Results as of the 4 th Quarter 2010

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1 Results as of the 4 th Quarter 2010 March 1, 2011

2 Content 4Q10 Main Highlights Upstream Downstream Financial Results Questions and Answers 2

3 4Q10 Financial Highlights Billion pesos Billion dollars Change 2010 Oct.-Dec. Oct.-Dec. Oct.-Dec. Total revenue from sales and services % 28 Total revenue from sales % 29 and services including IEPS Operating Income % 11 Income before Taxes and Duties Net Income (loss) % 12 (65) (26) 39 60% (2) EBITDA (1) Funds provided by operating activities i i before taxes and duties % 16 Jan.-Dec. Jan.-Dec. Change Jan.-Dec % 60 (1) Earnings before interests, taxes, depreciation and amortization. Excludes IEPS. 3

4 2009 Oct.-Dec. Operating Highlights: Crude oil 2010 Oct.-Dec. Variación Crude oil (Mbd) Production 2,583 2, % -1% Exports 1,236 1, % Process 1,315 1, % Mexican crude oil basket (U.S.$/b) % 4

Change Automotive gasolines (Mbd) Domestic Sales 815 817 2 0.

5 Operating Highlights: Automotive Gasolines 2009 Oct.-Dec Oct.-Dec. Change Automotive gasolines (Mbd) Domestic Sales % Production % -18% Imports % Regular gasoline in the USCGM (U.S.$c/gal) % 5

6 Natural Gas (MMcfd) Operating Highlights: Natural Gas 2009 Oct.-Dec Oct.-Dec. Change Production 6,522 6, % -4% Domestic Sales 3,249 3, % Imports % Exports % International reference (U.S.$/MMBtu) % Average Ps. for U.S.$ % Apreciation (depreciation) 3.2% 1.2% 6

7 Content 4Q10 Main Highlights Upstream Downstream Financial Results Questions and Answers 7

8 Crude oil Production by type 2009 Oct.-Dec Oct.-Dec. 11% 13% Heavy Light 32% 57% 33% 54% Extra-light 2,583 Mbd 2,552Mbd 23% 77% Offshore Onshore 25% 75% 8

9 Natural Gas Production and Gas Flaring Gas Production (1) -3.6% Gas Flaring (1) Million cubic feet Million cubic feet per day per day 6,522 6, % Non-associated 2,587 2,323 Associated 3,935 3, Non-associated 40% 37% 4Q09 4Q10 Associated 60% 63% 4Q09 4Q10 (1) Does not include nitrogen. 9

10 Discoveries Project Well Initial Production Litoral Tabasco Cinco Presidentes Bellota-Jujo Veracruz Poza Rica-Altamira Tsimin-1DL Guaricho-501 Brillante-1 Naguin-1 Bricol-2DL Rabel-1 Tilapia , , , Burgos Wet Gas (MMcfd) Dry Gas (MMcfd) Extra-light crude oil (bd) Light crude oil (bd) 10

11 Upstream Opportunity Areas Mexican E&P Contracs First round: Santuario, Carrizo and Magallanes in the South Region. Current production: 14 Mbd. Results will be published during the 3Q11. N 2 Content in Wet Gas Re-injection of sour gas into the reservoir; Segregate g currents with high nitrogen contents; and construction of two nitrogen recovery plants. Declination at Cantarell Production has stabilized; Production of Cantarell during 2010 was 558 Mbd. Aceite Terciario del Golfo Field labs results so far: Water injection Operational best practices Horizontal drilling and fracturing 11

12 Content 4Q10 Main Highlights Upstream Downstream Financial Results Questions and Answers 12

13 Crude Oil Refining Thousand barrels per day Heavy Crude Oil -19.8% 1,315 1, % % Light Crude Oil Heavy Crude Oil 39% 34% Light Crude Oil 61% 66% 4Q09 4Q10 13

14 Petroleum Products Production Thousand barrels per day 1, , Gasolines Diesel Fuel oil LPG Others 9% 8% 14% 17% 23% 24% % 21% % 31% 4Q09 4Q10 4Q09 4Q10 14

Natural Gas Processing Million cubic feet per day Natural Gas Processing, Dry Gas and Natural Gas Liquids Production Dry Gas Production Million cubic feet per day -2.4% -1.

