Plains Exploration & Production 8K Regulation FD Disclosure | SEC 2 Apr 07

Plains Exploration & Production Company

PXP

Howard Weil

35th Annual Energy Conference

April 2007

PXP

Corporate Headquarters

Contacts

Plains Exploration & Production Company

700 Milam, Suite 3100

Houston, Texas 77002

Forward Looking Statements

This presentation is not for reproduction or distribution to others without PXP’s consent.

James C. Flores - Chairman, President & CEO

Winston M. Talbert – Exec. Vice President & CFO

Scott Winters – Vice President Investor Relations

Joanna Pankey - Investor Relations Analyst

Phone: 713-579-6000
Toll Free: 800-934-6083
Email: investor@pxp.com

Web Site: www.pxp.com

Corporate Information

Except for the historical information contained herein, the matters discussed in this presentation are “forward-looking statements” as defined by the Securities and Exchange Commission. These statements involve certain assumptions PXP made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances.

The forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially. These risks and uncertainties include, among other things, uncertainties inherent in the exploration for and development and production of oil & gas and in estimating reserves, unexpected future capital expenditures, general economic conditions, oil and gas price volatility, the success of our risk management activities, competition, regulatory
changes and other factors discussed in PXP’s filings with the Securities and Exchange Commission.

PXP

PXP Today

Large continuous low-risk development program

Significant 2007 exploration potential

Large 2008+ exploration inventory

Strong balance sheet

Downside commodity price protection

PXP

Reserves

506 MMBOE 3P NSAI reserves 12/31/06

30% probable / possible reserves

95% crude oil reserves

99% California

17 year proved R/P

Operations

Development

–

San Joaquin Valley, CA

–

Arroyo Grande, CA

–

Los Angeles Basin, CA

–

Offshore, CA

Exploration

–

2007: 10 drills, 2 discoveries, 500± MMBOE net total potential

–

2008: large exploration inventory

Operations Overview

PXP

325 MMBOE proved

reserves

143 MMBOE

probable / possible

2,500+ future well

locations

24 yr R/P

Los Angeles

Basin

San Joaquin

Valley

Arroyo

Grande

Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

Development – Onshore California

PXP

200 MMBOE proved reserves

95 MMBOE probable / possible reserves

23,100 net BOEPD sales volumes (4Q’06 avg.)

2,000+ estimated future well locations

Steamflood and horizontal-well developments

Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

Development - Onshore California

San Joaquin Valley/Arroyo Grande

PXP

125 MMBOE proved reserves

48 MMBOE probable / possible reserves

14,100 net BOEPD sales volumes (4Q’06 avg.)

500+ estimated future well locations

Waterflood developments

Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

Development - Onshore California

Los Angeles Basin

PXP

Development / Exploration

Offshore California

25 MMBOE proved reserves

10 MMBOE probable / possible reserves

13,500 net BOEPD sales volumes (4Q’06 avg.)

Continue T-Ridge permitting

process

Pt. Pedernales Unit

T- Ridge

Prospect Area

Pt. Arguello Unit

Rocky Point

Unit

Permits required for development

T-Ridge lease permit filed

California

Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

PXP

Exploration

California land value

Acquisitions

Meaningful

value growth

per share

GROWTH

Today Future

Legacy California oil fields

Substantial

cash flow

per share

DEVELOP

Operating Strategy to Increase Value

PXP

506

MMBOE

3P reserves⁽¹⁾

Legacy California oil fields

(1) Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

2007 Resource Potential Net to PXP

PXP

500±

MMBOE

net total

potential

Legacy California oil fields

Exploration

Friesian discovery

Hurricane Deep discovery

2007: 10 drills

506

MMBOE

3P reserves⁽¹⁾

(1) Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

2007 Resource Potential Net to PXP

PXP

Productive Exploration

Exploration

Estimated SPUD Date

PXP

Prospects

Discoveries

Friesian

Big Foot

New Orleans

Caesar

Breton

Sound

Discoveries Sold

Drilling 2007

Hurricane Deep

Flatrock

Mound Point

South

Cas

Cottonwood

Point

Cavallo Deep

20+ Prospect inventory beyond current 2007 drills

Exploration History & Current Status

Gulf of Mexico

PXP

$648

$446

$600±

Includes exploration, exploitation, development and unproved property acquisition costs.

Excludes other property acquisitions.

($Millions)

2005 – 2007 Capital Investments

PXP

58,000

52,000

BOEPD

3% CAGR

from

Core asset

development

10% CAGR

with

2007 Risked

exploration
success

Volume Growth Potential from

2007 Risked Exploration Success

PXP

Financial

Develop

–

Legacy oil fields

Grow

–

Exploration

–

California land value

–

Acquisitions

Operating

Operating & Financial Strategies

Capital discipline

Strong balance sheet

$55 put options

$500 million notes

$750 million revolver

PXP

(1) Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

506

MMBOE

3P reserves⁽¹⁾

$4 Billion

Current

Enterprise Value

Valuation

PXP

(1) Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

506

MMBOE

3P reserves⁽¹⁾

$4 Billion

Current

Enterprise Value

2007

Exploration

500

MMBOE

net total potential

Valuation

PXP

$4 Billion

Current

Enterprise Value

2008

Exploration

prospect

inventory

& real estate

506

MMBOE

3P reserves⁽¹⁾

(1) Reserves: As of 12/31/06, independently engineered by Netherland, Sewell & Associates, Inc.

2007

Exploration

500

MMBOE

net total potential

Valuation

PXP

Accelerate PXP’s Per Share Growth

Strong discretionary cash flow

Production & reserve growth potential

Share repurchases

Value Drivers to..

Plains Exploration & Production Company

PXP

Howard Weil

35th Annual Energy Conference

April 2007

Plains Exploration & Production Inactive 8-KRegulation FD Disclosure