2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
June 6th, 2019
PEMEX NY BANK MEETINGS
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
Forward-Looking Statement & CautionaryNoteVariationsIf no further specification is included, comparisons are made against the same realized period of the last year.RoundingNumbers may not total due to rounding.Financial InformationExcluding budgetary and volumetric information, the financial information included in this report and the annexes hereto is based on unaudited consolidated financial statements prepared in accordance with International FinancialReporting Standards as issued by the International Accounting Standards Board (“IFRS”), which PEMEX has adopted effective January 1, 2012. Information from prior periods has been retrospectively adjusted in certain accounts to makeit comparable with the unaudited consolidated financial information under IFRS. For more information regarding the transition to IFRS, see Note 23 to the consolidated financial statements included in Petróleos Mexicanos’ 2012 Form 20-F filed with the Securities and Exchange Commission (SEC) and its Annual Report filed with the Comisión Nacional Bancaria y de Valores (CNBV). EBITDA is a non-IFRS measure. We show a reconciliation of EBITDA to net income in Table32 of the annexes to PEMEX’s Results Report as of March 31, 2018. Budgetary information is based on standards from Mexican governmental accounting; therefore, it does not include information from the subsidiary companies oraffiliates of Petróleos Mexicanos. It is important to mention, that our current financing agreements do not include financial covenants or events of default that would be triggered as a result of our having negative equity.MethodologyWe might change the methodology of the information disclosed in order to enhance its quality and usefulness, and/or to comply with international standards and best practices.Foreign Exchange ConversionsConvenience translations into U.S. dollars of amounts in Mexican pesos have been made at the exchange rate at close for the corresponding period, unless otherwise noted. Due to market volatility, the difference between the averageexchange rate, the exchange rate at close and the spot exchange rate, or any other exchange rate used could be material. Such translations should not be construed as a representation that the Mexican peso amounts have been orcould be converted into U.S. dollars at the foregoing or any other rate. It is important to note that we maintain our consolidated financial statements and accounting records in pesos. As of December 31, 2018, the exchange rate ofMXN 19.6829= USD 1.00 is used. As of March 31, 2019, the exchange rate of MXN 19.3793= USD 1.00 is used.Fiscal RegimeBeginning January 1, 2015, Petróleos Mexicanos’ fiscal regime is governed by the Ley de Ingresos sobre Hidrocarburos (Hydrocarbons Revenue Law). From January 1, 2006 and to December 31, 2014, PEP was subject to a fiscal regimegoverned by the Federal Duties Law, while the tax regimes of the other Subsidiary Entities were governed by the Federal Revenue Law.On April 18, 2016, a decree was published in the Official Gazette of the Federation that allows assignment operators to choose between two schemes to calculate the cap on permitted deductions applicable to the Profit-Sharing Duty: (i)the scheme established within the Hydrocarbons Revenue Law, based on a percentage of the value of extracted hydrocarbons; or (ii) the scheme proposed by the SHCP, calculated upon established fixed fees, USD 6.1 for shallow waterfields and USD 8.3 for onshore fields.The Special Tax on Production and Services (IEPS) applicable to automotive gasoline and diesel is established in the Production and Services Special Tax Law “Ley del Impuesto Especial sobre Producción y Servicios”. As an intermediarybetween the Ministry of Finance and Public Credit (SHCP) and the final consumer, PEMEX retains the amount of the IEPS and transfers it to the Mexican Government. In 2016, the SHCP published a decree trough which it modified thecalculation of the IEPS, based on the past five months of international reference price quotes for gasoline and diesel.As of January 1 2016, and until December 31, 2017, the SHCP will establish monthly fixed maximum prices of gasoline and diesel based on the following: maximum prices will be referenced to prices in the U.S. Gulf Coast, plus a margin thatincludes retails, freight, transportation, quality adjustment and management costs, plus the applicable IEPS to automotive fuel, plus other concepts (IEPS tax on fossil fuel, established quotas on the IEPS Law and value added tax).PEMEX’s “producer price” is calculated in reference to that of an efficient refinery operating in the Gulf of Mexico. Until December 31, 2017, the Mexican Government is authorized to continue issuing pricing decrees to regulate themaximum prices for the retail sale of gasoline and diesel fuel, taking into account transportation costs between regions, inflation and the volatility of international fuel prices, among other factors. Beginning in 2018, the prices of gasolineand diesel fuel will be freely determined by market conditions. However the Federal Commission for Economic Competition, based on the existence of effective competitive conditions, has the authority to declare that prices of gasolineand diesel fuel are to be freely determined by market conditions before 2018.Hydrocarbon ReservesIn accordance with the Hydrocarbons Law, published in the Official Gazette on August 11, 2014, the National Hydrocarbons Commission (CNH) will establish and will manage the National Hydrocarbons Information Center, comprised by asystem to obtain, safeguard, manage, use, analyze, keep updated and publish information and statistics related; which includes estimations, valuation studies and certifications. On August 13, 2015, the CNH published the Guidelines thatrule the valuation and certification of Mexico’s reserves and the related contingency resources.As of January 1, 2010, the Securities and Exchange Commission (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.Nevertheless, any description of probable or possible reserves included herein may not meet the recoverability thresholds established by the SEC in its definitions. Investors are urged to consider closely the disclosure in our Form 20-F andour Annual Report to the CNBV and SEC, available at http://www.PEMEX.com/.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 pressreleases 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:
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 ofnew information, future events or otherwise. These risks and uncertainties are more fully detailed in our most recent Annual Report filed with the CNBV and available through the Mexican Stock Exchange (http://www.bmv.com.mx/) andour most recent Form 20-F filing filed with the SEC (http://www.sec.gov/). These factors could cause actual results to differ materially from those contained in any forward-looking statement.This presentation contains words such as “believe”, “expect”, “anticipate” and similar expressions that identify prospective statements, which reflect PEMEX’s points of view regarding future events and their financial performance. Actualresults could materially differ from those projected in such prospective statements as a result of diverse factors that can be out of PEMEX’s control.
