DUG

Operator Spotlight:

Pioneer Natural Resources

Exceptional Eagle Ford Shale

October 15, 2012

2

Forward-Looking Statements

Except for historical information contained herein, the statements, charts and graphs in this

presentation are forward-looking statements that are made pursuant to the Safe Harbor Provisions

of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the

business prospects of Pioneer are subject to a number of risks and uncertainties that may cause

Pioneer's actual results in future periods to differ materially from the forward-looking statements.

These risks and uncertainties include, among other things, volatility of commodity prices, product

supply and demand, competition, the ability to obtain environmental and other permits and the

timing thereof, other government regulation or action, the ability to obtain approvals from third

parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the

costs and results of drilling and operations, availability of equipment, services and personnel

required to complete the Company's operating activities, access to and availability of

transportation, processing and refining facilities, Pioneer's ability to replace reserves, implement

its business plans or complete its development activities as scheduled, access to and cost of capital,

the financial strength of counterparties to Pioneer's credit facility and derivative contracts and the

purchasers of Pioneer's oil, NGL and gas production, uncertainties about estimates of reserves and

resource potential and the ability to add proved reserves in the future, the assumptions underlying

production forecasts, quality of technical data, environmental and weather risks, including the

possible impacts of climate change, the risks associated with the ownership and operation of an

industrial sand mining business, international operations and acts of war or terrorism. These and

other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities

and Exchange Commission. In addition, Pioneer may be subject to currently unforeseen risks that

may have a materially adverse impact on it. Pioneer undertakes no duty to publicly update these

statements except as required by law.

Please see the appendix slides included in this presentation for other important information.

PXD: Industry Leader in Eagle Ford Shale

Geologic Data

Drilling Efficiency

Completion Optimization

Operational Optimization

First Mover Midstream Build Out

Production Growth

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4

PXD: First Mover in the Eagle Ford Shale

Band of dry gas below the Eagle Ford Shale extending 250 miles across SE Texas

Started infill drilling in 1991 in legacy Edwards field (Pawnee); horizontal drilling in 1999

Acquired ~300,000 acres along the trend in 2005

Drilled 150+ Edwards wells with full suite of logs; each well drilled through Eagle Ford Shale

Shot >2,000 sq. miles of 3-D seismic

Re-completed several vertical wells in late 2006; first completions targeting Eagle Ford Shale

Drilled several high-rate horizontal wells beginning late 2009

Cut over 1,500 feet of core

Eagle Ford

Shale

Edwards

Trend

PXD: Significant Progress Over the Past 3 Years

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Successful joint venture with Reliance Industries Limited

210 wells on production

12 rigs operating during 2012

11 Central Gathering Points (CGPs) and >600 miles of pipeline completed

Sophisticated geologic and reservoir models

PXD: Technology Leader in Eagle Ford Shale

6

A

A’

3-D Seismic Coherency

Curvature

Core Analysis

Logging Pilot hole logs

Open hole horizontal logs

Production logging

Radio active tracers

Mud logging

Geologic &

Reservoir

Model

Microseismic Surface

Downhole

PXD: Technology Drives Strong Well Performance

7

N

Geologic and reservoir models identify: Resource in place Productivity by area Wellbore placement Completion optimization

PXD: Delivering Strong Well Results

50% of PXD wells are in the top quartile of industry

EURs across the entire Eagle Ford Shale1

80% of PXD wells are above the industry median EUR1

Well performance varies across the Eagle Ford Shale

due to geologic properties

– PXD has 14 type curves with EURs averaging

1 MMBOE (6 BCFE)

8 1)Based on public wellhead production data from IHS; does not include NGL uplift

$0

$150

$300

PXD: Drilling Results Improving

0

400

800

2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q29

Average drilling cost per foot has decreased 12% and average drilling feet per day has increased 27% over the last year

PXD: Well Spud to POP Time Decreasing1

159

145

116 105

96

0

50

100

150

200

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

Days

10

Spud to put-on-production (POP) time has decreased 40% over the last year

1) Reflects single well pads only

Pad Drilling Expected To Increase in 2013

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20%

80%

Single Well Multi-Well Pads

75%

25%

Single Well Multi-Well Pads

1H 2012 2013

PXD: Leading Fracture Stimulation Optimization

Implementing completion optimization study to improve frac design

– Varying frac size, pump rate and clusters per foot by area according to analysis of Pioneer and offset operator data

Utilizing zipper fracs on pad completions

– Saves $400 M - $500 M per well

Testing sliding sleeve technology

Continuing to test white sand proppant

– 53 wells stimulated using white sand through Q2

– Early well performance similar to direct offset ceramic-stimulated wells

– Saves ~$700 M per well

– 50% of 2012 program, expect further increase in 2013

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Spraberry

5 vertical frac fleets (~20,000 HP each)

