Pioneer Establishes New $300 Mln Share Repurchase Program

Pioneer Natural Resources Company (NYSE: PXD) reports that its board of directors has approved a new share repurchase program authorizing the purchase of up to $300 million of its common stock which is approximately 6% of its current market capitalization. Pioneer also announced that it completed $92 million in share repurchases during 2004, buying back 2.8 million shares or approximately 2% of the shares outstanding. Pioneer's board of directors has cancelled the authorization remaining on the prior program.

"Based on yesterday's closing stock price and our year-end proved reserve estimates considering the impact of the volumetric production payments that we announced this morning, we're essentially buying our own proved reserves at approximately $7.16 per BOE, well below the industry average finding and acquisition cost. This very low-risk value play offers a direct means to provide competitive returns for shareholders while also increasing the development and exploration upside represented by each share that remains outstanding," stated Scott Sheffield, Chairman and CEO.

Rich Dealy, Executive Vice President and CFO, continued, "With the proceeds from the volumetric production payments, we've exceeded our $600 million debt reduction target. These proceeds combined with those we anticipate from potential Canadian divestitures and the significant forecasted excess cash flow are expected to add more than $1 billion of financial flexibility this year."