• exploration and production activities, including drilling;• activities relating to import, export, refining, petrochemicals and transportation, storage and distribution of
petroleum, natural gas and oil products;• activities relating to our lines of business, including the generation of electricity;• projected and targeted capital expenditures and other costs, commitments and revenues;• liquidity and sources of funding, including our ability to continue operating as a going concern;• strategic alliances with other companies; and• the monetization of certain of our assets.• 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, including on our ability to hire and retain skilled personnel;• limitations on our access to sources of financing on competitive terms;• our ability to find, acquire or gain access to additional reserves and to develop the reserves that we
obtain successfully;• uncertainties inherent in making estimates of oil and gas reserves, including recently discovered oil and
gas reserves;• technical difficulties;• significant developments in the global economy;• significant economic or political developments in Mexico;• developments affecting the energy sector; and• changes in our legal regime or regulatory environment, including tax and environmental regulations.
1
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
Contents
2
Evaluation of Structural Challenges
1 PEMEX General Overview
3
4 Strategy backbone: Increasing crude oil production
6
Action Plan
Financial Highlights
2
5 Industrial Transformation
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
3
1. PEMEX General Overview
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PEMEX: A vertically integrated company
• Total production of hydrocarbons: 2,547 Mbpced2 / 2,380 Mbd as of 1Q19
• Total crude production: 1,833 Mbd2 / 1,661 Mbdas of 1Q19
• 7,671 wells in operation2
/ 7,421 to 1Q19
• 6 refineries in Mexico with refining capacity of 1,640 Mbd2
• 1 refinery in joint venture with Shell in Deer Park, Texas (340 Mbd)
• Crude processing: 612 Mbd2
/ 559 Mbd as of 1Q19• 9 gas processing centers
(5,912 MMpcd)• 2 petrochemical complexes
(1,734 Tpa)
• MXN 1.7 billion in annual revenue2
- Exports: MXN 692 bn- Local market: MXN 981 bn
• Crude exports: 1,184 Mbd2
• 9,930 stations with the PEMEX brand, plus 1,620 stations supplied with PEMEX2
products
Exploration and production
10th largest crude producer1
Transformation
16th largest oil refiner2
Commercialization
3rd largest exporter of crude to the United States
Transportation and distribution
Strategic infrastructure
• Strategic logistics infrastructure: 17,000 km of pipelines
• 76 storage and distribution terminals
• 10 liquefied gas terminals• 10 port operation and
maintenance facilities• 5 maritime terminals• 1,485 tanks• 19 tugs and 17 boats• 511 tanker trucks• 56 pumping and
compression stations
1 Source: Petroleum Intelligence Weekly, Ranking of the 50 Largest Oil Companies in the World, November
2018
2 As of December 31, 2018
Mbpce: Thousands of barrels of crude oil equivalent per day
Mbd: Thousands of barrels of oil per day
MMpcd: Million cubic feet per day
Tpa: Tons per year
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
Social impact of PEMEX in Mexico
• PEMEX is the most important company in Mexico in terms of size and revenue
• The largest contributor to the Federal Government’s income (average of 11.0% in 2018)
• In 2018, PEMEX contributed MXN 2.1 billion to social programs in communities where it operates
• MXN 1.1 billion in public safety and civil protection
• MXN 733 million in infrastructure
• MXN 89 million in productive projects
• MXN 84 million in health services
• MXN 49 million in environmental protection
• MXN 43 million in education, sports and capital contributions to communities
5
In 2019-2024 PEMEX will be the most important catalyst for economic development in Mexico: it will create an average of 47,000 new jobs a year from its infrastructure projects
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.6
Structural challenges for Petróleos Mexicanos
Excessive fuel theft
Public debt that doubled in the last five years and remains at elevated levels
Heavy tax burden
1
2
3
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Structural challenges: a vicious cycle
Objective of the new
administration:
Find solutions to break the vicious
cycle and implement
strategies to transform it into a
virtuous cycle
Decline in oil production
Reduction of the company's
revenue
Limited capacity to
generate cash flow
Drop in investment Structural
challenges
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
8
2. Evaluation of Structural Challenges
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1. Fuel Theft
Cumulative loss due to fuel theft in the period of 2014-2018:
MXN 101.1 bn
As a reference point, this figure is equivalent to
78.4%of the total debt maturities for
the year 2019
17,705
11,111 11,490
24,612
36,163
2014 2015 2016 2017 2018
Source: PEMEX; Annual results report to the Mexican Stock Exchange.
