Attached files
| file | filename |
|---|---|
| EX-99.1 - PLAINS EXPLORATION & PRODUCTION COMPANY PRESS RELEASE - PLAINS EXPLORATION & PRODUCTION CO | d246912dex991.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 4, 2011
PLAINS EXPLORATION & PRODUCTION COMPANY
(Exact name of registrant as specified in charter)
| Delaware | 33-0430755 | |||
| (State of Incorporation) | (I.R.S. Employer Identification No.) |
001-31470
(Commission File No.)
700 Milam, Suite 3100
Houston, Texas 77002
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: (713) 579-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition |
| Item 7.01 | Regulation FD Disclosure |
On November 4, 2011, Plains Exploration & Production Company (“PXP”) issued a press release announcing third quarter 2011 results. The press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein. In connection with such release, PXP has prepared investor slides, which will be available on our website at www.pxp.com under Investor Relations.
In addition, pursuant to Item 7.01, PXP is furnishing its operating guidance for the year ended December 31, 2012.
The information presented herein under Item 2.02 and Item 7.01 shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such a filing.
Statement Regarding Forward-Looking Statements
This Report on Form 8-K includes forward-looking information regarding PXP that is intended to be covered by the safe harbor “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “will”, “would”, “should”, “plans”, “likely”, “expects”, “anticipates”, “intends”, “believes”, “estimates”, “thinks”, “may”, and similar expressions, are forward-looking statements. Although we believe that our expectations are based on reasonable assumptions, there are risks, uncertainties and other factors that could cause actual results to be materially different from those in the forward-looking statements. These factors include, among other things:
| * | completion of proposed asset sales; |
| * | completion of the deepwater financing; |
| * | reserve and production estimates; |
| * | oil and gas prices; |
| * | the impact of derivative positions; |
| * | production expense estimates; |
| * | cash flow estimates; |
| * | future financial performance; |
| * | capital and credit market conditions; |
| * | planned capital expenditures; and |
| * | other matters that are discussed in PXP’s filings with the SEC. |
These statements are based on our current expectations and projections about future events and involve known and unknown risks, uncertainties, and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K for the year ended December 31, 2010, for a discussion of these risks.
All forward-looking statements in this report are made as of the date hereof, and you should not place undue reliance on these statements without also considering the risks and uncertainties associated with these statements and our business that are discussed in this report and our other filings with the SEC. Moreover, although we believe the expectations reflected in the forward-looking statements are based upon reasonable assumptions, we can give no assurance that we will attain these expectations or that any deviations will not be material. Except for any obligation to disclose material information under the Federal securities laws, we do not intend to update these forward-looking statements and information.
Disclosure of Full Year 2012 Estimates
The following table and accompanying notes reflect current estimates of certain results for the full year 2012 for PXP. These estimates are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and our future performance are both subject to a wide range of business risks and uncertainties and there is no assurance that these goals and estimates can or will be met. Any number of factors could cause actual results to differ materially from those in the following table and accompanying notes, including but not limited to the factors discussed above. The estimates set forth below are given as of the date hereof only based on information available as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in our filings with the SEC, and we encourage you to review these filings.
Plains Exploration & Production Company
Full-Year 2012 Operating Guidance
| Year Ended December 31, 2012 | ||
| Production Volumes (MBOE/day) |
||
| Total Production volumes sold |
92 – 96 | |
| Oil |
50% | |
| NGLs |
5% | |
| Natural Gas |
45% | |
| Product Price Realization (Unhedged) |
||
| Oil - Brent |
98% – 102% | |
| Oil - Transportation Expense |
$5.00 | |
| NGLs - WTI |
49% | |
| Gas - Henry Hub |
100% | |
| Gas - Transportation Expense |
$0.15 | |
| Production Costs per BOE |
||
| Lease operating expense |
$9.20 – $9.90 | |
| Steam gas costs (1) |
$1.65 – $2.15 | |
| Electricity |
$0.95 – $1.25 | |
| Production and ad valorem taxes (2) |
$1.90 – $2.10 | |
| Gathering and transportation |
$1.50 – $2.00 | |
| Capital Expenditures (millions)(3) |
||
| PXP |
$1,366 | |
| Gulf of Mexico - Plains Offshore Operations Inc. |
234 | |
|
| ||
| Total |
$1,600 | |
|
| ||
| (1) | Steam gas costs assume a base SoCal Border index price of $3.84 per MMBtu. The purchased volumes are anticipated to be 43,000 - 45,000 MMBtu per day. |
| (2) | Production and ad valorem taxes assume base index prices of $110.00 per barrel and $4.00 per MMBtu. (Note: Brent index price for Oil) |
| (3) | Includes capitalized interest and general and administrative expenses. |
Item 9.01 Financial Statements and Exhibits
| (d) Exhibit 99.1 | Plains Exploration & Production Company press release dated November 4, 2011. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PLAINS EXPLORATION & PRODUCTION COMPANY | ||||||
| Date: November 4, 2011 | /s/ Nancy I. Williams | |||||
| Nancy I. Williams | ||||||
| Vice President—Accounting, Controller and Chief Accounting Officer | ||||||
EXHIBIT INDEX
| Exhibit 99.1 | Plains Exploration & Production Company press release dated November 4, 2011. |