March 2017

Investor Presentation

Content

A Snapshot of Mexico & PEMEX

E&P

Midstream & Downstream

Financial Outlook of PEMEX

2016 Results

1

1

Mexico Snapshot

0

3

6

9

12

15

18

2010 2011 2012 2013 2014 2015

GDP per Capita, PPP USD thousand

Brazil

Chile

Colombia

Mexico

Peru

LATAM0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015

Foreign Direct Investment, Net Inflows USD billion

Brazil

Chile

Colombia

Mexico

Peru

LATAM

0

2

4

6

8

10

12

14

2010 2011 2012 2013 2014 2015

Unemployment % of total labor force

Brazil

Chile

Colombia

Mexico

Peru

LATAM0

2

4

6

8

10

2010 2011 2012 2013 2014 2015

Inflation %

Brazil

Chile

Colombia

Mexico

Peru

LATAM

• Today, Mexico’s fundamentals are stronger, allowing to face external shocks in a better

position

Source : The World Bank Group. 2

Mexico’s Revenues Diversification

3

20.9%

4.1%

0

5

10

15

20

25

1989

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

Non Oil Revenues Oil Revenues

Public Sector Revenues1

% of GDP

0

50

100

150

200

250

300

350

400

450

1980

1983

1986

1988

1991

1993

1996

1999

2001

2004

2006

2009

2011

2014

Oil Agriculture Mining Manufacturing

90%

Mexican Exports by Economic Sector2

% of GDP

1 Source: Mexican Ministry of Finance

2 Source: INEGI

• Since 1989, average oil revenues, as a percentage of total, represented approximately

29%. Today, Mexico has become less dependent on oil revenues, accounting 16% of total

revenues in 2016

• The manufacturing sector has offset oil exports

Mexican Crude Oil Basket Price

4

4

0

50

100

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

Mexican Crude Oil Basket1

USD/b Mexican Mix

Average

USD 56.4

-71% -68%

-48% -45% -40% -37% -35% -30% -29% -27%

-80%

-60%

-40%

-20%

0%

1 Source: PEMEX 2016

2 Source: Wood Mackenzie, May 2016; for PEMEX it includes cuts in investment in the whole company, not only in PEMEX Exploration and

Production.

CAPEX Reductions within the O&G Industry

2014 - 20162

%

• Mexico has decreased its reliance on oil revenues, as the public sector is adjusting its cost

structure to the new oil price scenario

PEMEX has taken extraordinary measures to adapt its corporate governance and structure in the shortest time possible

• According to Art. 27, it is within the Nation’s

domain to exploit all national resources:

• crude oil; and

• all solid, liquid or gas hydrocarbons

Constitution Regulatory Law

• According to Art. 4, the Nation will conduct through

Petróleos Mexicanos and its Subsidiary Entities:

• the exploration and explotation of crude oil; and

• all other activities related to the oil industry that are

considered strategic

o Strengthen PEMEX and establish a more efficient development of the hydrocarbon potential in Mexico

o Strengthen execution capacity through:

Better corporate governance practices:

• 5 independent members

• Executive committees

New contracting schemes:

• Profit and Production Sharing Contracts

• Licenses

Increased financial and operational flexibility through:

• Risk sharing with third parties

• Liberalized downstream activities

• Reduced tax burden

• Greater managerial and budgetary autonomy

2013 Energy Reform

5

Pemex: The Most Important Company in Mexico

6

8th Crude oil producer

98th largest company2

7th Trading company in the world

Main producer of oil, gas and

refined products in Mexico

14th Refining company worldwide

Holder of 95% of the country's

1P reserves

Key player in hydrocarbons

logistics infrastructure

More than 40,000 km of pipelines

29% Federal Government’s

revenues1

MXN 1.6 billion annual revenues1

8th Drilling company

15th Logistics company in the world

by assets

5th Producer of petrochemicals in

Mexico

1st Producer of phosphates in LATAM

74 Storage and distribution terminals

Close to 1,500 tank trucks

16 Ships

1 Last five years average.

2 Source: Fortune 500 ranking.

258 Operating platforms

9,000 Wells

Content

A Snapshot of Mexico & PEMEX

E&P

Midstream & Downstream

Financial Outlook of PEMEX

2016 Results

7

2

E&P: Current Status and Challenges

8 8

0

50

100

150

200

250

300

350

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

MXN bn Mbd

Other assets Ku-Maloob-Zaap Cantarell E&P Investment

Crude Oil Production

-38%

+54%

Source: PEMEX 2017

• PEMEX continues to be a main player in the O&G industry

• The challenge has been replacing Cantarell, a giant field that produced by itself 2 MMbd,

