Y
Exhibit 99.1 N
A P M O C N
O w w w . p l a i n s x p . c o m I
T C U D O R P & N O I
T
A September 2004
R O L P
X CEO Energy/Power Conference E Lehman Brothers Eighteenth Annual
S N I
A L
P N Y S E : P X P
factors risks and
Except for the historical information contained herein, the matters discussed in assumptions and known and unknown risks, uncertainties and other These 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. Forward Looking Statements this presentation are forward-looking statements that involve certain that could cause our actual results to differ materially.
TODAY
Nuevo Acquisition 2004 3TEC Acquisition 2003 History PXP Spinoff 2002
Develop large, durable U.S. reserve base with a substantial exploitation inventory to grow production and reserves Leverage existing infrastructure to reduce unit costs Utilize financial flexibility and consolidation capabilities to create shareholder value
Value Creation Strategy
77-84 Guidance 2H 2004
58 2Q 2004
34 2003
Gas
Total Production(MBOEPD) 26 2002
Oil
450 2004 PRO FORMA
280 2003
Reserve and Production Growth SEC Reserves(MMBOE) 253 2002
Qtr rd
3
Qtr nd
2
Qtr
st 2004
1
Qtr th
4
Qtr rd
3
Qtr nd
2
Qtr
CAGR = 48% st 2003
1
Stock Price Performance $25 20 15 10 5 0
Operational synergies Cost savings Accounting integration Debt refinancing 100% Deep Inglewood 100% San Joaquin Valley 100% East Texas 65% Breton Sound
Record production and cash flow Nuevo integration better than expected – – – – Drilled 85 wells with 95% Success – – – –
2004 Year-to-Date
4 MMBOE South LA East Texas 51 MMBOE South Texas West Texas
.
.
Operating Areas 395 MMBOE San Joaquin Valley L.A. Basin Western Business Unit Central Business Unit Eastern Business Unit
OCS
90 60 30 0
4th qtr Guidance
3rd qtr 2nd qtr 1st qtr 2004 4th qtr 3rd qtr 2nd qtr 1st qtr 2003 4th qtr 2002
Western Business UnitNet Equivalent Daily Production Bbls – 000s 90 60 30 0
• Poso Vista Sunset Beach Mount Buena Belmont Beta Junction Midway Clara Hueneme Huntington Cymric Belridge Santa So. Monument Vicente, Montebello San
• Unit & &
• Inglewood, Packard Cuadras Cuadras Point Dos Dos Pitas Carpinteria
• Business E.
• Grande Arguello Areas Pedernales .
• Pt.
• WesternOperating Arroyo Pt.
Inglewood
Los Angeles Basin
E -1000 -2000 - -3000 -4000 5000 -6000 -7000 -8000 -9000
DI-1 IP 800 BOEPD
1900 feet
DI-7 IP 400 BOEPD
W
Inglewood FieldWest to East Structural Cross Section Existing Proved Un- Developed Add to Proved Developed, Non Producing Add to Proved Developed, Producing Vickers Rindge Rubel Moynier Bradna Nod Shale Sentous
Initial Completion slotted liner
Sentous Sentous frac Sentous frac Sentous frac Sentous frac Sentous frac Sentous frac Moynier frac Moynier frac Moynier frac Initial Test BOEPD 800 400 Completing Completing Completing Drilling Drilling 108 42 91 Deep InglewoodSummary Wells Well Sentous DI-1 DI-7 DI-4 DI-6 DI-8 DI-9 DI-10 Moynier DI-2 DI-3 DI-5
8/20/04 7/21/04 6/21/04 5/22/04 4/22/04 3/23/04
1000 900 800 700 600 500 400 300 200 100 0 2/22/04
Deep Inglewood Production (8/8ths) BOEPD
20
18 - $1.6 Million 250 BOEPD 400,000 BOE 70%
Basis ths 2004 Planned Wells Avg. Well Cost Avg. Reserves
Deep InglewoodIndicative Returns 8/8 Avg. Production IP Avg. Pre Tax IRR Note: Projected results. Based on flat reference prices of $25/Bbl NYMEX WTI and $4.50/MMBTU Henry Hub
Mount Poso Buena Vista Midway Sunset Cymric So. Belridge Monument Junction
Western Business UnitSan Joaquin Valley Arroyo Grande
Western Business UnitSan Joaquin Valley
54
50 - $0.4 Million 75 BOEPD 100,000 BOE 40%
Basis ths 2004 Planned Wells Avg. Well Cost Avg. Production IP
San Joaquin ValleyIndicative Returns 8/8 Avg. Reserves Avg. Pre Tax IRR Note: Projected results. Based on flat reference prices of $25/Bbl NYMEX WTI and $4.50/MMBTU Henry Hub
Western Business UnitPoint Arguello Pt. Arguello .
