• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
  • Contact

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

PXP Announces 2011 Full-Year Results: Realizes Significant Net Income Growth Year-over-Year, Achieves Record Sales Volumes, Generates Double-Digit Cash Flow Growth, and Delivers Solid Reserve Replacement and Substantially Higher Reserve Value

PXP Repurchased 12.8 Million Shares of Common Stock, Reducing Shares Outstanding to 128.2 Million as of January 31, 2012

PXP's Board of Directors Authorizes $1 Billion in Share Repurchases and Extends Program Until January 2016


News provided by

Plains Exploration & Production Company

Feb 23, 2012, 07:00 ET

Share this article

Share this article


HOUSTON, Feb. 23, 2012 /PRNewswire/ --

Fourth-Quarter Statistical Highlights:

  • Revenues were $517.5 million and net income attributable to common stockholders was $97.7 million, or $0.69 per diluted share.
  • Adjusted net income attributable to common stockholders was $28.6 million, or $0.20 per diluted share (a non-GAAP measure).
  • Oil/liquids sales accounted for approximately 81% of total oil and gas revenue.
  • Average daily sales volumes increased 13%, or 26% pro forma for asset sales, compared to fourth-quarter 2010.
  • Oil/liquids average daily sales volumes increased 12%, or 16% pro forma for asset sales, compared to fourth-quarter 2010.
  • Net cash provided by operating activities was $188.1 million and operating cash flow was $284.7 million, a 12% increase over fourth-quarter 2010 (a non-GAAP measure).
  • Gross margin per barrel of oil equivalent (BOE) was $15.33 and cash margin per BOE was $35.71, a 9% increase over fourth-quarter 2010 (a non-GAAP measure).

Full-Year Statistical Highlights:

  • Revenues were $2.0 billion and net income attributable to common stockholders was $205.3 million, or $1.44 per diluted share.
  • Adjusted net income attributable to common stockholders was $223.0 million, or $1.56 per diluted share (a non-GAAP measure).
  • Oil/liquids sales accounted for approximately 78% of total oil and gas revenue.
  • Average daily sales volumes increased 12%, or 23% pro forma for asset sales, compared to 2010.
  • Oil/liquids average daily sales volumes increased 7%, or 8% pro forma for asset sales, compared to 2010.
  • Net cash provided by operating activities was $1.11 billion, a 22% increase year-over-year.
  • Operating cash flow was $1.13 billion, a 16% increase year-over-year (a non-GAAP measure).
  • Gross margin per BOE was $20.95 and cash margin per BOE was $37.29 (a non-GAAP measure), an increase of 17% and 14% over 2010, respectively.

2011 Proved Reserves:

  • Total proved reserves, pro forma for asset sales, increased 16% to 410.9 million BOE.
  • Standardized measure of discounted net cash flows increased 66% to $5.1 billion from $3.1 billion in 2010.  
  • PV-10 value increased 58% to $7.9 billion from $5.0 billion in 2010 (a non-GAAP measure).
  • Reserve replacement is 222%, or 290% pro forma for asset sales (a non-GAAP measure).
  • All-in finding and development costs were $23.48 per BOE, or $18.01 per BOE pro forma for asset sales (a non-GAAP measure).

2011 Oil/Liquids Proved Reserves:

  • Oil/liquids reserves, pro forma for asset sales, increased 18% to 244.0 million barrels.
  • Oil/liquids are 59% of total proved, up from 54% in 2010.
  • Oil/liquids reserve replacement is 280% (a non-GAAP measure).
  • Oil/liquids reserve-to-pro forma production ratio is 14 years.

Plains Exploration & Production Company (NYSE:PXP) ("PXP" or the "Company") announces 2011 fourth-quarter and full-year financial and operating results.

PXP reported fourth-quarter revenues of $517.5 million and net income attributable to common stockholders of $97.7 million, or $0.69 per diluted share, compared to revenues of $408.1 million and a net loss of $19.5 million, or $0.14 per diluted share, for the fourth-quarter 2010. Quarterly income was reduced by approximately $0.07 per share due to higher stock-based compensation expense reflecting the impact of a 62% increase in PXP's share price during the quarter and approximately $0.14 per share due to an increase in the depreciation, depletion and amortization rate.

Fourth-quarter net income attributable to common stockholders includes certain items affecting the comparability of operating results. Those items consist of realized and unrealized gains and losses on our mark-to-market derivative contracts, a $232.3 million unrealized gain on investment in McMoRan Exploration Co. ("McMoRan") common stock, debt extinguishment costs, and other items. When considering these items, PXP reports net income attributable to common stockholders of $28.6 million, or $0.20 per diluted share (a non-GAAP measure).

PXP reported full-year revenues of $2.0 billion and net income attributable to common stockholders of $205.3 million, or $1.44 per diluted share, compared to revenues of $1.5 billion and net income of $103.3 million, or $0.73 per diluted share, for the full-year 2010.

Full-year 2011 net income attributable to common stockholders includes certain items affecting the comparability of operating results. Those items consist of realized and unrealized gains and losses on our mark-to-market derivative contracts, debt extinguishment costs, an unrealized loss on investment in McMoRan, a 2010 impairment of PXP's relinquished Vietnam oil and gas properties, and other items. When considering these items, PXP reports net income attributable to common stockholders of $223.0 million, or $1.56 per diluted share (a non-GAAP measure).

A reconciliation of non-GAAP financial measures used in this release to comparable GAAP financial measures is included with the financial tables.

