PXP Announces Pricing of $600 Million of Senior Notes Due 2021

HOUSTON, March 24, 2011 /PRNewswire/ -- Plains Exploration & Production Company (NYSE: PXP) today announced that it has priced an underwritten public offering of $600 million of 6 5/8% Senior Notes due 2021. The notes are being sold to the public at par. PXP intends to use the net proceeds of the offering to repay indebtedness under its senior revolving credit facility and for general corporate purposes.

Interest is payable on May 1 and November 1 of each year. The first interest payment will be made on November 1, 2011, and will consist of interest from closing to that date. The offering is expected to close on March 29, 2011, subject to the satisfaction of customary closing conditions.

J.P. Morgan Securities LLC, Barclays Capital Inc., BNP Paribas Securities Corp., BMO Capital Markets Corp., Wells Fargo Securities, LLC and Scotia Capital (USA) Inc. are acting as book-running managers of the offering. The offering will be made only by means of a prospectus supplement and accompanying base prospectus, copies of which may be obtained from: J.P. Morgan Securities LLC, 383 Madison Avenue, 27th Floor, New York, NY 10179 (phone: 212-270-6366); Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Ave., Edgewood, NY 11717 (phone: 888-603-5847; e-mail: [email protected]); BNP Paribas Securities Corp., 787 Seventh Avenue, Floor 7, New York, NY 10019 (phone: 800-854-5674); BMO Capital Markets Corp., Attention: Maya Patel, 3 Times Square, 28th Floor, New York, NY 10036 (phone: 212-702-1882; e-mail: [email protected]);Wells Fargo Securities, LLC, Attn: Client Support, MAC D1086-070, 550 South Tryon Street, 7th Floor, Charlotte, NC 28202 (phone: 800-326-5897; e-mail: [email protected]); and Scotia Capital (USA) Inc., One Liberty Plaza, 165 Broadway, 25th Floor, New York, NY 10006 (phone: 212-225-5501).

An electronic copy of the final prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission's website at http://www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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, and Louisiana. 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:

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.

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.

SOURCE Plains Exploration & Production Company