PXP Announces Strong First Quarter Financial & Operating Results, Reports Substantial Progress in its Gulf of Mexico Business

  PXP Announces Strong First Quarter Financial & Operating Results, Reports
 Substantial Progress in its Gulf of Mexico Business Expansion, and Delivers
               Exceptional Eagle Ford Field Development Results

PR Newswire

HOUSTON, May 2, 2013

HOUSTON, May 2, 2013 /PRNewswire/ --Plains Exploration & Production Company
(NYSE:PXP) ("PXP" or the "Company") announces 2013 first-quarter financial and
operating results.

2013 HIGHLIGHTS

  oTotal daily sales volumes averaged 170.4 thousand barrels of oil
    equivalent ("BOE"), a 92% increase per diluted share compared to
    first-quarter 2012.
  oOil daily sales volumes averaged 129.2 thousand barrels, a 158% increase
    per diluted share compared to first-quarter 2012.
  oPhobos discovery well announced, encountering approximately 250 net feet
    of high-quality lower Tertiaryoil pay in the Gulf of Mexico.
  oTotal revenues were $1,232 million compared to $524.3 million in the
    first-quarter of 2012.
  oNet cash provided by operating activities was $818.7 million compared to
    $335.4 million in the first-quarter of 2012.
  oOperating cash flow (a non-GAAP measure) was $789.6 million compared to
    $329.2 million in the first-quarter of 2012.
  oLong-term debt, including current maturities, was reduced by $420 million
    to approximately $9.7 billion at quarter-end 2013 compared to
    approximately $10.1 billion at year-end 2012.
  oIncome from operations was $397.3 million compared to $171.3 million in
    the first-quarter of 2012.
  oNet income attributable to common stockholders was $22.6 million, or $0.17
    per diluted share compared to a first-quarter 2012 net loss attributable
    to common stockholders of $82.3 million, or $0.64 per diluted share.
  oAdjusted net income attributable to common stockholders (a non-GAAP
    measure) was $139.6 million, or $1.05 per diluted share, compared to
    first-quarter 2012 adjusted net income attributable to common stockholders
    of $77.0 million, or $0.58 per diluted share.

FINANCIAL SUMMARY

PXP reported first-quarter revenues of $1.2 billion and net income
attributable to common stockholders of $22.6 million, or $0.17 per diluted
share, compared to revenues of $524.3 million and a net loss attributable to
common stockholders of $82.3 million, or $0.64 per diluted share, for the
first-quarter of 2012.

The first-quarter 2013 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 $202.0 million due in large
part to higher crude oil forward prices, a $15.5 million unrealized gain on
investment in McMoRan Exploration Co. ("McMoRan") common stock, debt
extinguishment costs of $18.1 million, and other items. When considering these
items, PXP reports adjusted net income attributable to common stockholders of
$139.6 million, or $1.05 per diluted share (a non-GAAP measure), compared to
$77.0 million, or $0.58 per diluted share, for the same period in 2012.

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 2013 first-quarter daily sales volumes averaged 170.4 thousand BOE per
day compared to 87.9 thousand BOE in the first-quarter of 2012.

Crude oil sales volumes averaged 118.9 thousand barrels per day, compared to
first-quarter 2012 average volumes of 47.8 thousand barrels per day. Volume
growth is driven primarily by the addition of the deepwater Gulf of Mexico
assets acquired in November 2012 and strong Eagle Ford Field performance.

Natural gas liquids sales volumes averaged 10.3 thousand barrels per day,
compared to first-quarter 2012 average volumes of 1.8 thousand barrels per
day. The increase reflects the addition of the deepwater Gulf of Mexico assets
and strong Eagle Ford Field performance.

Natural gas sales volumes averaged 246.9 million cubic feet ("MMcf") per day
compared to 229.3 MMcf per day in the first-quarter 2012. The increase
reflects the addition of the deepwater Gulf of Mexico assets and increased
production from the Eagle Ford Field, partially offset by decreased production
from the Haynesville Field.

In the Gulf of Mexico, first-quarter daily sales volumes averaged 60.7
thousand BOE per day net to PXP.The Company closed the acquisition of
interests in certain deepwater Gulf of Mexico oil and gas properties in late
2012. In early 2013, PXP acquired lease blocks near its newly acquired
infrastructure and secured drilling rig capacity to accelerate its top-tier
deepwater Gulf of Mexico program beginning in the second half of 2014. There
have been additional producer wells drilled at Lucius and a significant
discovery was announced at Phobos.