Non-operational losses (Fuel theft)Figures in millions of constant pesos, 2018 = 100
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2. Accelerated Debt Growth
Total Debt Balance 2013 – 2018*Figures in billions of current pesos
During the 2013-2018 period, PEMEX's debt grew at an
average annual rate of
20.9%
Source: PEMEX; Annual results report to the Mexican Stock Exchange.
* Total consolidated financial debt (includes short and long term debt, as well as accrued interest)
841
1,143
1,493
1,983 2,038 2,082
2013 2014 2015 2016 2017 2018
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2. Accelerated Debt Growth (cont’d)
Net financial cost 2013 – 2018Figures in billions of current pesos
The interest cost for 2018 was equivalent to
64.7% of PEMEX's investment
for that year
Source: PEMEX; Annual results report to the Mexican Stock Exchange.
3343
73
87
101
122
2013 2014 2015 2016 2017 2018
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2. Accelerated Debt Growth (cont’d)
Debt balance net changes 2013 – 2019*Figures in billions of current pesos
Source: PEMEX; Annual results report to the Mexican Stock Exchange.
* Corresponds to the variation of the consolidated debt as of December 31 of each year with respect to the same day of the previous year.
302350
490
55 44
2014 2015 2016 2017 2018
In this period PEMEX drastically reduces
investment
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3. High Tax Burden
Source: PEMEX; Annual results report to the Mexican Stock Exchange.
Direct tax paymentsFigures in billions of current pesos, 2018=100
In 2018, direct taxes represented 2.1 times the amount of PEMEX's
investment in that year
The decrease in payment of direct taxes was mainly due to
the decrease in production195
379
468425
401
2014 2015 2016 2017 2018
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Impact of the structural challenges: PEMEX's decrease in investment
Source: PEMEX
PEMEX: Investment expenditureFigures in billions of current pesos, 2019=100
446 455
369 352
219198
2013 2014 2015 2016 2017 2018
In 2018, PEMEX recorded the lowest investment in the last 20
years
During the 2013-2018 period, PEMEX's public investment recorded an annual drop of
-13.7 % in real terms
The decline in investment impacted productivity adversely
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Result: Decline in oil production
Source: PEMEX
Oil production, 2004-2018Figures in millions of barrels per day From 2004, when the
highest level of production was recorded, to the end of 2018, PEMEX accumulated
a
46.4% loss—effectively a drop in production of 1.6 million
barrels of oil per day.
