188\cf1\f52\fs20\qj The Company shall be responsible for, and shall pay, all legal fees and other costs incurred by the\plain\li1188\cf1\f52\fs20\qj Company in connection with the resolution of any dispute or controversy under or in connection with this\plain\li1188\cf1\f52\fs20\qj Agreement, regardless of whether such dispute or controversy is resolved in favor of the Company or\plain\li1188\sa264\cf1\f52\fs20\qj Employee.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (d)\plain\li1188\cf1\f52\fs20\b\i\qj Equitable Relief Available\plain\li1188\cf1\f52\fs20\qj . Employee acknowledges that remedies at law may be inadequate\plain\li1188\cf1\f52\fs20\qj to protect the Company against any actual or threatened breach by Employee of the provisions of\plain\li1188\cf1\f52\fs20\qj paragraphs 5 or 6. Accordingly, without prejudice to any other rights or remedies otherwise available to\plain\li1188\cf1\f52\fs20\qj the Company, Employee agrees that the Company shall have the right to equitable and injunctive relief\plain\li1188\cf1\f52\fs20\qj (without requirement to post any bond) to prevent any breach of the provisions of paragraphs 5 or 6\plain\li1188\cf1\f52\fs20\qj (without any requirement to post any bond), as well as to such damages or other relief as may be\plain\li1188\sa264\cf1\f52\fs20\qj available to the Company by reason of any such breach that does occur. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 7\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (e)\plain\li1188\cf1\f52\fs20\b\i\qj Not A Contract of Employment\plain\li1188\cf1\f52\fs20\qj . Employee acknowledges that that this Agreement is not an\plain\li1188\cf1\f52\fs20\qj \u8220?employment agreement\u8221? or \u8220?employment contract\u8221? (written or otherwise), as\plain\li1188\sa264\cf1\f52\fs20\qj either term is used or defined in, or contemplated by or under\par\pard\plain\li1584\sa264\fi792\cf1\f52\fs20\qj (5) Parent\u8217?s LTIP;\par\pard\plain\li1584\sa264\fi792\cf1\f52\fs20\qj (6) Any other plan or agreement to which the Company is a party; or\par\pard\plain\li1584\sa264\fi792\cf1\f52\fs20\qj (7) Applicable statutory, common or case law.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (f)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Notices\plain\li1188\cf1\f52\fs20\qj . Any Notice of Termination or other communication called for by the terms of this\plain\li1188\cf1\f52\fs20\qj Agreement shall be in writing and either delivered personally or by registered or certified mail (postage\plain\li1188\cf1\f52\fs20\qj prepaid and return receipt requested) and shall be deemed given when received at the following\plain\li1188\sa264\cf1\f52\fs20\qj addresses (or at such other address for a party as shall be specified by like notice):\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (1)If to Parent, Employer or the Company, 5205 North O\u8217?Connor Boulevard, Suite 900,\plain\li1584\sa264\cf1\f52\fs20\qj Irving, Texas 75039, Attention: General Counsel;\par\pard\plain\li1584\fi792\cf1\f52\fs20\qj (2)If to Employee, the address of Employee set forth below Employee\u8217?s signature on\plain\li1584\sa264\cf1\f52\fs20\qj the signature page of this Agreement.\par\pard\plain\li1188\fi682\cf1\f52\fs20\qj (g)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Assignment\plain\li1188\cf1\f52\fs20\qj . Employer may assign its duties and obligations hereunder to any other direct or\plain\li1188\cf1\f52\fs20\qj indirect, majority-owned subsidiary of Parent, but shall remain secondarily liable for the performance of\plain\li1188\cf1\f52\fs20\qj this Agreement by Parent and/or any such assignee. Except pursuant to the immediately preceding\plain\li1188\cf1\f52\fs20\qj sentence or an assumption by a successor described in subparagraph (h) of this paragraph, the rights\plain\li1188\cf1\f52\fs20\qj and obligations of Parent and Employer pursuant to this Agreement may not be assigned, in whole or in\plain\li1188\cf1\f52\fs20\qj part, by Parent or Employer to any other person or entity without the express written consent of\plain\li1188\cf1\f52\fs20\qj Employee. The rights and obligations of Employee pursuant to this Agreement may not be assigned, in\plain\li1188\cf1\f52\fs20\qj whole or in part, by Employee to any other person or entity without the express written consent of the\plain\li1188\sa264\cf1\f52\fs20\qj Board.\par\pard\plain\li1188\fi682\cf1\f52\fs20\qj (h)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Successors\plain\li1188\cf1\f52\fs20\qj . Parent shall require any successor (whether direct or indirect) to all or\plain\li1188\cf1\f52\fs20\qj substantially all of the business or assets of Parent (whether by purchase of securities, merger,\plain\li1188\cf1\f52\fs20\qj consolidation, sale of assets or otherwise), to expressly assume and agree to perform the obligations to\plain\li1188\cf1\f52\fs20\qj be performed by the Company under this Agreement in the same manner and to the same extent that the\plain\li1188\cf1\f52\fs20\qj Company would be required to perform if no such succession had taken place. This Agreement shall be\plain\li1188\cf1\f52\fs20\qj binding on, and shall inure to the benefit of, Parent, Employer, the Company, Employee and their\plain\li1188\cf1\f52\fs20\qj respective successors, permitted assigns, personal and legal representatives, executors, administrators,\plain\li1188\sa264\cf1\f52\fs20\qj heirs, distributees, devisees and legatees, as applicable.