At the Lucius development in Keathley Canyon, four of the six planned producer
wells have been drilled with two producer wells remaining to drill this year.
In December 2011, the operator and its working interest partners sanctioned
development of Lucius, a subsea development consisting of a truss spar hull
located in 7,200 feet of water with a topside capacity of 80 thousand barrels
of oil per day and 450 MMcf of gas per day. First production is anticipated in
2014. Anadarko Petroleum Corporation is the operator. PXP has a 23.33% working
interest.

At the Phobos prospect, located in Sigsbee Escarpment block 39, the operator
and its partners recently announced a discovery at the Phobos-1 well which
encountered approximately 250 net feet of high-quality oil pay in Lower
Tertiary-aged reservoirs. The Phobos discovery was drilled to a total depth of
28,675 feet in approximately 8,500 feet of water, approximately 11 miles south
of the Lucius development. Anadarko Petroleum Corporation is the operator and
is currently incorporating the data from the Phobos well to determine future
activities. PXP has a 50% working interest.

In March 2013, PXP participated in the Gulf of Mexico Outer Continental Shelf
Lease Sale 227 and was the apparent high bidder on 11 deepwater blocks. Of the
11 blocks, 7 blocks are located near PXP's Holstein Hub and 3 blocks are
located near PXP's Horn Mountain Hub. The sum of PXP's high bids was
approximately $82.6 million. If all high bids are awarded, the Company's
deepwater Gulf of Mexico portfolio will include interests in 152 blocks
containing 60 prospects or leads in the Pliocene, Miocene, Tertiary and
Cretaceous reservoirs. PXP has also contracted for two latest-generation,
ultra-deep capable drill ships to accelerate the expansion of the Company's
deepwater Gulf of Mexico program. The Noble Sam Croft drill ship and the Noble
Tom Madden drill ship are currently under construction with delivery to PXP
expected mid-year 2014 and early 2015, respectively.

PXP has been notified that the Pascagoula Gas Processing Plant, located in
Pascagoula, Mississippi, operated by BP America Corporation and responsible
for processing production from wells in the eastern corridor of the deepwater
Gulf of Mexico, will shut down for approximately 36 days starting on or about
May 3, 2013 during which time required maintenance will be performed. This
activity will disrupt processing system wide from several operators, including
PXP. The PXP operated Horn Mountain platform and the PXP operated Marlin Hub
will be impacted by the work at the gas processing plant. PXP holds a 100%
working interest in the Horn Mountain and Marlin Fields. Oil and gas
production could be shut-in while the gas processing plant undergoes its
required maintenance. PXP's net average daily sales volumes from these
facilities were 44.0 thousand BOE per day in the first quarter of 2013.

Despite the second-quarter impact on sales volumes from the required plant
shut down, PXP maintains its total company full-year 2013 oil and natural gas
sales volume mid-point guidance of 156.3 thousand BOE per day.

In the Eagle Ford Field, first-quarter daily sales volumes averaged 44.7
thousand BOE per day net to PXP compared to first-quarter 2012 average daily
sales volumes of 13.9 thousand BOE per day net to PXP. At the end of March,
PXP had 7 drilling rigs operating and 31 wells drilled but waiting on
completion or connection to pipelines.

In California, first-quarter daily sales volumes averaged 37.2 thousand BOE
per day net to PXP compared to the first-quarter 2012 daily sales volume
average of 38.6 thousand BOE per day net to PXP. At the end of March, PXP had
4 drilling rigs operating onshore.

In the Haynesville Field, first-quarter daily sales volumes averaged 134.2
MMcf per day net to PXP compared to first-quarter 2012 average daily sales
volumes of 173.5 MMcf per day net to PXP. The sales volume decline reflects
significantly lower drilling activity. At the end of March, there were 4
drilling rigs operating in which PXP had a working interest.

CAPITAL SPENDING

For the first-quarter of 2013, PXP had cash expenditures of approximately
$499.5 million for additions to oil and gas properties and leasehold
acquisitions of which $106.1 million was funded by Plains Offshore Operations
Inc., PXP's consolidated subsidiary.

COMMODITY PRICES

During the first-quarter of 2013, Brent crude oil price averaged $112.60 per
barrel compared to $118.42 per barrel in the first-quarter 2012. PXP's 2013
first-quarter crude oil average realized price per barrel before derivative
transactions was $105.16 per barrel, or approximately 93% of Brent, compared
to $105.87 per barrel in the first-quarter 2012, or approximately 89% of
Brent. Including the impact of derivative transactions, the first-quarter 2013
crude oil average realized price was $102.45 per barrel, or approximately 91%
of Brent, compared to $104.38 per barrel in the first-quarter 2012, or 88% of
Brent.

