Capital Requirements
We have made and will continue to make substantial capital expenditures for the acquisition,
development, exploration and production of oil and gas. Our capital budget for 2012, excluding
acquisitions, is approximately $1.6 billion, including capitalized interest and general and administrative
expenses. We believe that we have sufficient liquidity through our forecasted cash flow from
operations, borrowing capacity under our senior revolving credit facility, cash on hand and the Plains
Offshore senior credit facility to meet our short-term and long-term normal recurring operating needs,
derivative obligations, debt service obligations, contingencies, anticipated capital expenditures and
preferred stock dividends of Plains Offshore. In addition, we could curtail the portion of our capital
expenditures that is discretionary if our cash flows decline from expected levels.
Stock Repurchase Program
During the year ended December 31, 2011, we repurchased 10.4 million common shares at an
average cost of $34.73 per share totaling $361.7 million.
In January 2012, we completed the purchase of an additional 2.4 million common shares at an
average cost of $37.02 per share totaling $88.5 million. Subsequent to those purchases, our Board of
Directors reset the authorization to $1.0 billion of PXP common stock, all of which is available for
repurchase, and extended the program until January 2016.
Commitments and Contingencies
We had the following obligations at December 31, 2011 (in thousands):
Total
2012
2013
and 2014
2015
and 2016 Thereafter
Long-term debt . . . . . . . . . . . . . . $ 3,776,074 $
- $
- $ 999,173 $ 2,776,901
Interest on debt . . . . . . . . . . . . . 1,951,675
223,467 488,185 457,894 782,129
Operating leases . . . . . . . . . . . .
102,138
15,016
28,173
24,038
34,911
Oil and gas and related
activities . . . . . . . . . . . . . . . . .
770,437
226,603 289,056
79,261 175,517
Asset retirement obligation . . . .
238,381
7,749
8,942
19,364 202,326
Commodity derivative
contracts . . . . . . . . . . . . . . . . .
68,291
18,209
50,082
-
-
Stock compensation awards . . .
21,676
21,676
-
-
-
Tax uncertainties . . . . . . . . . . . .
8,708
6,614
480
-
1,614
Other obligations . . . . . . . . . . . .
24,894
10,250
9,761
2,074
2,809
$ 6,962,274 $ 529,584 $ 874,679 $ 1,581,804 $ 3,976,207
The long-term debt and interest on debt amounts consist of amounts due under our senior
revolving credit facility and Senior Notes and interest payments to maturity. The principal amount under
our senior revolving credit facility varies based on our cash inflows and outflows and the amounts
reflected in this table assume the principal amount outstanding at December 31, 2011 remains
outstanding to maturity with interest and commitment fees calculated at the rates in effect at
December 31, 2011.
Operating leases relate primarily to obligations associated with our office facilities and aircraft.
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