PXP Strengthens 2013, 2014 and 2015 Crude Oil Derivative Positions

      PXP Strengthens 2013, 2014 and 2015 Crude Oil Derivative Positions

PR Newswire

HOUSTON, Sept. 18, 2012

HOUSTON, Sept. 18, 2012 /PRNewswire/ -- Plains Exploration & Production
Company (NYSE: PXP) ("PXP" or the "Company") provides an update to its oil
derivative positions. PXP continues to implement its crude oil hedging program
following the recently announced Gulf of Mexico acquisition and intends to
protect up to 90% of the Company's crude oil production for the 2013 through
2015 period. Winston M. Talbert, Executive Vice President and Chief Financial
Officer of PXP commented, "PXP is off to a good start in achieving its goal.
We look forward to a continued strong futures market to complete our hedging
program."

A detailed list of PXP's current derivative positions is included at the end
of this release.

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 acquisition,
* reserve and production estimates,
* oil and gas prices,
* the impact of derivative positions,
* 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.

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.

Summary of Open Derivative Positions
At September 18, 2012
                                                            Average
               Instrument          Daily        Average     Deferred
Period ^(1)    Type                Volumes      Price       Premium     Index
                                                ^(2)
Sales of Crude Oil Production
2012
                                                $100.00
     Sept -    Three-way           40,000       Floor
     Dec       collars^(3)         Bbls         with an     -           Brent
                                                $80.00
                                                Limit
                                                $120.00
                                                Ceiling
2013
     Jan -     Swap                40,000       $109.23     -           Brent
     Dec       contracts^(4)       Bbls
                                                $100.00
     Jan -                         13,000       Floor       $6.800
     Dec       Put options^(5)     Bbls         with an     per Bbl     Brent
                                                $80.00
                                                Limit
                                                $100.00
     Jan -     Three-way           25,000       Floor
     Dec       collars^(3)         Bbls         with an     -           Brent
                                                $80.00
                                                Limit
                                                $124.29
                                                Ceiling
                                                $90.00
     Jan -     Three-way           5,000        Floor
     Dec       collars^(3)         Bbls         with a      -           Brent
                                                $70.00
                                                Limit
                                                $126.08
                                                Ceiling
                                                $90.00
     Jan -                         17,000       Floor       $6.253
     Dec       Put options^(5)     Bbls         with a      per Bbl     Brent
                                                $70.00
                                                Limit
2014
                                                $100.00
     Jan -                         5,000        Floor       $7.110
     Dec       Put options^(5)     Bbls         with a      per Bbl     Brent
                                                $80.00
                                                Limit
                                                $95.00
     Jan -                         30,000       Floor       $6.091
     Dec       Put options^(5)     Bbls         with a      per Bbl     Brent
                                                $75.00
                                                Limit
                                                $90.00
     Jan -                         75,000       Floor       $5.739
     Dec       Put options^(5)     Bbls         with a      per Bbl     Brent
                                                $70.00
                                                Limit
2015
                                                $90.00
     Jan -                         25,000       Floor       $6.720
     Dec       Put options^(5)     Bbls         with a      per Bbl     Brent
                                                $70.00
                                                Limit
Sales of Natural Gas Production
2012
                                                $4.30
     Sept -                        120,000      Floor       $0.298      Henry
     Dec       Put options^(6)     MMBtu        with a      per MMBtu   Hub
                                                $3.00
                                                Limit
                                                $4.30
     Sept -    Three-way           40,000       Floor                   Henry
     Dec       collars^(7)         MMBtu        with a      -           Hub
                                                $3.00
                                                Limit
                                                $4.86
                                                Ceiling
     Sept -    Swap                80,000       $2.72       -           Henry
     Dec       contracts^(4)       MMBtu                                Hub
2013
     Jan -     Swap                110,000      $4.27       -           Henry
     Dec       contracts^(4)       MMBtu                                Hub
2014
     Jan -     Swap                100,000      $4.09       -           Henry
     Dec       contracts^(4)       MMBtu                                Hub
^(1) All of our derivatives are settled monthly.
^(2) The average strike prices do not reflect any premiums to purchase the put
     options.
     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
^(3) 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.
     If the index price is less than the fixed price, we receive the
^(4) 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.
     If the index price is less than the per barrel floor, we receive the
^(5) 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.
     If the index price is less than the per MMBtu floor, we receive the
^(6) 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.
     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
^(7) 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.

SOURCE Plains Exploration & Production Company

Website: http://www.pxp.com
Contact: Hance Myers, hmyers@pxp.com, +1-713-579-6291