During the first-quarter of 2013, the oil average realized price per barrel
before derivative transactions, which includes 10.3 thousand barrels per day
net to PXP of natural gas liquids, was $99.60 per barrel, or approximately 88%
of Brent, compared to $103.45 per barrel in the first-quarter 2012, or 87% of
Brent. Including the impact of derivative transactions, the average realized
price in the first-quarter 2013 was $97.10 per barrel, or 86% of Brent,
compared to $102.01 per barrel in the first-quarter 2012, or 86% of Brent.

During the first-quarter of 2013, NYMEX gas price averaged $3.34 per million
British thermal units ("MMBtu") compared to $2.73 per MMBtu in the
first-quarter 2012. PXP's 2013 first-quarter natural gas average realized
price before derivative transactions was $3.25 per MMBtu, or approximately 97%
of NYMEX, compared to $2.56 per MMBtu in the first-quarter 2012, or 94% of
NYMEX. Including the impact of derivative transactions, the average realized
price in the first-quarter 2013 was $3.67 per MMBtu, or approximately 110% of
NYMEX, compared to $3.29 per MMBtu in the first-quarter 2012, or 121% of
NYMEX.

MANAGEMENT COMMENT

James C. Flores, Chairman, President and CEO of PXP commented, "The first
quarter results confirm the strong growth we have been projecting. Production,
revenues, net cash provided by operating activities and earnings saw
significant increases during the quarter led by the high rate-of-return crude
oil production in the deepwater Gulf of Mexico, the Eagle Ford Field, and
California.Our diversified growth strategy, underpinned by a unique
combination of oil and natural gas assets and our on-going risk management
program, remains our competitive advantage. The Company is centered on
executing its highly profitable, lower-risk, long-term, oil-focused growth
plan which is complementary to the growth profile and cash margins of the
large, low-cost, expandable asset base characteristics of Freeport-McMoRan
Copper & Gold Inc.with whomwe have entered into a merger transaction."

CONFERENCE CALL

PXP will host a conference call today, Thursday, May 2, 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:
36577090. 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:

  ocompletion of the proposed merger,
  oreserve and production estimates,
  ooil and gas prices,
  othe impact of derivative positions,
  oproduction expense estimates,
  ocash flow estimates,
  ofuture financial performance,
  ocapital and credit market conditions,
  oplanned capital expenditures, and
  oother 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 ABOUT THE PROPOSED MERGER AND WHERE TO FIND
IT:

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 definitive proxy statement of PXP that also constitutes a
prospectus of FCX. 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. 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: investor@pxp.com

Freeport-McMoRan Copper & Gold Inc.
333 N. Central Ave.
Phoenix, AZ 85004
Attention: Investor Relations
Phone: (602) 366-8400
Email: ir@fmi.com

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 April 18, 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
                                                 March 31,
                                                 2013             2012
                                                 (Unaudited)
Revenues
 Oil sales                                       $ 1,158,438      $ 467,488
 Gas sales                                      72,331           53,524
 Other operating revenues                        1,346            3,263
                                                 1,232,115        524,275
Costs and Expenses
 Lease operating expenses                        170,233          83,006
 Steam gas costs                                 14,604           11,124
 Electricity                                     11,056           11,374
 Production and ad valorem taxes                 28,632           12,631
 Gathering and transportation expenses           22,618           16,272
 General and administrative
 G&A                                             44,765           38,382
 Acquisition and merger related costs            1,199            -
 Depreciation, depletion and amortization        530,460          177,697
 Accretion                                       10,015           3,753
 Other operating expense (income)                1,196            (1,261)
                                                 834,778          352,978
Income from Operations                           397,337          171,297
Other (Expense) Income
 Interest expense                                (140,998)        (45,253)
 Debt extinguishment costs                       (18,053)         -
 Loss on mark-to-market derivative contracts     (202,023)        (109,050)
 Gain (loss) on investment measured at fair      15,544           (135,930)
 value
 Other income (expense)                          395              (405)
Income (Loss) Before Income Taxes               52,202           (119,341)
 Income tax (expense) benefit
 Current                                         (4,790)          (19)
 Deferred                                        (15,618)         46,057
Net Income (Loss)                                31,794           (73,303)
 Net income attributable to noncontrolling
 interest                                        (9,209)          (9,016)
  in the form of preferred stock of subsidiary
Net Income (Loss) Attributable to Common         $   22,585    $ (82,319)
Stockholders
Earnings (Loss) per Common Share
 Basic                                           $     0.17  $   (0.64)
 Diluted                                         $     0.17  $   (0.64)
Weighted Average Common Shares Outstanding
 Basic                                           130,284          129,348
 Diluted                                         132,930          129,348



