Results as of the 2nd Quarter 2011 - Pemex · Investors are urged to consider closely the disclosure in our Form ... Actual results could differ materially from those projected in

Results as of the 2nd Quarter 2011

July 29, 2011

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Forward-Looking Statement and Cautionary Note(1/3)

VariationsIf no further specification is included, changes are made against the same period of the last year.

RoundingNumbers may not total due to rounding.

Financial informationExcluding (i) budgetary ,(ii) volumetric, (iii) revenue from sales and services including IEPS, (iv) domestic sales including IEPS, (v) petroleum products sales including IEPS, and (vi) operating income including IEPS information, the financial information included in this report is based on unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards, FRS) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF).

• Based on FRS B-10 "Inflation effects", 2010 and 2011 amounts are expressed in nominal terms.• Based on FRS B-3 "Income Statement” and FRS “C-10” Derivative Financial Instruments and Hedging Transactions”, the financial income and

cost of the Comprehensive Financial Result include the effect of financial derivatives.• EBITDA is a non-U.S. GAAP and non-FRS measure issued by CINIF.

Budgetary information is based on standards from Mexican governmental accounting; therefore, it does not include information from the subsidiary companies of Petróleos Mexicanos.

Foreign exchange conversionsConvenience translations into U.S. dollars of amounts in Mexican pesos have been made at the established exchange rate, at June 30, 2011, of Ps. 11.8389= U.S.$1.00. Such translations should not be construed as a representation that the peso amounts have been or could be converted into U.S. dollars at the foregoing or any other rate.

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Fiscal regimeSince January 1, 2006, PEMEX has been subject to a new fiscal regime. Pemex-Exploration and Production’s (PEP) tax regime is governed by the Federal Duties Law, while the tax regimes of the other Subsidiary Entities continue to be governed by Mexico’s Income Tax Law. The most important duty paid by PEP is the Ordinary Hydrocarbons Duty (OHD), the tax base of which is a quasi operating profit. In addition to the payment of the OHD, PEP is required to pay other duties.

Under PEMEX’s current fiscal regime, the Special Tax on Production and Services (IEPS) applicable to gasoline and diesel is regulated under the Federal Income Law. PEMEX is an intermediary between the Secretary of Finance and Public Credit (SHCP) and the final consumer; PEMEX retains the amount of IEPS and transfers it to the Federal Government. The IEPS rate is calculated as the difference between the retail or “final price”, and the “producer price”. The final prices of gasoline and diesel are established by the SHCP. PEMEX’s producer price is calculated in reference to that of an efficient refinery operating in the Gulf of Mexico. Since 2006, if the final price is lower than the producer price, the SHCP credits to PEMEX the difference among them. The IEPS credit amount is accrued, whereas the information generally presented by the SHCP is cash-flow.

Hydrocarbon reservesPursuant to Article 10 of the Regulatory Law to Article 27 of the Political Constitution of the United Mexican States Concerning Petroleum Affairs, (i) PEMEX's reports evaluating hydrocarbon reserves shall be approved by the National Hydrocarbons Commission (NHC); and (ii) the Secretary of Energy will register and disclose Mexico's hydrocarbon reserves based on information provided by the NHC. As of the date of this report, this process is ongoing.

As of January 1, 2010, the SEC changed its rules to permit oil and gas companies, in their filings with the SEC, to disclose not only proved reserves, but also probable reserves and possible reserves. In addition, we do not necessarily mean that the probable or possible reserves described herein meet the recoverability thresholds established by the SEC in its new definitions. Investors are urged to consider closely the disclosure in our Form 20-F and our annual report to the Mexican Banking and Securities Commission, available at http://www.pemex.com/.

Forward-Looking Statement and Cautionary Note(2/3)

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BidsNo awards for amounts higher than Ps. 100 billion were aasigned during the second qusrter 2011. For further information, please access www.compranet.gob.mx.

Forward-looking statementsThis report contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the CNBV and the SEC, in our annual reports, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. We may include forward-looking statements that address, among other things, our:

• drilling and other exploration activities;• import and export activities;• projected and targeted capital expenditures; costs; commitments; revenues; liquidity, etc.

Actual results could differ materially from those projected in such forward-looking statements as a result of various factors that may be beyond our control. These factors include, but are not limited to:

• changes in international crude oil and natural gas prices;• effects on us from competition;• limitations on our access to sources of financing on competitive terms;• significant economic or political developments in Mexico;• developments affecting the energy sector; and• changes in our regulatory environment.

Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of their dates, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. These risks and uncertainties are more fully detailed in PEMEX’s most recent Form 20-F filing with the SEC (www.sec.gov), and the PEMEX prospectus filed with the CNBV and available through the Mexican Stock Exchange (www.bmv.com.mx). These factors could cause actual results to differ materially from those contained in any forward-looking statement.

PEMEXPEMEX is Mexico’s national oil and gas company. Created in 1938, it is the exclusive producer of Mexico’s oil and gas resources. The operating subsidiary entities are Pemex-Exploration and Production, Pemex-Refining, Pemex-Gas and Basic Petrochemicals and Pemex-Petrochemicals. The principal subsidiary company is PMI.

Forward-Looking Statement and Cautionary Note(3/3)

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Context 2Q11

5060708090

100110120

US$/barrel Crude Oil Prices

Avg: 69.8

Avg: 105.8

3.0

3.5

4.0

4.5

5.0

5.5US$/MMBtu Natural Gas Prices

Henry Hub

Avg:4.3

Avg:4.4

1.51.82.02.32.52.83.03.33.5US$/Gal Prices of Gasoline in the U.S.

Regular Gasoline in the Gulf of Mexico

Avg: 2.1

Avg: 3.0

11.0

11.5

12.0

12.5

13.0

13.5Ps./US$ Exchange Rate

Avg:12.6

Avg:11.7

Mexican Oil Mix

WTI

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Highlights 2Q11

• Net income improved by Ps. 29.205 billion (U.S. $2.5 billion), reaching Ps. 9.1 billion (U.S. $769 million).

• Crude oil production remained practically stable.

• Increase in sales due to higher prices of crude oil and a stable production platform.

• Increase in the Ordinary Hydrocarbons Duty recorded during the quarter.

• PEMEX’s Board of Directors approved its 2012-2016 Business Plan in a unanimous vote. The plan underscores its commitment and direction towards achieving sustainable goals.

• Petróleos Mexicanos and the Petroleum Workers’ Union signed the Union Labor Contract Agreement for 2011-2013.

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Crude Oil ProductionMbd

75%

25%Offshore

Onshore

57% 55% 54% 56% 56%

31% 33% 33% 31% 31%

12% 12% 13% 13% 13%

2,578 2,567 2,552 2,572 2,558

2Q10 3Q10 4Q10 1Q11 2Q11

Heavy Light Extra-light

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MMcfd

Natural Gas Production(1)

34%

66%

Offshore

Onshore

(1) Does not include nitrogen.

60% 62% 63% 63% 63%

40% 38% 37% 37% 37%

6,330 6,339 6,290 6,167 5,937

2Q10 3Q10 4Q10 1Q11 2Q11

Associated Non-associated

11

755

487 376 364

495 446

272 300

11.5%

7.5%

5.9% 5.7%

7.8%7.1%

4.4%5.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

200

400

600

800

3T09 4T09 1T10 2T10 3T10 4T10 1T11 2T11

Gas flaring Gas flaring / Total gas produced

In the last two years, PEMEX has decreased gas flaring by more than 60%.

Gas FlaringMMcfd

12

63.5%

32.8%

9.7%

20.3%

8.8%

11.1%

6.3%

10.5%

5.3%

8.8%

6.4%16.5%

1H04 1H11

KMZ

Cantarell

APC LT

SL

Cantarell

APC

KMZ

SLBJ Otro

sSL

OtherOther

93.6%

83.5%

Crude Oil Production - Diversification

SL: Samaria-Luna

BJ: Bellota-Jujo

LT: Litoral de Tabasco

KMZ: Ku-Maloob-Zaap

APC: Abkatún-Pol-Chuc

737633

582 534 520

1H09 2H09 1H10 2H10 1H11

Average Monthly Decline Rate

Cantarell's Production

4.2% 1.5% 1.7% 1.1% 0.3%

Mbd

13

Operational Infrastructure - Wells

4,382 4,578 3,989 4,083 4,266 4,382 4,578 4,701

3,032 3,069 3,108 2,812 2,925 3,032 3,069 3,077

192 190 213 190 191 192 190 185

7,606 7,837 7,310 7,085 7,382 7,606 7,837 7,963

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Crude oil Non-associated gas Injection

6%

94%

Offshore

Onshore

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Operational Infrastructure - Drilling Equipment