The aforementioned is equivalent to an average
annual reduction of 112 thousand barrels
per day in the period
3.4 3.3 3.3 3.1
2.8 2.6 2.6 2.6 2.5 2.5 2.4
2.3 2.2 1.9
1.8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
16
3. Action Plan
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Action Plan
Breaking the vicious cycle by proposing solutions to the three structural challenges (there is neither a unique nor
immediate solution)
Combined efforts are necessary to design
comprehensive public policies that are coherent and effective under a short-, mid- and long-
term strategic perspective
The current government has differentiated itself from prior
administrations because it has decided to confront the
challenge by proposing and implementing, for the first time, solutions to PEMEX’s
three structural issues under a philosophy of honesty and
transparency
Production
Revenues
EBITDA
Investment Solving structuralchallenges
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Strategy #1: Successful initiative against fuel theft
8174
2318
9 84 5 7
4 5 4 4 5 5 3 4 4 4 3 6 5 4 4 5 7 5 4 6 5 6 5 5 5
No
vem
ber
Dec
em
ber
01
-20
Dec
em
ber
21
-31
Jan
uar
y
Feb
ruar
y
Mar
ch
Ap
ril
May
1-M
ay
2-M
ay
3-M
ay
4-M
ay
5-M
ay
6-M
ay
7-M
ay
8-M
ay
9-M
ay
10
-May
11
-May
12
-May
13
-May
14
-May
15
-May
16
-May
17
-May
18
-May
19
-May
20
-May
21
-May
22
-May
23
-May
24
-May
25
-May
26
-May
Illicit fuel market: Losses in Thousands of Barrels/Day
(November 2018 – May 2019)
• Compared to the average theft in December 2018, this figure recorded adecline of 93% for the year through May 2019
• In the five months following the new initiative, levels have stabilized, thusconfirming its effectiveness
Before(December 2018)
After(May 2019)
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36,163
1,7293,546
2018 2019* 2019E**
19
Successful initiative against fuel theft
Estimated 2019 savings of
MXN 32.6 billion
Equivalent to
22.2%of total debt
maturities in 2020
In only five months, the company’s
first structural challengehas been resolved
• Figures from the financial statements for the period of January to April, quarterly reports to the Mexican Stock Exchange. Valuation
utilizes prices excluding taxes (IEPS & IVA)
** Estimated figures based on the decline of fuel theft observed for 2019 through the month of May
Non-operating losses (fuel theft)Figures in millions of constant pesos, 2018 = 100
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• The current administration will not use public debt to financeinvestments
• PEMEX’s financial policy will be focused on optimizing its financingsources, executing refinancing transactions as well as liabilitymanagement operations for debt maturing in 2019-2024 in twoseparate phases
Strategy #2: Decreased reliance on debt financing
2019-2021• 1st Phase: No increase to net indebtedness
2022-2024
• 2nd Phase: Gradual reduction of debt from higher cash flows due to an increase in the production of petroleum
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55
44
-18
2017 2018 2019
In the first quarter of 2019, PEMEX recorded net
deleveraging of MXN 18 billion
PEMEX’s 2019 goal to not increase net
indebtednessis sustainable
Source: PEMEX; BMV Annual Report
*Total consolidated financial debt
Net Indebtedness*Figures in billions of pesos
Net Indebtedness 2017 – 2019
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Proactive liquidity management: renewal of credit lines
• This transaction represents the refinancing of the US$2.0 billion term loandue in 2020 and US$500 million of "new" money to PEMEX, which will beused for the repayment of other maturities (no additional netindebtedness)
• Additionally, revolving credit lines (RCF) with maturities in 2019 and 2020are renewed and increased from US$4.75 billion to US$5.50 billion
• Lastly, during 2019, PEMEX signed a revolving credit line agreement for anamount of up to US$400 million with KOT Insurance AG.
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
9,475
2,152
7,652
500
2,0008,325
6,726
9,652
23
Renewal of credit linesFigures in millions of dollars
Before(December 2018)
After(May 2019)
Total amount of revolving
credit facilities1
Maturities2019
Maturities2020
Total amount of the new
revolving credit facilities
Maturities2019
Maturities2020
Refinancing
• During 2019, US$4,074 million have beenamortized.
• Revolving credit facilities will increase byUS$1,150 million (+ 13.8%).
With this refinancing operation, the new lines cover 4.4 times the amount of 2019 maturities and 1.2 times the amount of 2020 maturities
1 Exchange rate of 20 MXN per USD.
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Strategy #3: Reduction of the tax burden
The Mexican government has taken the historic decision to reduce the fiscalburden to Petróleos Mexicanos.
30,000
47,100
91,600
2019 2020 2021
Tax incentivesdecree
Estimated reduction of the
DUC
• On May 24, a decree was publishedin the Official Gazette of the MexicanFederation outlining thegovernment’s fiscal stimulus toPEMEX. This is in addition to thesimilar decree in 2017, and will be ineffect throughout 2019
• For 2020 and 2021, the Presidency ofthe Republic has announced thegradual reduction of the Profit-Sharing Duty (Derecho por UtilidadCompartida or DUC)
• The DUC represents more than 80%of the direct fiscal burden for PEMEX
Estimated impact of tax benefitsAmounts in millions of pesos
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Strategy #3: Reduction of the tax burden
DecreesReform to the Hydrocarbons Revenue
Law (Ley de Ingresos SobreHidrocarburos)
• The decree grants a fiscal benefitconsisting of an increase in the limits ofcosts, expenses and investments inassignments of the regions in shallowwaters and terrestrial areas that thecompany can deduct for the calculationof the DUC.
• This measure benefits a potentialproduction of 250 thousand barrels perday and is complementary to the stimuliissued on August 18, 2017 (150 thousandbarrels per day in mature fields).
• The total production that would besubject to these fiscal incentives reaches400 thousand barrels per day, about 25percent of the total crude production,with an estimated total benefit for 2019 ofat least 30 billion pesos (considering boththe 2017 & 2019 decrees).
• The initiative will propose gradualreductions in the DUC rate.
• The current DUC rate is 65 percent.
