Summary of PLAINS EXPLORATION & PRODUCTION CO

Item 7.01 Regulation FD Disclosure

On August 2, 2012, Plains Exploration & Production Company ("PXP") issued a press release announcing second quarter 2012 results. The press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.

Pursuant to Item 7.01, PXP is updating its 2012 full-year operating and financial guidance.

The information presented herein under Item 2.02 and Item 7.01 shall not be deemed "filed" under the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such a filing.

Statement Regarding Forward-Looking Statements

This Report on Form 8-K 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 Report that address activities, events or developments that PXP expects, believes or anticipates will or may occur in the future are forward-looking statements. These factors include, among other things:

Х reserve and production estimates;

Х oil and gas prices;

Х the impact of derivative positions;

Х production expense estimates;

Х cash flow estimates;

Х future financial performance;

Х capital and credit market conditions;

Х planned capital expenditures; and

Х 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 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 and our other filings with the SEC. 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 as required by law, we do not intend to update these forward-looking statements and information.

Guidance Update

PXP updated its 2012 full-year operating and financial guidance to reflect higher sales volumes, higher oil volumes as a percentage of total volumes, updated oil price realizations, and higher depreciation, depletion and amortization expense per barrel of oil equivalent.

The following table and accompanying notes reflect current estimates of certain results for the full year 2012 for PXP. These estimates are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and our future performance are both subject to a wide range of business risks and uncertainties and there is no assurance

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that these goals and estimates can or will be met. Any number of factors could cause actual results to differ materially from those in the following table and accompanying notes, including but not limited to the factors discussed above. The estimates set forth below are given as of the date hereof and are only based on information available as of the date hereof. Further information on risks and uncertainties is available in our filings with the SEC, and we encourage you to review these filings.

                    Plains Exploration & Production Company

                Full-Year 2012 Operating and Financial Guidance



                                                                             Year Ended
                                                                          December 31, 2012
Production Volumes (MBOE/day)
Total Production volumes sold                                                   95 - 97
Oil                                                                            57% - 60%
NGLs                                                                            3% - 4%
Natural Gas                                                                    40% - 36%
Product Price Realization (Unhedged)
Oil - Brent                                                                    94% - 96%
Oil - Transportation expense                                                     $5.00
NGLs - WTI                                                                        40%
Gas - Henry Hub                                                                   100%
Gas - Transportation expense                                                     $0.15
Production Costs per BOE
Lease operating expense                                                      $9.50 - $10.50
Steam gas costs (1)                                                          $1.25 - $1.75
Electricity                                                                  $1.20 - $1.40
Production and ad valorem taxes (2)                                          $2.00 - $2.25
Gathering and transportation                                                 $1.50 - $2.00
Depreciation, Depletion and Amortization per BOE                               $26 - $28
General and Administrative Expenses (in millions)
Cash                                                                          $107 - $111
Stock-based compensation (3)                                                   $40 - $46
Interest Expense
Average revolver balance                                          30 Day     LIBOR + 1.50%    - 2.50%
$185 Million Senior Notes                                                       10.000%
$400 Million Senior Notes                                                        7.625%
$750 Million Senior Notes                                                        6.125%
$400 Million Senior Notes                                                        8.625%
$300 Million Senior Notes                                                        7.625%
$600 Million Senior Notes                                                        6.625%
$1,000 Million Senior Notes                                                      6.750%
Effective Tax Rate                                                             38% - 40%
Weighted Average Equivalent Shares Outstanding (in thousands)
Basic                                                                           127,600
Diluted                                                                         129,300
Capital Expenditures (in millions) (4)
PXP                                                                              $1,366
Gulf of Mexico - Plains Offshore                                                    234

Total                                                                            $1,600

(1) Steam gas costs assume a base SoCal Border index price of $3.84 per MMBtu. The purchased volumes are anticipated to be 43,000 - 45,000 MMBtu per day.

(2) Production and ad valorem taxes assume base index prices of $110.00 per barrel and $4.00 per MMBtu. (Note: Brent index price for Oil)

(3) Based on current outstanding and projected awards and current stock price.

(4) Includes capitalized interest and general and administrative expenses.