Pioneer Redeems Senior Notes for Cash

Pioneer Natural Resources has redeemed for cash all of its outstanding 9-5/8% Senior Notes due 2010 and 7.50% Senior Notes due 2012. The cash payment to redeem the Notes included the make-whole premium, which was determined on September 28, 2005, plus accrued and unpaid interest to, but not including, October 3, 2005. In total, Pioneer paid $34.6 million in connection with the redemption of the Notes.

Associated with the redemption of the Notes and the recently completed debt tender offer for the Company's 5.875% Senior Notes due 2012, the Company will recognize a pre-tax charge of approximately $14 million in its reported third quarter of 2005 results.