• In 2020, the rate would be reduced sevenpercentage points, going from 65% to 58%,that will represent an estimated decreasein the fiscal burden of 47.1 billion pesos.
• By 2021 the rate would drop down to 54percent.
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Strategy #3: Reduction of the tax burden
The aggregate tax
benefit for the period
2019-2021 amounts to
US$8.435billion
(MXN 168.7 billion1)
45.8% of the total accumulated debt
maturities for the period 2019-2021
61.8% of PEMEX’s total investment for 2019
Equivalent to:
1 Exchange rate of 20 MXN per USD.
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Other support measures from the government in 2019
27
Support measures from the Federal Government
Amount
MXN billion US$ billion
Progress as of June 1, 2019
Capital injection1 25 1.3 80%
Payment of Pension Liability promissory notes 35 1.8 100%
DUC 2019 tax deductibility benefit(Decree 2017 150 Mbd + Decree 2019 250 Mbd)
30 1.5 In process of implementation
TOTAL 90 4.5
1
2
3
1 Included in the Budget of Expenditures of the Federation approved on December 24, 2018
Note: Exchange rate MXN 20.00 for USD 1.00. Sums may not match due to rounding
Source: SHCP and PEMEX
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Summary of Federal Government support
28
The objective of the Federal Government is to directly support PEMEX during the
first half of the six-year term
The intention is for PEMEX to achieve in the remaining three
years a virtuous cycle that consolidates the company towards a
sustained recovery in oil production
Amounts in millions of pesos.
* Nominal value. This balance already considers the amounts paid in 2019 and does not consider accrued interest.
Concept 2019 2020 2021
1. Capital injection 25,000 To be defined
To be defined
2. Payment by the SHCP of pension promissorynotes (currently there is a remaining balance of 101.5 billion pesos)*
35,000 To be defined
To be defined
3. Tax incentives and tax burden reduction 30,000 47,100 91,600
Total 90,000 47,100 91,600
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
29
4. Strategy backbone: Increasing crude oil production
How are we getting there?
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Increase investments
Source: Pemex.
* SHCP; Federal Budgets per year
** Preliminary estimated Budget for 2020-2021 taking into account that fiscal benefits are allocated 100% to investment activities.
Investment ExpendituresMXN BN, 2019=100
During 2019 PEMEX will increase investments by
37.7% in real terms compared to the prior
year.
The capitalization from the Federal Government, fiscal benefits and the
cost reductions support this increase in investments.
80% of investments will be directed to Upstream
Short-term objective: reverse the declining trend in production
446 455
369 352
219198
273320
412
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Reversing the declining crude oil production trend
In the past three years PEMEX did not invest in new fieldsdevelopment in order to reverse the decline in crude oil production
Increase investments in wells maintenance and
reparation
Improve supply management and
efficiency related to productive wells
Invest in new developments and
enhance exploration activities
Stabilize current production
Increase production
2019 exploration and production budget:• Total: 210.7 billion pesos• New developments: 43 billion pesos
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Development of 20 new fields will boost production in 2019
3 3
8
4 4 3 2 24 3 4 4 5
2 1 0 0 0
20
0
5
10
15
20
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Onshore Offshore
Off
sho
reO
nsh
ore
KutzSihil
Perdiz AcagualCafeto
Saramako
ChuhukEktal
HomolLobinaCarpa
GuarichoShishitoMalva
CitamMay
Sinan
Costero
IxtalManik
Bolontiku
Tiumut
KabYaxche
Nelash RabasaTeotleco
TajónCrtaer
Xanab
CupacheMadrefil
Terra
ChéAluxYum
Tumut
BrillanteParetoTokal
KuilTsimin
GasiferoBedel
KambesahOnel
AnhélidoEltreinta
Sini
Xux
Ayocote
Ayatsil XikinEsah
CheekCahuaUchbalManik
JaatsulSuukTeekitKoban
HokMulach
TlacameTetl
PokcheOctli
IxachiChocol
CibixValeriana
Important! This is not just a plan, the development of 20 new fields is already in execution
In only one year, PEMEX will invest in 20 new developments, the same number previously achieved in one decade
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100% of the offshore infrastructure required for the development of new fields is already contracted
The bidding process has started for the infrastructure development of 2 additional fields(Yaxché y Onel)
XikinSuukPokcheTetlCahua
OctliTeekitUchbalTlacame
• 7 platforms• 7 pipelines
• Amount USD 562.54 MM• Expected 153.60 MM
EsahJaatsulCheekKoban
HokMulachManik
• 6 platforms • 7 pipelines
• Amount USD 465.30 MM• Expected USD 123.00 MM
Contracted
Contracted
ESEASA-PERMADUCTO
BOSNOR-PERMADUCTO
YaxchéOnel
• 2 platforms• 2 pipelines
In progressDecision (JULY 8, 2019)
Co
ntr
acts
20 fi
eld
sC
on
trac
ts2
add
itio
nal
fie
lds
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.34
One year after starting the contracts, we will have the first production of the 20 new fields
2018 2019 2020
Oct Nov Dic Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic Ene Feb
Drilling services
contracted
Contracting process
Platforms installations
XikinB, Cahua, Octli, Teekit, Esah, Cheek.
