PXP Announces Third Quarter 2007 Results

HOUSTON, Nov. 1 /PRNewswire-FirstCall/ -- Plains Exploration & Production Company ("PXP" or the "Company") today announced financial and operating results for the third quarter 2007. Sales volumes per day increased 7% over the second quarter 2007 and 10% over the first quarter 2007. Operating cash flow (a non-GAAP measure) increased 35% over the second quarter 2007 and nearly 60% over the first quarter 2007.

Highlights and recent developments: -- Announced a significant discovery at the Flatrock exploratory prospect in the Gulf of Mexico. - Discovery well encountered 8 pay sands totaling 260 net feet; - Production test indicated a gross flow rate of approximately 71 million cubic feet of natural gas per day (MMCFD) and 739 barrels of condensate, approximately 17 MMCFED net to PXP. First sales volumes expected in the fourth quarter 2007; and - One additional Flatrock well is currently drilling. A second well is expected to begin drilling shortly and a third location has been permitted. -- In the Flatrock area, a production test at the Hurricane Deep discovery indicated a gross flow rate of approximately 15.4 MMCFD, 3.3 MMCFD net to PXP. First sales volumes expected in the fourth quarter of 2007. -- Integrated the Piceance Basin properties and completed the first planned Collbran Valley Gas Gathering System (CVGS) compression expansion project in early October. Sales volumes averaged 7,200 net barrels of oil equivalent per day (BOEPD) in September, representing a 20% increase to sales volumes at the time of acquisition. -- PXP and Pogo Producing Company (Pogo) each scheduled their respective special stockholder meetings for November 6, 2007. At the meetings the Pogo stockholders will vote on, among other items, the proposed merger with PXP and the PXP stockholders will vote on, among other items, the issuance of PXP common stock to Pogo stockholders pursuant to the merger. THREE MONTHS ENDED SEPTEMBER 30

PXP reported third quarter 2007 net income of $32.9 million, or $0.45 per diluted share, on revenues of $299.0 million, compared to the third quarter 2006 net income of $272.7 million, or $3.50 per diluted share, on revenues of $280.9 million. Third quarter 2006 results included a $345.5 million pre-tax gain on sale of oil and gas properties.

Sales volumes during the third quarter 2007 increased 7% to 57,100 BOEPD from 53,500 BOEPD in the second quarter 2007. A full quarter of Piceance Basin volumes combined with slightly higher California volumes more than offset lower Gulf Coast volumes. Sales volumes for third quarter 2007 were lower than the prior year quarter due primarily to asset sales completed at the end of the third quarter 2006.

Operating cash flow, a non-GAAP measure, during the third quarter 2007 increased 35% to $145.8 million from $107.7 million in the second quarter of 2007. Operating cash flow for the third quarter 2007 was lower than the same quarter last year due to increased operating expenses and lower production primarily related to asset sales in the third quarter 2006. An explanation and reconciliation of all non-GAAP financial measures is included at the end of this release.

NINE MONTHS ENDED SEPTEMBER 30

For the first nine months of 2007, PXP reported net income of $78.7 million, or $1.07 per diluted share on revenues of $779.2 million, compared to net income of $213.9 million, or $2.71 per diluted share on revenues of $810.9 million. Results for the nine month period of 2006 included a $345.5 million pre-tax gain on sale of oil and gas properties partially offset by a $299.9 million derivative loss.

Sales volumes for the first nine months of 2007 were lower year-over-year primarily due to asset sales in the third quarter 2006. PXP reported 54,200 BOEPD for the first nine months of 2007 compared to 61,000 BOEPD for the first nine months of 2006.

Oil and gas capital expenditures, excluding acquisitions, were $573 million for the first nine months of 2007 compared to $474 million for the prior year period. The increase is primarily attributed to additional exploratory drilling in the Gulf of Mexico and development drilling in the Piceance basin.

DEVELOPMENT - OPERATIONS UPDATE

In the Piceance Basin of Colorado, PXP's third quarter sales volumes averaged 5,700 net BOEPD. Stage one of a planned expansion project on CVGS was completed in late August while stage two was completed in early October. Sales volumes averaged 7,200 net BOEPD in September. PXP is operating five drilling rigs and drilled a total of 26 successful wells during the third quarter and plans to drill 20 to 30 wells during the fourth quarter.