OPERATIONAL UPDATE

PXP's 2011 fourth-quarter daily sales volumes averaged 105,396 BOE per day, a 13% increase over 92,994 BOE per day in the fourth quarter of 2010. Adjusting for the 2010 and 2011 asset divestments, the 13% sales volume increase would have been 26% and 2011 fourth-quarter daily sales volumes would have averaged 90,349 BOE per day.

PXP's 2011 fourth-quarter oil/liquids daily sales volumes averaged 52,262 barrels per day, a 12% increase over 46,658 barrels per day in the fourth quarter of 2010. Adjusting for the 2010 and 2011 asset divestments, the 12% sales volume increase would have been 16% and 2011 fourth-quarter daily sales volumes would have averaged 47,464 barrels per day.

PXP's 2011 full-year daily sales volumes averaged approximately 98,950 BOE per day, a 12% increase over full-year 2010 volumes of 88,451 BOE per day. Adjusting for the 2010 and 2011 asset divestments, the 12% sales volume increase would have been 23% and 2011 full-year daily sales volumes would have averaged 82,197 BOE per day.

PXP's 2011 full-year oil/liquids daily sales volumes averaged 48,964 barrels per day, a 7% increase over 45,943 barrels per day in 2010. Adjusting for the 2010 and 2011 asset divestments, the 7% sales volume increase would have been 8% and 2011 daily sales volumes would have averaged 43,858 barrels per day.

The robust volume growth is driven primarily by strong performance in the Eagle Ford Shale and Haynesville Shale asset areas combined with steady, consistent performance in California.

In the Eagle Ford Shale, fourth-quarter daily sales volumes averaged approximately 9,123 BOE per day net to PXP, compared to approximately 1,500 BOE per day net to PXP from the November acquisition to the end of fourth-quarter 2010. January 2012 volumes averaged approximately 13,700 BOE per day compared to approximately 1,970 BOE per day net to PXP in January 2011. The Company had 6.9 net rigs operating on its acreage at the end of January. In California, fourth-quarter average daily sales volumes were 40,003 BOE per day, essentially flat compared to the fourth-quarter 2010; and in the Haynesville Shale, fourth-quarter average daily sales volumes were approximately 200 million cubic feet equivalent (MMcfe) net to PXP compared to approximately 146 MMcfe in the fourth-quarter 2010.

In the Gulf of Mexico, the operator of the Lucius discovery, Anadarko Petroleum Corporation, announced in December that it, along with its co-venturers, have sanctioned the development of the Lucius project, located in the Keathley Canyon area of the deepwater Gulf of Mexico. Lucius will be developed with a truss spar floating production facility with the capacity to produce in excess of 80,000 barrels of oil per day and 450 million cubic feet of natural gas per day. The spar is currently under construction at Technip's facility in Pori, Finland and first production is anticipated in 2014.

MARKETING UPDATE

PXP's crude oil realized price was 96% of NYMEX for the fourth-quarter of 2011 and 94% for full-year 2011. In January 2012 PXP's crude oil realized price was 92% of Brent or 102% of NYMEX. This significant increase from 2011 is expected to strengthen crude oil revenue by over 40% compared to 2011 crude oil revenue using current commodity price forecasts. This positive result reflects the impact of higher estimated crude oil volumes and stronger pricing associated with the Company's marketing contracts in California and the Eagle Ford Shale which became effective January 1, 2012.

PROVED RESERVES

Year-end estimated proved reserves of 410.9 million BOE, net of asset sales, were 59% oil, 55% developed and had a pre-tax PV-10 value of $7.9 billion, a 58% increase over 2010 PV-10 value. The robust increase in the PV-10 value is primarily attributable to a greater concentration of oil/liquids reserves, higher oil/liquids reference prices and stronger marketing contract terms for oil sales. Pro forma for asset sales, proved reserves increased 16% over 2010 proved reserves.

In 2011, PXP added total proved reserves of 81.0 million BOE. The Company reported a total of 75.2 million BOE of extensions and discoveries, including 22.5 million BOE in the Eagle Ford Shale, 19.3 million BOE in the Gulf of Mexico, and 25.5 million BOE in the Haynesville Shale. In addition, PXP reported 4.3 million BOE of acquisitions and 1.5 million BOE of revisions. These reserve additions replaced 222% of 2011 production at a cost of $23.48 per BOE. Pro forma for asset sales, PXP replaced 290% of 2011 production at a cost of $18.01 per BOE.

Oil/liquids proved reserves increased 9%, or 18% pro forma for asset sales, due primarily to the rapidly expanding Eagle Ford Shale asset area, project sanctioning of the Lucius development located in the Gulf of Mexico, and a higher oil reference price compared to 2010 resulting in positive price-related revisions in California.

Natural gas proved reserves decreased 13% due primarily to the 2011 asset sales. With persistent low natural gas prices and a corresponding assumed reduction in the pace of development in the Haynesville Shale, PXP classified 44 million BOE of its Haynesville undeveloped reserves as probable undeveloped. These reserves meet the reasonable certainty, economic and other conditions needed to be classified as proved undeveloped reserves but the slower pace of drilling extends the development of these reserves past five years.  

PXP's reserve estimate, the Standardized Measure and PV-10 calculations are based on the twelve-month average of first-day-of-the-month West Texas Intermediate spot oil price of $95.99 per barrel and Henry Hub spot natural gas price of $4.12 per million British thermal unit. All prices were adjusted for energy content, quality and basis differentials by area and were held constant throughout the lives of the properties, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. A summary of the Company's proved reserve reconciliation and costs incurred for 2011 is included with the financial tables.

