Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

PXP Announces Third Quarter Results, Including

A Surge in Oil Revenue,

Record Oil Sales Volumes, and

Improved Crude Oil Realized Pricing

Houston, Texas, November 1, 2012- Plains Exploration & Production Company (NYSE:PXP) (“PXP” or the “Company”) announces 2012 third-quarter financial and operating results.

THIRD-QUARTER HIGHLIGHTS

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FINANCIAL SUMMARY

PXP reported third-quarter revenues of $605.1 million and a net loss attributable to common stockholders of $53.1 million, or $0.41 per diluted share, compared to revenues of $501.8 million and a net loss of $88.3 million, or $0.62 per diluted share, for the third-quarter 2011. The third-quarter net income attributable to common stockholders includes certain items affecting the comparability of operating results. Those items consist of realized and unrealized gains and losses on our mark-to-market derivative contracts resulting in a net loss of $100.2 million due in large part to increased crude oil forward prices, a $43.1 million unrealized loss on investment in McMoRan Exploration Co. (“McMoRan”) common stock, and other items. When considering these items, PXP reports net income attributable to common stockholders of $51.6 million, or $0.39 per diluted share (a non-GAAP measure).

For the first nine months of 2012, PXP reports revenues of $1.7 billion and net income attributable to common stockholders of $87.8 million, or $0.67 per diluted share, compared to revenues of $1.4 billion and net income of $107.6 million, or $0.75 per diluted share, for the same period in 2011. These results include certain items affecting comparability of operating results. These items consist of realized and unrealized gains and losses on our mark-to-market derivative contracts, an unrealized loss on investment in McMoRan common stock, and other items. When considering these items, net income attributable to common stockholders for the first nine months of 2012 was $174.3 million, or $1.32 per diluted share (a non-GAAP measure), compared to $194.5 million, or $1.36 per diluted share, for the same period in 2011.

A reconciliation of non-GAAP financial measures used in this release to comparable GAAP financial measures is included with the financial tables.

OPERATIONAL SUMMARY

PXP’s 2012 third-quarter daily sales volumes averaged 105.6 thousand BOE per day, a 10% increase per diluted share and a 36% increase per diluted share pro forma for the December 2011 asset sales compared to third-quarter 2011.

Crude oil sales volumes averaged 58.7 thousand barrels per day, compared to third-quarter 2011 average volumes of 45.2 thousand barrels per day. The healthy volume growth is driven primarily by a strong performance in the Eagle Ford Shale and steady, consistent performance in California.

Natural gas liquids sales volumes averaged 4.8 thousand barrels per day, compared to third-quarter 2011 average volumes of 5.6 thousand barrels per day reflecting the impact of the South Texas and Texas Panhandle asset sales in December 2011.

Natural gas sales volumes averaged 252.0 million cubic feet (“MMcf”) per day compared to 321.3 MMcf per day in the third-quarter 2011. Lower volumes reflect the impact of the December 2011 asset sales and lower drilling activity in the Haynesville Shale, partially offset by increased production from the Eagle Ford Shale.

In the Eagle Ford Shale, third-quarter daily sales volumes averaged 30.4 thousand BOE per day net to PXP compared to third-quarter 2011 average daily sales volumes of 5.2 thousand BOE per day net to PXP. At the end of October, PXP had 7.1 net drilling rigs operating on its acreage and 35 wells drilled but waiting on completion or connection to pipelines. PXP expects to exit the year between 32 – 36 thousand BOE per day net to PXP.

In California, third-quarter daily sales volumes averaged 38.1 thousand BOE per day net to PXP compared to the third-quarter 2011 daily sales volume average of 39.7 thousand BOE per day net to PXP. PXP expects to exit the year between 38 – 39 thousand BOE per day net to PXP.

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In the Haynesville Shale, third-quarter daily sales volumes averaged 190.4 MMcf per day net to PXP compared to third-quarter 2011 average daily sales volumes of 201.3 MMcf per day net to PXP. The sales volume decline reflects significantly lower drilling activity during the quarter. At the end of October, there were no drilling rigs operating in which PXP had a working interest. PXP expects to exit the year between 142 – 146 MMcf per day net to PXP.

CAPITAL SPENDING UPDATE

For the third-quarter of 2012, PXP had cash expenditures of approximately $564.1 million for additions to oil and gas properties and $6.2 million for leasehold acquisitions. Of the $570.3 million total, $78.3 million was funded by Plains Offshore Operations Inc., PXP’s consolidated subsidiary. PXP’s third-quarter net cash provided by operating activities was $415.6 million.

