• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

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

      • 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
  • 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 2012 Full-Year Results: Realizes Significant Net Income Growth Year-over-Year, Generates Substantial Growth in Net Cash Provided by Operating Activities, and Delivers Solid Reserve Replacement and Substantially Higher Reserve Value


News provided by

Plains Exploration & Production Company

Feb 21, 2013, 07:21 ET

Share this article

Share this article


HOUSTON, Feb. 21, 2013 /PRNewswire/ -- Plains Exploration & Production Company (NYSE:PXP) ("PXP" or the "Company") announces 2012 fourth-quarter and full-year financial and operating results. These results reflect the one month benefit of the Gulf of Mexico assets acquired on November 30, 2012.

FOURTH-QUARTER HIGHLIGHTS

  • Total revenues were $869.2 million, a 68% increase compared to fourth-quarter 2011.
  • Total daily sales volumes averaged approximately 132.9 thousand barrels of oil equivalent ("BOE"), a 35% increase per diluted share, or a 62% increase per diluted share pro forma for the December 2011 asset sales, compared to fourth-quarter 2011.
  • Oil daily sales volumes averaged 93.0 thousand barrels, a 91% increase per diluted share, or 115% per diluted share pro forma for the December 2011 asset sales, compared to fourth-quarter 2011.
  • Net cash provided by operating activities was $284.2 million, a 51% increase over fourth-quarter 2011.
  • Operating cash flow (a non-GAAP measure) was $536.2 million, an 89% increase over fourth-quarter 2011.
  • Income from operations was $177.0 million, a 73% increase over fourth-quarter 2011.
  • Net income attributable to common stockholders was $218.6 million, or $1.65 per diluted share compared to fourth-quarter 2011 net income attributable to common stockholders of $97.7 million, or $0.69 per diluted share.
  • Adjusted net income attributable to common stockholders (a non-GAAP measure) was $54.8 million, or $0.41 per diluted share, compared to fourth-quarter 2011 adjusted net income attributable to common stockholders of $28.6 million, or $0.20 per diluted share. The adjusted fourth-quarter results include an increase in stock-based compensation expense which resulted in a $0.05 after-tax decrease in earnings per diluted share. Stock-based compensation increased due to the 30% increase in PXP stock price following the Freeport-McMoRan Copper & Gold Inc. merger announcement in December. Also included in the adjusted quarterly results was an increase in the oil and gas depreciation, depletion and amortization ("DD&A") rate which resulted in a $0.29 after-tax decrease in earnings per diluted share. The higher DD&A rate primarily reflects the impact of lower sustained natural gas prices on gas reserves and our Gulf of Mexico acquisition.   

FULL-YEAR HIGHLIGHTS

  • Total revenues were $2.6 billion, a 31% increase compared to full-year 2011.
  • Total daily sales volumes averaged approximately 106.2 thousand BOE, a 16% increase per diluted share, or a 42% increase per diluted share pro forma for the December 2011 asset sales, compared to full-year 2011.
  • Oil daily sales volumes averaged 66.6 thousand barrels, a 47% increase per diluted share, or 67% per diluted share pro forma for the December 2011 asset sales, compared to full-year 2011.
  • Net cash provided by operating activities was $1.3 billion, a 20% increase over full-year 2011.
  • Operating cash flow (a non-GAAP measure) was $1.6 billion, a 42% increase over full-year 2011.
  • Income from operations was $615.7 million, a 4% increase over full-year 2011.
  • Net income attributable to common stockholders was $306.4 million, or $2.32 per diluted share compared to full-year 2011 net income attributable to common stockholders of $205.3 million, or $1.44 per diluted share.
  • Adjusted net income attributable to common stockholders (a non-GAAP measure) was $229.2 million, or $1.74 per diluted share, compared to full-year 2011 adjusted net income attributable to common stockholders of $223.0 million, or $1.56 per diluted share. Included in the adjusted results was an increase in the oil and gas DD&A rate which resulted in a $1.11 after-tax decrease in earnings per diluted share. The higher DD&A rate primarily reflects the impact of lower sustained natural gas prices on gas reserves.  