15 Natural Gas Processing Million cubic feet per day Natural Gas Processing, Dry Gas and Natural Gas Liquids Production Dry Gas Production Million cubic feet per day -2.4% -1.9% 4,491 4,383 Sweet 1, ,639 3,570 Sour 3,403 3,398 Natural Gas Liquids Production Thousand barrels per day 1.3% Sweet Sour 24% 22% 76% 78% Q09 4Q10 4Q09 4Q10 15

16 Downstream Opportunity Areas (1/2) Operational Reliability Operating improvement program to increase operating reliability, as well as to revert negative results from National Refining System (SNR) Expected increases in the variable refining margin between U.S.$2.0 and U.S.$2.5 per barrel, could be obtained in the upcoming 30 months. The program will be executed in stages: (i) Madero and Salina Cruz, (ii) Cadereyta and Tula, and (iii) Minatitlán and Salamanca. Reconfiguration of Minatitlán In 2010, the startup of the first block of plants associated with the Minatitlán reconfiguration plan began. The startup for the second block of plants is programmed on March 2011, and the complete operation during the second quarter of

17 Downstream Opportunity Areas (2/2) Gas Quality Control nitrogen content in gas that is to be processed. Modifications to the Ciudad Pemex cryogenic plant II. Control of liquefiable contents through dew point control plants in the Veracruz Asset. Monitoring and follow-up in respect of quality parameters. Profitable Chains Optimization of the aromatics line. Resume operations of the Morelos Petrochemical complex s acrylonitrile plant though importing propylene polymer grade propylene. 17

18 Industrial Safety and Environmental Protection Frequency Index Incapacitating accidents / MMhh Severty Index Days lost/ MMhh 72.5% 79.4% Q09 4Q10 4Q09 4Q10 18

19 Content 4Q10 Main Highlights Upstream Downstream Financial Results Questions and Answers 19

20 Income Statement: total revenues from sales and services Billion pesos In Mexico Exports Oct.- Dec Oct.- Dec Total revenues with IEPS In México Exports Petroleum products Dry Gas Petrochem. Crude oil Petroleum products Petrochem. 87% 8.7% 56% 5.6% 12.9% 65% 6.5% -7.1% 71% 13.9% 21.4% -28.8% 8% 41.4% 4% 20

21 Income Statement: costs and operating expenses Billion pesos Oct.- Dec Oct.- Dec = + Sales (including IEPS) Operating costs and expenses Cost of sales General expenses Depreciation & Amortization Net cost of employee benefits 8.7% -12.2% -13.1% -5.7% 85.8% -22.0% 21

costs and operating expenses Change in other revenues and sharing in nonconsolidated

22 Net Income Evolution Billion pesos 3.2 (9.0) (26.0) (65.1) 29.2 (12.4) 28.9 Net loss 4Q09 Change in revenues en es from sales and services (including IEPS) Change in costs and operating expenses Change in other revenues and sharing in nonconsolidated subsidiaries bidi i and affiliates Change in compreh ensive financing result Change in taxes and duties Net loss 4Q10 22

23 Statement of Cash Flows: Sources and uses of resources Billion pesos 236 (185) (191) 738 1,134 (623) Cash at the beginning of the year Revenues from operations before taxes and duties Debt issuance Total Amortizations Investments Taxes Cash at the end of the period 23

2% 632 665 Short-Term 103 90 Net Debt 12.

24 Total Debt and Net Debt Billion pesos as of December 31, Total Debt 5.2% Short-Term Net Debt 12.5% Long-Term Short-Term 16% 13% Long-Term 84% 87%

The expected amount of debt to be raise this year is about USD $8.0 billion,.

Financing Program 2011 For its 2011 financing program PEMEX intends to carry out only one transaction in the dollar

25 The expected amount of debt to be raise this year is about USD $8.0 billion,. Net indebtedness is expected to be below U.S.$1.5 billion. Financing Program 2011 For its 2011 financing program PEMEX intends to carry out only one transaction in the dollar market, as well as a reduced number of issuances in other markets, depending on market conditions. 100% = 8.0 billion U.S. dollars Source Amount (Billion $USD) 12% 19% 19% International Markets National Markets 13% Bank Loans ECAs Others 37% International Markets 3.0 Dollars 2.0 Other Currencies / Markets 1.0 Domestic Markets 1.5 CEBURES 1.5 Bank Loans 1.0 Export Credit Agencies (ECAs) 1.5 Others 1.0 Contractor Financing TOTAL