\par\pard\plain\li1188\fi682\cf1\f52\fs20\qj (i)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Amendments and Waivers\plain\li1188\cf1\f52\fs20\qj . No provision of this Agreement may be amended or otherwise\plain\li1188\cf1\f52\fs20\qj modified, and no right of any party to this Agreement may be waived, unless such amendment,\plain\li1188\cf1\f52\fs20\qj modification or waiver is agreed to in a written instrument signed by Employee and Company. No waiver\plain\li1188\cf1\f52\fs20\qj by either party hereto of, or compliance with, any condition or provision of this Agreement to be performed\plain\li1188\cf1\f52\fs20\qj by the other party hereto shall be deemed a waiver of similar or dissimilar provisions or conditions at the\plain\li1188\sa264\cf1\f52\fs20\qj same or at any prior or subsequent time.\par\pard\plain\li1188\fi682\cf1\f52\fs20\qj (j)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Complete Agreement\plain\li1188\cf1\f52\fs20\qj . This Agreement replaces and supersedes all prior agreements, if any,\plain\li1188\cf1\f52\fs20\qj among the parties with respect to payments to be made to Employee upon the termination of\plain\li1188\cf1\f52\fs20\qj Employee\u8217?s employment prior to a Change in Control, and the provisions of this Agreement\plain\li1188\cf1\f52\fs20\qj constitute the complete understanding and agreement among the parties with respect to such subject\plain\li1188\cf1\f52\fs20\qj matter. Nothing in this subparagraph (j) is intended to, or shall be construed to (1) supersede the Change\plain\li1188\cf1\f52\fs20\qj in Control Agreement or (2) limit Employee\u8217?s rights under the Parent\u8217?s LTIP or any other\plain\li1188\cf1\f52\fs20\qj Company plan, program, policy or practice (other than any plan, program, policy or practice primarily\plain\li1188\sa264\cf1\f52\fs20\qj providing severance or other termination benefits) generally applicable to similarly situated employees.\par\pard\plain\li1188\fi594\cf1\f52\fs20\qj (k)\plain\li1188\cf1\f52\fs20\b\i\qj \~\~\~\~Governing Law\plain\li1188\cf1\f52\fs20\qj .\plain\li1188\cf1\f52\fs20\b\qj THIS AGREEMENT IS BEING MADE AND EXECUTED IN, AND IS\plain\li1188\cf1\f52\fs20\b\qj INTENDED TO BE PERFORMED IN, THE STATE OF TEXAS AND SHALL BE GOVERNED,\plain\li1188\cf1\f52\fs20\b\qj CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS\plain\li1188\sa264\cf1\f52\fs20\b\qj OF THE STATE OF TEXAS. \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 8\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li1188\fi682\cf1\f52\fs20\qj (l)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Counterparts\plain\li1188\cf1\f52\fs20\qj . This Agreement may be executed in several counterparts, each of which shall\plain\li1188\sa264\cf1\f52\fs20\qj be deemed to be an original, but all of which together will constitute one and the same agreement.\par\pard\plain\li1188\fi594\cf1\f52\fs20\qj (m)\~\~\~\~\plain\li1188\cf1\f52\fs20\b\i\qj Construction\plain\li1188\cf1\f52\fs20\qj . The captions of the paragraphs, subparagraphs and sections of this Agreement\plain\li1188\cf1\f52\fs20\qj have been inserted as a matter of convenience of reference only and shall not affect the meaning or\plain\li1188\cf1\f52\fs20\qj construction of any of the terms or provisions of this Agreement. Unless otherwise specified, references in\plain\li1188\cf1\f52\fs20\qj this Agreement to a \u8220?paragraph,\u8221? \u8220?subparagraph,\u8221? \u8220?section,\u8221?\plain\li1188\cf1\f52\fs20\qj \u8220?subsection\u8221? or \u8220?schedule\u8221? shall be considered to be references to the\plain\li1188\cf1\f52\fs20\qj appropriate paragraph, subparagraph, section, subsection or schedule, respectively, of this Agreement. As\plain\li1188\cf1\f52\fs20\qj used in this Agreement, the term \u8220?including\u8221? shall mean \u8220?including, but not limited\plain\li1188\sa264\cf1\f52\fs20\qj to.\u8221?\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (n)\plain\li1188\cf1\f52\fs20\b\i\qj Validity and Severability\plain\li1188\cf1\f52\fs20\qj . If any term or provision of this Agreement is held to be illegal,\plain\li1188\cf1\f52\fs20\qj invalid or unenforceable under the present or future laws effective during the term of this Agreement, (1)\plain\li1188\cf1\f52\fs20\qj such term or provision shall be fully severable, (2) this Agreement shall be construed and enforced as if\plain\li1188\cf1\f52\fs20\qj such term or provision had never comprised a part of this Agreement and (3) the remaining terms and\plain\li1188\cf1\f52\fs20\qj provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal,\plain\li1188\cf1\f52\fs20\qj invalid or unenforceable term or provision or by its severance from this Agreement. Furthermore, in lieu of\plain\li1188\cf1\f52\fs20\qj such illegal, invalid or unenforceable term or provision, there shall be added automatically as a part of this\plain\li1188\cf1\f52\fs20\qj Agreement, a term or provision as similar to such illegal, invalid or unenforceable term or provision as\plain\li1188\sa264\cf1\f52\fs20\qj may be possible and be legal, valid and enforceable.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (o)\plain\li1188\cf1\f52\fs20\b\i\qj Survival\plain\li1188\cf1\f52\fs20\qj . Notwithstanding anything else in this Agreement to the contrary, paragraphs 5, 6 and\plain\li1188\cf1\f52\fs20\qj 7, and, to the extent that any of Parent\u8217?s and Employer\u8217?s obligations thereunder have not\plain\li1188\sa264\cf1\f52\fs20\qj theretofore been satisfied, paragraph 4 of this Agreement shall survive the termination hereof.