SHARE REPURCHASE

Pursuant to its share repurchase program, during the fourth quarter of 2011 and the first quarter of 2012, PXP repurchased 12.8 million common shares at an average price of $35.16 per share for a total cost of approximately $450 million. In January 2012, PXP's Board of Directors increased the approval for purchases to $1.0 billion of PXP common stock and extended the program until January 2016.

SENIOR REVOLVING CREDIT FACILITY

The Company's borrowing base was recently increased from $1.8 billion to $2.3 billion until the next redetermination date currently scheduled for May 1, 2013. The commitments remained unchanged at $1.4 billion.

MANAGEMENT COMMENT

James C. Flores, Chairman, President and CEO of PXP commented, "PXP finished the year strong as sales volumes, net income attributable to common stockholders and operating cash flow each recorded significant gains compared to fourth-quarter 2010. For the full year, the Company's 2011 net income attributable to common stockholders was up nearly 100% compared to 2010 and PXP achieved record sales volumes. Oil/liquids sales revenue as a percentage of total revenue was 78% in 2011 and is expected to be approximately 90% in 2012. Along with double-digit growth in average daily sales volumes, PXP delivered stronger operating cash flow, improved cash margins, solid reserve replacement and substantially higher proved reserve value. These attributes are the building blocks for sustained value creation and align with our fundamental asset intensity philosophy. In late December and early January, PXP repurchased a sizeable number of its outstanding shares thereby compressing the share count exposed to the forecasted increase in oil volumes and corresponding cash flow. PXP's focus remains on increasing its margins while targeting a strong organic oil/liquids growth rate, balancing its natural gas focused capital spending with natural gas generated operating cash flow, and preserving commodity price upside while protecting the downside risk for its shareholders."

2012 FULL-YEAR GUIDANCE

PXP updated its 2012 full-year operational and financial guidance. Due to curtailment in drilling activity by operators in the Haynesville Shale, PXP plans to re-direct capital from the Haynesville Shale to the Eagle Ford Shale development. Total capital expenditures and the full-year total production sales volume range of 92 – 96 thousand BOE per day remain unchanged.

However, due to the shift in capital allocation, oil/liquids sales volumes, as a percentage of total volumes, are now expected to account for 58% to 61% of total volumes up from 55% estimated in previous guidance. PXP has revised its production costs per BOE to reflect higher forecasted oil/liquids volumes and lower forecasted natural gas prices.  The new cost estimates are incorporated in the updated 2012 full-year operational and financial guidance included at the end of this release.

Full year guidance also reflects the following new information: depreciation, depletion and amortization expense per BOE, general and administrative expense, the current interest rate schedule for long-term debt, an effective tax rate and the weighted average equivalent shares outstanding.

CONFERENCE CALL

PXP will host a conference call today, Thursday, February 23, 2012 at 8:00 a.m. Central time. Investors wishing to participate in the conference call may dial 1-800-567-9836 or 1-973-935-8460. The conference call and replay ID is: 42174570. The replay can be accessed by dialing 1-855-859-2056 or 1-404-537-3406. A live webcast of the conference call and a slide presentation will be available in the Investor Information section of PXP's website at www.pxp.com.

PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana, and the Gulf of Mexico. PXP is headquartered in Houston, Texas.

ADDITIONAL INFORMATION & FORWARD-LOOKING STATEMENTS

This press release contains forward-looking information regarding PXP that is intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that PXP expects, believes or anticipates will or may occur in the future are forward-looking statements. These include statements regarding:

* reserve and production estimates,
* oil and gas prices,
* the impact of derivative positions,
* production expense estimates,
* cash flow estimates,
* future financial performance,
* capital and credit market conditions,
* planned capital expenditures, and
* other matters that are discussed in PXP's filings with the SEC.

These statements are based on our current expectations and projections about future events and involve known and unknown risks, uncertainties, and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K, for a discussion of these risks.

References to quantities of oil or natural gas may include amounts that the Company believes will ultimately be produced, but that are not yet classified as "proved reserves" under SEC definitions.

All forward-looking statements in this press release are made as of the date hereof, and you should not place undue reliance on these statements without also considering the risks and uncertainties associated with these statements and our business that are discussed in this press release and our other filings with the SEC. Moreover, although we believe the expectations reflected in the forward-looking statements are based upon reasonable assumptions, we can give no assurance that we will attain these expectations or that any deviations will not be material. Except as required by law, we do not intend to update these forward-looking statements and information.




















Plains Exploration & Production Company

Consolidated Statements of Income

(in thousands, except per share data)














Three Months Ended


Twelve Months Ended




December 31,


December 31,




2011


2010


2011


2010




(Unaudited)





Revenues










Oil sales


$ 418,428


$ 314,070


$ 1,528,656


$ 1,142,760


Gas sales


96,734


93,680


428,220


399,607


Other operating revenues


2,379


379


7,612


2,228




517,541


408,129


1,964,488


1,544,595

Costs and Expenses










Lease operating expenses


100,543


74,826


334,923


262,533


Steam gas costs


15,841


14,283


65,482


66,449


Electricity


11,039


11,552


41,242


42,794


Production and ad valorem taxes


16,141


8,089


55,225


29,446


Gathering and transportation expenses


17,278


13,038


62,103


50,680


General and administrative


39,080


34,468


134,044


136,437


Depreciation, depletion and amortization


211,284


154,006


664,478


533,416


Impairment of oil and gas properties


-


-


-


59,475


Accretion


4,299


4,464


17,177


17,702


Legal recovery


-


-


-


(8,423)