to stabilize and eventually increase production

E&P: New Production Frontiers

9

Deepwater Infrastructure1 Shale Potential2

1 Source: National Geographic

2 Source: CNH with information from North Dakota Department of Mineral Resources, Oklahoma Geological Survey, Texas Railroad

Commission, Bureau of Ocean Energy Management, Oil &Gas Journal

• Underinvestment and reduced access to know-how has limited intensive exploitation of

new complex frontiers to stabilize and increase production

E&P: Business Plan

• Concentrates on assignments that are profitable after taxes

Business Plan

Scenario

10

• Aggressive farm-out program

• Development of fields that are profitable for the country and which, under similar fiscal conditions than privates, are profitable for PEMEX after taxes

• Incremental income from farm-out production is shared between PEMEX and the Federal Government

Improved Scenario

10 10

2,6

01

2,5

77

2,5

53

2,5

48

2,5

22

2,4

29

2,2

67

2,1

30

1,9

44

1,8

11

1,7

80

1,8

05

1,8

80

19

5

25

7

26

7

31

6

0

500

1,000

1,500

2,000

2,500

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

202

1

Crude Oil Production Mbd

Improved

Business Plan

• With profitability as its ultimate goal, the Business Plan contemplates increased production

and investment through different business schemes such as JV’s, farm-outs and

migrations without a partner to maintain and gradually increase the production platform

E&P: Recent Developments (Trión & Block 3) Trión

Trión Blocks awarded in Round 1.4

Exploratus

Maximino

Great White

Matamoros

179 Km

28

Km

2

1

1

3

4

• BHP Billiton will invest up to USD 1.9 billion

before PEMEX makes additional

contributions

• Joint operating agreement was signed on

March 3, 2017

• PEMEX expects to invest USD 600 million by

the time initial production is achieved

Block 3

North

PEMEX’s Assignments

Trión Farm-Out

Round 1.4 Deep Waters

Oil and Gas Field

3D Seismic

Perdido Fold Belt – Block 3

• Joint Venture with Chevron and Inpex

• The contract considers 3,374 work units, equivalent

to USD 3.4 million

• No wells were committed for this contract

• Contract was signed on February 28, 2017

11

Farm-outs (Round 2)

• Ayín-Batsil: Shallow Waters,

Jun. 19, 2017

• Ogarrio & Cárdenas-Mora:

Onshore, Jul. 12, 2017

Migrations without a partner

• During the first quarter of

2017, PEMEX expects to

migrate Ek-Balam

CSIEE1

• San Ramón and Blasillo are

expected to be signed during

the 1H17

E&P: Upcoming Developments

Ayín-Batsil

Ek-Balam

Ogarrio & Cárdenas-Mora

San

Ramón &

Basilio

12 1 Exploration and Extraction Integrated Service Contracts.

• PEMEX will focus on the development of projects through joint ventures and migrations to

share risks, obtain technology, know-how and improvements within the upstream division

Content

A Snapshot of Mexico & PEMEX

E&P

Midstream & Downstream

Financial Outlook of PEMEX

2016 Results

13

3

14

99

90

90

70

60

3

2

France

USA

China

Japan

South Africa

India

Mexico

Iran

14

Midstream: Current Status and Challenges

14 1 Source: Strategy&, PwC 2017

2 Source: http://pipeline101.com/where-are-pipelines-located

3 Source: EIA 2017

• Further gasoline storage capacity and pipelines are required in Mexico. The U.S. has 27

times more infrastructure to supply fuel and 45 times more storage terminals than Mexico

