PLAINS EXPLORATION & PRODUCTION COMPANY
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2010
(in thousands of dollars)
Issuer
Guarantor
Subsidiaries
Non-
Guarantor
Subsidiaries
Intercompany
Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 103,265 $ (136,575) $ (63,186) $ 199,761 $ 103,265
Items not affecting cash flows from operating activities
Depreciation, depletion, amortization, accretion
and impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,905
427,448
63,780
(99,540)
610,593
Equity in earnings of subsidiaries . . . . . . . . . . . . . . . 119,427
68
-
(119,495)
-
Deferred income tax (benefit) expense . . . . . . . . . . .
(326,269) 469,426
30,296
20,382
193,835
Debt extinguishment costs . . . . . . . . . . . . . . . . . . . . .
1,189
-
-
-
1,189
Loss on mark-to-market derivative contracts . . . . . . 60,695
-
-
-
60,695
Non-cash compensation . . . . . . . . . . . . . . . . . . . . . . . 39,114
11,761
-
-
50,875
Other non-cash items . . . . . . . . . . . . . . . . . . . . . . . . .
4,286
(1,890)
198
-
2,594
Change in assets and liabilities from operating
activities
Accounts receivable and other assets . . . . . . . . . . . .
(24,221)
(23,356)
1,471
-
(46,106)
Accounts payable and other liabilities . . . . . . . . . . . . 12,449
(42,229)
(1,571)
-
(31,351)
Income taxes receivable/payable . . . . . . . . . . . . . . . .
(33,119)
-
-
-
(33,119)
Net cash provided by operating activities . . . . . . . . . . . 175,721
704,653
30,988
1,108
912,470
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to oil and gas properties . . . . . . . . . . . . . . . . .
(198,177)
(679,918)
(170,763)
-
(1,048,858)
Acquisition of oil and gas properties . . . . . . . . . . . . . . .
(590,116)
35,431
-
-
(554,685)
Proceeds from sales of oil and gas properties . . . . . . . 73,845
120
-
-
73,965
Derivative settlements . . . . . . . . . . . . . . . . . . . . . . . . . . .
(29,921)
-
-
-
(29,921)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4,007)
(6,115)
(5,687)
-
(15,809)
Net cash used in investing activities . . . . . . . . . . . . . . .
(748,376)
(650,482)
(176,450)
-
(1,575,308)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from revolving credit facilities . . . . . . . . . . . 3,332,610
-
-
-
3,332,610
Repayments of revolving credit facilities . . . . . . . . . . . . (2,942,610)
-
-
-
(2,942,610)
Proceeds from issuance of Senior Notes . . . . . . . . . . . 300,000
-
-
-
300,000
Costs incurred in connection with financing
arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(22,771)
-
-
-
(22,771)
Investment in and advances to affiliates . . . . . . . . . . . .
(90,042)
(54,174) 145,324
(1,108)
-
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
184
-
-
-
184
Net cash provided by (used in) financing activities . . . 577,371
(54,174) 145,324
(1,108)
667,413
Net increase (decrease) in cash and cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,716
(3)
(138)
-
4,575
Cash and cash equivalents, beginning of period . . . . .
1,304
11
544
-
1,859
Cash and cash equivalents, end of period . . . . . . . . . . $ 6,020 $
8 $
406 $
- $
6,434
F-51