2012 RESERVES

  • Proved reserves increased 7% to 440.4 million BOE.
  • Probable reserves are 193.8 million BOE.
  • The Company estimates possible reserves to be 157.0 million BOE and resource potential to be 2,817.0 million BOE.
  • 100% of proved reserve volumes and 99% of probable reserve volumes are based upon reserve reports prepared by independent petroleum engineers. 1% of probable reserve volumes, possible reserve volumes and resource potential were prepared by PXP, which were not audited by an independent petroleum engineer.
  • Standardized measure of discounted future net cash flows for proved reserves is $10.0 billion compared to $5.1 billion in 2011.
  • PV-10 value for proved reserves (a non-GAAP measure) is $13.7 billion compared to $7.9 billion in 2011.
  • Proved developed reserves are 63% of total proved reserves.
  • Proved oil reserves as a percentage of proved reserves are 82%.
  • Reserve replacement for proved reserves (a non-GAAP measure) is 181%.

FINANCIAL SUMMARY

PXP reported fourth-quarter revenues of $869.2 million and net income attributable to common stockholders of $218.6 million, or $1.65 per diluted share, compared to revenues of $517.5 million and net income attributable to common stockholders of $97.7 million, or $0.69 per diluted share, for the fourth-quarter 2011. The 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 resulting in a net loss of $15.5 million due in large part to increased crude oil forward prices, a $298.9 million unrealized gain on investment in McMoRan Exploration Co. ("McMoRan") common stock, acquisition, merger and related financing costs of $70.5 million, and other items. When considering these items, PXP reports adjusted net income attributable to common stockholders of $54.8 million, or $0.41 per diluted share (a non-GAAP measure), compared to $28.6 million, or $0.20 per diluted share, for the same period in 2011.

For the full-year, PXP reports revenues of $2.6 billion and net income attributable to common stockholders of $306.4 million, or $2.32 per diluted share, compared to revenues of $2.0 billion and net income attributable to common stockholders of $205.3 million, or $1.44 per diluted share, for the same period in 2011. These results include certain items affecting comparability of operating results. These items consist of realized and unrealized gains and losses on our mark-to-market derivative contracts, an unrealized gain on investment in McMoRan common stock, acquisition, merger and related financing costs and other items. When considering these items, adjusted net income attributable to common stockholders for the full-year of 2012 was $229.2 million, or $1.74 per diluted share (a non-GAAP measure), compared to $223.0 million, or $1.56 per diluted share, for the same period in 2011.

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 2012 fourth-quarter daily sales volumes averaged 132.9 thousand BOE per day, a 35% increase per diluted share and a 62% increase per diluted share pro forma for the December 2011 asset sales compared to fourth-quarter 2011.

Crude oil sales volumes averaged 85.4 thousand barrels per day, compared to fourth-quarter 2011 average volumes of 46.4 thousand barrels per day. The robust volume growth is driven primarily by one month contribution from the deepwater Gulf of Mexico assets acquired in November 2012, continued strength in the Eagle Ford Field, and steady, consistent performance in California.

Natural gas liquids sales volumes averaged 7.7 thousand barrels per day, compared to fourth-quarter 2011 average volumes of 5.9 thousand barrels per day. The increase reflects one month contribution from the deepwater Gulf of Mexico assets acquired in November 2012 partially offset by the South Texas and Texas Panhandle asset sales in December 2011.

Natural gas sales volumes averaged 239.2 million cubic feet ("MMcf") per day compared to 318.8 MMcf per day in the fourth-quarter 2011. Lower volumes reflect the impact of the December 2011 asset sales and lower drilling activity in the Haynesville Field, partially offset by one month contribution from the deepwater Gulf of Mexico assets acquired in November 2012 and increased production from the Eagle Ford Field.

In the Eagle Ford Field, fourth-quarter daily sales volumes averaged 40.4 thousand BOE per day net to PXP compared to fourth-quarter 2011 average daily sales volumes of 9.1 thousand BOE per day net to PXP. At the end of January, PXP had 7.9 net drilling rigs operating on its acreage and 39 wells drilled but waiting on completion or connection to pipelines.