Plains Exploration & Production Company
Operating Data
                                                      Three Months Ended
                                                      March 31,
                                                      2013         2012
                                                      (Unaudited)
Daily Average Volumes
 Oil and liquids sales (Bbls)                         129,233      49,657
 Gas (Mcf)
      Production                                      250,044      234,001
      Used as fuel                                    3,140        4,705
      Sales                                          246,904      229,296
 BOE
      Production                                      170,907      88,657
      Sales                                          170,384      87,873
Unit Economics (in dollars)
 Average Index Prices
      ICE Brent Price per Bbl                         $  112.60   $  118.42
      NYMEX Price per Bbl                             94.36        103.03
      NYMEX Price per Mcf                             3.34         2.73
 Average Realized Sales Price Before Derivative
 Transactions
      Oil (per Bbl)                                   $   99.60  $  103.45
      Gas (per Mcf)                                   3.25         2.56
      Per BOE                                         80.26        65.16
 Cash Margin per BOE ^(1)
      Oil and gas revenues                           $   80.26  $   65.16
      Costs and expenses
       Lease operating expenses                     (11.10)      (10.38)
       Steam gas costs                              (0.95)       (1.39)
       Electricity                                  (0.72)       (1.42)
       Production and ad valorem taxes              (1.87)       (1.58)
       Gathering and transportation                 (1.47)       (2.03)
       Oil and gas related DD&A                     (33.81)      (21.64)
      Gross margin (GAAP)                             30.34        26.72
          Oil and gas related DD&A                    33.81        21.64
          Realized (loss) gain on derivative          (1.29)       1.08
          instruments
      Cash margin (non-GAAP)                          $   62.86  $   49.44
Oil and gas capital expenditures accrued ($ in        $ 472,711    $ 439,939
thousands) ^(2)

     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
^(1) 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.
     Additions to oil and gas properties reported in our consolidated
^(2) 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 March 31, 2013
                                             Oil          Gas          BOE
                                             (per Bbl)    (per Mcf)
Average Realized Sales Price
Average realized price before derivative     $  99.60    $   3.25   $ 80.26
instruments (GAAP) ^(1)
    Realized (loss) gain on derivative       (2.50)       0.42         (1.29)
    instruments
Realized cash price including derivative     $  97.10    $   3.67   $ 78.97
settlements (non-GAAP)
                                             Three Months Ended March 31, 2012
                                             Oil          Gas          BOE
                                             (per Bbl)    (per Mcf)
Average Realized Sales Price
Average realized price before derivative     $ 103.45     $   2.56   $ 65.16
instruments (GAAP) ^(1)
    Realized (loss) gain on derivative       (1.44)       0.73         1.08
    instruments
Realized cash price including derivative     $ 102.01     $   3.29   $ 66.24
settlements (non-GAAP)

^(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)
                                                   Three Months Ended
                                                   March 31,
                                                   2013          2012
                                                   (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                  $   31,794  $  (73,303)
Items not affecting cash flows from operating
activities
Depreciation, depletion, amortization and          540,475       181,450
accretion
Deferred income tax expense (benefit)              15,618        (46,057)
Debt extinguishment costs                          (4,903)       -
Loss on mark-to-market derivative contracts        202,023       109,050
(Gain) loss on investment measured at fair value   (15,544)      135,930
Non-cash compensation                              13,496        18,232
Other non-cash items                               2,706         1,421
Change in assets and liabilities from operating    33,058        8,688
activities
Net cash provided by operating activities          818,723       335,411
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to oil and gas properties                (467,737)     (401,311)
Acquisition of oil and gas properties^            (31,748)      (16,573)
Proceeds from sales of oil and gas properties, net
of                                                 -             42,656
 costs and expenses
Derivative settlements                             (13,516)      9,321
Additions to other property and equipment          (7,909)       (2,904)
Other                                             (681)         -
Net cash used in investing activities              (521,591)     (368,811)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from revolving credit facilities        3,328,700     2,515,500
Repayments of revolving credit facilities          (3,573,500)   (2,440,500)
Principal payments of long-term debt               (171,180)     -
Costs incurred in connection with financing        (697)         (125)
arrangements
Purchase of treasury stock                         -             (88,490)
Distributions to holders of noncontrolling
interest in the                                    (6,750)       (6,750)
 form of preferred stock of subsidiary
Net cash used in financing activities              (423,427)     (20,365)
Net decrease in cash and cash equivalents          (126,295)     (53,765)
Cash and cash equivalents, beginning of period     180,565       419,098
Cash and cash equivalents, end of period           $   54,270  $  365,333





