Segment Financial Information | SEGMENT FINANCIAL INFORMATION PEMEX’s primary business is the exploration and production of crude oil and natural gas, as well as the production, processing, marketing and distribution of petroleum and petrochemical products. As of September 30, 2022 and 2021, PEMEX’s operations were conducted through seven and six business segments, respectively: Exploration and Production, Industrial Transformation, Logistics, DPRLP (beginning January 20, 2022), the Trading Companies, Corporate and Other operating Subsidiary Companies. Due to PEMEX’s structure, there are significant amounts of inter-segment sales among the reporting segments, which are made at market prices. The primary sources of revenue for PEMEX’s business segments are as described below: • The exploration and production segment earns revenues from domestic sales of crude oil and natural gas, and from exporting crude oil through certain of the Trading Companies. Crude oil export sales are made through the agent subsidiary company PMI CIM, to 17 major customers in various foreign markets. Approximately half of PEMEX’s crude oil is sold to Pemex Industrial Transformation. Additionally, it receives income from drilling services, and servicing and repairing wells. • The industrial transformation segment earns revenues from sales of refined petroleum products and derivatives, mainly to third parties within the domestic market. This segment also sells a significant portion of the fuel oil it produces to the Comisión Federal de Electricidad (Federal Eletricity Commission, or “CFE”) and a significant portion of jet fuel produced to the Aeropuertos y Servicios Auxiliares (Airports and Auxiliary Services Agency). The refining segment’s most important products are different types of gasoline and diesel. The industrial transformation segment also earns revenues from domestic sources generated by sales of natural gas, liquefied petroleum gas, naphtha, butane and ethane and certain other petrochemicals such as methane derivatives, ethane derivatives, aromatics, ammonia, fertilizers and its derivatives. • The logistics segment earns income from transportation and storage of crude oil, petroleum products and petrochemicals, as well as related services, which it provides by employing pipelines and offshore and onshore resources, and from providing services related to the maintenance, handling, guarding and management of these products. • Beginning on January 20, 2022, the Deer Park segment includes the operations of DPRLP, whose operating results and performance are reviewed currently and regularly as a separate business by PEMEX’s Board of Directors. DPRLP earns revenues from sales of distillates and gasoline in the U.S. market. • The trading companies segment, which consist of PMI CIM, PMI NASA, PMI Trading and MGAS (the “Trading Companies”), earns revenues from trading crude oil, natural gas and petroleum and petrochemical products in international markets. • The segment related to corporate provides administrative, financing and consulting services to PEMEX’s subsidiary entities and companies. • The segment related to the Subsidiary Companies provides administrative, financing, consulting and logistical services, as well as economic, tax and legal advice, re-insurance services to PEMEX’s subsidiary entities and companies and other subsidiary companies that perform industrial activities. The following tables present the condensed financial information of these segments, after elimination of unrealized intersegment gain (loss), and include only select line items. The columns before intersegment eliminations include unconsolidated figures. As a result, the line items presented below may not total. These reporting segments are those which PEMEX’s management evaluates in its analysis of PEMEX and on which it bases its decision-making. These reporting segments are presented in PEMEX’s reporting currency. As of/for the nine-month period Exploration Industrial Logistics DPRLP (3) Trading Corporate Other operating Intersegment