26 Content 4Q10 Main Highlights Upstream Downstream Financial Results Questions and Answers 26

27 Forward-Looking Statement and Cautionary Note (1/3) Variations If no further specification is included, changes are made against the same period of the last year. Rounding Numbers may not total due to rounding. Financial information Excluding (i) budgetary,(ii) volumetric, (iii) revenue from sales and services including IEPS, (iv) domestic sales including IEPS, (v) petroleum products sales including IEPS, and (vi) operating income including IEPS information, the financial information included in this report is based on unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards, FRS) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Based on FRS B-10 "Inflation effects", 2009 and 2010 amounts are expressed in nominal terms. Based on FRS B-3 "Income Statement and FRS C-10 Derivative Financial Instruments and Hedging Transactions, the financial income and cost of the Comprehensive Financial Result include the effect of financial derivatives. The EBITDA is a non-u.s. GAAP and non-frs measure issued by CINIF. Budgetary information is based on standards from Mexican governmental accounting; therefore, it does not include information from the subsidiary companies of Petróleos Mexicanos. Foreign exchange conversions Convenience translations into U.S. dollars of amounts in Mexican pesos have been made at the established exchange rate, at December 31, 2010, of Ps = U.S.$1.00. Such translations should not be construed as a representation that the peso amounts have been or could be converted into U.S. dollars at the foregoing or any other rate. 27

28 Forward-Looking Statement and Cautionary Note (2/3) Fiscal regime Since January 1, 2006, PEMEX has been subject to a new fiscal regime. Pemex-Exploration and Production s (PEP) tax regime is governed by the Federal Duties Law, while the tax regimes of the other Subsidiary Entities continue to be governed by Mexico s Income Tax Law. The most important duty paid by PEP is the Ordinary Hydrocarbons Duty (OHD), the tax base of which is a quasi operating profit. In addition to the payment of the OHD, PEP is required to pay other duties. Under PEMEX s current fiscal regime, the Special Tax on Production and Services (IEPS) applicable to gasoline and diesel is regulated under the Federal Income Law. PEMEX is an intermediary between the Secretary of Finance and Public Credit (SHCP) and the final consumer; PEMEX retains the amount of IEPS and transfers it to the Federal Government. The IEPS rate is calculated as the difference between the retail or final price, and the producer price. The final prices of gasoline and diesel are established by the SHCP. PEMEX s producer price is calculated in reference to that of an efficient refinery operating in the Gulf of Mexico. Since 2006, if the final price is lower than the producer price, the SHCP credits to PEMEX the difference among them. The IEPS credit amount is accrued, whereas the information generally presented by the SHCP is cashflow. Hydrocarbon reserves The U.S. Securities and Exchange Commission (SEC) permits filings of oil and gas companies to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document, such as total reserves, probable reserves and possible reserves, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F or in our annual report to the Comisión Nacional Bancaria y de Valores (Mexican National Banking and Securities Commission, or CNBV), available at Proved reserves as of January 1, 2010 are consistent with the comments received from the independent engineering firms that audit our reserves. However, as established in the Regulatory Law to Article 27 of the Constitution of the United Mexican States Concerning Petroleum Affairs, the National Hydrocarbons Commission is currently reviewing the hydrocarbon reserves evaluation reports; the Energy Ministry will disclose the hydrocarbon reserves of the country once this revision is completed. It is possible that differences arise, particularly in the probable and possible reserves associated to Chicontepec. 28

29 Forward-Looking Statement and Cautionary Note (3/3) Bids Only results from bids occurred between October 1 and December 31, 2010 are included. For further information, please access Forward-looking statements This report contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the CNBV and the SEC, in our annual reports, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. We may include forward-looking statements that address, among other things, our: drilling and other exploration activities; import and export activities; projected and targeted capital expenditures ; costs; commitments; revenues; liquidity, etc. Actual results could differ materially from those projected in such forward-looking statements as a result of various factors that may be beyond our control. These factors include, but are not limited to: changes in international crude oil and natural gas prices; effects on us from competition; limitations on our access to sources of financing on competitive terms; significant economic or political developments in Mexico; developments affecting the energy sector; and changes in our regulatory environment. Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of their dates, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. These risks and uncertainties are more fully detailed in PEMEX s most recent Form 20-F filing with the SEC ( and the PEMEX prospectus filed with the CNBV and available through the Mexican Stock Exchange ( These factors could cause actual results to differ materially from those contained in any forward-looking statement. PEMEX PEMEX is Mexico s national oil and gas company. Created in 1938, it is the exclusive producer of Mexico s oil and gas resources. The operating subsidiary entities are Pemex-Exploration and Production, Pemex-Refining, Pemex-Gas and Basic Petrochemicals and Pemex-Petrochemicals. Petrochemicals The principal subsidiary company is PMI. 29

30 Investor Relations (+52 55)

Results as of the 3 rd Quarter of 2010

Results as of the 3 rd Quarter of 2010 October 29, 2010 Forward-Looking Statement and Cautionary Note (1/2) Variations If no further specification is included, changes are made against the same period