\par\pard\plain\li1188\fi792\cf1\f52\fs20\qj (p)\plain\li1188\cf1\f52\fs20\b\i\qj Joint and Several Liability\plain\li1188\cf1\f52\fs20\qj . Parent and Employer (or any assignee of Employer pursuant to\plain\li1188\cf1\f52\fs20\qj paragraph 7(g)) shall each be jointly and severally liable to Employee hereunder with regard to any\plain\li1188\sa264\cf1\f52\fs20\qj obligation imposed by the terms hereof on Parent or Employer.\par\pard\plain\sa264\cf1\f52\fs20\qc (SIGNATURE PAGE ATTACHED) \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 9\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\sa264\fi792\cf1\f52\fs20\qj In Witness Whereof, the parties have executed this Agreement to be effective as of the Effective Date. \par\pard\plain\fs16\par\pard\plain\li4752\sb352\cf1\f52\fs20\ql PIONEER NATURAL RESOURCES COMPANY \par\pard\plain\fs16\par\pard\plain\sb352\fi4752\cf1\f52\fs20\qc \~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~ \par\pard\plain {\trowd\trqc\clvertalc\cellx5125\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx5125\trrh66\row}}} {\trowd\trqc\clvertalc\cellx717\clvertalc\cellx5125\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx717\clvertalc\cellx5125\trrh66\row}}} {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Mark H. Kleinman\cell{ {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281\row}}} {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Name:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Mark H. Kleinman\cell{ {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281\row}}} {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Title:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Senior Vice President and General Counsel\cell{ {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281\row}}} \par\pard\plain\fs16\pard\plain\li4752\sb352\cf1\f52\fs20\ql PIONEER NATURAL RESOURCES USA, INC.\par\pard\plain\sb352\fi4752\cf1\f52\fs20\qc \~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~ \par\pard\plain {\trowd\trqc\clvertalc\cellx5125\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx5125\trrh66\row}}} {\trowd\trqc\clvertalc\cellx717\clvertalc\cellx5125\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx717\clvertalc\cellx5125\trrh66\row}}} {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Mark H. Kleinman\cell{ {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281\row}}} {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Name:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Mark H. Kleinman\cell{ {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281\row}}} {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Title:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Senior Vice President and General Counsel\cell{ {\trowd\trqc\clvertalb\cellx717\clvertalb\cellx5125\trrh281\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\li4752\sb352\cf1\f52\fs20\ql EMPLOYEE \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li4752\cf1\f52\fs20\ql /s/ Scott D. Sheffield\par\pard\plain\li4752\cf1\f52\fs20\ql Scott D. Sheffield \par\pard\plain\fs16\par\pard\plain\li4752\sb352\sa264\cf1\f52\fs20\ql Address: \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\li4752\sb352\sa264\cf1\f52\fs20\ql ________________________________________ \par\pard\plain\fs16\par\pard\plain\li4752\sb352\sa264\cf1\f52\fs20\ql ________________________________________ \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\qc 10\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart sea991668dd1f41dcbbae67a3bd070eb}{\*\bkmkend sea991668dd1f41dcbbae67a3bd070eb} \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\sb352\sa264\cf1\f52\fs20\b\qc Schedule A\par\pard\plain\sb352\sa264\cf1\f52\fs20\b\qc GENERAL RELEASE AGREEMENT\par\pard\plain\sb352\cf1\f52\fs18\b\qj NOTICE:\plain\cf1\f52\fs18\b\i\qj You should thoroughly review and understand the effect of this General Release Agreement\plain\cf1\f52\fs18\b\qj (\u8220?\plain\cf1\f52\fs18\b\i\qj Release\u8221?) before signing it, and the Company hereby advises you to discuss this document with your\plain\cf1\f52\fs18\b\i\qj attorney. In accordance with the requirements of the Older Workers Benefit Protection Act (\u8220?OWBPA\u8221?), you\plain\cf1\f52\fs18\b\i\qj are allowed at least twenty-one days from the date of your receipt of this document to consider the offer made to you\plain\cf1\f52\fs18\b\i\qj and to return an executed copy of this Release to the Chief Human Resources Officer. Additionally, after you have\plain\cf1\f52\fs18\b\i\qj executed this Release, you have seven (7) days to reconsider and revoke your agreement. In signing below, you\plain\cf1\f52\fs18\b\i\qj represent that you have carefully read this Release, that you fully understand its final and binding effect, and that you are\plain\cf1\f52\fs18\b\i\qj signing this Release voluntarily and of your own free will. You are also representing that, in entering into this Release,\plain\sa264\cf1\f52\fs18\b\i\qj you are receiving consideration that you are not otherwise entitled to but for your entry into this Release.