Mulach
Contract begins
Platformconstruction
Platforms installations
Suuk, Pokche, Teetl, Jaatsul, Koban, Hok
Platforms installations
Xikin-A
First production
Xikin-B, Cahua, Octli, Teekit, Esah,
Cheek. Mulach
Firstproduction
Suuk, Pokche, Teetl, Jaatsul, Koban, Hok
Pipeline construction
First production in platform
Xikin-AWe are here
Ixachi
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.35
Progress in the construction of offshore infrastructure is in line with expectations
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
05-feb-19 26-feb-19 26-mar-19 30-abr-19 07-may-19 21-may-19 28-may-19 25-jun-19 30-jul-19 27-ago-19 24-sep-19 29-oct-19 26-nov-19 31-dic-19
Pro
gre
ss (
%)
% Expected Progress: 20.80
% Actual Progress: 21.20
Progress of Global Platforms/ Pipelines
Template Installation Laying of PipelineELM Superstructure
Companies ESEASA-PERMADUCTO / BOSNOR-PERMADUCTO
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.36
The required onshore infrastructure for the 20 new fields is also progressing in line with expectations
Progress on the infrastructure of onshore fields
Drilling of Chocol-1 well Location expansion in Cibix-1
0%10%20%30%40%50%60%70%80%90%
100%
Pro
gre
ss (
%)
% Expected Progress: 10.73
% Actual Progress: 11.20
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.37
Bidding processes for drilling services
• Drilling services for the development of 18 fields have been contracted• Additionally, wells for Onel and Yaxché were included in this process• As a result, the Action Plan for 2019 increased the number of developments
from 20 to 22C
on
trac
ts22
fiel
ds
• 15 wells
• Amount USD 692 MM
Contracted1. MARINSA2. GRUPO R
XikinEsah
Uchbal
• 44 wells
• Amount USD 1,290 MM
Contracted1. MEXOIL2. PERFOLAT
• 15 wells
• Amount USD 505 MM
Contracted1. OPEX
• 31 wellsContracted
• 23 wells
ChocolValeriana
CibixIxachi
MulachManik
Tlacame
HokJaatsulTetl
OctliCahuaTekit
PokcheCheek
In processDECISION (JUNE 10, 2019)Onel
YaxcheSuukKoban
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.38
Efficiency in the 2019 Action Plan: time and costs savings
Drilling started in 3 new wells and its performance is exceeding expectationstranslating into time and cost savings
Actual
Estimated
Actual
Estimated
Actual
Estimated
Xikin-22 Xikin-45 Esah-21
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.39
Increase in exploration activities
2 1 0 0 0
20 20 2432 32
40
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Number of developments per year
16 2
83
20 2432 32
40 40
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Commercial Discoveries
Increase in exploration activities will lead to new commercial discoveries thatwill be part of the 20 to 40 new fields per year
Sources: Pemex. Estimated figures.
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.40
Ixachi: Largest Onshore Discovery in Mexico in the Last 25 Years• Ixachi is the most relevant field out of the 20 new developments.• At its peak production level, Ixachi will contribute approximately 25% of the incremental
production for PEMEX out of the 20 new developments
General information
Year of discovery 2017
Location 72 km south of Veracruz
Depth (mvbmr) Between 6,400 and 7,800 m
Number and type of drilling wells (num.)
2 exploratory and 1 delineation
Estimated reserves (3P) 1,314 million boe
Oil density (°API) 40°
Actual production3,900 bpd and 30 million daily cubic
feet
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.41
Ixachi’s production forecast
0
100
200
300
400
500
600
700
ene abr jul oct ene abr jul oct ene abr jul oct ene abr jul oct ene abr jul oct ene abr jul oct
0
10
20
30
40
50
60
70
80
90
ene abr jul oct ene abr jul oct ene abr jul oct ene abr jul oct ene abr jul oct ene abr jul oct
2019 2020 2021 2022 2023 2024
Oil(Mbd)
Gas (MMpcd)
105
383
583
617 599
14
50
75 80 77 74
577
• Ixachi is already producing 3.9 Mbd• Production is expected to reach 14 Mbd in December.
Source: PEMEX. Estimated figures.
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.42
Production forecast of the 22 new fields started in 2019
Oil
Gas
MM
pcd
Mb
d
2019 2020 2021 2022 2023 2024
320
908
267
70
303255
203
611
124
861743 612
• Production of new developments is expected to reach 70 Mbdin December 2019.