Other operating (income) expense


(78)


851


(735)


(4,130)




415,427


315,577


1,373,939


1,186,379











Income from Operations


102,114


92,552


590,549


358,216

Other (Expense) Income










Interest expense


(48,175)


(31,107)


(161,316)


(106,713)


Debt extinguishment costs


(120,954)


-


(120,954)


(1,189)


(Loss) gain on mark-to-market derivative contracts


(11,486)


(83,935)


81,981


(60,695)


Gain (loss) on investment measured at fair value


232,254


(1,551)


(52,675)


(1,551)


Other income


407


1,697


3,356


15,942

Income (Loss) Before Income Taxes


154,160


(22,344)


340,941


204,010


Income tax (expense) benefit










Current


(7)


25,331


25,952


93,090


Deferred


(55,049)


(22,473)


(160,214)


(193,835)

Net Income (Loss)


$   99,104


$ (19,486)


$    206,679


$    103,265


Net income attributable to noncontrolling interest
  in the form of preferred stock of subsidiary


(1,400)




(1,400)



Net Income Attributable to Common Stockholders


$   97,704




$    205,279













Earnings (Loss) per Common Share










Basic


$       0.70


$     (0.14)


$          1.45


$          0.74


Diluted


$       0.69


$     (0.14)


$          1.44


$          0.73

Weighted Average Common Shares Outstanding










Basic


140,414


140,836


141,227


140,438


Diluted


141,951


140,836


142,999


141,897






















Plains Exploration & Production Company

Operating Data





Three Months Ended


Twelve Months Ended





December 31,


December 31,





2011


2010


2011


2010







(Unaudited)



Daily Average Volumes









Oil and liquids sales (Bbls)

52,262


46,658


48,964


45,943


Gas (Mcf)










Production

324,288


283,447


305,691


260,402



Used as fuel

5,481


5,428


5,776


5,353



Sales

318,807


278,019


299,915


255,049


BOE











Production

106,310


93,899


99,912


89,343



Sales

105,396


92,994


98,950


88,451

Unit Economics (in dollars)









Average NYMEX Prices










Oil

$     94.06


$     85.24


$        95.11


$        79.61



Gas

3.57


3.81


4.04


4.38


Average Realized Sales Price Before Derivative Transactions










Oil (per Bbl)

$     87.02


$     73.17


$        85.53


$        68.14



Gas (per Mcf)

3.30


3.66


3.91


4.29



Per BOE

53.13


47.66


54.18


47.77


Cash Margin per BOE (1)










Oil and gas revenues

$     53.13


$     47.66


$        54.18


$        47.77



Costs and expenses










  Lease operating expenses

(10.37)


(8.75)


(9.27)


(8.13)



  Steam gas costs

(1.63)


(1.67)


(1.81)


(2.06)



  Electricity

(1.14)


(1.35)


(1.14)


(1.33)



  Production and ad valorem taxes

(1.66)


(0.95)


(1.53)


(0.91)



  Gathering and transportation

(1.78)


(1.52)


(1.72)


(1.57)



  Oil and gas related DD&A

(21.22)


(17.37)


(17.76)


(15.87)



Gross margin (GAAP)

15.33


16.05


20.95


17.90




Oil and gas related DD&A

21.22


17.37


17.76


15.87




Realized loss on derivative instruments

(0.84)


(0.77)


(1.42)


(1.02)



Cash margin (non-GAAP)

$     35.71


$     32.65


$        37.29


$        32.75












Oil and gas capital expenditures accrued ($ in thousands) (2)

$ 492,235


$ 300,895


$ 1,856,377


$ 1,082,246












(1)  Cash margin per BOE (a non-GAAP measure) is calculated by adjusting gross margin per BOE (a GAAP measure) to include the realized gain and loss on derivative instruments and to exclude DD&A.  Management believes this presentation may be helpful to investors as it represents the cash generated by our oil and gas production that is available for, among other things, capital expenditures and debt service.  PXP management uses this information to analyze operating trends for comparative purposes within the industry.  This measure is not intended to replace the GAAP statistic but rather to provide additional information that may be helpful in evaluating trends and performance.    


(2)  Additions to oil and gas properties reported in our consolidated statement of cash flows differ from the accrual basis amounts reflected above due to the timing of cash payments.  Excludes acquisitions.  


















Plains Exploration & Production Company

Reconciliation of GAAP to Non-GAAP Measure























Three Months Ended December 31, 2011





Oil


Gas


BOE





(per Bbl)


(per Mcf)




Average Realized Sales Price

















Average realized price before derivative instruments (GAAP)  (1)


$   87.02


$      3.30


$ 53.13



Realized (loss) gain on derivative instruments


(3.12)


0.23


(0.84)











Realized cash price including derivative settlements (non-GAAP)


$   83.90


$      3.53


$ 52.29























Three Months Ended December 31, 2010





Oil


Gas


BOE





(per Bbl)


(per Mcf)




Average Realized Sales Price

















Average realized price before derivative instruments (GAAP)  (1)


$   73.17


$      3.66


$ 47.66



Realized (loss) gain on derivative instruments


(4.16)


0.44


(0.77)











Realized cash price including derivative settlements (non-GAAP)