In the Gulf of Mexico, PXP closed the acquisition of interests in certain deepwater Gulf of Mexico oil and gas properties including 100% interests in the Holstein, Marlin and Horn Mountain production facilities in November 2012. Post-closing production from the platforms is reflected in PXP's fourth quarter results beginning in December. After pre-closing adjustments of approximately $218.9 million from the effective date of October 1, 2012, PXP paid a total of $5.9 billion. At the sanctioned Lucius development in Keathley Canyon, the operator and its partners completed the drilling of a development well on the western flank of the field that encountered 910 net feet of oil pay. Currently another development well is drilling on the eastern flank of the structure with three additional development wells and/or sidetracks scheduled for 2013. Drilling operations began during the fourth quarter at the Phobos prospect, a large multi-block, four-way closure with Tertiary objectives, approximately 12 miles south of the Lucius Field on Sigsbee Escarpment Block 39.

In California, fourth-quarter daily sales volumes averaged 38.7 thousand BOE per day net to PXP compared to the fourth-quarter 2011 daily sales volume average of 40.0 thousand BOE per day net to PXP.

In the Haynesville Field, fourth-quarter daily sales volumes averaged 162.8 MMcf per day net to PXP compared to fourth-quarter 2011 average daily sales volumes of 199.8 MMcf per day net to PXP. The sales volume decline reflects significantly lower drilling activity during the quarter. At the end of January, there were no drilling rigs operating in which PXP had a working interest.

CAPITAL SPENDING

For the fourth-quarter of 2012, PXP had cash expenditures of approximately $491 million for additions to oil and gas properties and leasehold acquisitions. Of the $491 million total, $36 million was funded by Plains Offshore Operations Inc., PXP's consolidated subsidiary. PXP's fourth quarter operating cash flow was $536 million.

For the full year of 2012, PXP had cash expenditures of approximately $1.9 billion for additions to oil and gas properties and leasehold acquisitions. Of the $1.9 billion total, $205 million was funded by Plains Offshore Operations Inc. PXP's full-year operating cash flow was approximately $1.6 billion.

COMMODITY PRICES

During the fourth-quarter of 2012, Brent crude oil price averaged $110.05 per barrel compared to $108.96 per barrel in the fourth-quarter 2011. PXP's 2012 fourth-quarter crude oil average realized price per barrel before derivative transactions was $98.34 per barrel, or approximately 89% of Brent, compared to $90.71 per barrel in the fourth-quarter 2011, or approximately 83% of Brent. Since October, PXP's realized price before derivative transactions has increased from approximately 86% of Brent to approximately 94% of Brent in January. Including the impact of derivative transactions, the fourth-quarter 2012 crude oil average realized price was $98.34 per barrel, or approximately 89% of Brent, compared to $87.19 per barrel in the fourth-quarter 2011, or 80% of Brent.

During the fourth-quarter of 2012, the oil average realized price per barrel before derivative transactions, which includes 7.7 thousand BOE per day net to PXP of natural gas liquids, was $93.28 per barrel, or approximately 85% of Brent, compared to $87.02 per barrel in the fourth-quarter 2011, or 80% of Brent. Including the impact of derivative transactions, the average realized price in the fourth-quarter 2012 was $93.28 per barrel, or 85% of Brent, compared to $83.90 per barrel in the fourth-quarter 2011, or 77% of Brent.

During the fourth-quarter of 2012, NYMEX gas price averaged $3.38 per million British thermal units ("MMBtu") compared to $3.57 per MMBtu in the fourth-quarter 2011. PXP's 2012 fourth-quarter natural gas average realized price before derivative transactions was $3.19 per MMBtu, or approximately 94% of NYMEX, compared to $3.30 per MMBtu in the fourth-quarter 2011, or 92% of NYMEX. Including the impact of derivative transactions, the average realized price in the fourth-quarter 2012 was $3.44 per MMBtu, or approximately 102% of NYMEX, compared to $3.53 per MMBtu in the fourth-quarter 2011, or 99% of NYMEX.

PROVED RESERVES

Year-end estimated proved reserves of 440.4 million BOE were 82% oil, 63% developed and had a pre-tax PV-10 value of $13.7 billion, a 74% increase over 2011 PV-10 value. The robust increase in the PV-10 value is primarily attributable to a greater concentration of oil reserves.

In 2012, PXP added total proved reserves of 68.6 million BOE. Extensions and discoveries were 58.9 million BOE, primarily in the Eagle Ford Field and Lucius Field. Deepwater Gulf of Mexico acquired reserves were 126.4 million BOE, negative revisions, predominately gas price related in the Haynesville Field and Madden Field, were 114.4 million BOE, and minor reserve divestments were 2.3 million BOE. These reserve additions replaced 181% of 2012 production.

