Pioneer Announces Redemption of Notes

Business Wire,  May 30, 2001  

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Business Editors

DALLAS--(BUSINESS WIRE)--May 30, 2001

Pioneer Natural Resources Company ("Pioneer") (NYSE:PXD) (TSE:PXD) today announced that on July 1, 2001, it will redeem the $22.5 million of outstanding 11 5/8% Senior Subordinated Discount Notes due July 1, 2006. The redemption price will be $1,058.13 for each $1,000 principal amount of such notes, plus accrued interest.

In addition, the Company announced that on July 1, 2001, it will redeem the $6.8 million of outstanding 10 5/8% Senior Subordinated Notes due July 1, 2006. The redemption price will be $1,053.13 for each $1,000 principal amount of such notes, plus accrued interest.

On July 1, 2001, the redemption price will become due and payable on the notes, interest on all notes will cease to accrue, and all rights of the holders of the notes will terminate, except the right to receive payment of the redemption price, without interest, upon surrender of their notes. Notice of redemption has been mailed to the holders of all notes in accordance with the indentures governing the notes.

The redemption will be funded from Pioneer's credit facility. Based upon Pioneer's current credit facility interest rate of LIBOR plus 125 basis points, Pioneer expects annual interest savings of approximately $1.8 million.

Pioneer is a large independent oil and gas exploration and production company with operations in the United States, Canada, Argentina, South Africa and Gabon. Pioneer's headquarters are in Dallas. For more information, visit Pioneer's website at www.pioneernrc.com.

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer Natural Resources Company are subject to a number of risks and uncertainties that may cause Pioneer's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation, the costs and results of drilling and operations, Pioneer's ability to replace reserves or implement its business plans, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, and environmental risks. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.

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