Preliminary Results Second Quarter 2013 July 26, 2013
1 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 June 30, 2013, of Ps. 12.9502 = 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.
2 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.
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4 Highlights 2Q13 Total revenues amounted to Ps. 393.2 billion. Cost of sales decreased by 12.2%. Total hydrocarbons production averaged 3,644 Mboed. Crude oil production averaged 2,516 Mbd. Taxes generated during the period amounted to Ps. 208.. billion. PEMEX recorded an EBITDA of Ps. 265 billion.
5 125 120 115 110 Avg 2Q12: 99.97 US$/b Prices of Crude Oil US$/barrel Brent Avg 2Q13: 96.93 US$/b 4.50 4.00 3.50 Avg 2Q12: 2.28 US$/MMBtu Context 2Q13 Prices of Natural Gas US$/MMBtu 105 100 95 90 85 Mexican Mix 3.00 2.50 2.00 Avg 2Q13: 4.01 US$/MMBtu 80 3/12 6/12 9/12 12/12 3/13 6/13 1.50 3/12 6/12 9/12 12/12 3/13 6/13 3.40 Prices of Reg Gasoline in the USGM US$/Gal 14.50 Exchange Rate Ps./US$ 3.20 3.00 2.80 Avg 2T12: 2.80 US$/Gal 14.00 13.50 Jun 30, 2013: 12.9502 Pesos/US$ 2.60 13.00 2.40 Avg 2T13: 2.69 US$/Gal 12.50 Jun 30, 2012: 13.6530 Pesos/US$ 2.20 3/12 6/12 9/12 12/12 3/13 6/13 12.00 3/12 6/12 9/12 12/12 3/13 6/13
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7 Mbd 2,545 2,546 2,561 2,544 2,516 13% 13% 13% 13% 12% 25% 33% 32% 33% 33% 33% Crude Oil Production 54% 55% 54% 54% 55% 75% Daily Production 2Q12 3Q12 4Q12 1Q13 2Q13 Heavy Light Extra-light Offshore Onshore 2,700 2,400 2,100 1,800 1,500 1,200 900 600 300-1-Jan-13 1-Feb-13 1-Mar-13 1-Apr-13 1-May-13 1-Jun-13 Heavy Light Extra light During the second quarter of 2013, crude oil production averaged 2,516 Mbd.
Natural Gas Production 1 MMcfd Natural Gas Production 5,675 5,626 5,664 5,769 5,558 35% 33% 32% 33% 32% 37% 65% 67% 68% 67% 68% 63% 2Q12 3Q12 4Q12 1Q13 2Q13 Offshore Onshore Associated Non-Associated Gas Flaring MMcfd Gas Flaring (MMcfd) Gas Flaring / Total Gas Produced 2.0% 1.7% 112 97 2.9% 162 1.5% 1.9% 85 108 Natural gas use as a percentage of production was above 98.1% 2Q12 3Q12 4Q12 1Q13 2Q13 (1) Does not include nitrogen. 8
Drilling Equipment Average Operational Infrastructure Exploration Development 174 17 162 153 149 19 15 17 169 21 57% 43% 70% 30% 157 143 138 132 147 Offshore Onshore Offshore Onshore 2Q12 3Q12 4Q12 1Q13 2Q13 Wells Development Exploration Average 9,328 9,652 9,696 9,983 9,816 6% Offshore Onshore 3,395 3,463 3,259 3,350 3,314 5,933 6,189 6,437 6,632 6,501 94% 2Q12 3Q12 4Q12 1Q13 2Q13 Crude oil Non-Associated Gas Completion of Wells 11 15 8 4 290 318 329 255 7 184 2Q12 3Q12 4Q12 1Q13 2Q13 Development Exploration Seismic Information Km Km 2 2,100 7,861 1,807 10,000 6,791 1,600 8,000 6,063 5,310 4,210 6,000 1,100 1,226 4,000 991 600 811 2,000 606 100-2Q12 3Q12 4Q12 1Q13 2Q13 2 2D (Km) 3D (Km ) 9
10 Third Round of E&P Integrated Contracts A third round of E&P Integrated Contracts was carried out on July, 11, 2013. Block 3P Reserves Soledad Miquetla Huamapa Date awarded Winner Company Fee U.S.$/b Soledad 134 July 11, 2013 Petrolite de México 0.49 Miquetla 248 July 11, 2013 Operadora de Campos DWF 0.98 Humapa 341 July 11, 2013 Halliburton de México 0.01
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Crude Oil Processing Crude Oil Processing Mbd 556 468 464 495 512 696 699 721 742 786 2Q12 3Q12 4Q12 1Q13 2Q13 Light Crude Heavy Crude Production of Petroleum Products Mbd 1,460 1,394 1,373 1,306 1,305 94 91 61 56 76 92 56 89 63 206 211 57 208 193 207 312 291 295 303 340 291 272 257 283 298 In May 2013, PEMEX achieved the highest gasoline production volume in the past 40 months. 433 404 415 425 462 2Q12 3Q12 4Q12 1Q13 2Q13 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. 12
