Preliminary Results First Quarter 2013 April 26, 2013
Forward-Looking Statement and Cautionary Note (1/2) 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 budgetary and volumetric information, the financial information included in this report and the annexes hereto is based on unaudited consolidated financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ( IFRS ), which PEMEX has adopted effective January 1, 2012. Information from prior periods has been retrospectively adjusted in certain accounts to make it comparable with the unaudited consolidated financial information under IFRS. For more information regarding the adoption of IFRS, see Note 20 to the consolidated financial statements included in Petróleos Mexicanos 2011 Form 20-F filed with the SEC on April 30, 2012. Adjusted EBITDA is a non-ifrs measure. We show a reconciliation of Adjusted EBITDA to net income in Table [34] of the annexes to this report. EBITDA is a non- U.S. GAAP and non-frs measure issued by the 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, as of March 31, 2013, of Ps. 12.3546= 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. 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 cash-flow. Hydrocarbon reserves Pursuant to Article 10 of the Regulatory Law to Article 27 of the Political Constitution of the United Mexican States Concerning Petroleum Affairs, (i) PEMEX's reports evaluating hydrocarbon reserves shall be approved by the National Hydrocarbons Commission (NHC); and (ii) the Secretary of Energy will register and disclose Mexico's hydrocarbon reserves based on information provided by the NHC. As of the date of this report, this process is ongoing. 1
Forward-Looking Statement and Cautionary Note (2/2) Hydrocarbon reserves As of January 1, 2010, the SEC changed its rules to permit oil and gas companies, in their filings with the SEC, to disclose not only proved reserves, but also probable reserves and possible reserves. In addition, we do not necessarily mean that the probable or possible reserves described herein meet the recoverability thresholds established by the SEC in its new definitions. Investors are urged to consider closely the disclosure in our Form 20-F and our annual report to the Mexican Banking and Securities Commission, available at http://www.pemex.com/. 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 (www.sec.gov), and the PEMEX prospectus filed with the CNBV and available through the Mexican Stock Exchange (www.bmv.com.mx). 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. The principal subsidiary company is PMI. 2
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Highlights 1Q13 Total revenues amounted to Ps. 396.2 billion. Total hydrocarbons production reached 3,709 Mboed. Crude oil production averaged 2,544 Mbd. Taxes generated during the period amounted to Ps. 224.2 billion. PEMEX recorded an EBITDA of Ps. 268.6 billion. 4
130 125 120 115 110 105 100 95 90 85 Avg 1Q12: 111.4 US$/b Prices of Crude Oil US$/barrel Brent Mexican Mix Avg 1Q13: 104.7 US$/b 80 12/11 3/12 6/12 9/12 12/12 3/13 4.50 4.00 3.50 3.00 2.50 2.00 Avg 1Q12: 2.46 US$/MMBtu Context 1Q13 Prices of Natural Gas US$/MMBtu Avg 1Q13: 3.49 US$/MMBtu 1.50 12/11 3/12 6/12 9/12 12/12 3/13 3.40 Prices of Reg Gasoline in the USGM US$/Gal 14.50 Exchange Rate Ps./US$ 3.20 3.00 2.80 Avg 1T13: 2.83 US$/Gal 14.00 13.50 Avg 1Q13: 12.65 Pesos/US$ Mar 31, 2013: 12.35 Pesos/US$ 2.60 2.40 2.20 Avg 1T12: 2.97 US$/Gal 2.00 12/11 3/12 6/12 9/12 12/12 3/13 13.00 12.50 Avg 1Q12: 13.15 Pesos/US$ Mar 31, 2012: 12.85 Pesos/US$ 12.00 12/11 3/12 6/12 9/12 12/12 3/13 5