\par\pard\plain\sb352\cf1\f52\fs18\b\qj GENERAL RELEASE: In consideration of my acceptance of the payments and benefits offered to me under the Pioneer\plain\cf1\f52\fs18\b\qj Natural Resources Company Severance Agreement effective [date][, as amended,] (the \u8220?Agreement\u8221?), I\plain\cf1\f52\fs18\b\qj hereby release and discharge Pioneer Natural Resources Company (the \u8220?Company\u8221?) and its subsidiaries and\plain\cf1\f52\fs18\b\qj affiliates, and the officers, directors, employees, agents, predecessors, successors, and assigns of such entities, and\plain\cf1\f52\fs18\b\qj employee benefits plan (including plan administrators, trustees and fiduciaries) (collectively the \u8220?Released Parties)\plain\cf1\f52\fs18\b\qj from any claims, demands and/or causes of action whatsoever, presently known or unknown, that are based upon facts\plain\cf1\f52\fs18\b\qj occurring on or prior to my execution (signing) of this Release, including, but not limited to, the following: any matter or\plain\cf1\f52\fs18\b\qj action related to my employment with, separation from, and/or affiliation with the Company, including any tort, contract,\plain\cf1\f52\fs18\b\qj negligence, or other common law claims, all claims for intentional infliction of emotional distress, all claims for\plain\cf1\f52\fs18\b\qj compensatory, punitive or any other damages, all claims for attorneys' fees and costs, and all claims under any federal,\plain\cf1\f52\fs18\b\qj state, or local statute, regulation, or ordinance, including but not limited to, those under the Civil Rights Act of 1866,\plain\cf1\f52\fs18\b\qj 1871, 1964, and 1991; the Americans with Disabilities Act; the Age Discrimination in Employment Act; the Older Workers\plain\cf1\f52\fs18\b\qj Benefit Protection Act; the Rehabilitation Act of 1973; Executive Order 11246; the Family and Medical Leave Act; the\plain\cf1\f52\fs18\b\qj Employee Retirement Security Act; the Equal Pay Act; the Fair Labor Standards Act; any tort, contract, constitutional, or\plain\cf1\f52\fs18\b\qj other statutory claims; and all claims for past or future employment benefits, including but not limited to wages,\plain\sa264\cf1\f52\fs18\b\qj bonuses, vacation pay, severance and medical or dental coverage (any and all \u8220?Potential Claims\u8221?).\par\pard\plain\sb352\sa264\cf1\f52\fs18\qj I understand that this Release is final and binding.\par\pard\plain\sb352\cf1\f52\fs18\qj I acknowledge and agree that the Company has no legal obligation to provide the payments and/or benefits offered to me under\plain\cf1\f52\fs18\qj the Agreement, except in exchange for this Release, and my acceptance of such payments and benefits constitutes my agreement\plain\sa264\cf1\f52\fs18\qj to all terms and conditions set forth in this Release.\par\pard\plain\sb352\cf1\f52\fs18\qj I acknowledge and agree that, except to the extent otherwise provided in the Agreement or prohibited by law, this Release\plain\cf1\f52\fs18\qj constitutes a waiver of any and all Potential Claims that I have or may have against the Released Parties. I further acknowledge\plain\cf1\f52\fs18\qj and agree that this Release has no effect on any obligations I have assumed under the Agreement with respect to confidentiality,\plain\cf1\f52\fs18\qj non-solicitation, non-interference and other such matters and that any such obligations shall survive my execution of this Release\plain\sa264\cf1\f52\fs18\qj in accordance with the terms of the Agreement.\par\pard\plain\sb352\cf1\f52\fs18\qj I acknowledge that I have twenty-one (21) days to consider this Release before executing it, although I may execute it any time\plain\cf1\f52\fs18\qj during this twenty-one (21) day period (but not before my last day of employment), that I may revoke this Release within 7 days\plain\cf1\f52\fs18\qj after I execute it by written notice to the Company\u8217?s Chief Human Resources Officer and that this Release will not become\plain\cf1\f52\fs18\qj effective or enforceable, and the payments and benefits offered under the Agreement will not be made or provided, until expiration\plain\sa264\cf1\f52\fs18\qj of this 7 day period without my revocation.\par\pard\plain\sb352\cf1\f52\fs18\qj I have carefully read and fully understand all of the provisions of this Release. I further acknowledge that entering into this\plain\cf1\f52\fs18\qj Release is knowing and voluntary on my part, that I have had a reasonable time to deliberate regarding its terms, and that I have\plain\sa264\cf1\f52\fs18\qj had the right to consult with an attorney prior to executing this Release if I so desired. \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx4752\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx4752\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalb\cellx4752\clvertalb\cellx10800\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f52\fs18\ql _________________________________________\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f52\fs18\ql Date signed:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f52\fs18\ql __________________________________________________________\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f52\fs18\ql Signature of [employee]\cell{ {\trowd\trqc\clvertalb\cellx4752\clvertalb\cellx10800\trrh479\row}}} {\trowd\trqc\clvertalb\cellx4752\clvertalb\cellx10800\trrh928 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\cellx4752\clvertalb\cellx10800\trrh928\row}}} {\trowd\trqc\clvertalb\cellx4752\clvertalb\cellx10800\trrh479 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f52\fs18\ql _________________________________________\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f52\fs18\ql Date signed:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f52\fs18\ql __________________________________________________________\par\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f52\fs18\ql Witness\cell{ {\trowd\trqc\clvertalb\cellx4752\clvertalb\cellx10800\trrh479\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\qc 1 \page{\*\bkmkstart doc_1_6}{\*\bkmkend doc_1_6}{\*\bkmkstart s183c3706612155699e0f9933b2286ba}{\*\bkmkend s183c3706612155699e0f9933b2286ba} \par\pard\plain\fs16 \par\pard\plain\fs16\par\pard\plain\cf1\f51\fs20\b\qr EXHIBIT 31.1\par\pard\plain\sb264\cf1\f51\fs20\b\qc CHIEF EXECUTIVE OFFICER CERTIFICATION\par\pard\plain\sb264\sa132\cf1\f51\fs20\ql I, Scott D. Sheffield, certify that: \par\pard\plain {\trowd\clvertalc\cellx308\clvertalc\cellx8189\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx308\clvertalc\cellx8189\trrh66\row}}} {\trowd\cellx308\cellx8189\trrh630 \pard\plain\intbl\cf1\f51\fs20\ql 1.