Content 1 A Snapshot of PEMEX Upstream Midstream & Downstream Overall Financial Performance Business Outlook 1
O&G: The Industry Moving the World According to the IEA, by 2040, crude oil demand is expected to grow 6% up to 103 MMbd, while natural gas consumption increases by 50% Btoe World energy 10.0 9.4 consumption 2014 100% = 9.4 Btoe1…
PEMEX: The Most Important Company in Mexico 8th Crude oil producer 8th Drilling company 5th Producer of petrochemicals in Main producer of oil, gas and Mexico refined products in Mexico 1st Producer of phosphates in LATAM 14th…
Distribution of PEMEXs Reserves1 PEMEX holds 95% of Mexicos hydrocarbon reserves MMMboe (billion barrels of oil equivalent) Prospective Reserves Resources2 Oil and Gas Basin Gas 1P 2P 3P Non Conv. (90%) (50%) (10%) Conv.…
2017 Achievements Trion farm-out with BHP Billiton Consortium formed by PEMEX, Chevron and Inpex was awarded Block 3 North in deep waters PEMEX was awarded two blocks in shallow waters through consortia with DEA and Ecopetrol…
Key Highlights as of September 2017 Average production platform in line with the annual target of 1,944 Mbd Uninterrupted fuel supply throughout the country despite hurricanes and earthquakes Accumulated net result increased by…
Content A Snapshot of PEMEX 2 Upstream Midstream & Downstream Overall Financial Performance Business Outlook 7
Upstream: Current Status and Challenges PEMEX continues to be a main player in the O&G industry The challenge has been replacing Cantarell -a giant field that produced 2 million barrels of crude oil per day- to stabilize and eventually…
Industry Cost Leader Exploitation strategies focused on shallow waters have allowed PEMEX to maintain very competitive production costs, as compared to most of its peers. Lower production costs provide greater flexibility, especially…
Upstream: New Production Frontiers Underinvestment and limited access to know-how has restricted intensive exploitation of new complex frontiers Deepwater Infrastructure1 Shale Potential2 1 Source: National Geographic 2 Source:…
Upstream: Business Plan With profitability as its ultimate goal, the Business Plan contemplates increased production and investment through different business schemes such as JVs and farm-outs to maintain and gradually increase the…
Upstream: Farm-outs at a glance 7 clusters Farm-Out Trion Crdenas-Mora Ogarrio Nobilis-Maximino Ayn-Batsil 7 clusters Winner will be DEA Deutsche BHP Billiton Cheiron Holdings announced in CNHs Winner Erdoel AG Will be part…
Upstream: Recent Developments (Trion & Block 3) Trion Perdido Fold Belt Block 3 PEMEXs Assignments Trin Farm-Out Round 1.4 Deep Waters Great White Oil and Gas Field 28 3D Seismic Km 179 Km Matamoros 1 Maximino Block 3 North…
Upstream: Recent Developments (Crdenas-Mora & Ogarrio) Round 1.2 Round 1.3 Farmouts Crdenas- Mora and Ogarrio Exploration blocks Mora Ogarrio Crdenas Crdenas-Mora Ogarrio Cheiron Holdings offered a cash tie-break of…
Seven Clusters Reserves (MMboe) Area Cluster Oil Type (Km2) 1P 2P 3P Jusp 26 37 114 Light 450 Bedel-Gasifero 90 111 119 Medium 1,165 Cinco Presidentes 29 40 41 Light 167 Giraldas-Sunuapa 69 71 71 Light 1,727 Bacal-Nelash 10 12…
PEMEX discovered the largest onshore reservoir in 15 years: Ixachi-1 Result of great exploration efforts and investments over the last 30 years Original volume of 1,500 MMboe 3P Reserves of approximately 350 MMboe Wet gas &…
Content A Snapshot of PEMEX Upstream 3 Midstream & Downstream Overall Financial Performance Business Outlook 18
Midstream: Investment Opportunities Further gasoline storage capacity and pipelines are required in Mexico. The U.S. has 27 times more infrastructure to supply fuel and 45 times more storage terminals than Mexico Gasoline Storage Days…
Downstream: Current Status and Challenges Infrastructure1 Capacity 6 Refineries in Mexico 1,942 Mbpd2 and one in U.S.A. 9 Gas Processing 5,912 MMcfd3 Centers 2 Petrochemical Complexes 1,694 Tpa4 Main causes for…
Midstream & Downstream: Business Plan Underinvestment, supply commitment and lack of cost recognition are being and will continue to be addressed in the upcoming years to reverse the accumulated losses in the midstream and downstream…
Midstream & Downstream: Upcoming Developments The Mexican fuels market is moving towards an open, competitive and market-driven price structure; all the country has liberalized fuel prices since November 30 th Open Season: Pemex…
Content A Snapshot of PEMEX Upstream Midstream & Downstream 4 Overall Financial Performance Business Outlook 23
Financial Performance Operating income as of the third quarter of 2017 averaged USD 3,163 million Debts maturity profile was extended to 7.5 years. Operating Income 20,000 USD million 10,000 0 -10,000 -20,000 1Q12 3Q12…
PEMEX Recorded a Positive Net Result from January to September 2017 Accumulated positive net result as of September 30, 2017 for the first time since 2012, when the price of the Mexican Crude Oil Mix was 2.3 times higher Net Result…
Net Indebtedness Trend Since 2016, financial deficit 250 240 has decreased. 223 195 Net indebtedness for 2017 is 200 substantially lower than Billion Pesos 150 142 previous years, confirming the 150 trend stated in our…
PEMEX 2017 Financing Activities In July, PEMEX carried out a bond transaction with the following characteristics: The reopening of two reference bonds due 10 and 30 years, and yield to maturity of 5.75% and 6.90%, respectively. This…
Diversified Debt Structure PEMEXs portfolio strategy has prioritized the development of new sources of financing to diversify its investor base and currencies To reduce external impacts, the company has chosen a hedging strategy that…
Credit Rating Agencies recognize PEMEXs strategic importance for Mexico 2017 PEMEX annual rating revisions highlight: Expectation of Close linkage to improved Mexican Key energy Stable finances profitability Government & supplier…
Markets respond positively to PEMEXs strategy PEMEXs efforts and business strategy have yielded tangible results, as shown in the spread between PEMEXs 10Y benchmark and both Mexicos UMS 10Y and U.S. Treasury. 30 Source: Bloomberg
Final Remarks PEMEX has tackled short-term challenges with determination and today has stable finances Budget adjustment Strengthening of financial balance Renewed access to financial markets and active debt management Primary surplus…
Content A Snapshot of PEMEX Upstream Midstream & Downstream Overall Financial Performance 5 Business Outlook 32
Financial Outlook: Scenarios with Realistic Premises 2017 marks an inflection point: Primary Surplus (first time since 2012): MXN 8.4 billion Attainable Production Platform: 1.944 MMbd Conservative Price Projection: USD 42 per barrel…
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