$   69.01


$      4.10


$ 46.89























Twelve Months Ended December 31, 2011





Oil


Gas


BOE





(per Bbl)


(per Mcf)




Average Realized Sales Price

















Average realized price before derivative instruments (GAAP)  (1)


$   85.53


$      3.91


$ 54.18



Realized (loss) gain on derivative instruments


(3.31)


0.07


(1.42)











Realized cash price including derivative settlements (non-GAAP)


$   82.22


$      3.98


$ 52.76























Twelve Months Ended December 31, 2010





Oil


Gas


BOE





(per Bbl)


(per Mcf)




Average Realized Sales Price

















Average realized price before derivative instruments (GAAP)  (1)


$   68.14


$      4.29


$ 47.77



Realized (loss) gain on derivative instruments


(4.22)


0.41


(1.02)











Realized cash price including derivative settlements (non-GAAP)


$   63.92


$      4.70


$ 46.75












(1)  Excludes the impact of production costs and expenses and DD&A.  









Plains Exploration & Production Company

Consolidated Statements of Cash Flows

(in thousands of dollars)


Twelve Months Ended


December 31,


2011


2010



CASH FLOWS FROM OPERATING ACTIVITIES




Net income

$   206,679


$   103,265

Items not affecting cash flows from operating activities




Depreciation, depletion, amortization and accretion

681,655


551,118

Impairment of oil and gas properties

-


59,475

Deferred income tax expense

160,214


193,835

Debt extinguishment costs

2,844


1,189

(Gain) loss on mark-to-market derivative contracts

(81,981)


60,695

Loss on investment measured at fair value

52,675


1,551

Non-cash compensation

49,193


50,875

Other non-cash items

(5,559)


1,043

Change in assets and liabilities from operating activities

45,035


(110,576)

Net cash provided by operating activities

1,110,755


912,470

CASH FLOWS FROM INVESTING ACTIVITIES




Additions to oil and gas properties

(1,783,304)


(1,048,858)

Acquisition of oil and gas properties

(40,515)


(554,685)

Proceeds from sales of oil and gas properties and related
  assets, net of costs and expenses

736,228


73,965

Derivative settlements

(55,412)


(29,921)

Additions to other property and equipment

(13,140)


(15,809)

Other

1,552


-

Net cash used in investing activities

(1,154,591)


(1,575,308)

CASH FLOWS FROM FINANCING ACTIVITIES




Borrowings from revolving credit facilities

6,305,300


3,332,610

Repayments of revolving credit facilities

(6,190,300)


(2,942,610)

Principal payments of long-term debt

(1,295,737)


-

Proceeds from issuance of Senior Notes

1,600,000


300,000

Costs incurred in connection with financing arrangements

(30,239)


(22,771)

Purchase of treasury stock

(361,729)


-

Net proceeds from issuance of noncontrolling interest
  in the form of preferred stock of subsidiary

430,246


-

Distributions to holders of noncontrolling interest in the
  form of preferred stock of subsidiary

(1,050)


-

Other

9


184

Net cash provided by financing activities

456,500


667,413

Net increase in cash and cash equivalents

412,664


4,575

Cash and cash equivalents, beginning of period

6,434


1,859

Cash and cash equivalents, end of period

$   419,098


$       6,434













Plains Exploration & Production Company

Consolidated Balance Sheets

(in thousands of dollars)





December 31,


December 31,





2011


2010




ASSETS




Current Assets





Cash and cash equivalents

$        419,098


$            6,434


Accounts receivable

302,675


269,024


Commodity derivative contracts

50,964


-


Inventories

20,173


24,406


Investment

611,671


-


Deferred income taxes

20,723


74,086


Prepaid expenses and other current assets

16,073


28,937





1,441,377


402,887

Property and Equipment, at cost





Oil and natural gas properties - full cost method






Subject to amortization

12,016,252


9,975,056



Not subject to amortization

2,409,449


3,304,554


Other property and equipment

145,959


137,150





14,571,660


13,416,760


Less allowance for depreciation, depletion, amortization and impairment

(6,846,365)


(6,196,008)





7,725,295


7,220,752

Goodwill

535,140


535,144

Commodity Derivative Contracts

12,678


-

Investment

-


664,346

Other Assets

76,982


71,808





$     9,791,472


$     8,894,937











LIABILITIES AND EQUITY




Current Liabilities





Accounts payable

$        385,231


$        284,628


Commodity derivative contracts

3,761


52,971


Royalties and revenues payable

97,095


70,990


Interest payable

39,342


49,127


Other current liabilities

100,757


75,973





626,186


533,689

Long-Term Debt

3,760,952


3,344,717








Other Long-Term Liabilities





Asset retirement obligation

230,633


225,571


Commodity derivative contracts

823


24,740


Other

15,749


28,205





247,205


278,516

Deferred Income Taxes

1,461,897


1,355,050

Equity





Stockholders' equity





Common stock

1,439


1,439


Additional paid-in capital

3,434,928


3,427,869


Retained earnings

337,991


148,620


Treasury stock, at cost

(509,722)


(194,963)





3,264,636


3,382,965

Noncontrolling interest




   Preferred stock of subsidiary

430,596


-





3,695,232


3,382,965





$     9,791,472


$     8,894,937
























Plains Exploration & Production Company

Summary of Open Derivative Positions

At February 22, 2012






















Average






Instrument


Daily


Average


Deferred



Period (1)


Type


Volumes


Price (2)


Premium


Index

Sales of Crude Oil Production









2012












Feb - Dec


Three-way collars (3)


