Plains Exploration & Production Company (ticker: PXP, exchange: New York Stock Exchange (.N))
News Release -
PXP Announces Non-Strategic Asset Sales and Executive Promotions
Please click here for PDF version of this release.
HOUSTON, June 28 /PRNewswire-FirstCall/ -- Plains Exploration & Production
Company (NYSE: PXP) ("PXP" or the "Company") announced today non-strategic
asset sales and promotions within its executive management team.
NON-STRATEGIC ASSET SALES
PXP announced today its intention to divest certain non-strategic oil and
gas properties located primarily in California and Texas. High commodity
prices and an active asset market prompted PXP to initiate the divestiture
plan. PXP believes this environment provides a unique opportunity to capture
asset value currently unrecognized by the equity markets. The Company intends
to realize in excess of approximately $1.0 billion from a combination of the
sale proceeds and free cash flow for the remainder of the year. It intends to
use such proceeds to ensure financial flexibility by reducing debt and to
deliver near-term value to shareholders by repurchasing shares.
The properties included in the divestment plan currently produce
approximately 8,000 barrels of oil equivalent per day. Certain properties to
be offered include Buena Vista and Mt. Poso Fields in the San Joaquin Valley,
Sansinena Field in the Los Angeles Basin and Pakenham Field in West Texas.
The sales will be conducted in a combination of negotiated and auction
transactions and are expected to close during the fourth quarter of 2006. PXP
will retain Lehman Brothers and Randall & Dewey, a division of Jefferies &
Company, to assist in the sales process.
PXP is pleased to announce the promotion of two of its Vice Presidents,
Winston M. Talbert and Doss R. Bourgeois, to Executive Vice President.
Winston M. Talbert has been promoted to Executive Vice President and Chief
Financial Officer. Mr. Talbert joined PXP in 2003 as Vice President Finance &
Investor Relations and in 2004 he became Vice President Finance & Treasurer.
Prior to joining PXP, Mr. Talbert was Vice President and Treasurer at Ocean
Energy, Inc. from 2001 to 2003 and Assistant Treasurer from 1999 to 2001.
Doss R. Bourgeois has been promoted to Executive Vice President-
Exploration and Production. Most recently Mr. Bourgeois was PXP's Vice
President of Development, directing the operations of PXP's three business
units. He has been with PXP since leaving Ocean Energy, Inc. in 2003 where he
worked for approximately 10 years as Vice President-Production from 1993 to
Thomas M. Gladney resigned as Executive Vice President-Exploration and
Production and plans to pursue private exploration and production ventures not
in competition with the Company.
The Company estimates that sales volumes for the second quarter will be
between 61,000 and 62,000 barrels of oil equivalent per day. For the second
half of 2006 PXP estimates that sales volumes will range between 63,000 -
68,000 barrels of oil equivalent per day. The Company reaffirms the remainder
of its previously issued guidance.
PXP will host a conference call today June 28, 2006 at 10:00 a.m. Central
to discuss these developments and other forward-looking items. Investors
wishing to participate may dial 1-800-567-9836 or 1-973-935-8460. The replay
will be available through July 12, 2006 and can be accessed by dialing
1-877-519-4471 or 1-973-341-3080, Replay ID: 7570918.
PXP is an independent oil and gas company primarily engaged in the
upstream activities of acquiring, exploiting, developing and producing oil and
gas in its core areas of operation: onshore and offshore California and the
Gulf Coast region of the United States. PXP is headquartered in Houston,
ADDITIONAL INFORMATION & FORWARD LOOKING STATEMENTS
This press release contains forward-looking information regarding PXP that
is intended to be covered by the safe harbor "forward-looking statements"
provided by the Private Securities Litigation Reform Act of 1995. All
statements included in this press release that address activities, events or
developments that PXP expects, believes or anticipates will or may occur in
the future are forward-looking statements. These include statements
- reserve and production estimates,
- oil and gas prices,
- the impact of derivative positions,
- production expense estimates,
- cash flow estimates,
- future financial performance,
- planned capital expenditures, and
- other matters that are discussed in PXP's filings with the SEC.
These statements are based on our current expectations and projections
about future events and involve known and unknown risks, uncertainties, and
other factors that may cause our actual results and performance to be
materially different from any future results or performance expressed or
implied by these forward-looking statements. Please refer to our filings with
the SEC, including our Form 10-K for the year ended December 31, 2005, for a
discussion of these risks.
All forward-looking statements in this report are made as of the date
hereof, and you should not place undue reliance on these statements without
also considering the risks and uncertainties associated with these statements
and our business that are discussed in this report. Moreover, although we
believe the expectations reflected in the forward-looking statements are based
upon reasonable assumptions, we can give no assurance that we will attain
these expectations or that any deviations will not be material. Except for
any obligation to disclose material information under the Federal securities
laws, we do not intend to update these forward-looking statements and
SOURCE Plains Exploration & Production Company
Scott D. Winters
Vice President - Investor Relations
Exploration & Production Company
713-579-6190 or 800-934-6083