EXHIBIT 99.1

                                  NEWS RELEASE


                       Investor Relations Contact: Susan Spratlen (972) 444-9001


               Pioneer Provides Update to Fourth Quarter Guidance

Dallas,   Texas,   January  10,  2003  --  Pioneer  Natural   Resources  Company
("Pioneer")(NYSE:PXD)  today  updated its fourth  quarter 2002 outlook  based on
current   expectations  and  partial  quarter  actual  results.   The  following
statements are estimates based on current  expectations.  These  forward-looking
statements are subject to a number of risks and uncertainties that may cause the
Company's actual results to differ materially from the following statements. The
last  paragraph  of  this  news  release  addresses  certain  of the  risks  and
uncertainties to which the Company is subject.

Fourth  quarter  production  is expected to average  approximately  117 thousand
barrels per day on an oil equivalent basis. Pioneer's production from the Canyon
Express  project  was lower than  originally  estimated  as a result of start-up
operational  issues  delaying the  production  ramp-up  until late in the fourth
quarter and a delay in initiating  production from one of Pioneer's six wells in
the project.  Pioneer's net Canyon Express  production is now achieving expected
levels, averaging over 100 million cubic feet per day with five of its six wells
producing. The Company expects the sixth well to be brought on production during
the first quarter.

The Company's  fourth quarter  realized price for oil,  including the effects of
hedges,  is  expected  to average  approximately  $22.90 to $23.10  per  barrel.
Pioneer's  fourth quarter  realized price for natural gas liquids is expected to
range from $16.00 to $16.20 per barrel.  The Company's  fourth quarter  realized
price  for gas,  including  the  effects  of  hedges,  is  expected  to  average
approximately  $2.65 to $2.85 per  thousand  cubic feet.  Fourth  quarter  lease
operating expenses  (including  production and ad valorem taxes) are expected to
average   approximately   $4.45  to  $4.65  per  barrel  oil  equivalent  (BOE).
Depreciation, depletion and amortization expense is expected to range from $5.50
to  $5.75  per  BOE.  General  and  administrative  expense  is  expected  to be
approximately $14 million.  Interest expense is expected to be approximately $24
million.  Cash taxes for the fourth  quarter are  expected to be no more than $1
million as the  Company  continues  to benefit  from the  carryforward  of prior
years' net operating losses in the U.S. and Canada.

Total  exploration and abandonment  expense is expected to be approximately  $27
million after including charges related to an unsuccessful well on the Lightning
prospect, the first of three prospects Pioneer is drilling near its Falcon field
in the deepwater Gulf of Mexico.

Pioneer is a large  independent oil and gas  exploration and production  company
with operations in the United States, Canada, Argentina, South Africa, Gabon and
Tunisia.  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 News
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,  foreign  currency  valuation
changes,  foreign government tax and regulation changes,  litigation,  the costs
and results of drilling and operations,  Pioneer's  ability to replace reserves,
implement its business plans, or complete its development projects as scheduled,
access  to and cost of  capital,  uncertainties  about  estimates  of  reserves,
quality of technical  data,  environmental  and weather  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.