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 $94.71 per barrel and Henry Hub spot natural gas price of $2.76 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 reserves reconciliation, costs incurred, Standardized Measure, and PV-10 are included with the financial tables.

MANAGEMENT COMMENT

James C. Flores, Chairman, President and CEO of PXP commented, "PXP delivered exceptional quarterly results and ended the year ahead of expectations. For the year, PXP attained record sales volumes, increased its oil margins and cash flow, preserved commodity price upside through its hedging program and acquired high-margin offshore deepwater Gulf of Mexico assets to ensure long-term sustainable growth. PXP begins 2013 with a durable onshore and offshore oil business, increasing oil production per share, strong oil growth assets with premium pricing, and increasing cash flow growth potential. These characteristics complement the large, long-life, low cost, and expandable asset base characteristics of Freeport-McMoRan Copper & Gold Inc. with whom we have entered into a transaction to merge our operations."

CONFERENCE CALL

PXP will host a conference call today, Thursday, February 21, 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: 88518328. The replay can be accessed by dialing 1-855-859-2056 or 1-404-537-3406. A live webcast of the conference call 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 for "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:
* completion of the proposed merger,
* 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 and Forms 10-Q, 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. In this press release, the Company uses the terms "possible reserves" and "resource potential" to describe the Company's internal estimates of volumes of oil and gas that are not classified as proved reserves but are potentially recoverable through exploratory drilling or additional drilling or recovery techniques.  Resource potential is a broader description of potentially recoverable volumes than probable and possible reserves, as defined by the SEC regulations. SEC guidelines prohibit us from including resource potential in filings with the SEC. References in this press release to oil include crude oil, condensate, and natural gas liquid volumes.

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.

IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC
In connection with the proposed business combination transaction between PXP and FCX, FCX has filed with the SEC a registration statement on Form S-4 that contains a proxy statement/prospectus to be mailed to the PXP stockholders in connection with the proposed transaction. THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CONTAIN IMPORTANT INFORMATION ABOUT PXP, FCX, THE PROPOSED TRANSACTION AND RELATED MATTERS. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN THEY BECOME AVAILABLE. Investors and security holders may obtain free copies of the registration statement and the proxy statement/prospectus and other documents filed with the SEC by PXP and FCX through the web site maintained by the SEC at www.sec.gov. In addition, investors and security holders may obtain free copies of the registration statement and the proxy statement/prospectus by phone, e-mail or written request by contacting the investor relations department of PXP or FCX at the following:

Plains Exploration & Production Company
700 Milam, Suite 3100
Houston, TX 77002
Attention: Investor Relations
Phone: (713) 579-6000
Email: [email protected]

Freeport-McMoRan Copper & Gold Inc.
333 N. Central Ave.
Phoenix, AZ 85004
Attention: Investor Relations
Phone: (602) 366-8400
Email: [email protected]

PARTICIPANTS IN THE SOLICITATION
PXP and FCX, and their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies in respect of the proposed transactions contemplated by the merger agreement. Information regarding directors and executive officers of PXP is contained in the proxy statement/prospectus dated February 8, 2013, which is filed with the SEC. Information regarding FCX's directors and executive officers is contained in FCX's definitive proxy statement dated April 27, 2012, which is filed with the SEC.

This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Plains Exploration & Production Company

Consolidated Statements of Income

(in thousands, except per share data)














Three Months Ended


Twelve Months Ended




December 31,


December 31,




2012


2011


2012


2011




 (Unaudited) 





Revenues










Oil sales


$      798,492


$      418,428


$   2,325,922


$   1,528,656


Gas sales 


70,328


96,734


232,441


428,220


Other operating revenues


384


2,379


6,944


7,612




869,204


517,541


2,565,307


1,964,488

Costs and Expenses










Lease operating expenses


124,705


100,543


393,460


334,923


Steam gas costs


14,386


15,841


47,317


65,482


Electricity


11,869


11,039


43,950


41,242


Production and ad valorem taxes


21,091


16,141


73,873


55,225


Gathering and transportation expenses


19,333


17,278


73,852


62,103


General and administrative











G&A


54,424


39,080


157,022


134,044



Acquisition and merger related costs


35,468


-


42,151


-


Depreciation, depletion and amortization


402,083


211,284


1,101,108


664,478


Accretion


5,692


4,299


16,944


17,177


Other operating expense (income)