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Mbd 2,540 2,545 2,546 2,561 2,544 12% 13% 13% 13% 13% 26% 31% 31% 32% 33% 33% Crude Oil Production 57% 56% 55% 54% 54% 74% Daily Production 1Q12 2Q12 3Q12 4Q12 1Q13 Heavy Light Extra-light Offshore Onshore 2,700 2,400 2,100 1,800 1,500 1,200 900 600 300-1-Jan-13 15-Jan-13 29-Jan-13 12-Feb-13 26-Feb-13 12-Mar-13 26-Mar-13 During the first quarter of 2013, crude oil production remained stable. Programmed maintenance works were carried out during March at the KMZ Asset. Heavy Light Extra light 7
Natural Gas Production 1 MMcfd 5,742 5,675 5,626 5,664 5,769 Natural Gas Production 35% 35% 33% 32% 33% 36% 65% 65% 67% 68% 67% 64% 1Q12 2Q12 3Q12 4Q12 1Q13 Offshore Onshore Associated Non-Associated Gas Flaring MMcfd Gas Flaring (MMcfd) Gas Flaring / Total Gas Produced 2.4% 2.0% 1.7% 137 112 97 2.9% 162 1.5% 85 Natural gas use as a percentage of production was above 98% 1Q12 2Q12 3Q12 4Q12 1Q13 (1) Does not include nitrogen. 8
Wells Average 9,074 9,328 9,652 9,696 9,983 3,360 3,395 3,463 3,259 3,350 5,714 5,933 6,189 6,437 6,632 Operational Infrastructure 94% 6% 1Q12 2Q12 3Q12 4Q12 1Q13 Drilling Equipment Crude oil Non-Associated Gas Average 185 17 174 17 162 153 149 19 15 17 168 157 143 138 132 Offshore Exploration 43% 57% Onshore Development 30% 70% Offshore Onshore Offshore Onshore 1Q12 2Q12 3Q12 4Q12 1Q13 Development Exploration Completion of Wells 11 15 8 3 264 290 318 329 4 254 1Q12 2Q12 3Q12 4Q12 1Q13 Development Exploration 9
Exploration 1Q13 NÓMADA-1 MONTAÑÉS-1 GAMMA-1 HABANO-1 EMERGENTE-1 HGO s CHUCLA-1 PERCUTOR-1 DURIÁN-1 ARBOLERO-1 E.U.A Seismic Information Km 2,100 1,700 5,819 6,063 1,300 7,861 6,791 5,114 Km 2 10,000 8,000 6,000 900 991 1,226 550 4,000 NUNCIO-1 ANHÉLIDO-1 500 100 682 606 1T12 2T12 3T12 2 4T12 1T13 2,000-0 Kilometros 150 2D (Km) 3D (Km ) PEMEX continues to evaluate the production potential of shale resources in Mexico. We obtained our fist production of shale oil during the first quarter of 2013. 10
Billion barrels of oil equivalent (MMMboe) Proved Reserves as of January 1, 2013 100% = 13.9 13.9 9.3 33% 4.5 Proved (1P) Developed Undeveloped Developed 67% Undeveloped Crude Oil: Condensates and Plant Liquids: Dry Natural Gas: 73% 75% 69% 10% 9% 11% 17% 16% 20% Note: Numbers may not total due to rounding. 11
Billion barrels of oil equivalent (MMMboe) 3P Reserves as of January 1, 2013 18.4 13.9 12.3 26.2 44.5 Proved (1P) Probable 2P Possible 3P Crude Oil: 73% 69% 71% 67% 69% Condensates and Plant Liquids: 10% 10% 10% 10% 10% Dry Natural Gas: 17% 21% 19% 23% 21% Note: Numbers may not total due to rounding. 12
Producing Basins Oil & Gas Gas Geographic Distribution of Reserves Billion barrels of oil equivalent Basin Acum. Prod. Reserves 1P 2P 3P Sabinas Tampico- Misantla Veracruz Burgos Deep Sea Exploration Gulf of México Southeast Southeast 45.4 12.1 18.0 24.4 Tampico Misantla 6.5 1.2 7.0 17.4 Burgos 2.3 0.4 0.5 0.7 Veracruz 0.7 0.1 0.2 0.3 Sabinas 0.1 0.0 0.0 0.1 Deep Waters 0.0 0.1 0.4 1.7 Total 55.0 13.9 26.2 44.5 Reserves as of January 1, 2013: Crude Oil Reserves (MMMb) Natural Gas Reserves (MMMMcf) 100% = 10.1 18.5 30.8 17.1 34.9 63.2 Onshore 31% 40% 48% 58% 64% 66% Offshore 69% 60% 52% 42% 36% 34% Type of reserve: 1P 2P 3P 1P 2P 3P Note: Numbers may not total due to rounding. 13
Reserves-Production Ratio 1 Year Production (MMbpce) Reserves-Production Ratio (Years) 1P 2P 3P 10.2 2013 1,353 19.3 32.9 10.2 2012 1,358 19.3 32.3 Reserves- Production Ratio = Reserves Production 10.0 2011 1,384 20.8 31.1 1) As of January 1 of each year. Note: Numbers may not total due to rounding. 14