Source: PEMEX. Estimated figures.
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.43
Production forecast considering future development of explorations
0
200
400
600
800
1,000
1,200
1,4002019 2020 2021 2022 2023 2024
72
340417
752 751 1,151
2019 (20 new fields)
2020-24 (148 new fields)
0
500
1,000
1,500
2,000
2,500
3,000
2019 2020 2021 2022 2023 2024
128
8121,156
1,720 1,706 2,720
2019 (20 new fields)
2020-24 (148 new fields)
Other operators
Oil(Mbd)
Gas (MMpcd)
Source: PEMEX. Estimated figures.
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.44
Committed production 2019-2024
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
EXPLORACIÓN
REDUCCIÓN DE LA DECLINACIÓN
INCREMENTO DEL FACTOR DE RECUPERACION EN CAMPOS MADUROS
REPARACIONES
TERMINACIONES
BASE
Historia al 2018
2,560Dic-2018
1,713
Dic-2018
2,654
3,256 3,076 2,792 2,601 2,577 2,553 2,548 2,522 2,429 2,267 2,154 1,950 1,823 1,725 2,018 2,089 2,192 2,317 2,480
Producción de crudo (miles de barriles diarios)
Source: PEMEX. Estimated figures.
Dec-2024
Crude oil production (thousand barrels per day)
Dec-2018
Exploration
Decrease of decline rate
Increase of recovery factor in mature fields
Repairs
Base production
History to 2018
Completion
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.45
Economic boost of the industry
Source: Pemex. Estimated figures.
This administration’s development of new fields in the upcoming years will have asignificant impact reactivating the industry
2019 2020 2021 2022 2023 2024 Total
Wells 50 80 90 87 95 89 491
Onshore platforms 15 13 23 14 24 19 108
Offshoreplatforms 10 22 18 36 32 42 160
Pipelines (km) 334 588 852 744 1,008 948 4,474
Structuralsteel (tons) 170,500 258,631 306,309 232,509 255,371 168,790 1,392,110
Jobs 26,900 49,162 62,395 44,905 54,001 47,188
4,377 km
WTC 60,000 Tons
23 times
1
Plaza de Toros MéxicoPromedio: 47,000 empleos/año
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.46
Estimated increase in reserves
Billion barrels of oil equivalent.
Source: PEMEX. Estimated figures.
As of January 1 of each year.
9,632 8,562 7,695 7,010 7,361 8,013 8,525 9,012 9,474
6,4526,567 6,529 6,606 6,165 5,967 5,778 5,518 5,198
6,139 7,0206,865 6,837 7,699 8,119 8,590 8,989 9,335
0
5,000
10,000
15,000
20,000
25,000
2016 2017 2018 2019 2020 2021 2022 2023 2024
PROBADAS PROBABLES POSIBLES
ProjectedObserved
Exploration activities and the development of new fields are expected to revert thedeclining trend in reserves
Proved Probable Possible
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
Stabilize and revert the declining trend in production to 1,725 Mbd during 2019
47
1,703 1,7111,688
1,698 1,666
1,687
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
2,000
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19
Shutdown due to adverseweather conditions (high inventories)
Production20-May-19
1,677
1 Preliminary figures as for May 2019
1
Time zone change
January 1– May 31, 2019MM Mbd
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
Significant cost reductions in new exploration and production service contracts
48
Vertical and horizontal integration of consortiums based on the nature of the project: activities with
different providers were integrated
Infrastructure
Platforms PipelinesElectro mechanics
works+ +Drilling Services Logistics CrewEMS
Drilling
+An estimated
30%Fees and cost
reduction from new contracts
+ + +
Procurement strategy innovation
Transparency and honesty
Costreductions
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.49
Efficiencies in procurement processes have translated in to savings
Savings in new assigned contracts1
MXN million USD million
Infrastructure 2,379 119
Onshore wells 6,066 303
Offshore wells 7,162 358
Total 15,607 780
1 Data as of March 31, 2019Note: Exchange rates: MXN 20 = USD 1
Through competitive and transparent processes, more infrastructure projects can be developed with the same amount of resources
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
New business model: Integrated Exploration and Extraction Service Contracts (CSIEEs)
50
▪ PEMEX maintains ownership of the assignment and continues as operator
▪ The maximum term of the contract can be between 15 and 25 years
▪ The payment to the contractor is calculated through a fee in USD per unit of hydrocarbon produced
▪ The contractor carries out the activities agreed upon in the contract, contributing 100% of the capital investment (Capex) and operating expenses (Opex)
▪ For the viability of the projects, several aspects must be considered (improvement in the fiscal regime, segregated accounts, variable tariffs depending on the hydrocarbons price and recovery of costs in higher risk activities)
Main characteristics