\cell\pard\plain\intbl\cf1\f51\fs20\ql I have reviewed this quarterly report on Form 10-Q of Pioneer Natural Resources\plain\intbl\cf1\f51\fs20\ql Company;\cell{ {\trowd\cellx308\cellx8189\trrh630\row}}} \pard\plain {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx360\cellx10800\trrh878 \pard\plain\intbl\cf1\f51\fs20\ql 2.\cell\pard\plain\intbl\cf1\f51\fs20\ql Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact\plain\intbl\cf1\f51\fs20\ql necessary to make the statements made, in light of circumstances under which such statements were made, not misleading\plain\intbl\cf1\f51\fs20\ql with respect to the period covered by this report;\cell{ {\trowd\cellx360\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx360\cellx10800\trrh878 \pard\plain\intbl\cf1\f51\fs20\ql 3.\cell\pard\plain\intbl\cf1\f51\fs20\ql Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all\plain\intbl\cf1\f51\fs20\ql material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods\plain\intbl\cf1\f51\fs20\ql presented in this report;\cell{ {\trowd\cellx360\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx360\cellx10800\trrh878 \pard\plain\intbl\cf1\f51\fs20\ql 4.\cell\pard\plain\intbl\cf1\f51\fs20\ql The registrant\u8217?s other certifying officer and I are responsible for establishing and maintaining disclosure controls and\plain\intbl\cf1\f51\fs20\ql procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as\plain\intbl\cf1\f51\fs20\ql defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:\cell{ {\trowd\cellx360\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh1125 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\ql Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed\plain\intbl\cf1\f51\fs20\ql under our supervision, to ensure that material information relating to the registrant, including its consolidated\plain\intbl\cf1\f51\fs20\ql subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is\plain\intbl\cf1\f51\fs20\ql being prepared;\cell{ {\trowd\cellx720\cellx10800\trrh1125\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh878 \pard\plain\intbl\li396\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\ql Designed such internal control over financial reporting, or caused such internal control over financial reporting to be\plain\intbl\cf1\f51\fs20\ql designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the\plain\intbl\cf1\f51\fs20\ql preparation of financial statements for external purposes in accordance with generally accepted accounting principles;\cell{ {\trowd\cellx720\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh878 \pard\plain\intbl\li396\cf1\f51\fs20\ql (c)\cell\pard\plain\intbl\cf1\f51\fs20\ql Evaluated the effectiveness of the registrant\u8217?s disclosure controls and procedures and presented in this report our\plain\intbl\cf1\f51\fs20\ql conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this\plain\intbl\cf1\f51\fs20\ql report based on such evaluation; and\cell{ {\trowd\cellx720\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh1125 \pard\plain\intbl\li396\cf1\f51\fs20\ql (d)\cell\pard\plain\intbl\cf1\f51\fs20\ql Disclosed in this report any change in the registrant\u8217?s internal control over financial reporting that occurred during\plain\intbl\cf1\f51\fs20\ql the registrant\u8217?s most recent fiscal quarter (the registrant\u8217?s fourth fiscal quarter in the case of an annual\plain\intbl\cf1\f51\fs20\ql report) that has materially affected, or is reasonably likely to materially affect, the registrant\u8217?s internal control\plain\intbl\cf1\f51\fs20\ql over financial reporting; and\cell{ {\trowd\cellx720\cellx10800\trrh1125\row}}} \pard\plain {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx360\cellx10800\trrh878 \pard\plain\intbl\cf1\f51\fs20\ql 5.\cell\pard\plain\intbl\cf1\f51\fs20\ql The registrant\u8217?s other certifying officer and I have disclosed, based on our most recent evaluation of internal control\plain\intbl\cf1\f51\fs20\ql over financial reporting, to the registrant\u8217?s auditors and the audit committee of the registrant\u8217?s board of\plain\intbl\cf1\f51\fs20\ql directors (or persons performing the equivalent functions):\cell{ {\trowd\cellx360\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh878 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\ql All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting\plain\intbl\cf1\f51\fs20\ql which are reasonably likely to adversely affect the registrant\u8217?s ability to record, process, summarize and report\plain\intbl\cf1\f51\fs20\ql financial information; and\cell{ {\trowd\cellx720\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh495 \pard\plain\intbl\li396\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\ql Any fraud, whether or not material, that involves management or other employees who have a significant role in the\plain\intbl\cf1\f51\fs20\ql registrant\u8217?s internal control over financial reporting.