Wells
Block 451 1,629 BOPD 3,500 BOPD Block 451 Test Wells Test1,629 BOPD 3,500 BOPD 1,100 BOPD 1,100 BOPD
Rocky Pt. Structure
Planned Rocky Pt. Wells
Rocky Point Project Nuevo OCS P-0449 Arguello 3D Survey Area
NE 5000’ 6000’ 7000’
- 7 - -
A 1
P
)
9
A 1
P 0 TMD TVD
A 2 1
7 P
A 2 ‘ ‘
A 1 P
P O/W contact Target B (TD 18,891 7,233
00018
B
02 12A
AP P O/W contact
0007 1
A yer et no
M
N79. (grid) From Platform Hidalgo poT
TMD TVD
‘ ‘
17,391 5,953
0006
1 Target A (Top PA17)
9 1
A
P
17 A
P
) c o u q s
0 i S 0051 r e w o L
(
Rocky Point Project Well C-12 SW
2 $14.0 Million 3,000 BOEPD 2,700,000 BOE 100+%
Returns Basis
ths 2004 Planned Wells Avg. Well Cost Avg. Production IP Avg. Pre Tax IRR
Rocky Point ProjectIndicative 8/8 Avg. Reserves Note: Projected results. Based on flat reference prices of $25/Bbl NYMEX WTI and $4.50/MMBTU Henry Hub
90 60 30 0
4th qtr Guidance
3rd qtr 2nd qtr 1st qtr 2004
4th qtr Central Business Unit
3rd qtr 2nd qtr
1st qtr 2003 Western Business Unit
4th qtr 2002
Central Business UnitNet Equivalent Daily Production Bbls – 000s 90 60 30 0
Beckville/Carthage Panola County, Texas LOUISIANA
Rosewood Upshur County, Texas Operated by PXP Operated by Others
TEXAS
Decker Switch Houston County, Texas Operating Areas Glenwood/White Oak Gregg & Upshur Counties, Texas &
Central Business Unit East Texas
Cotton Valley
9000’ 11,000’
Constant Production 36 MMCFEPD Multi-Year Inventory
East Texas
38
35 - $1.0 Million 800 MCFEPD 0.8 BCFE 30%
Basis ths 2004 Planned Wells Avg. Well Cost Avg. Production IP Avg. Reserves Avg. Pre Tax IRR
East TexasIndicative Returns 8/8 Note: Projected results. Based on flat reference prices of $25/Bbl NYMEX WTI and $4.50/MMBTU Henry Hub
LOUISIANA Operated by PXP
TEXAS
Central Business UnitWest Texas Operating Area Pakenham Area Terrell County
Pakenham Area
29
Testing (1)
Completed Gas Well - Locations (7) Pakenham AreaWolfcamp A3 Structure Map 2004 2004 Budget Well Locations(2) 2005 Planned
10 30% 6 - $1.5 Million 1,200 MCFEPD 1.6 BCFE
rea
Basis ths 2004 Planned Wells Avg. Production IP Avg. Reserves Avg. Pre Tax IRR
Pakenham A Indicative Returns 8/8 Avg. Well Cost Note: Projected results. Based on flat reference prices of $25/Bbl NYMEX WTI and $4.50/MMBTU Henry Hub
90 60 30 0
4th qtr Guidance
3rd qtr Eastern Business Unit
2nd qtr 1st qtr 2004
4th qtr Central Business Unit
3rd qtr 2nd qtr
1st qtr 2003 Western Business Unit
4th qtr 2002
Eastern Business UnitNet Equivalent Daily Production Bbls – 000s 90 60 30 0
Black Bullet Hustler West BSE-E Twin Otter Avenger Prowler Catalina Auriga Perseus SkyRaider Deep Treasure Bay East Beta
Treasure Bay Polaris Alpha Aquarius PXP Prospects BSE Breckenridge Zeus BSA Draco
Aquila PXP Discoveries
Fiesta
BSE-W
Eastern Business UnitBreton Sound Area New Orleans
20
15 - $2.7 Million 5,000 MCFEPD 3.6 BCFE 100+%
Basis ths 2004 Planned Wells Avg. Well Cost Avg. Production IP Avg. Reserves Avg. Pre Tax IRR
Breton Sound AreaIndicative Returns 8/8 Note: Projected results. Based on flat reference prices of $25/Bbl NYMEX WTI and $4.50/MMBTU Henry Hub
Deep Inglewood Point Arguello San Joaquin Valley East Texas West Texas Breton Sound
Western Business Unit—-—Central Business Unit—- Eastern Business Unit -
Operational Value Drivers
Large durable reserve base with 16 year R/P Multi-year inventory of high impact, low risk exploitation drilling opportunities Improved financial flexibility
Positioned for the Future
Outlook Positioned for continued strong reserve, production and cash flow growth in 2005 and 2006
Y N A P M O C N
O w w w . p l a i n s x p . c o m I
T C U D O R P & N O I
T A R O L P X E
S N I
A L
P N Y S E : P X P