Gasoline Storage Days by Country1

2016

Pipelines in the United States2 and in Mexico3

2016

5.7 4.2 3.4

9.2

12.2 10.7 10.1

11.2 12.7

0

5

10

15

2007 2008 2009 2010 2011 2012 2013 2014 2015

Non-Scheduled Shutdowns Index %

International reference (goal)

77.7 76.9 76.9 71.0 68.6 66.1

61.3

50

60

70

80

90

2004 2006 2008 2010 2012 2014 2015

Equivalent Distillation Capacity Usage %

International reference (1Q) International reference (4Q)

63%

20%

3% 3% 11%

Main Causes for Non-Scheduled Shutdowns 20161

Hidrogen supply

Equipment and proceses

CFE

Repairement delays

Service supply (vapor, water,electricity)

Downstream: Current Status and Challenges

15 1 From January to August 2016

• The challenge is to reverse the economic and operational losses of close to MXN 100

billion

49.2

41.9

36.2 11

-108.9

29.4

-120

-80

-40

0

40

Impact of the Strategic Initiatives on the Financial Balance until 2025

(MXN billion in cash flow)

Midstream & Downstream: Business Plan

16

Financial

Balance

2025

(Equivalent to

-96.3 in 2017)

Partnerships

Safe and reliable

operations

Acknowledgment

and efficiency in

transportation

costs

Stolen

Product Result

Business Plan scenario

PEMEX Industrial Transformation

• Partnerships in operation of auxiliary activities

and revamps of refineries

• Operational discipline and reliability

• Timely attention to risk factors

• Cost efficiency and gradual acknowledgment

of opportunity costs in transportation prices

• Pipeline custody

• Illicit markets

PEMEX Logistics

• Open season

• Concentrates on

profitable business lines

• Underinvestment, supply mandates and cost recognition are being and will continue to be

addressed in the upcoming years to reverse the accumulated losses in the midstream and

downstream divisions

Midstream & Downstream: Upcoming Developments

Open season auction

result: March 2017

Price liberalization:

March 30,2017

Open season auction result:

May 1, 2017

Price liberalization:

June 15, 2017

Open season auction result:

Sep. 14, 2017

Price liberalization:

October 30, 2017

Open season auction result:

October 16, 2017

Price liberalization:

November 30, 2017

Open season auction result:

November 15,2017

Price liberalization:

December 30, 2017

1

2

3

4 5

17

• Logistics opened the utilization of its non-used storage and distribution capacity, which will

yield additional revenues that capture fair prices for fuels in Mexico

Content

A Snapshot of Mexico & PEMEX

E&P

Midstream & Downstream

Financial Outlook of PEMEX

2016 Results

18

4

Financial Outlook: Conservative Assumptions

55 58

59 60 61

42

54 55 57 56 48

56

68 71 71

40

50

60

70

80

2017 2018 2019 2020 2021

Crude Oil Price1

USD per barrel BRENT futuros

PEMEX

PETROBRAS

5.2%

5.4%

5.5% 5.6%

5.6%

5.2%

5.4%

5.6%

5.8%

2017 2018 2019 2020 2021

PEMEX’s Funding Cost

1. Primary surplus: MXN 8.4 billion

2. Reachable production goal: 1,944 Mbd

3. Conservative price projection: 42 USD/b 19

2017

1. Source: Bloomberg (October) & PEMEX

• 2017 marks an inflection point in recent trends

Does not consider additional revenues from divestments

Maintain cost reduction discipline implemented in 2016. Increase in productivity is

documented individually

Additional cash flow from the execution of JVs will be used to improved the

company’s cash position

Financial Outlook: Business Plan 2016-2021

20

-32

-58 -40 -49

-36

-133

-147 -149

-94 -84

-64

-1

43

-35

3

92

145

-200

-150

-100

-50

0

50

100

150

2009 2011 2013 2015 2017 2019 2021

Financial Balance MXN billion

Business Plan Improved

63

2

66

5

78

3

78

7

84

1 1

,14

3

1,4

93

1,9

55

2,0

24

2,0

65

2,1

39

2,1

51

2,1

17

2,0

24

2,0

15

2,0

21

1,9

37

1,7

99

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2009 2011 2013 2015 2017 2019 2021