Reserves as of January 1 of each year Billion barrels of oil equivalent (MMMboe) Evolution of Reserves 53.0 10.3 Possible Probable Proved 50.0 48.0 46.9 46.4 45.4 44.5 43.6 43.1 43.1 43.8 44.5 13.0 13.1 13.4 14.2 14.6 14.6 14.7 14.8 14.3 17.7 18.4 20.8 17.0 16.0 15.8 15.8 15.3 15.1 14.5 14.2 15.0 12.4 12.3 21.9 20.1 18.9 17.6 16.5 15.5 14.7 14.3 14.0 13.8 13.8 13.9 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1P Reserves : 18.9 17.6 16.5 15.5 14.7 14.3 14.0 13.8 13.8 13.9 2P Reserves : 34.9 33.5 32.3 30.8 29.9 28.8 28.2 28.8 26.2 26.2 3P Reserves : 48.0 46.9 46.4 45.4 44.5 43.6 43.1 43.1 43.8 44.5 Note: Numbers may not total due to rounding. Beginning 2002 PEMEX adopts SEC guidelines and standards regarding the definiton of proved reserves. 15
As of January 1 of each year Evolution of the Proved Reserves Replacement Rate 1P 1 Reserves Replacement Rate Percentage 41.0 50.3 71.8 77.1 85.5 101.1 104.3 2007 2008 2009 2010 2011 2012 2013 Reserves Replacement Rate 140% 120% 100% 80% 60% 40% 20% 0% 128.7% 102.1% 128.0% 103.9% 107.6% 56.9% 59.2% 59.7% 65.7% 101.1% 104.3% 85.8% 71.8% 77.1% 41.0% 50.3% 22.7% 26.4% 2005 2006 2007 2008 2009 2010 2011 2012 2013 1P 3P 1) Includes: discoveries, developments, revisions and delineations. 16
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Crude Oil Processing Crude Oil Processing Mbd 518 556 468 464 495 677 696 699 721 742 1Q12 2Q12 3Q12 4Q12 1Q13 Light Crude Heavy Crude Production of Petroleum Products Mbd 1,343 1,394 1,373 1,306 1,305 84 91 58 56 76 92 56 89 63 205 211 57 208 193 207 301 312 291 295 303 The variable refining margin increased, due to current favorable market conditions and the stabilization of the new plants at Minatitlán 274 291 272 257 283 421 433 404 415 425 1Q12 2Q12 3Q12 4Q12 1Q13 Automotive gasolines Fuel oil Diesel LPG Jet Fuel Other* 1 (1) Includes paraffins, furfural extract, aeroflex, asphalt, lubricants, coke, cyclical light oil and other gasolines. 18
Natural Gas Processing, Dry Natural Gas and Gas Liquids Production Processing MMcfd 4,547 4,507 4,344 4,134 4,481 1,083 1,056 960 850 1,148 Sweet Wet Gas Sour Wet Gas 3,464 3,451 3,384 3,284 3,334 1Q12 2Q12 3Q12 4Q12 1Q13 Production MMcfd MMcfd 3,800 3,600 3,400 3,200 3,732 3,711 3,759 3,579 3,494 374 382 373 361 333 1Q12 2Q12 3Q12 4Q12 1Q13 520 490 460 430 400 370 340 310 Mbd Dry Gas from Plants (MMcfd) Natural Gas Liquids (Mbd) 1 (1) Includes condensate process. 19
Mt Production of Petrochemicals 1 Other* 1,269 291 129 10 355 1,171 304 112 1 363 1,080 1,028 282 257 116 111 16 75 312 253 1,178 344 90 16 306 Propylene and Derivatives Aromatics and Derivatives Ethane Derivatives Methane Derivatives Basic 353 346 345 323 347 131 45 9 9 8 1Q12 2Q12 3Q12 4Q12 1Q13 (1) Includes muriatic acid, butadiene, polyethylene wax, petrochemical specialities, BTX liquids, hydrogen, isohexane, pyrolysis liquids, oxygen, CPDI, sulfur, isopropyl alcohol, amorphous gasoline, octane basis gasoline and heavy naphtha. 20
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1Q13 Financial Highlights First Quarter First Quarter 2012 2013 Billion Pesos Variation 2012 3 2013 Billion Dollars Total Revenues from Sales and Services 1 411.3 396.2 (3.7%) 32.0 32.0 Gross Income 223.3 192.4 (13.8%) 17.4 15.6 Operating Income 251.1 201.5 (19.7%) 19.5 16.3 Income before Taxes and Duties 286.9 219.8 (23.4%) 22.3 17.8 Taxes and Duties 246.6 224.2 (9.1%) 18.1 19.2 Net Income (loss) 40.4 (4.4) (110.9%) 3.1 (0.355) EBITDA 2 308.1 268.6 (12.8%) 23.9 21.7 (1) Excludes IEPS. (2) Earnings before interests, taxes, depreciation and amortization. (3) The established exchange rate at March 31, 2013 is of Ps. 12.3546 = U.S.$1.00. 22
Ps. MM Total Sales (1/2) Comparison 1Q13 vs. 1Q12-3.7% 411,325 10,460 (26,092) 561 396,254 1Q12 Domestic Sales Exports Services Income 1Q13 23