26%

74%

Exploration

Offshore

Onshore

19%

81%

Development

Offshore

Onshore

11989 88 94 103

20

20 21 16 12

139

108 109 111 115

2Q10 3Q10 4Q10 1Q11 2Q11

Development Exploration

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Seismic Information

3D Seismic

Aguas profundas

411

739 820

5,011

9,543 10,619

2,000

4,000

6,000

8,000

10,000

12,000

200

400

600

800

1,000

2Q10 3Q10 4Q10 1Q11 2Q11

Km2

Km

2D (Km) 3D (Km )2

9%24%

22%

45%

91%

Shallow Waters

Deep Waters

Ixic

Tzumat

Centauro

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Discoveries

PEMEXMain Discoveries 2Q11

Project Well Geological EraInitial Production

Hydrocarbon typeCrude oil and Condensates

(bd)

Gas (MMcfd)

Burgos Bragado-1 Mid Jackson Eocene 41.0 1.6 Wet gasLindero-1 Cold Marine Mid

Oligocene49.0 2.8 Wet gas

Siroco-1 Mid Jackson Eocene 47.0 2.1 Wet gasHolok-Temoa Piklis-1 Inferior Miocene 90.2 18.2 Wet gasLitoral de Tabasco Xanab-101 Superior-Mid Cretaceous 3,786.0 2.6 Light oilVeracruz Chancarro-1 Superior Miocene 6.1 Dry gasTotal 4,013.2 33.4

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First Tender: Mature Fields in the South Region

• Magallanes, Santuario and Carrizo are the first three blocks.

• 27 companies have participated in the process and acquired a total of 53 bidding packages .

• There were 9 meetings, 3 workshops and several field visits.

• Final Awarding: August 18th 2011

In the Southern Region of México, PEMEX has identified around 40 mature fields which have a high potential of reactivation. These fields may be grouped into eight blocks.

Publication of the Public

Tender03/01/11

Bidding Packages Sales

Limit07/06/11

Prequalification Period

07/12/11 -07/27/11

Awarding08/18/11

Contract Signing Period

08/18/11 -10/18/11

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Crude Oil Processing

766 742 698 752 729

475 443 357

409 439

1,418 1,363

1,230 1,327 1,319

2Q10 3Q10 4Q10 1Q11 2Q11

Light Crude Heavy Crude Petroleum products production

Mbd

20

Production of Petroleum Products

-

250

500

750

1,000

1,250

1,500

2Q10 3Q10 4Q10 1Q11 2Q11

6% Other*

4% Jet Fuel

16% LPG

21% Diesel

23% Fuel Oil

30% Automotive gasolines

* Includes paraffins, furfural extract, aeroflex, asphalt, lubricants, coke, cyclical light oil and other gasolines.

1,319

Mbd

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Natural Gas Processing and Dry Natural Gas and Gas Liquids Production

3,423 3,413 3,398 3,483 3,486

1,081 1,022 984 1,042 1,073

4,504 4,435 4,383 4,525 4,559

2Q10 3Q10 4Q10 1Q11 2Q11

Sour Wet Gas Sweet Wet GasProduction

ProcessingMMcfd

3,643 3,578 3,570

3,677 3,703

336

329 324

340 345

320

330

340

350

360

3,200

3,400

3,600

3,800

2Q10 3Q10 4Q10 1Q11 2Q11

Mbd

MM

cfd

Dry Gas from Plants (MMcfd) Natural Gas Liquids (Mbd)*Does not include condensate process.

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Production of Petrochemicals

*Includes muriatic acid, butadiene, polyethylene wax, petrochemical specialties, BTX liquids, hydrogen, isohexane, pyrolysis liquids, oxygen, CPDI, sulfur, isopropyl alcohol, amorphous gasoline, octane basis gasoline and heavy naphtha.

126 132 113 126 117

303 281 360 366 315

345 327 282 356

345

205 195 194 132

161

123 99 84 105 110

504 462 420 389 427

1,607 1,497 1,454 1,474 1,475

2Q10 3Q10 4Q10 1Q11 2Q11

Other* Propylene and Derivatives Aromatics and DerivativesEthane Derivatives Methane Derivatives Basic

Mt

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2Q11 Financial HighlightsBillion Pesos Billion Dollars

Change2Q10 2Q11 2Q11

(1) Earnings before interests, taxes, depreciation and amortization. Excludes IEPS.