Consolidated Debt MXN billion

Business Plan Improved

20 20

• The improvement of PEMEX’s financials is not a zero-sum game. The initiatives in the

Business Plan allow the company to improve its future cash flow, while the Federal

Government’s earnings increase

21

2017 Expenditure Program

82.3%

10.4%

1.3% 2.2% 0.2%

0.9% 2.6%

CAPEX

Corporate

Ethylene

Fertilizers

Logistics

Perforation

IndustrialTransformation

E&P

52%

48%

CAPEX & OPEX 100% = 391.9 MXN MMM

CAPEX

OPEX

100% = 204.6 MXN MMM

• CAPEX for 2017 and its allocation is in line with 2016’s figures

22

USD 5.5 bn 118.3

EUR 4.25 bn 96.7

Total raised as of Feb. 27, 2017 215.0

Approved net indebtedness 2017 150

Debt ceiling consumed 2017 96.7

Available debt ceiling 2017 53.3

2016 Ceiling

2017 Ceiling

Premises:

Financial Deficit 93.8

2017 Minimum

Needs 209.9

Amortizations 116.1

=

=

=

+

MXN billion

MXN billion

Net Indebtedness Reduction in 2017

223 195 232 150

50

150

250

2014 2015 2016 2017e

Net Indebtedness MXN billion

e. Net indebtedness approved by Congress.

Note: Exchange rate 21.5 MXN/USD. Indicative figures subject to market conditions. Numbers may not total due to rounding.

• Along with the dollar transaction carried out in December and the euro one in February,

minimum financing needs for 2017 have been covered, providing flexibility and leeway

towards the rest of the year, without any pressure to tap into any other market.

Content

A Snapshot of Mexico & PEMEX

E&P

Midstream & Downstream

Financial Outlook of PEMEX

2016 Results

23

5

Achieving Financial Stabilization and Energy Reform Implementation

Crude Oil Prices @ USD 25/b

Financial Deficit MXN 149 bn

Strict implementation of the Budget

Adjustment Plan

Overdue obligations to suppliers fully paid

Business Plan

Farmout Trión

JV Chevron/Inpex

Apr-Aug

Feb

Federal Government support measures

Dic Nov

Gasoductos Chihuahua

divestment

Working capital improved

2017 First Alliance in Refinery Auxiliary

Services for the Supply of Hydrogen

During 2016 and 2017,

PEMEX has focused on

restoring its financial

stability, taking advantage of

the opportunities offered by

the Energy Reform, and

strengthening relationships

with the financial and oil and

gas industry

Financial deficit reduced to

MXN 102 bn

1. The financial balance considers the result from subtracting total expenses (including financing costs) from total revenues 24

2016 Key Highlights

25

Crude oil production goal of 2,130 Mbd was met and exceeded

for the first time in five years, reaching 2,154 Mbd

Gas flaring reduced by year-end

Net result improved by 58%

Operating expenses decreased by 26%

Reversal of impairment of fixed assets by 52%

Reversed operating loss

Improved debt profiled

Liquidity improved, cash position increased by 50%

Frequency and severity indexes decreased by more than 20%

Positive Trend

-20,000

-10,000

0

10,000

20,000

1Q

12

3Q

12

1Q

13

3Q

13

1Q

14

3Q

14

1Q

15

3Q

15

1Q

16

3Q

16

Operating Income USD millions

-12,000

-7,000

-2,000

3,000

1Q

12

3Q

12

1Q

13

3Q

13

1Q

14

3Q

14

1Q

15

3Q

15

1Q

16

3Q

16

Net Result USD millions

0

2,000

4,000

6,000

8,000

Ja

n-0

9

Ju

l-0

9

Ja

n-1

0

Ju

l-1

0

Ja

n-1

1

Ju

l-1

1

Ja

n-1

2

Ju

l-1

2

Ja

n-1

3

Ju

l-1

3

Ja

n-1

4

Ju

l-1

4

Ja

n-1

5

Ju

l-1

5

Ja

n-1

6

Ju

l-1

6

Average Duration of Debt

7.60

5.00

5.50

6.00

6.50

7.00

7.50

8.00

Sep

-11

Ja

n-1

2

Ma

y-1

2

Sep

-12

Ja

n-1

3

Ma

y-1

3

Sep

-13

Ja

n-1

4

Ma

y-1

4

Sep

-14

Ja

n-1

5

Ma

y-1

5

Sep

-15

Ja

n-1

6

Ma

y-1

6

Sep

-16

Consolidated Historical Cash Balance

USD million Years

26

• During 2016 operating losses were turned into income, net result was improved by 58%

and the liquidity position was substantially improved. Debt’s maturity profile was extended

to 7.6 years.

