Credit Suisse Energy Summit. February 2009 PXP

Transcription

1 Credit Suisse Energy Summit February 2009

2 Innovative Balanced Experienced is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in its core areas of operation: California, Texas, Louisiana and Gulf of Mexico. is headquartered in Houston, Texas.

3 Corporate Information Corporate Headquarters Plains Exploration & Production Company 700 Milam, Suite 3100 Houston, Texas Contacts James C. Flores Chairman, President & CEO Winston M. Talbert Exec. Vice President & CFO Hance V. Myers Vice President Investor Relations Joanna Pankey Manager, Investor Relations & Shareholder Services Phone: Toll Free: Web Site: Forward Looking Statements Except for the historical information contained herein, the matters discussed in this presentation are forward-looking statements as defined by the Securities and Exchange Commission. These statements involve certain assumptions made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. The forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially. These risks and uncertainties include, among other things, uncertainties inherent in the exploration for and development and production of oil & gas and in estimating reserves, unexpected future capital expenditures, general economic conditions, oil and gas price volatility, the success of our risk management activities, competition, regulatory changes and other factors discussed in s filings with the Securities and Exchange Commission. This presentation is not for reproduction or distribution to others without s consent. 2

4 Historical Prices WTI NYMEX and Forward Curve $160 $160 $140 $140 $120 $120 $100 $ 80 $ 60 NYMEX Oil Price January 23, 2009 $100 $ 80 $ 60 $ 40 $ 40 $ 20 $ Source: Goldman Sachs, NYMEX 3

5 Through 2008 Completed strategic enhancement of assets with a portfolio of efficient development growth potential Developed strong technical and operational team for diligent exploitation of enhanced asset portfolio Strengthened balance sheet through debt reduction Deployed consistent conservative hedge strategy to be well prepared for economic downturn 4

6 2009 Operational Strategy Maximize returns on existing portfolio with growing production and reserves High grading reduced capital expenditures toward higher rate of return development projects Limit exploration expenditures to existing inventory Asset rationalization Lower LOE's Reduce G&A expense Strengthen balance sheet with free cash flow from valuable hedge position 5

7 2009 Capital Program $1,150 MM 26 Rigs Avg. 40% 15% 45% Development Development-Haynesville Exploration Development capital includes exploitation, capitalized interest and G&A costs. 6

8 Financial Strength Strong Liquidity With No Near Term Debt Maturities Millions 2,500 Liquidity, Mark-to-Market and Debt Maturity Profile 2,000 1,500 $930 Hedges MTM 10/31/08 1, $1,300 Available Liquidity (1) $1,000 (2) $600 $500 $ Available Credit Facility Hedges MTM PF Bank Debt Senior Notes (1) Pro forma 9/30/08 for Permian and Piceance divestiture that closed 12/01/08. (2) Pro forma bank debt as of 9/30/08 for Permian and Piceance divestiture that closed 12/01/08 (net of taxes, fees and cash equivalents). 7

9 2009 Hedge Positions Based on Estimated 2008 Production Volumes MMbbl/d 100 MMcf/d Oil Production $106 Puts Natural Gas Production $10 - $20 Collars $55 Puts Physical Purchase Total Commodity Derivative Assets Mark-to-Market as of 10/31/08: +$900 MM

10 +2 Billion BOE Resource Potential ~1.28 Billion BOE Development Resource Potential Region Haynesville California Panhandle Gulf of Mexico Rockies Region Gulf of Mexico Vietnam ~750 Million BOE Exploration Resource Potential Potential Reserves 950 MMBOE 165 MMBOE 82 MMBOE 54 MMBOE 31 MMBOE Potential Reserves 650 MMBOE 100 MMBOE 9

11 California Onshore/Offshore 369 MMBOE Net Proved Reserves (1) San Joaquin Pt Pedernales Valley Arroyo Grande Los Angeles Basin Pt Arguello 49% Proved Developed 22 yr R/P (2) 2,500+ future well locations (1) Reserves: As of 12/31/07. (2) Using 12/31/07 proved reserves and 2008 estimated production. The shaded area is for illustrative purposes only and does not reflect actual lease acreage. 10

12 Texas/Louisiana Texas Panhandle 532,000 gross acres 715 square miles 3D seismic 2 rigs running Panhandle Haynesville Shale 110,000 net acres 1,375 potential net locations 20 rigs running Haynesville Big Mac South Texas South Texas 94,000 gross acres 321 square miles 3D seismic 1 rig running Big Mac 72,000 gross acres 275 square miles 3D seismic The shaded areas are for illustrative purposes only and do not reflect actual leasehold acreage. 11

13 Haynesville Shale 2009 Activity Legend PRODUCING WAITING ON COMPLETION 2009 DRILLS ACTIVE DRILLING Projection: NAD 1927 LA North 12

14 Net Gas Production & Gross Well Count Dec Nov-09 Well Count Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Month MMcf/d Haynesville Shale Ramping Production July 08-December 09 Well count Net MMcf/d