For the nine months ended September, PXP had cash expenditures of approximately $1.4 billion for additions to oil and gas properties and leasehold acquisitions. Of the $1.4 billion total, $168.5 million was funded by Plains Offshore Operations Inc. PXP’s net cash provided by operating activities and proceeds from sales of oil and gas properties during this period were $1.1 billion.

For the full-year of 2012, PXP’s total capital spending is expected to be approximately $2.0 billion of which approximately $180 million is funded by Plains Offshore Operations Inc. The increase in PXP’s capital spending over its base plan is attributed to oil & gas capital and seismic data acquisition capital for development and drilling activities of the Gulf of Mexico deepwater assets to be acquired and to accelerated development activity in the Eagle Ford Shale. Higher spending in the Eagle Ford Shale is leading to an approximate 78% increase in wells drilled and a 25% increase in average daily sales volumes over the 2012 base plan. PXP’s 2013 capital spending is expected to be approximately $2.0 billion, including capitalized interest and general and administrative costs.

FULL-YEAR 2012 SALES VOLUMES UPDATE

PXP expects full-year 2012 average sales volumes, excluding sales volumes associated with the Gulf of Mexico acquisition, to be slightly above the revised guidance range of 95 – 97 thousand BOE per day. PXP revised its sales volume guidance in August 2012 from original guidance of 92 – 96 thousand BOE due to anticipated sales volume increases at the Eagle Ford Shale. Including one month of sales volumes associated with the Gulf of Mexico acquisition, PXP now anticipates full-year 2012 sales volumes to be approximately 103 thousand BOE per day.

COMMODITY PRICES

During the third-quarter of 2012, Brent crude oil price averaged $109.37 per barrel compared to $112.01 per barrel in the third-quarter 2011. PXP’s 2012 third-quarter crude oil average realized price per barrel before derivative transactions was $96.74 per barrel, or approximately 88% of Brent, compared to $84.53 per barrel in the third-quarter 2011, or approximately 75% of Brent. Including the impact of derivative transactions, the third-quarter 2012 crude oil average realized price was $96.74 per barrel, or approximately 88% of Brent, compared to $81.00 per barrel in the third-quarter 2011, or 72% of Brent.

During the third-quarter of 2012, the oil/liquids average realized price per barrel before derivative transactions, which includes 4.8 thousand BOE per day net to PXP of natural gas liquids, was $92.44 per barrel, or approximately 85% of Brent, compared to $80.96 per barrel in the third-quarter 2011, or 72% of Brent. Including the impact of derivative transactions, the average realized price in the third-quarter 2012 was $92.44 per barrel, or 85% of Brent, compared to $77.83 per barrel in the third-quarter 2011, or 69% of Brent.

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During the third-quarter of 2012, NYMEX gas price averaged $2.82 per million British thermal units (“MMBtu”) compared to $4.20 per MMBtu in the third-quarter 2011. PXP’s 2012 third-quarter natural gas average realized price before derivative transactions was $2.70 per MMBtu, or approximately 96% of NYMEX, compared to $4.10 per MMBtu in the third-quarter 2011, or 98% of NYMEX. Including the impact of derivative transactions, the average realized price in the third-quarter 2012 was $3.33 per MMBtu, or approximately 118% of NYMEX, compared to $4.11 per MMBtu in the third-quarter 2011, or 98% of NYMEX.

ACQUISITION FINANCING UPDATE

PXP successfully secured $8.0 billion dollars in total debt financing for the $6.11 billion Gulf of Mexico acquisition at a weighted average cost of debt of 4.8% as of October 29, 2012. The Company remains on track to close the acquisition by the end of November 2012.

In early October, PXP successfully syndicated $7.0 billion of committed financing to a group of banks and institutional lenders. The $7.0 billion of committed financing will be comprised of an amended and restated credit facility with a $5.3 billion borrowing base, which consists of (i) a $3.0 billion senior secured five-year revolving credit facility, (ii) a $750.0 million senior secured five-year term loan and (iii) a $1.25 billion senior secured seven-year term loan, as well as a $2.0 billion senior unsecured bridge facility.

At the end of October, PXP completed a public offering of $3.0 billion of senior notes, consisting of $1.5 billion in aggregate principal amount of Senior Notes due 2020, issued at par, and $1.5 billion in aggregate principal amount of Senior Notes due 2023, issued at par. This replaced the $2.0 billion senior unsecured bridge facility and lowered the borrowing base under the amended and restated credit facility by $125 million.

DERIVATIVE UPDATE

PXP continues to implement its crude oil hedging program and is well underway in achieving its stated goal to protect up to 90% of expected crude oil sales volumes in 2013, 2014 and 2015. Approximately 90% of expected 2013 and 2014 sales volumes are protected by put option spread contracts, swaps or three-way collars. In 2015, PXP has approximately 47% of expected sales volumes covered by put option spread contracts and continues to target up to 90% of anticipated oil sales volumes. A detailed list of PXP’s current derivative positions is included at the end of this release.