40,000 Bbls


$100.00 Floor with an $80.00 Limit


-


Brent







$120.00 Ceiling





2013












Jan - Dec


Put options (4)


17,000 Bbls


$90.00 Floor with a $70.00 Limit


$6.253 per Bbl


Brent


Jan - Dec


Put options (5)


13,000 Bbls


$100.00 Floor with an $80.00 Limit


$6.800 per Bbl


Brent


Jan - Dec


Three-way collars (6)


25,000 Bbls


$100.00 Floor with an $80.00 Limit


-


Brent








$124.29 Ceiling






Jan - Dec


Three-way collars (7)


5,000 Bbls


$90.00 Floor with a $70.00 Limit


-


Brent








$126.08 Ceiling





2014












Jan - Dec


Put options (4)


20,000 Bbls


$90.00 Floor with a $70.00 Limit


$6.555 per Bbl


Brent













Sales of Natural Gas Production









2012












Feb - Dec


Put options (8)


120,000 MMBtu


$4.30 Floor with a $3.00 Limit


$0.298 per MMBtu


Henry Hub


Feb - Dec


Three-way collars (9)


40,000 MMBtu


$4.30 Floor with a $3.00 Limit


-


Henry Hub








$4.86 Ceiling





2013                    












Jan - Dec


   Swap contracts (10)   


110,000 MMBtu


$4.27


-


Henry Hub













2014












Jan - Dec


Swap contracts (10)


70,000 MMBtu


$4.16


-


Henry Hub













(1)  All of our derivatives are settled monthly.  

(2)  The average strike prices do not reflect any premiums to purchase the put options.  

(3)  If the index price is less than the $100 per barrel floor, we receive the difference between the $100 per barrel floor and the index price up to a maximum of $20 per barrel.  We pay the difference between the index price and $120 per barrel if the index price is greater than the $120 per barrel ceiling.  If the index price is at or above $100 per barrel but at or below $120 per barrel, no cash settlement is required.  

(4)  If the index price is less than the $90 per barrel floor, we receive the difference between the $90 per barrel floor and the index price up to a maximum of $20 per barrel less the option premium.  If the index price is at or above $90 per barrel, we pay only the option premium.  

(5)  If the index price is less than the $100 per barrel floor, we receive the difference between the $100 per barrel floor and the index price up to a maximum of $20 per barrel less the option premium.  If the index price is at or above $100 per barrel, we pay only the option premium.  

(6)  If the index price is less than the $100 per barrel floor, we receive the difference between the $100 per barrel floor and the index price up to a maximum of $20 per barrel.  We pay the difference between the index price and $124.29 per barrel if the index price is greater than the $124.29 per barrel ceiling.  If the index price is at or above $100 per barrel but at or below $124.29 per barrel, no cash settlement is required.  

(7)  If the index price is less than the $90 per barrel floor, we receive the difference between the $90 per barrel floor and the index price up to a maximum of $20 per barrel.  We pay the difference between the index price and $126.08 per barrel if the index price is greater than the $126.08 per barrel ceiling.  If the index price is at or above $90 per barrel but at or below $126.08 per barrel, no cash settlement is required.  

(8)  If the index price is less than the $4.30 per MMBtu floor, we receive the difference between the $4.30 per MMBtu floor and the index price up to a maximum of $1.30 per MMBtu less the option premium.  If the index price is at or above $4.30 per MMBtu, we pay only the option premium.  

(9)  If the index price is less than the $4.30 per MMBtu floor, we receive the difference between the $4.30 per MMBtu floor and the index price up to a maximum of $1.30 per MMBtu.  We pay the difference between the index price and $4.86 per MMBtu if the index price is greater than the $4.86 per MMBtu ceiling.  If the index price is at or above $4.30 per MMBtu but at or below $4.86 per MMBtu, no cash settlement is required.  

(10)  If the index price is less than the fixed price ($4.27 per MMBtu for the 2013 contracts and $4.16 per MMBtu for the 2014 contracts), we receive the difference between the fixed price and the index price.  We pay the difference between the index price and the fixed price if the index price is greater than the fixed price.  

Derivative Settlements







(in thousands of dollars)

















The following tables reflect cash (payments) receipts for derivatives attributable to the stated production periods.


























Three Months Ended


Twelve Months Ended




December 31,


December 31,




2011


2010


2011


2010











Oil sales


$                          (15,008)


$                             (17,854)


$                                   (59,217)


$                              (70,834)

Natural gas sales


6,881


11,285


7,915


37,996




$                            (8,127)


$                               (6,569)


$                                   (51,302)


$                              (32,838)










Plains Exploration & Production Company

Reconciliation of GAAP to Non-GAAP Measure






The following tables reconcile net income (GAAP) to adjusted net income and adjusted net income attributable to common stockholders (non-GAAP) for the three and twelve months ended December 31, 2011 and 2010. Adjusted net income and adjusted net income attributable to common stockholders exclude certain items affecting the comparability of operating results and the related tax effects.  Management believes this presentation may be helpful to investors.  PXP management uses this information to analyze operating trends and for comparative purposes within the industry. This measure is not intended to replace the GAAP statistic but rather to provide additional information that may be helpful in evaluating the Company's operational trends and performance.