In the Gulf Coast region, PXP's third quarter sales volumes averaged 2,700 net BOEPD. In the Gulf of Mexico Flatrock area, completion operations are underway at both the Flatrock discovery well (South Marsh Island Block 212 #228, PXP 30% working interest) and the Hurricane Deep discovery well (South Marsh Island Block 217 #226, PXP 30% working interest) with first production for both expected in the fourth quarter of this year using existing infrastructure in the area. At the Hurricane Deep discovery, as recently announced by the operator, the production test, which was performed in the Gyro section, indicated a gross flow rate of approximately 15.4 MMCFD, 3.3 MMCFD net to PXP. At Flatrock as recently announced by the operator, the production test, which was performed in the Operc section, indicated a gross flow rate of approximately 71 MMCFD and 739 barrels of condensate, approximately 17 MMCFED net to PXP. One additional Flatrock well is currently drilling. A second well is expected to begin drilling shortly and a third location has been permitted. The three additional locations provide further options for development of the multiple reservoirs found in the Rob-L and Operc sections.

In the San Joaquin Valley, PXP's third quarter sales volumes averaged 22,700 net BOEPD. The 2007 plan includes continued development and expansion of the Midway Sunset and Cymric Fields. A total of 50 producer and 17 steam injection wells were drilled during the third quarter. Our 2007 drilling activity continues to concentrate on steam-enhanced recovery development of the Diatomite, Marvic, Spellacy and Potter formations in the Midway Sunset Field and the Diatomite and Tulare formations in the Cymric Field.

In the Los Angeles Basin, PXP's third quarter sales volumes averaged 13,500 net BOEPD. Two wells were drilled during the third quarter in the Las Cienegas Field. Drilling activity during the fourth quarter will concentrate on the Las Cienegas Field.

Offshore California, PXP's third quarter sales volumes averaged 12,500 net BOEPD. Much of the activity on these assets this year will concentrate on maintaining production through well workovers and recompletions.

EXPLORATION - OPERATIONS UPDATE

In the Gulf of Mexico Flatrock area, the Cottonwood Point exploratory prospect (Vermilion Block 31 #26, PXP 40% working interest) was drilled to a total depth of nearly 20,000 feet and will be completed in the Rob-L section. As previously announced, wireline logs indicated the well encountered 43 feet of net hydrocarbon bearing sands over an approximate 92-foot gross interval in the upper Rob-L section.

Also in the Flatrock area, the Mound Point South exploratory prospect (Louisiana State Lease 340 #5, PXP 24.4% working interest) was drilled to a total measured depth of 21,056 feet. As previously announced, wireline logs have indicated the well encountered a potential 15 feet of net hydrocarbon bearing sands over 47-foot gross interval in the Gyro section. The Mound Point South well was temporarily abandoned while PXP and its partners consider future operations for this well.

The Cas exploratory well (South Timbalier Block 70 #1) was drilled to a true vertical depth of 24,285 feet. Evaluation of the well determined that it did not contain commercial quantities of hydrocarbons.

The Shell-operated Vicksburg exploration prospect (De Soto Canyon Block 353, PXP 17.5% working interest) was drilled to a depth of approximately 25,400 feet. The well has been temporarily abandoned while drilling results are analyzed.

The PXP-operated Buckhorn Prospect (South Pass 19) and the Chevron-operated Bob North prospect (Mississippi Canyon Block 860) are drilling. The Woodside-operated Terrebonne prospect (Green Canyon Block 452) is expected to commence drilling in the fourth quarter of this year.

PROPOSED MERGER WITH POGO PRODUCING COMPANY

On July 17, 2007 PXP announced it entered into a definitive agreement to acquire Pogo in a stock and cash transaction valued at approximately $3.6 billion, based on PXP's July 16, 2007 stock price. Under the terms of the definitive agreement, Pogo stockholders will receive 0.68201 shares of PXP common stock and $24.88 of cash for each share of Pogo common stock. Pogo stockholders will have the right to elect to receive cash, Plains common stock, or both subject to pro-ration if either the cash or stock selection is oversubscribed. When completed, PXP will issue approximately 40 million shares of common stock and pay approximately $1.5 billion in cash.