15 Haynesville Economics 1,500 Net Production MMcf/d 250 Producing Wells 1, Production Interest: Net Acreage: Potential Net Locations: Est. Net Resource Potential: Est. Median Gross Well Cost: Est. Median Gross EUR per Well: Avg. Yearly Producing Wells Net H ville Drill & Complete F&D: Avg. Yearly Production 20% WI/15% NRI 110,000 1, Tcfe $7mm (1) 6.5 Bcfe $1.32 Mcfe or $7.92/BOE (1) Assumed D&C costs for first 3 years = $7 mm per well, after 3 years = $6 mm per well. 14

16 Gulf of Mexico Success Continues Discoveries Drilling Flatrock #1,2,3,4,5,6 New Orleans Tom Sauk & Gladstone Ammazzo #1 S. Timbalier 168 Friesian # 2 Friesian Salida Friesian Deep 15

17 Flatrock Discovery South Marsh Island Block 212, GOM Type Log Located on OCS 310 at SMI 212 in 10 feet of water 6 successful wells drilled to date Currently producing +200 mmcfd\+45mmcfd net Year-end 2008 proved reserves +350 Bcfe gross\74 Bcfe net 16

18 Friesian Project Green Canyon Area, GOM Tahiti Friesian Miocene Type Log Est. Reserves 500 MMBOE Est. Prod. 135 MBOEPD Reserve Potential approx. 300 MMBOE - 50% W.I. 29,000 17

19 Friesian Project Green Canyon Area, GOM Tahiti Friesian Miocene Type Log 29,000 Net Reserve Potential MMBOE 32,500 18

20 Blackbeard Area W E Blackbeard 168 #1 Discovery Well Logs indicate four potential hydrocarbon bearing sands Awaiting design and procurement of long lead time completion equipment for high pressure test 19

21 Vicksburg Discovery Desoto Canyon, GOM Mesozoic Type Log Vicksburg % W.I. +300'oil column 20

22 2009 Exploration Portfolio Ammazzo - Drilling Salida - 3Q 09 Drill White Shark - 2Q 09 Drill 21

23 Ammazzo Prospect South Marsh Island, GOM Flatrock Rob L & Operc Gyro Type Log Hurricane Deep Gyro JB Mountain Gyro Blueberry Hill Gyro Ammazzo % W.I. Net Reserve Potential Bcfe 22

24 Salida Prospect Garden Banks/Keathley Canyon, GOM Salida Reserve Potential +1 Billion BOE Kaskida Type Log EOCENE / WILCOX Shell 75% 25% Shell 75% 25% Kaskida Estimated Gross Reserves 1.5 Billion BOE BP 73.3% Devon 26.7% 23

25 Salida Prospect Garden Banks/Keathley Canyon, GOM Salida Kaskida Kaskida Type Log EOCENE / WILCOX! - 25% W.I. Net Reserve Potential +250 MMBOE 3Q 2009 Drill Kaskida Estimated Gross Reserves 1.5 Billion BOE 24

26 White Shark Prospect Offshore Central Vietnam Cambodia Nha Trang Block 124 Top Miocene Carbonates Structure Map C.I. = 50m Vietnam Ho Chi Minh City White Shark Block 124 covers approximately 1.48 million acres 100% W.I. expected spud 2Q 2009 Exploration resource potential approximately +100 MMBOE 25

27 2009 Corporate Strategy Strong Cash Flow and Balance Sheet Position During the Current Operating and Financial Environment Maintain Strong Liquidity Position and Continue to Deploy Hedge Strategy Maintain 2009 Capital Expenditures Well Within Significant Hedge Protected Free Cash Flow for Further Debt Reduction Develop the Current +2 Billion BOE of Resource Potential Continue Execution of Significant Development Projects...Haynesville, Flatrock, Friesian and Blackbeard Drill High Impact Exploration Portfolio...Ammazzo, Vietnam and Salida 26

28 Addendum 27

29 Income Statement Summary For Period Ending September 30, 2008 (Millions) Three Months Nine Months Revenues $ $2,075.3 Production Costs General & Administrative Expense DD&A & Accretion Expense Income From Operations ,062.7 Income Before Income Tax ,374.9 Net Income (1) $ $ EPS (diluted) $ 4.50 $ 7.72 (1) Includes an after-tax gain on mark-to-market derivative contracts of approximately $282.4 million and $243.9 million for the three and nine months ended September 30,

30 Balance Sheet Summary (Millions) September 2008 December 2007 Current Assets PP&E Net Goodwill Other $ , $10,635.9 $ , $9,693.3 Current Liabilities $ $ Long-term Debt (1) 3, ,305.0 Other Long-term Liabilities Deferred Income Tax 1, ,959.4 Stockholders Equity 3, ,338.2 $10,635.9 $9,693.3 (1) Does not reflect the $1.25 billion Permian and Piceance divestiture closed on 12/01/08. 29

31 Credit Suisse Energy Summit February 2009