MANAGEMENT COMMENT

James C. Flores, Chairman, President and CEO of PXP commented, “The fundamentals of our business are healthy as evidenced by strong third-quarter growth in total revenue, cash flow provided by operating activities, cash margin per BOE and production per diluted share compared to the same period a year ago. Our high-margin, fast growing onshore oil business will soon be complimented by the substantial addition of high-margin offshore Gulf of Mexico deepwater properties with current production and substantial future development inventory. With long-term financing in place, our attention is laser focused on closing the transaction, completing our stated hedging program objectives, transitioning to the new long-term operational plan and reducing long-term debt. This strategic initiative transforms PXP into a large capitalization exploration and production company with a business model dominated by a portfolio of onshore and offshore oil assets capable of doubling pro forma oil production by 2020 while generating substantial cash flow provided by operating activities in excess of capital investment to meet debt reduction targets.”

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CONFERENCE CALL

PXP will host a conference call today, Thursday, November 1 at 8:00 a.m. Central time. Investors wishing to participate in the conference call may dial 1-800-567-9836 or 1-973-935-8460. The conference call and replay ID is 36633286. The replay can be accessed by dialing 1-855-859-2056 or 1-404-537-3406. A live webcast of the conference call will be available in the Investor Information section of PXP’s website at www.pxp.com.

PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana, and the Gulf of Mexico. PXP is headquartered in Houston, Texas.

ADDITIONAL INFORMATION & FORWARD-LOOKING STATEMENTS

This press release contains forward-looking information regarding PXP that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that PXP expects, believes or anticipates will or may occur in the future are forward-looking statements.

These include statements regarding:

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 and Forms 10-Q, for a discussion of these risks.

References to quantities of oil or natural gas may include amounts that the Company believes will ultimately be produced, but that are not yet classified as “proved reserves” under SEC definitions. References in this press release to oil revenue and oil sales volumes include natural gas liquid volumes.

All forward-looking statements in this press release 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 press release 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 as required by law, we do not intend to update these forward-looking statements and information.

Contact: Hance Myers: hmyers@pxp.com; 713.579.6291

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Plains Exploration & Production Company

Consolidated Statements of Income

(in thousands, except per share data)

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Plains Exploration & Production Company

Operating Data

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Plains Exploration & Production Company

Reconciliation of GAAP to Non-GAAP Measure

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Plains Exploration & Production Company

Consolidated Statements of Cash Flows

(in thousands of dollars)

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Plains Exploration & Production Company

Consolidated Balance Sheets

(in thousands of dollars)

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Plains Exploration & Production Company

Summary of Open Derivative Positions

At October 19, 2012

Derivative Settlements

(in thousands of dollars)

The following tables reflect cash receipts (payments) for derivatives attributable to the stated production periods.

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Plains Exploration & Production Company

Reconciliation of GAAP to Non-GAAP Measure

The following tables reconcile net income (loss) (GAAP) to adjusted net income and adjusted net income attributable to common stockholders (non-GAAP) for the three and nine months ended September 30, 2012 and 2011. Adjusted net income and adjusted net income attributable to common stockholders exclude certain items affecting the comparability of operating results and the related tax effects. Management believes this presentation may be helpful to investors. PXP management uses this information to analyze operating trends and for comparative purposes within the industry. This measure is not intended to replace the GAAP statistic but rather to provide additional information that may be helpful in evaluating the Company’s operational trends and performance.

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Plains Exploration & Production Company

Reconciliation of GAAP to Non-GAAP Measure

The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Operating Cash Flow (non-GAAP) for the three and nine months ended September 30, 2012 and 2011. Management believes this presentation may be useful to investors. PXP management uses this information for comparative purposes within the industry and as a means of measuring the Company’s ability to fund capital expenditures and service debt. This measure is not intended to replace the GAAP statistic but rather to provide additional information that may be helpful in evaluating the Company’s operational trends and performance.

Operating cash flow is calculated by adjusting net income to add back certain non-cash and non-operating items, including debt extinguishment costs, the unrealized gain and loss on mark-to-market derivative contracts, to include derivative cash settlements for the realized gain and loss on mark-to-market derivative contracts that are classified as investing activities for GAAP purposes, to exclude the unrealized gain and loss on the investment measured at fair value, to include distributions to holders of noncontrolling interest in the form of preferred stock of subsidiary that are classified as financing activities for GAAP purposes and to exclude certain other items.