As previously announced PXP and Pogo have each scheduled their respective special stockholder meetings for November 6, 2007. At the meetings the Pogo stockholders will vote on, among other items, the proposed merger with PXP and the PXP stockholders will vote on, among other items, the issuance of PXP common stock to Pogo stockholders pursuant to the merger. Shareholders of record, as of the close of business on September 25, 2007, are entitled to vote at the respective special stockholder meetings. The transaction is expected to close on or near that date.

OUTLOOK

Oil and gas capital expenditures, excluding acquisitions, are expected to be $850 million to $950 million for the year ended 2007. The increase from the previous estimate is primarily attributed to additional development spending associated with the recent Gulf of Mexico exploration successes, higher capitalized costs related to the Piceance properties and two months of capital related to Pogo.

THIRD QUARTER EARNINGS CONFERENCE CALL

PXP will host a conference call today November 1, 2007 at 9:00 a.m. Central to discuss results and other forward-looking items. Investors wishing to participate may dial 1-800-567-9836 or 1-973-935-8460. The replay will be available through November 15, 2007 and can be accessed by dialing 1-877-519-4471 or 1-973-341-3080, conference call and replay ID: 9333047. Slides for the conference call will be available in the Investor Information section of PXP's website, http://www.pxp.com/, during the conference call and for 60 days after the event date.

PXP is an independent oil and gas company primarily engaged in the upstream activities of acquiring, developing, exploiting, exploring and producing oil and gas in its core areas of operation: onshore and offshore California, Colorado, and the Gulf Coast region of the United States. PXP is headquartered in Houston, Texas.

ADDITIONAL INFORMATION & FORWARD LOOKING STATEMENTS

This press release contains forward-looking information regarding PXP that is intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that PXP expects, believes or anticipates will or may occur in the future are forward-looking statements. These include statements regarding:

* completion of the proposed merger, * effective integration of the two companies, * reserve and production estimates, * oil and gas prices, * the impact of derivative positions, * production expense estimates, * cash flow estimates, * future financial performance, * planned capital expenditures, and * other matters that are discussed in PXP's filings with the SEC.

These statements are based on our current expectations and projections about future events and involve known and unknown risks, uncertainties, and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K for the year ended December 31, 2006, for a discussion of these risks.

All forward-looking statements in this report are made as of the date hereof, and you should not place undue reliance on these statements without also considering the risks and uncertainties associated with these statements and our business that are discussed in this report and our other filings with the SEC. Moreover, although we believe the expectations reflected in the forward-looking statements are based upon reasonable assumptions, we can give no assurance that we will attain these expectations or that any deviations will not be material. Except for any obligation to disclose material information under the Federal securities laws, we do not intend to update these forward-looking statements and information.

PXP AND POGO HAVE FILED A JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS BECAUSE IT CONTAINS IMPORTANT INFORMATION REGARDING PXP, POGO AND THE ACQUISITION. A DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS HAS BEEN SENT TO SECURITY HOLDERS OF PXP SEEKING THEIR APPROVAL OF THE ISSUANCE OF SHARES OF PXP STOCK TO BE USED AS MERGER CONSIDERATION AND SECURITY HOLDERS OF POGO SEEKING THEIR APPROVAL OF THE ACQUISITION. INVESTORS AND SECURITY HOLDERS MAY OBTAIN A FREE COPY OF THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED BY PXP AND POGO WITH THE SEC AT THE SEC'S WEBSITE AT http://www.sec.gov/.

THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND SUCH OTHER DOCUMENTS (RELATING TO PXP) MAY ALSO BE OBTAINED FOR FREE FROM PXP BY DIRECTING A REQUEST TO PLAINS EXPLORATION & PRODUCTION COMPANY, 700 MILAM, SUITE 3100, HOUSTON, TX 77002, ATTENTION: JOANNA PANKEY; TELEPHONE: (713) 579-6000, E-MAIL: JPANKEY@PXP.COM.

THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND SUCH OTHER DOCUMENTS (RELATING TO POGO) MAY ALSO BE OBTAINED FOR FREE FROM POGO BY DIRECTING A REQUEST TO POGO PRODUCING COMPANY, 5 GREENWAY PLAZA, SUITE 2700, HOUSTON, TX 77046, ATTENTION: CLAY JEANSONNE, TELEPHONE: (713) 297-5000, E-MAIL: JEANSONC@POGOPRODUCING.COM.

PXP, its directors, executive officers and certain members of management and employees may be considered "participants in the solicitation" of proxies from PXP's stockholders in connection with the acquisition. Information regarding such persons and a description of their interest in the acquisition is contained in the joint proxy statement/prospectus on file with the SEC. Information concerning beneficial ownership of PXP stock by its directors and certain executive officers is included in its proxy statement dated March 29, 2007 and subsequent statements of changes in beneficial ownership on file with the SEC.

Pogo, its directors, executive officers and certain members of management and employees may be considered "participants in the solicitation" of proxies from Pogo's stockholders in connection with the acquisition. Information regarding such persons and a description of their interest in the acquisition is contained in the joint proxy statement/prospectus on file with the SEC. Information concerning beneficial ownership of Pogo stock by its directors and certain executive officers is included in its proxy statement dated April 20, 2007 and subsequent statements of changes in beneficial ownership on file with the SEC.