\cell{ {\trowd\cellx720\cellx10800\trrh495\row}}} \par\pard\plain\fs16 \par\pard\plain {\trowd\clvertalc\cellx5062\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5062\trrh66\row}}} {\trowd\clvertalc\cellx607\clvertalc\cellx5062\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx607\clvertalc\cellx5062\trrh66\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Scott D. Sheffield\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Scott D. Sheffield\cell{ {\trowd\clvertalb\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql President and Chief Executive Officer\cell{ {\trowd\clvertalb\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx607\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Date:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql May 9, 2019\cell{ {\trowd\clvertalb\cellx607\clvertalb\cellx5062\trrh281\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16 \page{\*\bkmkstart doc_1_7}{\*\bkmkend doc_1_7}{\*\bkmkstart sda358c1a5b625c9f9917554348118c0}{\*\bkmkend sda358c1a5b625c9f9917554348118c0} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\b\qr EXHIBIT 31.2\par\pard\plain\sb264\cf1\f51\fs20\b\qc CHIEF FINANCIAL OFFICER CERTIFICATION\par\pard\plain\sb264\sa132\cf1\f51\fs20\ql I, Richard P. Dealy, certify that: \par\pard\plain {\trowd\clvertalc\cellx308\clvertalc\cellx8189\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx308\clvertalc\cellx8189\trrh66\row}}} {\trowd\cellx308\cellx8189\trrh630 \pard\plain\intbl\cf1\f51\fs20\ql 1.\cell\pard\plain\intbl\cf1\f51\fs20\ql I have reviewed this quarterly report on Form 10-Q of Pioneer Natural Resources\plain\intbl\cf1\f51\fs20\ql Company;\cell{ {\trowd\cellx308\cellx8189\trrh630\row}}} \pard\plain {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx360\cellx10800\trrh878 \pard\plain\intbl\cf1\f51\fs20\ql 2.\cell\pard\plain\intbl\cf1\f51\fs20\ql Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact\plain\intbl\cf1\f51\fs20\ql necessary to make the statements made, in light of circumstances under which such statements were made, not misleading\plain\intbl\cf1\f51\fs20\ql with respect to the period covered by this report;\cell{ {\trowd\cellx360\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx360\cellx10800\trrh878 \pard\plain\intbl\cf1\f51\fs20\ql 3.\cell\pard\plain\intbl\cf1\f51\fs20\ql Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all\plain\intbl\cf1\f51\fs20\ql material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods\plain\intbl\cf1\f51\fs20\ql presented in this report;\cell{ {\trowd\cellx360\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx360\cellx10800\trrh878 \pard\plain\intbl\cf1\f51\fs20\ql 4.\cell\pard\plain\intbl\cf1\f51\fs20\ql The registrant\u8217?s other certifying officer and I are responsible for establishing and maintaining disclosure controls and\plain\intbl\cf1\f51\fs20\ql procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as\plain\intbl\cf1\f51\fs20\ql defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:\cell{ {\trowd\cellx360\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh1125 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\ql Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed\plain\intbl\cf1\f51\fs20\ql under our supervision, to ensure that material information relating to the registrant, including its consolidated\plain\intbl\cf1\f51\fs20\ql subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is\plain\intbl\cf1\f51\fs20\ql being prepared;\cell{ {\trowd\cellx720\cellx10800\trrh1125\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh878 \pard\plain\intbl\li396\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\ql Designed such internal control over financial reporting, or caused such internal control over financial reporting to be\plain\intbl\cf1\f51\fs20\ql designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the\plain\intbl\cf1\f51\fs20\ql preparation of financial statements for external purposes in accordance with generally accepted accounting principles;\cell{ {\trowd\cellx720\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh878 \pard\plain\intbl\li396\cf1\f51\fs20\ql (c)\cell\pard\plain\intbl\cf1\f51\fs20\ql Evaluated the effectiveness of the registrant\u8217?s disclosure controls and procedures and presented in this report our\plain\intbl\cf1\f51\fs20\ql conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this\plain\intbl\cf1\f51\fs20\ql report based on such evaluation; and\cell{ {\trowd\cellx720\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh1125 \pard\plain\intbl\li396\cf1\f51\fs20\ql (d)\cell\pard\plain\intbl\cf1\f51\fs20\ql Disclosed in this report any change in the registrant\u8217?s internal control over financial reporting that occurred during\plain\intbl\cf1\f51\fs20\ql the registrant\u8217?s most recent fiscal quarter (the registrant\u8217?s fourth fiscal quarter in the case of an annual\plain\intbl\cf1\f51\fs20\ql report) that has materially affected, or is reasonably likely to materially affect, the registrant\u8217?s internal control\plain\intbl\cf1\f51\fs20\ql over financial reporting; and\cell{ {\trowd\cellx720\cellx10800\trrh1125\row}}} \pard\plain {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx360\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx360\cellx10800\trrh878 \pard\plain\intbl\cf1\f51\fs20\ql 5.