PXP Strengthens 2013, 2014 and 2015 Crude Oil Derivative Positions

Summary of Open Derivative Positions

At September 18, 2012

Average

Instrument

Daily

Average

Deferred

Period ⁽¹⁾

Type

Volumes

Price ⁽²⁾

Premium

Index

Sales of Crude Oil Production

2012

Sept - Dec

Three-way collars⁽³⁾

40,000 Bbls

$100.00 Floor with an $80.00 Limit

-

Brent

$120.00 Ceiling

2013

Jan - Dec

Swap contracts⁽⁴⁾

40,000 Bbls

$109.23

-

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⁽³⁾

25,000 Bbls

$100.00 Floor with an $80.00 Limit

-

Brent

$124.29 Ceiling

Jan - Dec

Three-way collars⁽³⁾

5,000 Bbls

$90.00 Floor with a $70.00 Limit

-

Brent

$126.08 Ceiling

Jan - Dec

Put options⁽⁵⁾

17,000 Bbls

$90.00 Floor with a $70.00 Limit

$6.253 per Bbl

Brent

2014

Jan - Dec

Put options⁽⁵⁾

5,000 Bbls

$100.00 Floor with a $80.00 Limit

$7.110 per Bbl

Brent

Jan - Dec

Put options⁽⁵⁾

30,000 Bbls

$95.00 Floor with a $75.00 Limit

$6.091 per Bbl

Brent

Jan - Dec

Put options⁽⁵⁾

75,000 Bbls

$90.00 Floor with a $70.00 Limit

$5.739 per Bbl

Brent

2015

Jan - Dec

Put options⁽⁵⁾

25,000 Bbls

$90.00 Floor with a $70.00 Limit

$6.720 per Bbl

Brent

Sales of Natural Gas Production

2012

Sept - Dec

Put options⁽⁶⁾

120,000 MMBtu

$4.30 Floor with a $3.00 Limit

$0.298 per MMBtu

Henry Hub

Sept - Dec

Three-way collars⁽⁷⁾

40,000 MMBtu

$4.30 Floor with a $3.00 Limit

-

Henry Hub

$4.86 Ceiling

Sept - Dec

Swap contracts⁽⁴⁾

80,000 MMBtu

$2.72

-

Henry Hub

2013

Jan - Dec

Swap contracts⁽⁴⁾

110,000 MMBtu

$4.27

-

Henry Hub

2014

Jan - Dec

Swap contracts⁽⁴⁾

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 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.

⁽⁴⁾

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.

⁽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 less the option premium.  If the index price is at or above the per barrel floor, we pay only the option premium.

⁽⁶⁾

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

⁽⁷⁾

If the index price is less than the per MMBtu floor, we receive the difference between the 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 the per MMBtu ceiling if the index price is greater than the per MMBtu ceiling.  If the index price is at or above the per MMBtu floor but at or below the per MMBtu ceiling, no cash settlement is required.