Plains Exploration & Production Company Consolidated Statements of Income (Unaudited) (amounts in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Revenues Oil sales $276,096 $253,844 $713,197 $718,841 Gas sales 22,696 26,724 63,441 89,879 Other operating revenues 177 339 2,571 2,192 298,969 280,907 779,209 810,912 Costs and Expenses Production costs Lease operating expenses 52,696 50,355 147,471 137,258 Steam gas costs 22,349 15,707 76,630 41,327 Electricity 11,197 9,991 29,464 28,777 Production and ad valorem taxes 5,118 6,991 15,419 19,795 Gathering and transportation expenses 3,026 2,291 4,432 5,947 General and administrative 22,007 31,493 74,417 92,530 Depreciation, depletion and amortization 69,731 50,844 180,932 151,528 Accretion 2,297 2,564 6,832 7,506 Gain on sale of oil and gas properties - (345,480) - (345,480) 188,421 (175,244) 535,597 139,188 Income from Operations 110,548 456,151 243,612 671,724 Other Income (Expense) Interest expense (18,165) (22,178) (35,223) (57,182) Gain (loss) on mark-to-market derivative contracts (39,155) 12,340 (75,582) (299,902) Gain on termination of merger agreement - - - 37,902 Other (372) 500 952 2,120 Income Before Income Taxes and Cumulative Effect of Accounting Change 52,856 446,813 133,759 354,662 Income tax (expense) benefit Current 2,183 (47,490) 2,183 (56,247) Deferred (22,179) (126,630) (57,194) (82,319) Income Before Cumulative Effect of Accounting Change 32,860 272,693 78,748 216,096 Cumulative effect of accounting change, net of tax benefit - - - (2,182) Net Income $32,860 $272,693 $78,748 $213,914 Earnings per share Basic Income before cumulative effect of accounting change $0.45 $3.56 $1.09 $2.77 Cumulative effect of accounting change - - - (0.03) Net income $0.45 $3.56 $1.09 $2.74 Diluted Income before cumulative effect of accounting change $0.45 $3.50 $1.07 $2.74 Cumulative effect of accounting change - - - (0.03) Net income $0.45 $3.50 $1.07 $2.71 Weighted Average Shares Outstanding Basic 72,859 76,622 72,499 77,911 Diluted 73,811 77,802 73,526 78,802 Plains Exploration & Production Company Operating Data Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Daily Average Volumes Oil and liquids sales (Bbls) 47,482 53,043 47,233 52,815 Gas (Mcf) Production 63,768 62,266 48,108 63,782 Used in steam operations 6,096 16,721 6,313 14,732 Sales 57,672 45,545 41,795 49,050 BOE Production 58,110 63,421 55,251 63,445 Sales 57,094 60,634 54,199 60,990 Unit Economics (in dollars) Average NYMEX Prices Oil $75.15 $70.54 $66.19 $68.25 Gas 6.18 6.62 6.84 7.44 Average Realized Sales Price Before Derivative Transactions Oil (per Bbl) $63.19 $59.51 $55.31 $57.46 Gas (per Mcf) 4.28 6.38 5.56 6.71 Per BOE 56.89 56.85 52.49 55.16 Cash Margin per BOE (1) Oil and gas revenues $56.89 $50.30 $52.49 $48.57 Costs and expenses Lease operating expenses (10.04) (9.03) (9.96) (8.24) Steam gas costs (4.26) (2.82) (5.18) (2.48) Electricity (2.13) (1.79) (1.99) (1.73) Production and ad valorem taxes (0.97) (1.25) (1.04) (1.19) Gathering and transportation (0.58) (0.41) (0.30) (0.36) Gross margin before DD&A (GAAP) 38.91 35.00 34.02 34.57 Hedging expense included in oil and gas revenues - 6.55 - 6.58 Cash derivative settlements Oil and gas production (4.88) (4.05) (5.10) (4.02) Natural gas purchases - (0.52) - (0.51) Cash margin (Non-GAAP) $34.03 $36.98 $28.92 $36.62 (1) Cash margin (a non-GAAP measure) is calculated by adjusting gross margin before DD&A (a GAAP measure) to exclude hedging expense included in oil and gas revenues and to deduct cash derivative settlements. Management believes this presentation may be helpful to investors as it represents the cash generated by our oil and gas production that is available for, among other things, capital expenditures and debt service. PXP management uses this information to analyze operating trends and for comparative purposes within the industry. This measure is not intended to replace the GAAP statistic but to provide additional information that may be helpful in evaluating the Company's operational trends and performance. Plains Exploration & Production Company Consolidated Balance Sheets (Unaudited) (in thousands of dollars) September 30, December 31, 2007 2006 ASSETS Current Assets Cash and cash equivalents $4,597 $899 Accounts receivable 148,560 113,193 Inventories 12,254 12,394 Deferred income taxes 51,637 51,084 Other current assets 7,986 7,226 225,034 184,796 Property and Equipment, at cost Oil and natural gas properties - full cost method Subject to amortization 3,607,209 2,624,277 Not subject to amortization 697,675 142,096 Other property and equipment 80,084 41,392 4,384,968 2,807,765 Less allowance for depreciation, depletion and amortization (878,779) (700,241) 3,506,189 2,107,524 Goodwill 153,093 158,515 Other Assets 75,259 12,393 $3,959,575 $2,463,228 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $207,878 $131,639 Commodity derivative contracts 76,550 95,162 Royalties and revenues payable 42,349 38,159 Stock appreciation rights 49,687 57,429 Interest payable 17,087 1,143 Income tax payable - 94,272 Other current liabilities 40,262 42,388 433,813 460,192 Long-Term Debt Revolving credit facility 