\cell\pard\plain\intbl\cf1\f51\fs20\ql The registrant\u8217?s other certifying officer and I have disclosed, based on our most recent evaluation of internal control\plain\intbl\cf1\f51\fs20\ql over financial reporting, to the registrant\u8217?s auditors and the audit committee of the registrant\u8217?s board of\plain\intbl\cf1\f51\fs20\ql directors (or persons performing the equivalent functions):\cell{ {\trowd\cellx360\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh878 \pard\plain\intbl\li396\cf1\f51\fs20\ql (a)\cell\pard\plain\intbl\cf1\f51\fs20\ql All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting\plain\intbl\cf1\f51\fs20\ql which are reasonably likely to adversely affect the registrant\u8217?s ability to record, process, summarize and report\plain\intbl\cf1\f51\fs20\ql financial information; and\cell{ {\trowd\cellx720\cellx10800\trrh878\row}}} \pard\plain {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx720\clvertalc\cellx10800\trrh66\row}}} {\trowd\cellx720\cellx10800\trrh630 \pard\plain\intbl\li396\cf1\f51\fs20\ql (b)\cell\pard\plain\intbl\cf1\f51\fs20\ql Any fraud, whether or not material, that involves management or other employees who have a significant role in the\plain\intbl\cf1\f51\fs20\ql registrant\u8217?s internal control over financial reporting.\cell{ {\trowd\cellx720\cellx10800\trrh630\row}}} \par\pard\plain\fs16 \par\pard\plain {\trowd\clvertalc\cellx5062\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5062\trrh66\row}}} {\trowd\clvertalc\cellx607\clvertalc\cellx5062\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx607\clvertalc\cellx5062\trrh66\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Richard P. Dealy\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Richard P. Dealy\cell{ {\trowd\clvertalb\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Executive Vice President and Chief Financial Officer\cell{ {\trowd\clvertalb\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx607\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Date:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql May 9, 2019\cell{ {\trowd\clvertalb\cellx607\clvertalb\cellx5062\trrh281\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \page{\*\bkmkstart doc_1_8}{\*\bkmkend doc_1_8}{\*\bkmkstart se49e0704cc605aa7bf21222fdd8ba8e}{\*\bkmkend se49e0704cc605aa7bf21222fdd8ba8e} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\b\qr EXHIBIT 32.1\par\pard\plain\sb264\cf1\f51\fs20\b\qc CERTIFICATION OF\par\pard\plain\cf1\f51\fs20\b\qc CHIEF EXECUTIVE OFFICER\par\pard\plain\cf1\f51\fs20\b\qc OF PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc PURSUANT TO 18 U.S.C. \u167? 1350\par\pard\plain\sb264\fi528\cf1\f51\fs20\ql I, Scott D. Sheffield, President and Chief Executive Officer of Pioneer Natural Resources Company (the\plain\cf1\f51\fs20\ql \u8220?Company\u8221?), hereby certify that the accompanying Quarterly Report on Form 10-Q for the quarterly period ended\plain\cf1\f51\fs20\ql March 31, 2022 and filed with the Securities and Exchange Commission pursuant to Section\~13(a) of the Securities Exchange Act\plain\cf1\f51\fs20\ql of 1934 (the \u8220?Report\u8221?) by the Company fully complies with the requirements of that section.\par\pard\plain\sb264\fi528\cf1\f51\fs20\ql I further certify that the information contained in the Report fairly presents, in all material respects, the financial condition\plain\cf1\f51\fs20\ql and results of operations of the Company. \par\pard\plain\fs16 \par\pard\plain {\trowd\clvertalc\cellx5062\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5062\trrh66\row}}} {\trowd\clvertalc\cellx607\clvertalc\cellx5062\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx607\clvertalc\cellx5062\trrh66\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Scott D. Sheffield\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Scott D. Sheffield\cell{ {\trowd\clvertalb\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql President and Chief Executive Officer\cell{ {\trowd\clvertalb\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx607\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Date:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql May 9, 2019\cell{ {\trowd\clvertalb\cellx607\clvertalb\cellx5062\trrh281\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \page{\*\bkmkstart doc_1_9}{\*\bkmkend doc_1_9}{\*\bkmkstart s02636e7936be50daaf3e28ff65ba506}{\*\bkmkend s02636e7936be50daaf3e28ff65ba506} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\cf1\f51\fs20\b\qr EXHIBIT 32.2\par\pard\plain\sb264\cf1\f51\fs20\b\qc CERTIFICATION OF\par\pard\plain\cf1\f51\fs20\b\qc CHIEF FINANCIAL OFFICER\par\pard\plain\cf1\f51\fs20\b\qc OF PIONEER NATURAL RESOURCES COMPANY\par\pard\plain\cf1\f51\fs20\b\qc PURSUANT TO 18 U.S.C. \u167? 1350\par\pard\plain\sb264\fi528\cf1\f51\fs20\ql I, Richard P. Dealy, Executive Vice President and Chief Financial Officer of Pioneer Natural Resources Company (the\plain\cf1\f51\fs20\ql \u8220?Company\u8221?), hereby certify that the accompanying Quarterly Report on Form 10-Q for the quarterly period ended\plain\cf1\f51\fs20\ql March 31, 2022 and filed with the Securities and Exchange Commission pursuant to Section\~13(a) of the Securities Exchange Act\plain\cf1\f51\fs20\ql of 1934 (the \u8220?Report\u8221?) by the Company fully complies with the requirements of that section.\par\pard\plain\sb264\fi528\cf1\f51\fs20\ql I further certify that the information contained in the Report fairly presents, in all material respects, the financial condition\plain\cf1\f51\fs20\ql and results of operations of the Company. \par\pard\plain\fs16 \par\pard\plain {\trowd\clvertalc\cellx5062\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5062\trrh66\row}}} {\trowd\clvertalc\cellx607\clvertalc\cellx5062\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx607\clvertalc\cellx5062\trrh66\row}}} {\trowd\clbrdrb\brdrs\brdrcf1\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql /s/ Richard P. Dealy\cell{ {\trowd\clbrdrb\brdrs\brdrcf1\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Richard P. Dealy\cell{ {\trowd\clvertalb\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Executive Vice President and Chief Financial Officer\cell{ {\trowd\clvertalb\cellx5062\trrh281\row}}} {\trowd\clvertalb\cellx607\clvertalb\cellx5062\trrh281 \pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql Date:\cell\pard\plain\intbl\li22\ri22\sb22\sa22\cf1\f51\fs20\ql May 9, 2019\cell{ {\trowd\clvertalb\cellx607\clvertalb\cellx5062\trrh281\row}}} \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \page{\*\bkmkstart doc_1_10}{\*\bkmkend doc_1_10}{\*\bkmkstart s9be90255069955729a0292e19a15d8c}{\*\bkmkend s9be90255069955729a0292e19a15d8c} \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\sb264\cf1\f51\fs20\b\qr EXHIBIT 95.1\par\pard\plain\sb264\cf1\f51\fs20\b\qc Mine Safety Disclosure\par\pard\plain\sb264\fi528\cf1\f51\fs20\qj The following disclosures are provided pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the\plain\cf1\f51\fs20\qj "Act") and Item\~104 of Regulation S-K, which requires certain disclosures by companies required to file periodic reports under\plain\cf1\f51\fs20\qj the Securities Exchange Act of 1934, as amended, that operate mines regulated under the Federal Mine Safety and Health Act of\plain\cf1\f51\fs20\qj 1977 (the "Mine Act").\par\pard\plain\sb264\fi528\cf1\f51\fs20\qj Whenever the Federal Mine Safety and Health Administration ("MSHA") believes a violation of the Mine Act, any health\plain\cf1\f51\fs20\qj or safety standard or any regulation has occurred, it may issue a citation which describes the alleged violation and fixes a time\plain\cf1\f51\fs20\qj within which the U.S. mining operator must abate the alleged violation. In some situations, such as when MSHA believes that\plain\cf1\f51\fs20\qj conditions pose a hazard to miners, MSHA may issue an order removing miners from the area of the mine affected by the\plain\cf1\f51\fs20\qj condition until the alleged hazards are corrected. When MSHA issues a citation or order, it generally proposes a civil penalty, or\plain\cf1\f51\fs20\qj fine, as a result of the alleged violation, that the operator is ordered to pay. Citations and orders can be contested and appealed,\plain\cf1\f51\fs20\qj and as part of that process, are often reduced in severity and amount, and are sometimes dismissed. The number of citations,\plain\cf1\f51\fs20\qj orders and proposed assessments vary depending on the size and type (underground or surface) of the mine as well as by the\plain\cf1\f51\fs20\qj MSHA inspector(s) assigned.\par\pard\plain\sb264\fi528\cf1\f51\fs20\qj The table below sets forth for the three months ended March 31, 2022 for each sand mine of Pioneer Natural Resources\plain\cf1\f51\fs20\qj Company or its subsidiaries (the "Company"), (i) the total number of citations for violations of mandatory health or safety\plain\cf1\f51\fs20\qj standards that could significantly and substantially contribute to the cause and effect of mine safety or health hazard under\plain\cf1\f51\fs20\qj section 104 of the Mine Act for which the operator received a citation from MSHA; (ii) the total number of orders issued under\plain\cf1\f51\fs20\qj section 104(b) of the Mine Act; (iii) the total number of citations and orders for unwarrantable failure of the mine operator to\plain\cf1\f51\fs20\qj comply with mandatory health or safety standards under section 104(d) of the Mine Act; (iv) the total number of flagrant\plain\cf1\f51\fs20\qj violations under section 110(b)(2) of the Mine Act; (v) the total number of imminent danger orders issued under section 107(a)\plain\cf1\f51\fs20\qj of the Mine Act; (vi) the total dollar value of proposed assessments from MSHA; (vii) the total number of mining-related\plain\cf1\f51\fs20\qj fatalities; (viii) whether or not the mine has received any notices from MSHA of a pattern of violations of mandatory health or\plain\cf1\f51\fs20\qj safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of mine\plain\cf1\f51\fs20\qj health or safety hazards under section 104(e) of the Mine Act; (ix) whether or not the mine has received any notices from MSHA\plain\cf1\f51\fs20\qj regarding the potential to have a pattern of violations as referenced in (viii) above; and (x) the total number of pending legal\plain\cf1\f51\fs20\qj actions before the Federal Mine Safety and Health Review Commission (the "Commission") (as of March 31, 2022) involving\plain\cf1\f51\fs20\qj such mine, as well as the aggregate number of legal actions instituted and the aggregate number of legal actions resolved during\plain\cf1\f51\fs20\qj the reporting period. The MSHA citations, orders and assessments are those initially issued or proposed by MSHA. They do not\plain\cf1\f51\fs20\qj reflect any subsequent changes in the level of severity of a citation or order or the value of an assessment that may occur as a\plain\cf1\f51\fs20\qj result of proceedings conducted in accordance with MSHA rules. \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain\fs16\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain\fs16 \par\pard\plain\fs16 \par\pard\plain {\trowd\trqc\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\trqc\clvertalc\cellx10800\trrh66\row}}} {\trowd\trqc\clvertalc\cellx749\clvertalc\cellx824\clvertalc\cellx1383\clvertalc\cellx1620\clvertalc\cellx1695\clvertalc\cellx2254\clvertalc\cellx2445\clvertalc\cellx2520\clvertalc\cellx3079\clvertalc\cellx3316\clvertalc\cellx3391\clvertalc\cellx3950\clvertalc\cellx4214\clvertalc\cellx4289\clvertalc\cellx4848\clvertalc\cellx5039\clvertalc\cellx5114\clvertalc\cellx5327\clvertalc\cellx5886\clvertalc\cellx6099\clvertalc\cellx6174\clvertalc\cellx6733\clvertalc\cellx6974\clvertalc\cellx7032\clvertalc\cellx7606\clvertalc\cellx7664\clvertalc\cellx8179\clvertalc\cellx8237\cl