Three Months Ended



December 31,



2011


2010



(millions of dollars)






Net income (loss) (GAAP)

$   99.1


$ (19.5)


Unrealized loss on mark-to-market derivative contracts

11.5


83.9


Realized loss on mark-to-market derivative contracts (1)

(8.0)


(6.6)


Unrealized (gain) loss on investment measured at fair value

(232.3)


1.6


Debt extinguishment costs

121.0


-


Adjust income taxes (2)

38.7


(31.1)






Adjusted net income (non-GAAP)

$   30.0


$   28.3


Net income attributable to noncontrolling interest in the form of preferred stock of subsidiary

(1.4)



Adjusted net income attributable to common stockholders (non-GAAP)

$   28.6










Twelve Months Ended



December 31,



2011


2010



(millions of dollars)






Net income (GAAP)

$ 206.7


$ 103.3


Unrealized (gain) loss on mark-to-market derivative contracts

(82.0)


60.7


Realized loss on mark-to-market derivative contracts (1)

(51.3)


(32.8)


Unrealized loss on investment measured at fair value

52.7


1.6


Impairment of oil and gas properties

-


59.5


Debt extinguishment costs

121.0


1.2


Legal recovery

-


(8.4)


Other non-operating income

-


(9.3)


Adjust income taxes (2)

(22.7)


(25.6)






Adjusted net income (non-GAAP)

$ 224.4


$ 150.2


Net income attributable to noncontrolling interest in the form of preferred stock of subsidiary

(1.4)



Adjusted net income attributable to common stockholders (non-GAAP)

$ 223.0













(1)  The amounts presented in the above tables differ from the adjustments reflected in the calculation of operating cash flow on the following page due to the accrued amounts reflected in the income statement versus the actual cash received or paid reflected in the consolidated statement of cash flows.    


(2)  Tax rates assumed based upon adjusted earnings are 36% and 50% for the three months ended December 31, 2011 and 2010, respectively. Tax rates assumed based upon adjusted earnings are 41% and 46% for the twelve months ended December 31, 2011 and 2010. Tax rates exclude the effects of nonrecurring tax related expenses and benefits.  




















Plains Exploration & Production Company

Reconciliation of GAAP to Non-GAAP Measure





















The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Operating Cash Flow (non-GAAP) for the three and twelve months ended December 31, 2011 and 2010.  Management believes this presentation may be useful to investors.  PXP management uses this information for comparative purposes within the industry and as a means of measuring the Company's ability to fund capital expenditures and service debt. This measure is not intended to replace the GAAP statistic but rather to provide additional information that may be helpful in evaluating the Company's operational trends and performance.











Operating cash flow is calculated by adjusting net income to add back certain non-cash and non-operating items, including debt extinguishment costs, the unrealized gain and loss on mark-to-market derivative contracts, to include derivative cash settlements for the realized gain and loss on mark-to-market derivative contracts that are classified as investing activities for GAAP purposes, to exclude the unrealized gain and loss on the investment measured at fair value and to exclude certain other items.  














Three Months Ended


Twelve Months Ended




December 31,


December 31,




2011


2010


2011


2010




(millions of dollars)


Net income (loss)

$    99.1


$ (19.5)


$    206.7


$ 103.3


Items not affecting operating cash flows









   Depreciation, depletion, amortization and accretion

215.6


158.5


681.7


551.1


   Impairment of oil and gas properties

-


-


-


59.5


   Deferred income tax expense

55.0


22.5


160.2


193.8


   Debt extinguishment costs

121.0


-


121.0


1.2


   Unrealized loss (gain) on mark-to-market derivative contracts

11.5


83.9


(82.0)


60.7


   Unrealized (gain) loss on investment measured at fair value

(232.3)


1.6


52.7


1.6


   Non-cash compensation

22.0


14.5


49.2


50.9


   Other non-cash items

0.8


(1.5)


(5.6)


1.0


Realized loss on mark-to-market derivative contracts

(8.0)


(6.4)


(55.4)


(29.9)


Legal recovery and other

-


-


-


(16.5)












Operating cash flow (non-GAAP)

$     284.7


$ 253.6


$ 1,128.5


$ 976.7






















Reconciliation of non-GAAP to GAAP measure










Operating cash flow (non-GAAP)

$    284.7


$ 253.6


$ 1,128.5


$ 976.7



Cash portion of debt extinguishment costs

(118.2)


-


(118.2)


-



Legal recovery and other

-


-


-


16.5



Changes in assets and liabilities from operating activities

13.6


(24.7)


45.1


(110.6)



Realized loss on mark-to-market derivative contracts

8.0


6.4


55.4


29.9












Net cash provided by operating activities (GAAP)

$       188.1


$ 235.3


$ 1,110.8


$ 912.5





Plains Exploration & Production Company

Proved Reserves, Reserve Replacement Ratio, PV-10 to Standardized Measure Reconciliation



Estimated Proved Reserves (MMBOE):


2010 Year-end proved reserves

416.1

2011 Extensions, discoveries and revisions and other additions

81.0

2011 Divestments

(49.7)

2011 Production

(36.5)

2011 Year-end proved reserves

410.9



Reserve Replacement Ratio (1)

222%



Estimated Pro Forma Proved Reserves (MMBOE) (2)


2010 Year-end proved reserves

355.0

2011 Extensions, discoveries and revisions and other additions

88.1

2011 Divestments

(1.8)

2011 Pro forma production

(30.4)

2011 Year-end proved reserves

410.9



Pro Forma Reserve Replacement Ratio (1)

290%



PV-10 to Standardized Measure Reconciliation (in millions)


Estimated undiscounted future net cash flows before income taxes

$ 15,942.2



Present value of estimated future net cash flows before income taxes (PV-10) (3) (4)  

$   7,884.5



Discounted future income taxes

(2,750.3)

Standardized measure of discounted net cash flows

$   5,134.2





(1)  Calculation: reserve extensions, discoveries, revisions and other additions divided by production. The Reserve Replacement Ratio is an indicator of our ability to replace annual production volume and grow our reserves. It is important to economically find and develop new reserves that will offset produced volumes and provide for future production given the inherent decline of hydrocarbon reserves as they are produced.  Reserve Replacement Ratio is a statistical indicator which has limitations, including its predictive and comparative value.  As such, this metric should not be considered in isolation or as a substitute for an analysis of our performance as reported under GAAP.  Furthermore, this metric may not be comparable to similarly titled measurements used by other companies.  