Plains Exploration & Production Company
Consolidated Balance Sheets
(in thousands of dollars)
                                                                   March 31,    December
                                                                                31,
                                                                   2013         2012
 ASSETS                                                            (Unaudited)
Current Assets
 Cash and cash equivalents                                         $         $   
                                                                   54,270      180,565
 Accounts receivable                                               563,313      584,722
 Commodity derivative contracts                                    2,892        56,208
 Inventories                                                       33,830       27,672
 Investment                                                        833,767      818,223
 Deferred income taxes                                             227,051      150,876
 Prepaid expenses and other current assets                         45,062       21,464
                                                                   1,760,185    1,839,730
Property and Equipment, at cost
 Oil and natural gas properties - full cost method
  Subject to                                                       19,236,999   18,814,337
  amortization
  Not subject to amortization                                      3,700,129    3,631,475
 Other property and equipment                                      164,890      153,344
                                                                   23,102,018   22,599,156
 Less allowance for depreciation, depletion, amortization and      (8,392,756)  (7,870,356)
 impairment
                                                                   14,709,262   14,728,800
Goodwill                                                           535,140      535,140
Commodity Derivative Contracts                                     -            903
Other Assets                                                       185,787      193,710
                                                                   $            $
                                                                   17,190,374   17,298,283
 LIABILITIES AND EQUITY
Current Liabilities
 Accounts payable                                                  $          $   
                                                                   421,405     431,422
 Commodity derivative contracts                                    62,569       18,942
 Royalties and revenues payable                                    165,520      139,717
 Interest payable                                                  142,285      105,440
 Other current liabilities                                         113,384      120,192
 Current maturities of long-term debt                              164,288      164,288
                                                                   1,069,451    980,001
Long-Term Debt                                                     9,559,247    9,979,369
Other Long-Term Liabilities
 Asset retirement obligation                                       579,089      565,989
 Commodity derivative contracts                                    118,427      26,810
 Other                                                             17,837       19,105
                                                                   715,353      611,904
Deferred Income Taxes                                              1,863,678    1,770,568
Equity
Stockholders' equity
 Common stock                                                      1,439        1,439
 Additional paid-in capital                                        3,413,932    3,437,826
 Retained earnings                                                 658,772      637,411
 Treasury stock, at cost                                           (533,920)    (560,198)
                                                                   3,540,223    3,516,478
Noncontrolling interest
 Preferred stock of subsidiary                                  442,422      439,963
                                                                   3,982,645    3,956,441
                                                                   $            $
                                                                   17,190,374   17,298,283





Plains Exploration & Production Company
Summary of Open Derivative Positions
At May 1, 2013
                                                             Average
        Instrument          Daily        Average             Deferred
Period  Type                Volumes      Price ^(2)          Premium     Index
^(1)
Sales of Crude Oil Production
2013
 May -  Swap contracts^(3)  40,000 Bbls  $109.23             -           Brent
 Dec
 May -  Put options^(4)     13,000 Bbls  $100.00 Floor with  $6.800 per  Brent
 Dec                                     an $80.00 Limit     Bbl
 May -  Three-way           25,000 Bbls  $100.00 Floor with  -           Brent
 Dec    collars^(5)                      an $80.00 Limit
                                         $124.29 Ceiling
 May -  Three-way           5,000 Bbls   $90.00 Floor with   -           Brent
 Dec    collars^(5)                      a $70.00 Limit
                                         $126.08 Ceiling
 May -  Put options^(4)     17,000 Bbls  $90.00 Floor with   $6.253 per  Brent
 Dec                                     a $70.00 Limit      Bbl
2014
 Jan -  Put options^(4)     5,000 Bbls   $100.00 Floor with  $7.110 per  Brent
 Dec                                     an $80.00 Limit     Bbl
 Jan -  Put options^(4)     30,000 Bbls  $95.00 Floor with   $6.091 per  Brent
 Dec                                     a $75.00 Limit      Bbl
 Jan -  Put options^(4)     75,000 Bbls  $90.00 Floor with   $5.739 per  Brent
 Dec                                     a $70.00 Limit      Bbl
2015
 Jan -  Put options^(4)     84,000 Bbls  $90.00 Floor with   $6.889 per  Brent
 Dec                                     a $70.00 Limit      Bbl
Sales of Natural Gas Production
2013
 May -  Swap contracts^(3)  110,000      $4.27               -           Henry
 Dec                        MMBtu                                        Hub
2014
 Jan -  Swap contracts^(3)  100,000      $4.09               -           Henry
 Dec                        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 fixed price, we receive the
^(3) 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
^(4) 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 barrel floor, we receive the
     difference between the per barrel floor and the index price up to a
^(5) 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 table reflects cash (payments) receipts for derivatives
attributable to the stated production periods.