3,115


(78)


(27)


(735)




692,166


415,427


1,949,650


1,373,939











Income from Operations


177,038


102,114


615,657


590,549

Other (Expense) Income










Interest expense


(140,135)


(48,175)


(297,539)


(161,316)


Debt extinguishment costs


(3,221)


(120,954)


(8,388)


(120,954)


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


(15,452)


(11,486)


(2,879)


81,981


Gain (loss) on investment measured at fair value


298,853


232,254


206,552


(52,675)


Other income


254


407


694


3,356

Income Before Income Taxes 


317,337


154,160


514,097


340,941


Income tax benefit (expense)











Current


1,567


(7)


4,102


25,952



Deferred


(91,115)


(55,049)


(175,412)


(160,214)

Net Income 


227,789


99,104


342,787


206,679


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


(9,161)


(1,400)


(36,367)


(1,400)

Net Income Attributable to Common Stockholders


$ 218,628


$ 97,704


$ 306,420


$ 205,279











Earnings per Common Share










Basic


$            1.68


$            0.70


$            2.36


$            1.45


Diluted


$            1.65


$            0.69


$            2.32


$            1.44

Weighted Average Common Shares Outstanding









Basic


130,277


140,414


129,925


141,227


Diluted


132,137


141,951


131,867


142,999











Plains Exploration & Production Company

Operating Data


Three Months Ended


Twelve Months Ended


December 31,


December 31,


2012


2011


2012


2011




(Unaudited)



Daily Average Volumes










Oil and liquids sales (Bbls)


93,043


52,262


66,571


48,964


Gas (Mcf)












Production



242,241


324,288


241,726


305,691



Used as fuel



3,032


5,481


3,721


5,776



Sales 



239,209


318,807


238,005


299,915


BOE












Production



133,416


106,310


106,859


99,912



Sales 



132,911


105,396


106,239


98,950

Unit Economics (in dollars) 










Average Index Prices











ICE Brent Price per Bbl


$      110.05


$      108.96


$      111.63


$      110.85



NYMEX Price per Bbl


88.23


94.06


94.15


95.11



NYMEX Price per Mcf


3.38


3.57


2.79


4.04


Average Realized Sales Price Before Derivative Transactions










Oil (per Bbl)


$        93.28


$        87.02


$        95.46


$        85.53



Gas (per Mcf)


3.19


3.30


2.67


3.91



Per BOE


71.05


53.13


65.79


54.18


Cash Margin per BOE (1)











Oil and gas revenues 


$        71.05


$        53.13


$        65.79


$        54.18



Costs and expenses











   Lease operating expenses


(10.20)


(10.37)


(10.12)


(9.27)



   Steam gas costs


(1.18)


(1.63)


(1.22)


(1.81)



   Electricity


(0.97)


(1.14)


(1.13)


(1.14)



   Production and ad valorem taxes


(1.72)


(1.66)


(1.90)


(1.53)



   Gathering and transportation


(1.58)


(1.78)


(1.90)


(1.72)



   Oil and gas related DD&A


(32.18)


(21.22)


(27.62)


(17.76)



Gross margin (GAAP)


23.22


15.33


21.90


20.95




Oil and gas related DD&A


32.18


21.22


27.62


17.76




Realized gain (loss) on derivative instruments

0.45


(0.84)


1.23


(1.42)



Cash margin (non-GAAP)


$        55.85


$        35.71


$        50.75


$        37.29















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

$    437,407


$    492,235


$ 1,908,076


$ 1,856,377















(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, 2012







Oil


Gas


BOE







(per Bbl)


(per Mcf)




Average Realized Sales Price 




















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


$          93.28


$            3.19


$          71.05


               Realized gain on derivative instruments


-


0.25


0.45













Realized cash price including derivative settlements (non-GAAP)


$          93.28


$            3.44


$          71.50





























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





























Twelve Months Ended December 31, 2012







Oil


Gas


BOE







(per Bbl)


