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PXP Chairman's Letter to Shareholders

                    PXP Chairman's Letter to Shareholders

PR Newswire

HOUSTON, May 13, 2013

HOUSTON, May 13, 2013 /PRNewswire/ -- Plains Exploration & Production Company
(NYSE:PXP)

Dear Shareholder,

I would like to take this opportunity to urge your support of themerger of
Plains Exploration & Production Company (PXP) with Freeport-McMoRan Copper &
Gold Inc. (NYSE: FCX) and to share why I believe that it is in the best
interest of the PXP shareholder.

There are several factors that positively favor the transaction. They include:

  oThe strategic nature of the transaction, including the fact that the
    combination of the PXP, FCX and McMoRan Exploration Co. (MMR) businesses
    is expected to (1) create the largest diversified U.S.-based natural
    resource company with an enterprise value in the top five among global
    mining peers, (2) increase geographic diversification of the combined
    company within the U.S. and (3) increase commodity diversification for the
    combined company.
  oThe scale of the combined company, which will enable it to compete more
    effectively than either PXP, FCX or MMR on a standalone basis, through
    increased cash flow and lower cost of capital investment in future
    development projects, exploration and acquisitions.
  oThe expected lower cost of borrowing, given the investment grade rating
    currently carried and expected to be maintained by FCX after completion of
    the merger, which was utilized in funding the cash portion of the merger
    consideration and will be advantageous in future projects.
  oThe financial and operational strength of the combined businesses, which
    will allow for accelerated value creation across the entire asset
    portfolio. The attractive, top-tier and complementary growth profiles of
    both the oil and gas and mining operations combined with strong margins
    and cash flows will drive near- and long-term stock appreciation.
  oThe analyses provided by Institutional Shareholder Services and Glass
    Lewis represent superficial views based on hearsay. I urge investors not
    to rely on such reports, but on the opinion of third-party investment
    banks resulting from months of analysis by independent financial,
    engineering and geoscience experts. We continue to believe that the
    analysis and opinion of Barclays Capital, utilizing its own resources and
    those of third party professionals and set forth in-depth in the Company's
    proxy materials dated April 18, 2013 available on the Company's website,
    continues to be the proper conclusion regarding the transaction. A
    detailed review of the third party expert opinions and other proxy
    materials, rather than cursory reports, properly presents the correct
    professional analysis of the value of the transaction to PXP's
    shareholders and the conclusion that shareholders should rely on to
    support this transaction.

The PXP board of directors, management and I remain committed to our
shareholders and continue to use our best efforts to deliver exemplary value
to our shareholders. Please do not lose sight of what we believe will drive
premium future share price growth, and that is the power of the combined
organization. With the value creation drivers described above, I strongly
affirm and support our proposed transaction with FCX and ask that you also
vote in favor of the merger.

James C. Flores
Chairman, President and Chief Executive Officer
Plains Exploration & Production Company

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.

www.pxp.com

SOURCE Plains Exploration & Production Company

Website: http://www.pxp.com
Contact: Hance Myers, hmyers@pxp.com, 713.579.6291
 
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