Ps. MM Total Sales (2/2) Comparison 1Q13 vs. 1Q12 Domestic Sales Export Sales 5.1% -12.7% 203,558 9,218 12,004 214,019 7,641 14,929 206,092 22,575 19,929 180,000 16,747 18,854 182,337 191,449 163,587 144,400 1Q12 1Q13 1Q12 1Q13 Petroleum Products Dry Gas Petrochemical Products Crude Oil and Condensates Petroleum Products Other 24
Ps. MM Cost of Sales and General Expenses Evolution 1Q12 1Q13 Cost of Sales and General Expenses 9.5% 15,843 4,623 235,311 214,845 1Q12 Cost of Sales General Expenses 1Q13 25
Ps. MM Comprehensive Financing Result Composition 1Q13 32,577 18,507 3,317 (17,387) Financial Income Financial Cost Exchange Gain (Loss) Comprehensive Financial Result Exchange Rate Pesos / U.S. dollar 1Q12 12.8489 1Q13 12.3546 26
Ps. MM Taxes and Duties Comparison 1Q13 vs. 1Q12 246,586 55,439 (22,667) 224,174 34,486 IEPS Tax payable 191,147 189,688 1 1Q12 Hydrocarbon Duties 1Q13 (1) Including Ps. 127 million from other taxes and duties. 27
Ps. MM Net Income Evolution 1Q12-1Q13 40,397 (15,071) (20,465) (14,434) (4,388) (17,227) 22,412 1Q12 Total Sales Cost of Sales and General Expenses Other Revenues 1 CFR Taxes and Duties 1Q13 (1) Includes profit-sharing in non-consolidated subsidiaries, affiliates and others of -Ps. 401.9 million. 28
Ps. MM Consolidated Cash Flow as of March 31, 2013 87,014 270,618 (86,362) Revolving lines Non-revolving lines 57,112 66,059 64,369 29,902 20,304 (8,721) (47,910) 119,235 (15,552) 111,036 Cash at the Beginning of the Year Revenues from Operations 2 1 2 3 Financing Activities Available Cashflow Debt Payments Interest Paid Investments Taxes Cash at the end of the Period (1) Before taxes. (2) Excludes Financed Public Works Contract Program. (3) Includes change of cash effect of Ps. (1,098) million. 29
Ps. MM 786,859 114,241 87,014 (86,362) 57,112 66,059-4.4% (34,923) 672,618 665,980 (49) Consolidated Debt Evolution 1Q12-1Q13 752,538 86,558 (111,036) Revolving lines Non-revolving lines Short-Term Long-Term 641,502 Total Debt as of December 31, 2012 Financing Activities 1 1 Debt Payments Exchange Gain Others 2 Total Debt 1Q13 Cash & Cash Equivalents Net Debt 1Q13 Debt / Sales 0.49 0.45 0.49 0.50 0.46 0.47 0.45 0.48 0.46 as of march 31, 2011 as of june 30, 2011 as of sep 30, 2011 as of dec 31, 2011 as of march 31, 2012 as of june 30, 2012 as of sep 30, 2012 as of dec 31, 2012 (1) Excludes Finance Public Works Contracts Program. (2) Includes accrued interests, fees and charges for debt issuance, loss under par, Finance Public Works Contracts Program and amortized cost. as of march 31, 2012 30
Reserve for Employee Benefits The variation in the valuation of the discount rate modifies the balance of the pension liability. In other words, as the rates fall, the balance rises and viceversa. Discount Rate 2 and Balance of the Reserve for Employee Benefits (Ps. MM) 8.57% 8.65% 6.90% 6.90% 796,236 862,079 1,288,541 1,308,207 1 2010 2011 2012 1T 2013 (1) IFRS Balance as of January 1, 2011. (2) Zero coupon (government) lending rate with a maturity equal to the duration of the net cost of employee benefits (18.08 years) at the close of each year. Note: This rate was previously calculated considering the average for the past 24 months of interest rate swaps of dollar denominated debt to pesos, equal to the duration of the net cost of employee benefits (18.08 years), minus an average funding spread of pesos vs. dollars. 31
Highlights 1Q13 Total revenues amounted to Ps. 396.2 billion. Total hydrocarbons production reached 3,709 Mboed. Crude oil production averaged 2,544 Mbd. Taxes generated during the period amounted to Ps. 224.2 billion. PEMEX recorded an EBITDA of Ps. 268.6 billion. 32
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