(per Mcf)




Average Realized Sales Price 




















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


$          95.46


$            2.67


$          65.79


               Realized (loss) gain on derivative instruments


(0.13)


0.58


1.23













Realized cash price including derivative settlements (non-GAAP)


$          95.33


$            3.25


$          67.02





























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














(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,



2012


2011






CASH FLOWS FROM OPERATING ACTIVITIES





Net income 


$      342,787


$      206,679

Items not affecting cash flows from operating activities





     Depreciation, depletion, amortization and accretion


1,118,052


681,655

     Deferred income tax expense


175,412


160,214

     Debt extinguishment costs


4,160


2,844

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


2,879


(81,981)

     (Gain) loss on investment measured at fair value


(206,552)


52,675

     Non-cash compensation


60,247


49,193

     Other non-cash items


8,270


(5,559)

Change in assets and liabilities from operating activities


(174,464)


45,035

Net cash provided by operating activities


1,330,791


1,110,755

CASH FLOWS FROM INVESTING ACTIVITIES





Additions to oil and gas properties


(1,854,255)


(1,783,304)

Acquisition of oil and gas properties 


(51,051)


(40,515)

Gulf of Mexico Acquisition


(5,895,878)


-

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


67,619


736,228

Derivative settlements


42,894


(55,412)

Additions to other property and equipment


(12,584)


(13,140)

Other


-


1,552

Net cash used in investing activities


(7,703,255)


(1,154,591)

CASH FLOWS FROM FINANCING ACTIVITIES





Borrowings from revolving credit facilities


9,479,075


6,305,300

Repayments of revolving credit facilities


(8,644,075)


(6,190,300)

Proceeds from five-year term loan


730,331


-

Proceeds from seven-year term loan


1,220,533


-

Principal payments of long-term debt


(156,182)


(1,295,737)

Proceeds from issuance of Senior Notes


3,750,000


1,600,000

Costs incurred in connection with financing arrangements


(130,261)


(30,239)

Purchase of treasury stock


(88,490)


(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


(27,000)


(1,050)

Other


-


9

Net cash provided by financing activities


6,133,931


456,500

Net (decrease) increase in cash and cash equivalents


(238,533)


412,664

Cash and cash equivalents, beginning of period


419,098


6,434

Cash and cash equivalents, end of period


$      180,565


$      419,098

Plains Exploration & Production Company

Consolidated Balance Sheets

(in thousands of dollars)





December 31,


December 31,





2012


2011




ASSETS




Current Assets





Cash and cash equivalents

$             180,565


$             419,098


Accounts receivable

584,722


302,675


Commodity derivative contracts

56,208


50,964


Inventories

27,672


20,173


Investment

818,223


611,671


Deferred income taxes

150,876


20,723


Prepaid expenses and other current assets

21,464


16,073





1,839,730


1,441,377

Property and Equipment, at cost





Oil and natural gas properties - full cost method






Subject to amortization

18,814,337


12,016,252



Not subject to amortization

3,631,475


2,409,449


Other property and equipment

153,344


145,959





22,599,156


14,571,660


Less allowance for depreciation, depletion, amortization and impairment

(7,870,356)


(6,846,365)





14,728,800


7,725,295

Goodwill

535,140


535,140

Commodity Derivative Contracts

903


12,678

Other Assets

193,710


76,982





$        17,298,283


$          9,791,472











LIABILITIES AND EQUITY




Current Liabilities





Accounts payable

$             431,422


$             385,231


Commodity derivative contracts

18,942


3,761


Royalties and revenues payable

139,717


97,095


Interest payable

105,440


39,342


Other current liabilities

120,192


100,757


Current maturities of long-term debt

164,288


-





980,001


626,186

Long-Term Debt

9,979,369


3,760,952








Other Long-Term Liabilities





Asset retirement obligation

565,989


230,633


Commodity derivative contracts

26,810


823


Other

19,105


15,749





611,904


247,205

Deferred Income Taxes

1,770,568


1,461,897

Equity





Stockholders' equity





Common stock

1,439


1,439


Additional paid-in capital

3,437,826


3,434,928


Retained earnings

637,411


337,991


Treasury stock, at cost

(560,198)


(509,722)