MMcfd Mbd Natural Gas Processing, Dry Natural Gas and Gas Liquids Production Processing MMcfd 4,507 4,344 4,134 4,481 4,253 1,056 960 850 1,148 1,089 Sweet Wet Gas Sour Wet Gas 3,451 3,384 3,284 3,334 3,164 2Q12 3Q12 4Q12 1Q13 2Q13 Production MMcfd 3,800 3,600 3,400 3,200 3,711 3,759 3,579 3,600 3,494 382 373 333 361 354 2Q12 3Q12 4Q12 1Q13 2Q13 520 490 460 430 400 370 340 310 Dry Gas from Plants (MMcfd) Natural Gas Liquids (Mbd) 1 (1) Includes condensate process. 13
Mt Production of Petrochemicals Other* 1 1,171 304 112 1 363 1,080 1,028 282 257 116 111 16 75 312 253 1,358 1,179 405 344 110 90 146 83 306 336 Propylene and Derivatives Aromatics and Derivatives Ethane Derivatives Methane Derivatives Basic 346 345 323 347 343 45 9 9 9 18 2Q12 3Q12 4Q12 1Q13 2Q13 (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. 14
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2Q13 Financial Highlights Second Quarter Second Quarter 2012 2013 Billion Pesos Variation 2012 3 2013 Billion Dollars Total Revenues from Sales and Services 1 406.1 393.2 (3.2%) 29.7 30.4 Gross Income 196.3 208.8 6.4% 14.4 16.1 Operating Income 230.6 197.3 (14.4%) 16.9 15.2 Income before Taxes and Duties 184.9 159.3 (13.8%) 13.5 12.3 Taxes and Duties 218.5 208.3 (4.7%) 16.0 16.1 Net Income (loss) (33.6) (49.0) (45.9%) (2.4) (3.8) EBITDA 2 289.2 265.0 (8.4%) 21.2 20.5 (1) Excludes IEPS. (2) Earnings before interests, taxes, depreciation and amortization. (3) The established exchange rate at June 30, 2013 is of Ps. 13.6530 = U.S.$1.00. 16
17 Ps. MM Total Sales Comparison 2Q13 vs. 2Q12-3.2% 18,660 (32,275) 406,066 700 393,151 2Q12 Domestic Sales Exports Services Income 2Q13
18 Ps. MM Cost of Sales and General Expenses Evolution 2Q12 2Q13 Cost of Sales and General Expenses -8.4% 237,893 (25,494) 5,617 218,016 2Q12 Cost of Sales General Expenses 2Q13
19 Ps. MM Comprehensive Financing Result 2Q13 Composition 2,376 (11,892) 7,368 (38,155) (45,524) 2Q12 Change 2Q13 Financial Income Financial Cost (28,640) Exchange Gain (Loss) (38,155) Comprehensive Financial Result Exchange Rate Pesos / U.S. dollar As of March 31, 2013 12.3546 As of June 30, 2013 12.9502
20 Ps. MM Taxes and Duties 2Q13 vs. 2Q12-4.7% 64,134 22,318 218,507 154,373 208,314 185,996 Total Taxes IEPS accrued Payable Taxes Total Taxes IEPS accrued Payable Taxes 2Q12 2Q13
Ps. MM Net Income Evolution 2Q12-2Q13 19,877 (39,941) (33,579) (12,915) 7,368 10,193 (48,997) 2Q12 Total Sales Cost of Sales and General Expenses Other Revenues 1 CFR Taxes and Duties 2Q13 (1) Includes profit-sharing in non-consolidated subsidiaries, affiliates and others of Ps. 257.2 million. 21
Ps. MM Consolidated Cash Flow as of June 30, 2013 107,640 349,138 (130,299) PMI Revolving lines Corporate Financing 69,103 82,739 122,263 38,537 47,560 (18,123) (87,661) 119,235 (8,388) 106,750 Cash at the Beginning of the Year Revenues from Operations Financing Activities 2 Available Cashflow Debt Payments Interest Paid Investments Taxes Cash at the end of the Period 1 3 2 (1) After taxes. (2) Excludes Financed Public Works Contract Program. (3) Includes change of cash effect of Ps. 2081.7 million. 22
Ps. MM -3.4% 107,640 (130,299) 786,859 69,103 (82,739) (4,115) 130 760,214 114,241 92,598 Consolidated Debt as of June 30, 2013 (106,750) Revolving lines Non-revolving lines Short-Term Long-Term 653,465 667,624 672,618 667,616 Total Debt as of Dec 31, 2012 Financing Activities 1 Debt Payments Exchange Gain Others 2 Total Debt as of June 30, 2013 Cash & Cash Equivalents Net Debt as of June 30, 2013 Net Debt as of Dec 31, 2012 Debt / Sales 0.45 0.49 0.50 0.46 0.47 0.45 0.48 0.46 0.47 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 as of March 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 June 30, 2013 23
24 Highlights 2Q13 Total revenues amounted to Ps. 393.2 billion. Cost of sales decreased by 12.2%. Total hydrocarbons production averaged 3,644 Mboed. Crude oil production averaged 2,516 Mbd. Taxes generated during the period amounted to Ps. 208.3 billion. PEMEX recorded an EBITDA of Ps. 265 billion.
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