                   Three Months Ended
                   March 31,
                   2013                      2012
Oil sales         $        (29,086)  $      (6,509)
Natural gas sales  9,225                     15,177
                   $        (19,861)  $       8,668





Plains Exploration & Production Company
Reconciliation of GAAP to Non-GAAP Measure
The following table reconciles net income (loss) (GAAP) to adjusted net income
and adjusted net income attributable to common stockholders (non-GAAP) for the
three months ended March 31, 2013 and 2012. 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
                                                         March 31,
                                                         2013        2012
                                                         (millions of dollars)
Net income (loss) (GAAP)                                 $  31.8    $ (73.3)
  Unrealized loss on mark-to-market derivative contracts 202.0       109.1
  Realized (loss) gain on mark-to-market derivative      (19.9)      8.7
  contracts ^(1)
  Unrealized (gain) loss on investment measured at fair  (15.5)      135.9
  value
  Debt extinguishment costs                              18.1        -
  Acquisition and merger related costs                   1.2         -
  Adjust income taxes ^(2)                               (68.9)      (94.4)
Adjusted net income (non-GAAP)                         $ 148.8     $ 86.0
  Net income attributable to noncontrolling interest in
  the form                                               (9.2)       (9.0)
   of preferred stock of subsidiary
Adjusted net income attributable to common stockholders $ 139.6     $ 77.0
(non-GAAP)

     The amounts presented in the above table differ from the adjustments
     reflected in the calculation of operating cash flow on the following page
^(1) 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.
     Tax rates assumed based upon adjusted earnings are 38% and 36% for the
^(2) three months ended March 31, 2013 and 2012, respectively. 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 table reconciles Net Cash Provided by Operating Activities
(GAAP) to Operating Cash Flow (non-GAAP) for the three months ended March 31,
2013 and 2012. 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
                                                         March 31,
                                                         2013        2012
                                                         (millions of dollars)
 Net income (loss)                                       $  31.8    $ (73.3)
 Items not affecting operating cash flows
  Depreciation, depletion, amortization and accretion   540.5       181.4
  Deferred income tax expense (benefit)                 15.6        (46.0)
  Debt extinguishment costs                             18.1        -
  Unrealized loss on mark-to-market derivative          202.0       109.1
 contracts
  Unrealized (gain) loss on investment measured at fair (15.5)      135.9
 value
  Acquisition and merger related costs                  1.2         -
  Non-cash compensation                                 13.5        18.2
  Other non-cash items                                  2.7         1.4
 Realized (loss) gain on mark-to-market derivative       (13.5)      9.3
 contracts
 Distributions to holders of noncontrolling interest in
 the
  form of preferred stock of subsidiary                (6.8)       (6.8)
 Operating cash flow (non-GAAP)                          $ 789.6     $ 329.2
 Reconciliation of non-GAAP to GAAP measure
    Operating cash flow (non-GAAP)                       $ 789.6     $ 329.2
    Changes in assets and liabilities from operating     33.0        8.7
    activities
    Realized loss (gain) on mark-to-market derivative    13.5        (9.3)
    contracts
    Acquisition and merger related costs                 (1.2)       -
    Cash portion of debt extinguishment costs            (23.0)      -
    Distributions to holders of noncontrolling interest
    in the
     form of preferred stock of subsidiary             6.8         6.8
 Net cash provided by operating activities (GAAP)        $ 818.7     $ 335.4



SOURCE Plains Exploration & Production Company

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