PXP Producing (PPP) 8-K Strategic Alternatives Under Consideration

Exhibit 99.2

Pogo Producing Company
Supplemental Information (Unaudited) (1) (2)
	Quarter Ended						Twelve Months Ended
Financial Data	December 31,						December 31,
(Data in $ thousands, except per share amounts)	2006			2005			2006			2005
Revenues:
Oil and gas	$	323,221		$	412,782		$	1,375,361		$	1,216,247
Gain (loss) on property sales	(610		)	(155		)	304,693			72
Other	20,523			6,950			64,977			9,380
Total	343,134			419,577			1,745,031			1,225,699
Operating Expenses:
Lease operating	72,837			60,129			264,785			153,659
General and administrative	30,933			27,101			129,467			87,319
Exploration	17,443			4,409			31,838			26,473
Dry hole and impairment	32,297			28,059			106,571			87,170
Depreciation, depletion and amortization	139,288			106,368			484,647			312,247
Production and other taxes	22,329			20,355			78,361			59,527
Other	33,145			(6,064		)	87,013			(9,079		)
Total	348,272			240,357			1,182,682			717,316
Operating Income	(5,138		)	179,220			562,349			508,383
Interest:
Charges	(42,223		)	(27,762		)	(148,081		)	(68,654		)
Income	261			598			1,752			8,291
Capitalized	21,288			16,045			77,730			23,480
Total Interest Expense	(20,674		)	(11,119		)	(68,599		)	(36,883		)
Loss on Debt Extinguishment	—			—			—			—
Commodity Derivative Income (Expense)	511			5,121			7,263			(13,618		)
Foreign Currency Transaction Gain (Loss)	(2,786		)	70			(1,719		)	71
Income (loss) from continuing operations before income taxes	(28,087		)	173,292			499,294			457,953
Income tax expense (benefit)	(11,566		)	58,613			53,123			167,884
Net Income (loss) from continuing operations	(16,521		)	114,679			446,171			290,069
Income (loss) from discontinued operations, net of tax	—			(179		)	—			460,634
Net income	$	(16,521	)	$	114,500		$	446,171		$	750,703
Basic earnings per share
Income from continuing operations	$	(0.29	)	$	1.98		$	7.74		$	4.80
Income (loss) from discontinued operations	—			—			—			7.63
Basic earnings per share	$	(0.29	)	$	1.98		$	7.74		$	12.43
Diluted earnings per share
Income from continuing operations	$	(0.29	)	$	1.96		$	7.68		$	4.76
Income (loss) from discontinued operations	—			—			—			7.56
Diluted earnings per share	$	(0.29	)	$	1.96		$	7.68		$	12.32
Weighted Average Number of Common Shares
and Potential Common Shares Outstanding:
Basic shares	57,653			57,957			57,611			60,372
Diluted shares	58,250			58,515			58,112			60,924
Discretionary Cash Flow:
Net Income	$	(16,521	)	$	114,500		$	446,171		$	750,703
(Income) loss from discontinued operations, net of tax	—			179			—			(460,634		)
Depreciation, depletion and amortization	139,288			106,368			484,647			312,247
Deferred Taxes	5,276			20,631			(43,184		)	9,110
Dry Hole and Impairment	32,297			28,059			106,571			87,170
Exploration	17,443			4,409			31,838			26,473
(Gain) loss on Property Sales	610			155			(304,693		)	(72		)
Other Noncash	3,668			(20,686		)	6,435			(6,733		)
Discretionary cash flow from continuing operations before changes in assets and liabilities	182,061			253,615			727,785			718,264
Discretionary cash flow from discontinued operations	—			—			—			119,233
Total(3)	$	182,061		$	253,615		$	727,785		$	837,497

(1)Supplemental Information should be read in conjunction with Pogo’s Quarterly Earnings Release.

(2)Results from continuing operations for 2005 exclude activities from Thailand and Hungary.

(3)In the 4th Quarter of 2006, the Company adjusted its treatment of interest capitalized in the statement of cash flows.  The  Company now reflects interest capitalized as an investing cash outflow rather than as the operating cash outflow.  Prior year amounts have not been reclassified due to the immateriality of the adjustment.