2 horizontal frac fleets (~35,000 HP each)

15 drilling rigs

Well service equipment1

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PXD’s Vertical Integration Improves Returns and Enhances Execution

Eagle Ford Shale

2 frac fleets

(50,000 HP each)

2 coiled tubing units

Current frac capacity: ~300,000 HP

13th largest pressure pumping company in North America

1) Includes pulling units, frac tanks, hot oilers, water trucks, blowout preventers, construction equipment and fishing tools

Barnett Shale Combo

1 frac fleet

(30,000 HP)

1 coiled tubing unit

Brady sand mine

PXD: Production Operations Developments

Choke management reduces well production declines

and increases well EURs

Artificial lift Installations beginning in oilier areas

– Varying hydrocarbon yields across PXD’s acreage

require multiple artificial lift methods including rod

pump, gas lift and plunger lift

Capillary strings enable chemical paraffin inhibition

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1.0

10.0

100.01 8

15

22

29

36

43

50

57

64

71

78

85

92

99

106

113

120

127

134

141

148

155

162

169

176

183

190

197

204

211

218

225

232

239

246

253

260

267

274

281

288

295

302

309

Days

Cum BOE/Lateral FTE.Roeder 03Harlan MettingRiedesel

PXD: Example of Choke Management Effectiveness

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22/64” Choke

12/64” Choke

16/64” Choke

Cumulative production from wells operating under choke management crosses over cumulative production from wells operating at higher choke sizes within 6 months1

Choke management benefits:

− Higher well EURs

− Higher sustained wellhead pressure and extended stable flow regime

Cumulative Production Per Lateral Foot

Cum

ula

tive B

OE P

er

Late

ral

Foot

1) Wells are geologically similar

PXD: Midstream Build Out Almost Complete

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11 Central Gathering Points on line to date

− Gas and condensate gathering and separation

− Gas treatment and condensate stabilization

Build out executed ahead of drilling plan

Infrastructure build out minimizes production delays

Modular design allows for expansion ahead of drilling plans

Processing third-party volumes – EFS Midstream is open for business

Allows delivery of wet gas and condensate to multiple third-party processors

EFS Midstream LLC. Midstream Development

Midstream Build Out

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Key Capabilities

• Multiple gas redelivery points (Copano, Enterprise, DCP)

• 665 MMcfd of gas gathering, treating and dehydration capacity

• 79 Mbbld of condensate gathering and stabilizing capacity

2010 2011 2012 2013+ Total

CGPs 3 5 3 3 14

Pipelines (Miles) 70 210 181 106 567

11

Area 71 Central Gathering Point

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PXD: Secured Third-Party Takeaway and Processing Capacity

Contracted gas and NGL transportation, processing and fractionation for the

joint venture’s forecasted production volumes

– Utilizing multiple parties over 5-year to 10-year periods

• Enterprise (10-year), Copano (5-year), DCP Midstream (5-year)

• Diversifies gas processing and NGL fractionation capacity

• Greater market access

• Cost control

Contracted condensate transportation with Enterprise

– Pipeline commitment substantially reduces trucking

– Provides flexibility to move condensate to Cushing and Houston markets

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PXD: Delivering Substantial Production Growth

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2010 2011 1H 2012

PXD Eagle Ford

Production (MBOEPD)

5

34

67

PXD Net

Gross

12

23

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Certain Reserve Information

Cautionary Note to U.S. Investors --The U.S. Securities and Exchange Commission (the

"SEC") prohibits oil and gas companies, in their filings with the SEC, from disclosing

estimates of oil or gas resources other than “reserves,” as that term is defined by the

SEC. In this presentation, Pioneer includes estimates of quantities of oil and gas using

certain terms, such as “resource,” “resource potential,” “EUR”, “oil in place” or other

descriptions of volumes of reserves, which terms include quantities of oil and gas that

may not meet the SEC’s definitions of proved, probable and possible reserves, and which

the SEC's guidelines strictly prohibit Pioneer from including in filings with the SEC. These

estimates are by their nature more speculative than estimates of proved reserves and

accordingly are subject to substantially greater risk of being recovered by Pioneer. U.S.

investors are urged to consider closely the disclosures in the Company’s periodic filings

with the SEC. Such filings are available from the Company at 5205 N. O'Connor Blvd.,

Suite 200, Irving, Texas 75039, Attention Investor Relations, and the Company’s website

at www.pxd.com. These filings also can be obtained from the SEC by calling 1-800-SEC-

0330.