(2)  Reflects the impact of fourth-quarter property divestments.  


(3)  PV-10 is PXP’s estimate of the present value of future net revenues from proved oil and gas reserves after deducting estimated production and ad valorem taxes, future capital costs and operating expenses, but before deducting any estimates of future income taxes. PV-10 is a non-GAAP financial measure and generally differs from the Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effects of income taxes on future cash flows. PV-10 should not be considered as an alternative to the Standardized Measure as computed under GAAP.  


(4)  PXP believes PV-10 to be an important measure for evaluating the relative significance of its oil and gas properties and that the presentation of the non-GAAP financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and gas companies. Because there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid, PXP believes the use of a pre-tax measure is valuable for evaluating its company. PXP believes that most other companies in the oil and gas industry calculate PV-10 on the same basis.    






Plains Exploration & Production Company

Costs Incurred & Finding and Development Costs




Costs Incurred ($ Millions):


Property acquisition costs:


     Unproved properties

$      36.6

     Proved properties

9.2

Exploration costs

1,147.9

Development costs

708.5

Total costs incurred (1)

$ 1,902.2







Pro Forma Costs Incurred ($ Millions):(2)


Property acquisition costs:


     Unproved properties

$      36.2

     Proved properties

1.4

Exploration costs

1,027.9

Development costs

521.3

Total costs incurred

$ 1,586.8




Finding and Development Costs (F&D) (3)





All-In F&D Costs per BOE

$    23.48

Calculation: Total costs incurred divided by reserve extensions, discoveries,


revisions and other additions





All-In F&D Costs Pro Forma for Asset Sales per BOE

$    18.01

Calculation: Total pro forma costs incurred divided by pro forma reserve extensions, discoveries,


revisions and other additions











(1)  Includes capitalized interest expense of $115.4 million and capitalized general and administrative expense of $77.1 million.  


(2)  Reflects the impact of fourth quarter property divestments.  


(3)  Finding and Development Costs per BOE is a non-GAAP metric commonly used in the exploration and production industry.  The calculations presented are described above.  This calculation does not include the future development costs required for the development of proved undeveloped reserves.  Finding and Development Costs per BOE is a statistical indicator which has limitations, including its predictive and comparative value.  As such, this metric should not be considered in isolation or as a substitute for an analysis of our performance as reported under GAAP.  Furthermore, this metric may not be comparable to similarly titled measurements used by other companies.  

Plains Exploration & Production Company

Full-Year 2012 Operating and Financial Guidance






Year Ended



December 31, 2012

Production Volumes (MBOE/day)





Total Production volumes sold

92

—

96


Oil

55%

—

57%


NGLs

3%

—

4%


Natural Gas

42%

—

39%






Product Price Realization (Unhedged)





Oil - Brent

98%

—

102%


Oil - Transportation Expense


$5.00



NGLs - WTI


40%



Gas - Henry Hub


100%



Gas - Transportation Expense


$0.15


Production Costs per BOE





Lease operating expense

$ 9.50

—

$ 10.50


Steam gas costs (1)

$ 1.25

—

$   1.75


Electricity

$ 1.20

—

$   1.40


Production and ad valorem taxes (2)

$ 2.00

—

$   2.25


Gathering and transportation

$ 1.50

—

$   2.00






Depreciation, Depletion and Amortization per BOE

$    22

—

$      24






General and Administrative Expenses (in millions)





Cash

$  107

—

$    111


Stock-based compensation (3)

$    40

—

$      46






Interest Expense





Average revolver balance

30 Day LIBOR + 1.50% - 2.50%


$79 Million Senior Notes


7.750%



$185 Million Senior Notes


10.000%



$77 Million Senior Notes


7.000%



$400 Million Senior Notes


7.625%



$400 Million Senior Notes


8.625%



$300 Million Senior Notes


7.625%



$600 Million Senior Notes


6.625%



$1,000 Million Senior Notes


6.750%







Effective Tax Rate

38%

—

40%






Weighted Average Equivalent Shares Outstanding (in thousands)





Basic


127,600



Diluted


129,300


Capital Expenditures (in millions)(4)





PXP


$1,366



Gulf of Mexico - Plains Offshore


234



Total


$1,600







(1)  Steam gas costs assume a base SoCal Border index price of $3.02 per MMBtu.  The purchased volumes are anticipated to be 43,000 - 45,000 MMBtu per day.

(2)  Production and ad valorem taxes assume base index prices of $110.00 per barrel and $3.00 per MMBtu. (Note: Brent index price for oil)  

(3)  Based on current outstanding and projected awards and current stock price.  

(4)  Includes capitalized interest and general and administrative expenses.  







SOURCE Plains Exploration & Production Company

Modal title

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2023 Cision US Inc.