3,516,478


3,264,636

Noncontrolling interest 




    Preferred stock of subsidiary

439,963


430,596





3,956,441


3,695,232





$        17,298,283


$          9,791,472

Plains Exploration & Production Company

Summary of Open Derivative Positions

At February 20, 2013






















Average






Instrument


Daily


Average


Deferred



Period (1)


Type


Volumes


Price (2)


Premium


Index

Sales of Crude Oil Production









2013












Feb - Dec


Swap contracts(3)


40,000 Bbls


$109.23


-


Brent


Feb - Dec


Put options(4)


13,000 Bbls


$100.00 Floor with an $80.00 Limit


$6.800 per Bbl


Brent


Feb - Dec


Three-way collars(5)


25,000 Bbls


$100.00 Floor with an $80.00 Limit


-


Brent








$124.29 Ceiling


















Feb - Dec


Three-way collars(5)


5,000 Bbls


$90.00 Floor with a $70.00 Limit


-


Brent








$126.08 Ceiling


















Feb - Dec


Put options(4)


17,000 Bbls


$90.00 Floor with a $70.00 Limit


$6.253 per Bbl


Brent













2014












Jan - Dec


Put options(4)


5,000 Bbls


$100.00 Floor with an $80.00 Limit


$7.110 per Bbl


Brent


Jan - Dec


Put options(4)


30,000 Bbls


$95.00 Floor with a $75.00 Limit


$6.091 per Bbl


Brent


Jan - Dec


Put options(4)


75,000 Bbls


$90.00 Floor with a $70.00 Limit


$5.739 per Bbl


Brent













2015












Jan - Dec


Put options(4)


84,000 Bbls


$90.00 Floor with a $70.00 Limit


$6.889 per Bbl


Brent













Sales of Natural Gas Production









2013












Feb - Dec


Swap contracts(3)


110,000 MMBtu


$4.27


-


Henry Hub













2014












Jan - Dec


Swap contracts(3)


100,000 MMBtu


$4.09


-


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 fixed price, 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.

(4)

If the index price is less than the per barrel floor, we receive the difference between the 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 the per barrel floor, we pay only the option premium.

(5)

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





Derivative Settlements 

(in thousands of dollars)




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
























Three Months Ended


Twelve Months Ended




December 31,


December 31,




2012


2011


2012


2011











Oil sales 


$                  -


$          (15,008)


$               (3,201)


$           (59,217)

Natural gas sales


5,454


6,881


50,954


7,915




$          5,454


$             (8,127)


$               47,753


$           (51,302)

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, 2012 and 2011.  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,



2012


2011



(millions of dollars)






Net income (GAAP)

$ 227.8


$   99.1


Unrealized loss on mark-to-market derivative contracts

15.5


11.5


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

5.5


(8.0)


Unrealized gain on investment measured at fair value

(298.9)


(232.3)


Debt extinguishment costs

3.2


121.0


Acquisition and merger related costs

35.5


-


Bridge loan facility commitment fee and related expenses

31.8


-


Adjust income taxes (2)

43.6


38.7






 Adjusted net income (non-GAAP) 

$   64.0


$   30.0


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

(9.2)


(1.4)

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

$   54.8


$   28.6








Twelve Months Ended



December 31,



2012


2011



(millions of dollars)






Net income (GAAP)

$ 342.8


$ 206.7


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

2.9


(82.0)


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

47.8


(51.3)


Unrealized (gain) loss on investment measured at fair value

(206.6)


52.7


Debt extinguishment costs

8.4


121.0


Acquisition and merger related costs

42.2


-


Bridge loan facility commitment fee and related expenses

31.8


-


Adjust income taxes (2)

(3.7)


(22.7)






 Adjusted net income (non-GAAP) 

$ 265.6


$ 224.4


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

(36.4)


(1.4)

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

$ 229.2


$ 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 42% and 36% for the three months ended December 31, 2012 and 2011, respectively. Tax rates assumed based upon adjusted earnings are 40% and 41% for the twelve months ended December 31, 2012 and 2011. 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, 2012 and 2011.  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, to include distributions to holders of noncontrolling interest in the form of preferred stock of subsidiary that are classified as financing activities for GAAP purposes and to exclude certain other items.  






