Total Sales: Trade Ps. 462,454,632 941,863,769 — 189,158,354 254,743,701 — 15,131,707 — 1,863,352,163 Intersegments 562,033,202 230,974,203 59,791,260 20,967,761 628,698,634 57,619,388 54,839,232 (1,614,923,680) — Services income 79,745 848,424 1,179,703 836,822 1,604,767 697 10,820 — 4,560,978 Reversal of impairment of wells, pipelines, properties, plant and equipment, net 11,959,635 43,088,866 1,542,908 — 282,437 — — — 56,873,846 Cost of sales 438,349,515 1,205,542,223 51,454,089 192,477,889 877,139,880 921,266 66,836,749 (1,557,986,203) 1,274,735,408 Gross income (loss) 598,177,699 11,233,039 11,059,782 18,485,048 8,189,659 56,698,819 3,145,010 (56,937,477) 650,051,579 Distribution, transportation and sales expenses 190,138 13,309,417 100,624 — 507,615 5,168 69,917 (3,199,277) 10,983,602 Administrative expenses 46,535,113 43,410,761 13,287,149 774,043 1,923,951 54,859,564 4,751,933 (53,284,177) 112,258,337 Other revenue 8,785,857 7,494,057 216,172 3,131,025 10,772,579 162,623 6,236,169 — 36,798,482 Other expenses (3,411,063) (1,112,019) 240,925 (7,122) (1,022,419) (770,526) (78,010) 465,355 (5,694,879) Operating income (loss) 556,827,242 (39,105,101) (1,870,894) 20,834,908 15,508,253 1,226,184 4,481,319 11,332 557,913,243 Financing income 59,869,852 300,607 8,538,934 — 327,624 120,492,894 272,711 (168,845,398) 20,957,224 Financing cost (99,041,024) (24,028,986) (346,656) (254,796) (2,265,952) (151,715,277) (972,025) 168,834,063 (109,790,653) Derivative financial instruments (cost) income, net (37,522,838) (33,074) — — (1,018,615) 1,082,680 — — (37,491,847) Foreign exchange income (loss), net 70,391,771 2,394,005 16,220 — (189,439) (1,024,685) 518,790 — 72,106,662 Profit (loss) sharing in joint ventures and associates (433,797) (1,299,877) (394) — 21,846,815 224,155,079 44,229,790 (288,265,267) 232,349 Taxes, duties and other 316,217,028 — (5,792,579) — (589,418) (1,697,196) 173,384 — 308,311,219 Net income (loss) Ps. 233,874,178 (61,772,426) 12,129,789 20,580,112 34,798,104 195,914,071 48,357,201 (288,265,270) 195,615,759 Total current assets 971,923,362 333,090,742 238,146,928 46,632,681 256,603,139 1,497,590,082 94,407,548 (2,867,393,437) 571,001,045 Total non-current assets 873,997,093 516,002,857 153,548,098 33,686,456 110,384,905 712,000,084 398,990,647 (1,053,231,883) 1,745,378,257 Total current liabilities 517,219,318 1,006,317,668 69,294,498 21,968,625 212,051,565 1,871,558,359 61,199,120 (2,867,156,903) 892,452,250 Total non-current liabilities 2,003,388,815 558,160,514 61,986,862 5,447,924 600,636 1,936,476,437 42,540,693 (1,586,059,575) 3,022,542,306 Equity (deficit), net (674,687,678) (715,384,583) 260,413,666 52,902,588 154,335,843 (1,598,444,630) 389,658,382 532,591,158 (1,598,615,254) Depreciation and amortization 85,931,942 10,397,976 4,412,095 3,302,226 268,279 424,020 1,495,852 — 106,232,390 Depreciation of rights of use 290,036 2,896,919 425,898 532,282 131,396 57,638 — 4,334,169 Net periodic cost of employee benefits excluding items recognized in other comprehensive income 26,604,199 38,797,227 5,936,814 — 826 23,607,928 31,516 — 94,978,510 Interest income (1) 148,175 269,902 3,045 — 36,682 8,051,569 87,590 — 8,596,963 Interest cost (2) (184,992) 3,096,988 347,492 254,796 1,991,497 95,619,876 845,930 — 101,971,587 (1) Included in financing income. (2) Included in financing cost. (3) Beginning January 20, 2022, DPRLP information is now included as a separate business segment. As of/for the three-month period Exploration Industrial Logistics DPRLP (3) Trading Corporate Other operating Intersegment Total Sales: Trade Ps. 154,156,160 323,137,584 — 62,490,302 84,962,122 — 4,775,659 — 629,521,827 Intersegments 188,013,478 85,593,492 18,631,371 12,554,103 249,416,808 19,612,971 22,467,676 (596,289,899) — Services income 23,753 305,550 424,185 (553) 535,727 169 4,431 — 1,293,262 Reversal of impairment of wells, pipelines, properties, plant and equipment, net (9,587,839) 2,265,458 68,117 — — — — — (7,254,264) Cost of sales 157,832,041 438,307,485 21,856,967 72,407,279 335,682,357 