Plains Exploration & Production Syndicates $7B Financing

Plains Exploration & Production Company

provides updates on 2012 third-quarter preliminary production estimates and on initial financing of the previously announced Gulf of Mexico acquisition. PRODUCTION UPDATE PXP's 2012 third-quarter preliminary daily sales volumes averaged approximately 105 thousand barrels of oil equivalent per day. Estimated third-quarter average daily oil/liquids sales volumes increased approximately 5% compared to second-quarter 2012 and represented approximately 60% of total quarterly sales volumes. ACQUISITION FINANCING UPDATE PXP has successfully syndicated $7.0 billion of committed financing to a group of banks and institutional lenders for the $6.11 billion proposed acquisition. The $7.0 billion of committed financing will be comprised of a $3.0 billion senior secured five-year revolving credit facility, a $750.0 million senior secured five-year term loan, a $1.25 billion senior secured seven-year term loan and a $2.0 billion senior unsecured bridge facility. The new senior secured credit facilities of $5.0 billion will be governed by a borrowing base initially set at $5.3 billion. The pricing and terms of the credit facilities are consistent with what was originally offered, with pricing on the seven-year term loan being flexed tighter as a result of strong demand. The pricing on the revolving credit facility is the same as PXP's existing facility except there is a 0.25% increase while either the five-year or seven-year term loans are outstanding. The five-year term loans bear interest at a rate per year of Eurodollar Rate plus 3.00%. The seven-year term loans originally were to bear interest at a rate per year of Eurodollar Rate plus 3.25%-3.50%, which we expect to tighten given demand, with a minimum Eurodollar Rate of 1.00%. The financing is subject to the execution of satisfactory definitive documentation and other customary closing conditions.  Winston M. Talbert, Executive Vice President and Chief Financial Officer of PXP commented, "PXP is pleased with the overwhelming response to the Company's Gulf of Mexico acquisition financing plan. The plan is supported by the strong oil production profile from the Gulf of Mexico assets and underpinned by our growing onshore oil business. As previously reported we are well underway on our hedging program and have now completed the bank and term loan facilities syndication process to facilitate the closing of the Gulf of Mexico acquisition in the fourth quarter."