PXP Hedging Oil to lock in cash flows

[dan_s]

This is a very smart move. By hedging forward they lock in the payout of the recent acquisition.

HOUSTON, Sept. 18, 2012 /PRNewswire via COMTEX/ -- Plains Exploration & Production Company (PXP) provides an update to its oil derivative positions. PXP continues to implement its crude oil hedging program following the recently announced Gulf of Mexico acquisition and intends to protect up to 90% of the Company's crude oil production for the 2013 through 2015 period. Winston M. Talbert, Executive Vice President and Chief Financial Officer of PXP commented, "PXP is off to a good start in achieving its goal. We look forward to a continued strong futures market to complete our hedging program."

A detailed list of PXP's current derivative positions is included at the end of this release.

PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana, and the Gulf of Mexico. PXP is headquartered in Houston, Texas.