364,163 26,077,388 (576,590,355) 475,937,325 Gross income (loss) 174,773,511 (27,005,401) (2,733,294) 2,636,573 (767,700) 19,248,977 1,170,378 (19,699,544) 147,623,500 Distribution, transportation and sales expenses (36,771) 5,319,451 41,344 — (50,969) 8,355 31,251 (1,051,905) 4,260,756 Administrative expenses 15,122,898 15,035,732 4,487,058 265,105 513,610 19,239,101 1,359,515 (18,262,699) 37,760,320 Other revenue 5,301,714 4,430,490 38,825 (2,069) 192,112 (67,519) 2,832,136 — 12,725,689 Other expenses (1,146,357) (736,875) 210,864 (7,122) (481,484) (400,424) (77,069) 382,912 (2,255,555) Operating income (loss) 163,842,741 (43,666,969) (7,012,007) 2,362,277 (1,519,713) (466,422) 2,534,679 (2,028) 116,072,558 Financing income 15,183,482 136,037 3,459,429 — 105,042 42,674,744 139,504 (58,045,724) 3,652,514 Financing cost (39,606,205) (8,571,868) (49,899) (40,321) (868,418) (54,024,841) (429,794) 58,047,748 (45,543,598) Derivative financial instruments (cost) income, net (16,901,477) (22,683) — — 1,911,506 2,029,960 — — (12,982,694) Foreign exchange (loss), net (4,302,160) (5,888,483) 7,980 — (42,803) 1,047,499 (165,542) — (9,343,509) Profit (loss) sharing in joint ventures and associates (28,249) (1,641,520) (400) — 2,961,762 (43,834,562) 3,409,091 39,205,079 71,201 Taxes, duties and other 107,525,698 — (3,213,820) — 133,141 (570,212) 85,013 — 103,959,820 Net (loss) income Ps. 10,662,434 (59,655,486) (381,077) 2,321,956 2,414,235 (52,003,410) 5,402,925 39,205,075 (52,033,348) Depreciation and amortization 29,830,489 3,627,478 1,440,377 1,155,189 84,023 141,225 539,617 — 36,818,398 Depreciation of rights of use 103,993 1,034,892 107,069 — 174,237 97,910 20,846 — 1,538,947 Net periodic cost of employee benefits excluding items recognized in other comprehensive income 8,789,223 12,844,503 1,927,785 — (49) 7,805,284 10,505 — 31,377,251 Interest income (1) 78,356 105,812 3,045 — 9,067 3,598,347 70,241 — 3,864,868 Interest cost (2) (329,756) 1,034,912 47,314 40,321 765,315 33,416,507 369,124 — 35,343,737 (1) Included in financing income. (2) Included in financing cost. (3) Beginning January 20, 2022, DPRLP information is now included as a separate business segment. As of/for the nine-month period Exploration Industrial Logistics Trading Corporate Other operating Intersegment Total Sales: Trade Ps. 335,604,545 492,800,331 — 208,636,965 — 9,178,781 — 1,046,220,622 Intersegments 315,840,615 124,338,007 60,838,892 276,533,100 53,174,078 17,907,404 (848,632,096) — Services income 73,383 435,837 2,134,218 825,655 1,349 7,515 — 3,477,957 Reversal of impairment of wells, pipelines, properties, plant and equipment, net 37,635,674 278,616 328,174 — — — — 38,242,464 Cost of sales 328,653,112 668,263,462 33,892,357 472,133,743 723,129 26,387,766 (797,762,540) 732,291,029 Gross income (loss) 360,501,105 (50,410,671) 29,408,927 13,861,977 52,452,298 705,934 (50,869,556) 355,650,014 Distribution, transportation and sales expenses 230,436 10,852,331 89,785 1,031,673 (71,942) 109,502 (2,851,062) 9,390,723 Administrative expenses 43,907,361 38,721,624 12,262,178 1,262,657 54,072,188 3,186,072 (47,922,159) 105,489,921 Other revenue 4,526,734 7,197,518 87,125 215,827 212,706 108,660 — 12,348,570 Other expenses (3,146,208) (189,345) (73,769) (7,094) (118) (148,359) (4,175) (3,569,068) Operating income (loss) 317,743,834 (92,976,453) 17,070,320 11,776,380 (1,335,360) (2,629,339) (100,510) 249,548,872 Financing income 55,124,171 299,598 4,441,923 264,022 107,938,207 190,836 (148,174,873) 20,083,884 Financing cost (95,271,585) (12,551,866) (252,639) (1,530,044) (148,369,285) (711,937) 148,275,384 (110,411,972) Derivative financial instruments (cost) income, net (19,316,381) (15,231) — (1,538,761) (761,907) — — (21,632,280) Foreign exchange (loss), net (16,401,846) (4,690,382) 32,015 (95,891) (1,742,778) (508,997) — (23,407,879) (Loss) profit sharing in joint ventures and associates (286,382) (1,210,016) (18) (1,044,164) (57,316,973) (3,509,592) 60,200,462 (3,166,683) Taxes, duties and other 213,889,840 — (2,187,700) 