Three Months Ended


Twelve Months Ended








December 31,


December 31,








2012


2011


2012


2011










(millions of dollars)



Net income 


$          227.8


$            99.1


$          342.8


$          206.7

Items not affecting operating cash flows








  Depreciation, depletion,  amortization and accretion

407.8


215.6


1,118.1


681.7

   Deferred income tax  expense

91.1


55.0


175.4


160.2

  Debt extinguishment costs

3.2


121.0


8.4


121.0

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

15.5


11.5


2.9


(82.0)

   Unrealized (gain) loss on investment measured at fair value

(298.9)


(232.3)


(206.6)


52.7

  Acquisition and merger related costs

38.9


-


38.9


-

  Bridge loan facility commitment fee and related expenses

31.8


-


31.8


-

  Non-cash compensation

22.3


22.0


60.2


49.2

  Other non-cash items

(2.1)


0.8


8.3


(5.6)

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

5.5


(8.0)


42.9


(55.4)

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

(6.7)


(1.1)


(27.0)


(1.1)















Operating cash flow (non-GAAP)

$          536.2


$          283.6


$       1,596.1


$       1,127.4





























Reconciliation of non-GAAP to GAAP measure








   Operating cash flow (non-GAAP)

$          536.2


$          283.6


$       1,596.1


$       1,127.4

   Cash portion of debt extinguishment costs

-


(118.2)


(4.2)


(118.2)

   Acquisition and merger related costs

(38.9)


-


(38.9)


-

   Bridge loan facility commitment fee and related expenses

(31.8)


-


(31.8)


-

   Changes in assets and liabilities from operating activities

(182.5)


13.6


(174.5)


45.1

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

(5.5)


8.0


(42.9)


55.4

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

6.7


1.1


27.0


1.1















 

Net cash provided by operating activities (GAAP)

$          284.2


$          188.1


$       1,330.8


$       1,110.8

Plains Exploration & Production Company

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




Estimated Proved Reserves (1)(MMBOE)



2011 Year-end proved reserves


410.9

2012 Extensions and discoveries


58.9

2012 Revisions


(114.4)

2012 Acquisitions 


126.4

2012 Divestments


(2.3)

2012 Production


(39.1)

2012 Year-end proved reserves 


440.4

Reserve Replacement Ratio (2) 


181%







PV-10 to Standardized Measure Reconciliation (in millions)



Estimated undiscounted future net cash flows before income taxes


$    22,535.8

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


$   13,737.7




Discounted future income taxes


(3,713.2)




Standardized measure of discounted future net cash flows


$   10,024.5



Estimated Probable Reserves(1)

The Company had probable reserves of 193.8 MMBOE, estimated undiscounted future net cash flows before income taxes for probable reserves of $12.9 billion and a PV-10(3)of $5.5 billion at December 31, 2012. Probable reserves are not recognized by GAAP, and therefore the PV-10 of probable reserves can not be reconciled to a GAAP measure.




(1)

Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs and under the existing economic and operational environment.  

 


Probable reserves are additional reserves that are less certain to be recovered than proved reserves, but which, together with proved reserves, are as likely as not to be recovered.  In addition to the uncertainties inherent in estimating quantities and values of proved reserves, probable reserves may be assigned to areas where data control or interpretations of available data are less certain and are structurally higher than proved reserves if they are adjacent to the proved reservoirs.  



(2)

Calculation: reserve extensions, discoveries, revisions and acquisitions divided by production.  The Reserve Replacement Ratio is an indicator of PXP's ability to replace annual production volume and grow 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.  This statistical indicator 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 PXP's performance as reported under GAAP.  Furthermore, this metric may not be comparable to similarly titled measurements used by other companies.



(3)

PV-10 is PXP's estimate of the present value of future net revenues from 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, for proved oil and gas reserves, generally differs from the Standardized Measure, the most directly comparable GAAP financial measure for proved oil and gas reserves, 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.  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








Twelve Months Ended



December 31, 2012

Costs Incurred (in millions):




Property acquisition costs:




      Unproved properties


$

2,102.6

      Proved properties



4,139.0

Exploration costs



1,079.0

Development costs



829.1

Total costs incurred (1)


$

8,149.7














(1)

Includes capitalized interest expense of $49.1 million and capitalized general and administrative expense of $93.5 million.

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
  • 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 © 2022 Cision US Inc.