Investment Considerations

27

Today

Financial

Balance

2020-2021

Strategic company in Mexico and worldwide

Production goals met & exceeded

Net result improved by

MXN 400bn in 2016

Energy Reform: historic

opportunity

Business Plan focus:

Profitability

2016: Stable finances

2017: Inflection point

& attractive investment

opportunities

• The joint efforts have finally begun to bear fruit and to reflect in the results of the year.

PEMEX has now stable finances, with positive trends, however, there is still room for

improvement.

• As a result of the implementation of a Business Plan focused on profitability, the

administration has very clear what will be the next steps taken to achieve financial

equilibrium. PEMEX reiterates its commitment to prioritize profitability and sustainability.

Investor Relations

(+52 55) 1944-9700

ri@PEMEX.com

www.PEMEX.com/en/investors

First Deep Water Farm-Out

29

USD million

Base royalty 7.5%

Additional royalty 4.0%

Minimum investment 570.0

Tie-break criteria 624.0

Signing bonus payable to the Mexican Oil

Fund 62.4

Additional carry in favor of PEMEX 561.6

570 561.6 USD 1,974

million2 0.4

• BHP Billiton will invest up to USD 1.9 billion before

PEMEX makes additional contributions

• Joint operating agreement should be signed during the

first week of March of 2017

• PEMEX expects to invest USD 600 million by the time

initial production is achieved

Exploratus

Maximino

Great White

Matamoros

179 Km

28 Km

Trión

2

1

1

3

4

Blocks awarded in Round 1.4

Trión

1. According to provision 17.4 of the bidding packages.

2. As established in the Joint Operations Agreement.

Farm-Out Ayín-Batsil

• Located in the Campeche Sound, 70 km from

Cantarell and Ku-Malob-Zaap

• Initial production expected by 2020, of up to 80

Mbd.

Ayín-Batsil

Year of discovery 1991 Ayín & 2015 Batsil

3P Reserves 359 Mmboe

Water depth Up to 180 m

Estimated Investment USD 4.2 billion

Type of hydrocarbon Heavy crude oil

30

• Onshore mature fields with significant development in development and exploitation

• High-quality oil producers

Farm-Outs of Ogarrio and Cárdenas-Mora

Cárdenas Mora (Mature onshore field)

Location Tabasco, 62 km from

Villahermosa

Estimated oil production 8.1 Mbd

Estimated gas production 30.5 MMpcd

3P Reserves 94.3 MMboe

Type of hydrocarbon Extra-light crude oil

Ogarrio (Mature onshore field)

Location Tabasco, 65 km from

Coatzacoalcos

Estimated oil production 7.9 Mbd

Estimated gas production 24.7 MMpcd

3P Reserves 54 MMboe

Type of hydrocarbon Light crude oil

31

Fundamentals of Gasoline and Diesel Prices

IEPS tax

VAT

Commercial margin

Transportation

Storage

Logistics

International reference

price, Houston, TX

Quality adjustment • This price scheme recognises the total expenses

incurred in the sale of petroleum products

• Opening the market to new competitors, will allow

PEMEX to focus on more profitable markets

• It will create the incentives to attract more

investments and partners in the refining activities

FIXED by the Ministry of Finance / Legislation

• Recognises the logistic cost, which will generate the

incentives to create new infrastructure

• Allows competitors to open new petrol stations (i.e.

BP plans opening around 1,500 retail sites)

New Gasoline Price Structure Rational

32

• Maintaining low gasoline prices would have implied a cost of MXN 200 bn for the public

sector and a barrier for competition