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
In order to incentivize production, CSIEEs1 use staggered rates based on the probability of reserves
51
Production profile for calculating feesMbd
DP2
DP3
DP4
DP1
Time, years
Greater incremental production, higher fee paid
F1 F2F3
F4
USD per barrel
Sharing risk with third parties optimizes exploration and increases production
1 Contratos de Servicios Integrales de Exploración y Extracción (CSIEE)2 F: fee
Base production
Reference profile Additional increases (possible reserves, adjacent
blocks)
Exploration / Secondary or
enhanced recovery
DP: Refer to different phases in the development of the project
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
52
5. Industrial Transformation
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.53
Transformation: National Refining System
RefineryFirst
operating year
Cadereyta 1979Madero 1914Minatitlán 1956Salamanca 1950Salina Cruz 1979Tula 1977
Salamanca
Tula
Salina Cruz
• PEMEX National Refining System (NRS) consists of 6 refineries withatmospheric distillation capacity of 1,640 Mbd. Due to operative problems in2018, the NRS operated below 40% of its capacity
• The average utilization of installed refining capacity is 80% worldwide
Minatitlán
Cadereyta
Madero
Reconfigured
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
NRS Maintenance Plan
54
Cadereyta• Hydrogen plant unit• Catalytic 1• Hydro-desulphurization of
middle distillates (U-700-2)
Salamanca• Hydro-desulphurization of
gasoline (HDS-3)• MTBE
Salina Cruz• Hydro-desulphurization of
gasoline 8U-400-2)• Gasoline reforming (U-500-2)• Hydro-desulphurization of
middle distillates (U-700-2)
Tula• Catalytic unit 1• Hydro-desulphurization of
residuals
2Q Maintenance (in process)
Cadereyta• Catalytic unit 2• Alkylation 2
Salamanca• Hydro-desulphurization of
gasoline (HDS-2 unit)
Salina Cruz• Crude unit 1• Catalytic unit 1
Tula• Hydro-desulphurization of
gasoline (U-400-2)
1Q Maintenance (completed)
The Maintenance Plan
includes:
• Process plants equipment
• Utilities equipment
• Storage tanks
• Support process lines for all
the refineries.
In 2019, PEMEX will carry out a comprehensive maintenance program at theNational Refining System, after which, petroleum products output is expected at402 Mbd
3Q-4Q Maintenance (to be completed)
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
55
6. Financial Highlights
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.56
EBITDA: Stable Cash Flow
PEMEX has generated a solid and stable cash flow, resulting in an EBITDA growth
Source: PEMEX
Mexican Crude Oil Mix Price (USD/b)EBITDA marginEBITDA
22.0
14.3
23.4
27.7 26.9
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
-
5.0
10.0
15.0
20.0
25.0
30.0
2015 2016 2017 2018 As of2019Q1
EBITDAUSD BillionMXN MM
461.7
545.0 522.0
Me
xica
n C
rud
e O
il M
ix P
rice
US
D/b
33%
28%
33%
28%
Mexican Crude Oil Mix Price (USD/b)EBITDA marginEBITDA
32%
296.5
377.9
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
-64,965
-14,386
-622
13,7694,239
2019 Financial BalanceFigures in millions of pesos
*Preliminary figures as of June 3, 2019
January February March April
Compared to the previous report, April’s financial
balance improved by +501 million
pesos
May’s preliminary figures reflect a
positive financial balance of 4,239
million pesos achieving two
consecutive months of positive financial
balance
We are committed to delivering a
positive financial balance during the
2Q19
Mayestimated*
Substantial payment of previous administration’s
accounts payable
57
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.58
Financial Debt Maturity Profile• As of March 31, 2019, PEMEX’s consolidated debt under IFRS amounted to US$106.5
billion
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 →
Debt Profile as of March 31, 2019*
*Does not include revolving credit facilities
Debt breakdown by currency (as of March 31, 2019)1,2
Note: Numbers used for calculating percentages were rounded 1 Breakdown by currency: percentages do not include accrued interest. Others includes GBP & CHF-denominated debt2 Indebtedness payable in currencies other than U.S. dollars was first converted into pesos for accounting purposes at the exchange rates set by Banco de México and then converted from pesos to U.S. dollars at the following exchange rates: MXN$19.3793 = US$1.00Source: PEMEX’s consolidated financial statements, prepared in accordance with IFRS
81.4%
18.6%
Fixed Floating
Debt breakdown by rate(as of March 31, 2019)1,2
Debt breakdown by tenor (as of March 31, 2019)1,2
86.4%
13.6%
Long-term Short-term
83.2%13.2%
3.1%
0.5% 0.1%
USD MXN EUR JPY Others
2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.
Thank you