Total revenue from sales and services 313.6 393.3 25.4% 33.226.5

Income before Taxes and Duties 134 229.7 19.471.4% 11.3

Net Income (loss) (20.1) 0.779.1 (1.7)

EBITDA(1) 217.6 31.1%285.2 24.118.4

Operating Income 140.2 184.6 15.631.7% 11.8

2Q10

Gross Income 163.8 209.4 17.727.8% 13.8

Taxes and Duties 154.1 220.6 18.643.1% 13

Total revenue from sales and services including IEPS 336.7 445.4 32.3% 37.628.4

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Total SalesPs. MM

Domestic Sales

146,835 170,330

16,699

17,194 7,049

8,627 170,582 196,151

2Q10 2Q11

PetrochemicalproductsDry gas

PetroleumProducts

15.0%

Export Sales

106,162 152,271

13,396

21,898

22,150

21,449 141,708

195,618

2Q10 2Q11

Other

Petroleum products

Crude oil andcondensates

38.0%

313,574393,310

25,56853,910 258

2Q10 In Mexico Exports Servicesincome

2Q11

25.4%

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Sales

81%

12%

4% 3%United States of America

Europe

Far East

Rest of the Americas

2Q11 Crude Oil Exports by Region

Domestic sales of petroleum products by volume:

• During the second quarter, sales of fuel oil and diesel increased 4.0% and 1.7%, respectively.

• In contrast, LPG and jet fuel decreased 2.2% and 3.8%, respectively.

100% = 1,339 Mbd

27

Cost of Sales and General Expenses

173,358

208,69034,167 1,165

2Q10 Cost of Sales General Expenses 2Q11

20.4%

Ps. MM

28

(30,719)

(3,316)

14,686

12,717

Financial Income Exchange Gain 2Q112Q10

Comprehensive Financial ResultPs. MM

29

154,107

220,577

191,536

66,090 380 29,041

2Q10due

Hydrocarbonduties

Other taxes 2Q11due

IEPSacreditable

2Q11payable

Taxes and Duties

128,936

184,27018,299

21,049

6,872

15,259

154,107

220,577

2Q10 2Q11

Other taxes and duties

Hydrocarbons Duty forthe Stabilization Fund

Ordinary HydrocarbonsDuty

Ps. MM

30

(20,105)9,100

79,736

23,868 (35,332)(27,403) (66,470)

2Q10 TotalSales

OtherRevenues*

Cost andoperatingexpenses

CFR Taxes andDuties

2Q11

Net Income Evolution

Ps. MM

* Includes sharing in non-consolidated subsidiaries and affiliates.

31

External and Structural Effects

PEMEXEconomic impact by external and structural efects

Six months ending Jun. 30,(Ps. Billion) (U.S.$Billion)

Cost of the LPG subsidy 14.5 1.2 Not-recognized costs in the price mechanism of automotive gasoline and diesel 10.9 0.9 Decrease in Duties paid due to recognition of operating cost and expenses incurred in 2011 26.9 2.3

Labor obligations 49.5 4.2

Incremental taxes 5.0 0.4

Total 107 9.0

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Debt

Ps. MM

* Includes accrued interest.

575,171 541,462

529,517 531,138 89,555

88,356

69,672 (87,120)

(17,459) (100,302) 664,725

629,819

Total Debt4Q10

FinancingActivities*

Amortizations ExchangeGain

Total Debt2T11

Cash & CashEquivalents

Net Debt2Q11

Net Debt4Q10

Long-term Short-term

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Debt Exposure

79.5%

20.5%

U.S. dollars

Mexican pesos

By currency:

54.6%

45.4% Fixed

Floating

By rate:

3.3

5.4

6.7

MXP

USD

OtherCurrencies

As of June 30, 2010

Average6.1

3.1

5.5

5.8

MXP

USD

OtherCurrencies

As of June 30, 2011

Average5.4

Average life:

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Financing Program 2011

SourceAmount (U.S.$ billion)

Raised(Billion)

International Markets 3.35 U.S.$2.25

Dollars 2.25 U.S.$2.25

Other Currencies/Markets 1.1

Domestic Markets 1.5 Ps. 10.0/U.S.$0.8

CEBURES 1.5 Ps. 10.0/U.S.$0.84

Bank Loans * 1

Export Credit Agencies (ECAs) 1.25

Others 1 U.S.$0.2

Contractor Financing 1 U.S.$0.2

TOTAL 8.1 U.S.$3.29

2011E Financing Program

100% = 8.1 billion U.S. Dollars

37%

19%

12%

19% 13%

International Markets Domestic Markets

Bank Loans Export Credit Agencies (ECAs)

Others

Sums may not total due to rounding* Does not include disbursements under revolving credit lines

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Cash Flow

Ps. MM

* Before taxes.**Excludes Financed Public Works Contract Program.**Includes change of cash effect of Ps. 1,087.0 million.

133,587

474,918

67,007 675,513

100,302

99,838

62,498

411,789

Cash at thebeginning of the

year

Revenues fromoperations*

FinancingActivities**

Availablecashflow

Amortizations** Investments Taxes Cash at the endof the period***

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Investor Relations(+52 55) 1944 - [email protected]