972,689 (1,493,925) 70,814 — 211,251,718 Net (loss) income Ps. 27,701,971 (111,144,350) 23,479,301 6,858,853 (100,094,171) (7,239,843) 60,200,463 (100,237,776) Depreciation and amortization 84,242,207 11,132,633 3,072,705 187,832 700,827 1,283,817 — 100,620,021 Depreciation of rights of use 279,511 2,964,439 208,768 699,943 501,365 90,755 — 4,744,781 Net periodic cost of employee benefits excluding items recognized in other comprehensive income 25,455,692 36,775,271 6,229,702 (12,222) 22,703,735 27,586 — 91,179,764 Interest income (1) 37,456 299,456 64,158 68,808 5,520,421 77,089 — 6,067,388 Interest cost (2) 2,041,861 3,431,925 218,775 1,394,738 98,413,098 543,974 — 106,044,371 (1) Included in financing income. (2) Included in financing cost. As of/for the three-month period Exploration Industrial Logistics Trading Corporate Other operating Intersegment Total Sales: Trade Ps. 128,897,928 174,362,921 — 76,055,408 — 3,979,220 — 383,295,477 Intersegments 114,921,318 47,962,508 19,947,189 100,402,887 20,530,675 7,294,941 (311,059,518) — Services income 30,621 261,268 726,852 393,952 292 1,245 — 1,414,230 Reversal of impairment of wells, pipelines, properties, plant and equipment, net 9,443,446 (3,611,756) 218,314 — — — — 6,050,004 Cost of sales 126,291,748 236,598,432 11,831,740 174,170,506 198,096 10,845,360 (291,483,573) 268,452,309 Gross income (loss) 127,001,565 (17,623,491) 9,060,615 2,681,741 20,332,871 430,046 (19,575,945) 122,307,402 Distribution, transportation and sales expenses 62,693 3,087,902 (8,698) 288,789 (20,832) 1,970 (934,853) 2,476,971 Administrative expenses 17,753,595 14,071,271 4,393,807 482,675 18,896,215 1,226,496 (18,584,493) 38,239,566 Other revenue 3,148,554 4,537,413 17,869 59,500 40,223 (938,403) — 6,865,156 Other expenses (2,104,376) (79,553) (243,343) (2,356) — (134,257) (49,366) (2,613,251) Operating income (loss) 110,229,455 (30,324,804) 4,450,032 1,967,421 1,497,711 (1,871,080) (105,965) 85,842,770 Financing income 17,230,225 94,579 1,520,485 96,380 37,171,060 59,057 (51,308,904) 4,862,882 Financing cost (30,963,086) (4,978,753) (53,066) (579,116) (50,806,423) (283,330) 51,414,870 (36,248,904) Derivative financial instruments (cost) income, net (10,894,207) (9,289) — (384,398) 2,013,462 — — (9,274,432) Foreign exchange (loss) income, net (39,266,376) (4,559,118) (29,817) 26,655 (2,396,832) (778,344) — (47,003,832) Profit (loss) sharing in joint ventures and associates (93,864) (1,190,495) (16) 112,534 (65,103,235) (1,263,208) 67,579,885 41,601 Taxes, duties and other 78,338,315 — (2,825,150) 354,020 (415,435) 12,747 — 75,464,497 Net (loss) income Ps. (32,096,168) (40,967,880) 8,712,768 885,456 (77,208,822) (4,149,652) 67,579,886 (77,244,412) Depreciation and amortization Ps. 27,813,841 3,620,080 292,073 63,715 228,882 403,563 — 32,422,154 Depreciation of rights of use 93,167 934,486 50,259 217,770 165,011 29,925 — 1,490,618 Net periodic cost of employee benefits excluding items recognized in other comprehensive income 8,952,587 12,786,223 2,374,865 (12,222) 7,961,568 9,195 — 32,072,216 Interest income (1) 30,571 94,532 6,355 32,210 2,711,171 20,721 — 2,895,560 Interest cost (2) 1,890,797 1,126,091 44,259 502,953 33,150,042 187,604 — 36,901,746 (1) Included in financing income. (2) Included in financing cost. As of/ for the year ended Exploration Industrial Transformation (1) Logistics Trading Corporate Other operating Intersegment Total Total current assets 875,933,631 252,372,772 219,321,008 244,042,561 1,970,621,447 71,425,918 (3,175,323,293) 458,394,044 Total non-current assets 837,915,816 418,907,482 154,076,115 40,872,714 448,667,110 220,334,640 (527,069,750) 1,593,704,127 Total current liabilities 495,444,322 776,564,748 62,569,320 189,834,560 2,538,932,078 34,183,072 (3,174,879,770) 922,648,330 Total non-current liabilities 2,203,155,765 657,020,316 77,857,852 792,646 2,050,485,763 27,632,466 (1,717,494,184) 3,299,450,624 Equity (deficit), net (984,750,640) (762,304,810) 232,969,951 94,288,069 (2,170,129,284) 229,945,020 1,189,980,911 (2,170,000,783) |