480,000 235,500 7 3/4% Senior Notes 600,000 - 7% Senior Notes 500,000 - 1,580,000 235,500 Other Long-Term Liabilities Asset retirement obligation 144,024 133,420 Commodity derivative contracts 35,842 18,114 Other 17,183 19,040 197,049 170,574 Deferred Income Taxes 500,012 466,279 Stockholders' Equity Common stock 805 792 Additional paid-in capital 1,049,836 964,472 Retained earnings 543,990 463,864 Treasury stock, at cost (345,930) (298,445) 1,248,701 1,130,683 $3,959,575 $2,463,228 Plains Exploration & Production Company Consolidated Statements of Cash Flows (Unaudited) (in thousands of dollars) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES Net income $32,860 $272,693 $78,748 $213,914 Items not affecting cash flows from operating activities Gain on sale of oil and gas properties - (345,480) - (345,480) Depreciation, depletion, amortization and accretion 72,028 53,408 187,764 159,034 Deferred income taxes 22,179 126,630 57,194 82,319 Cumulative effect of adoption of accounting change - - - 2,182 Commodity derivative contracts 39,155 24,205 75,582 409,534 Noncash compensation 4,960 9,176 20,150 32,594 Other noncash items 251 (16) 220 (64) Change in assets and liabilities from operating activities (26,922) 73,773 (133,897) 66,119 Net cash provided by operating activities 144,511 214,389 285,761 620,152 CASH FLOWS FROM INVESTING ACTIVITIES Additions to oil and gas properties (218,132) (167,371) (476,314) (456,796) Acquisition of Piceance Basin properties (1,532) - (975,407) - Proceeds from property sales, net - 850,427 - 850,427 Derivative settlements (25,616) (25,463) (74,759) (68,194) Additions to other property & equipment (4,424) (2,932) (28,588) (7,467) Other (7,438) - (10,869) - Net cash provided by (used in) investing activities (257,142) 654,661 (1,565,937) 317,970 CASH FLOWS FROM FINANCING ACTIVITIES Revolving credit facilities Borrowings 533,315 453,800 1,989,565 1,182,700 Repayments (428,315) (684,800) (1,745,065) (1,454,700) Proceeds from long-term debt issue - - 1,100,000 - Costs incurred in connection with financing arrangements (265) - (18,182) - Purchase of treasury stock - (100,817) (47,485) (100,817) Derivative settlements - - - (28,579) Other 1,700 3,613 5,041 3,971 Net cash provided by (used in) financing activities 106,435 (328,204) 1,283,874 (397,425) Net increase (decrease) in cash and cash equivalents (6,196) 540,846 3,698 540,697 Cash and cash equivalents, beginning of period 10,793 1,403 899 1,552 Cash and cash equivalents, end of period $4,597 $542,249 $4,597 $542,249 Plains Exploration & Production Company Summary of Open Derivative Positions at November 1, 2007 Instrument Daily Average Period Type Volumes Price Index Sales of Crude Oil Production 2007 Nov - Dec Put options 50,000 Bbls $55.00 Strike price WTI 2008 Jan - Dec Put options 42,000 Bbls $55.00 Strike price WTI 2009 Jan - Dec Put options 32,500 Bbls $55.00 Strike price WTI Plains Exploration & Production Company Reconciliation of GAAP to Non-GAAP Measure The following chart reconciles Net Cash Provided by Operating Activities (GAAP) to Operating Cash Flow (non-GAAP) for the three months ended September 30, 2007, June 30, 2007, March 31, 2007 and September 30, 2006. Management believes this presentation may be useful to investors because it is illustrative of the impact of the Company's derivative contracts. PXP management uses this information for comparative purposes within the industry and as a means of measuring the Company's ability to fund capital expenditures and service debt. This measure is not intended to replace the GAAP statistic but to provide additional information that may be helpful in evaluating the Company's operational trends and performance. Operating cash flow is calculated by adjusting the GAAP measure of cash provided by operating activities to exclude the effect of current income taxes on the gain on the sale of oil and gas properties and changes in operating assets and liabilities and include derivative cash flows that are classified as a financing or investing activity in the statement of cash flows. Pursuant to accounting rules certain cash payments with respect to our derivative instruments are required to be reflected as financing or investing activities. Three Months Ended September 30, June 30, March 31, 2007 2007 2007 (millions of dollars) Net cash provided by operating activities (GAAP) $144.5 $121.3 $20.0 Changes in operating assets and liabilities 26.9 12.0 95.0 Cash payments for commodity derivative contracts that settled during the period that are reflected as investing or financing cash flows in the statement of cash flows (25.6) (25.6) (23.5) Operating cash flow (Non-GAAP) $145.8 $107.7 $91.5 Three Months Ended September 30, 2007 2006 (millions of dollars) Net cash provided by operating activities (GAAP) $144.5 $214.4 Changes in operating assets and liabilities 26.9 (73.8) Current income taxes on gain on sale of oil and gas properties - 54.9 Cash payments for commodity derivative contracts that settled during the period that are reflected as investing or financing cash flows in the statement of cash flows (25.6) (25.5) Operating cash flow (Non-GAAP) $145.8 $170.0