Sonda de Campeche

Financial and Operational

Performance Comparative Analysis

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Forward-Looking Statement &

Cautionary NoteVariations

If no further specification is included, comparisons are made against the same realized period of the last year.

Rounding

Numbers may not total due to rounding.

Financial Information

Excluding 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 Financial Reporting 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 make it 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 Table 33 of the annexes to PEMEX’s Results Report as of March 31, 2015. Budgetary information is based on standards from

Mexican governmental accounting; therefore, it does not include information from the subsidiary companies or affiliates 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.

Methodology

We 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 Conversions

Convenience 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 average exchange 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 or could 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 June 30, 2020, the exchange rate of MXN 22.9715 = USD

1.00 is used.

Fiscal Regime

Beginning 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 regime governed 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 water fields 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 intermediary between 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 the calculation 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 that includes 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 the maximum 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 gasoline and 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 gasoline and diesel fuel

are to be freely determined by market conditions before 2018.

Hydrocarbon Reserves

In 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 a system 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 that rule 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 and our Annual Report to the CNBV and SEC, available at http://www.pemex.com/.

Forward-looking Statements

• This 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 press releases 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:

• 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.

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 of new 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/) and our 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.

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Overview

1. Reference nominal GDP as of 2Q20.

2. Preliminary figures at October 5, 2020.

• This presentation has official information intended to clarify some misleading information that has been

published about PEMEX’s operations and finances.

• PEMEX is still the largest company in Mexico and the main tax contributor.

• Total income in 2019 recorded MXN 1.9 trillion which represents 9.5% of the GDP.1

• During January-September 2020, the company handed around MXN 490.0 billion in direct and indirect

contributions to the Mexican State.2

• In the same period, PEMEX received MXN 46.3 billion from the Mexican government. This represents

0,75% of the total federal budget for 2020 and 13.9% of PEMEX’s total budgetary investment for the year.

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Transfers from PEMEX to SHCP and support received, Jan-Sep 2020Budgetary figures in MXN million

1. Net payment of Profit-sharing duty (DUC) utility, already discounting 48,750 million pesos of tax benefits that have been recorded as

of August. Preliminary figures as of October 5, 2020.

46,256

Federal GovernmentSupport

New projects capital injections

PEMEX's Transfers to theFederal Government

489,972 Total

Direct taxes(DUC & others)

Indirect taxes(IEPS & IVA)

PEMEX has received this support from the Federal Government

PEMEX has transferred

443,716 million to the

Federal Government

during Jan-Sep.

For each peso that the

State invested in

PEMEX, it obtained 9.4

pesos in return.

162,620

327,352

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PEMEX generates resources for the Federal Government

• PEMEX usually does not receive budgetary resources from the Federal Government, except for

some occasional cash injections that this year amount to 0.75% of the total federal budget.

• PEMEX generates resources for the Federal Government through taxes and duties which

represent around 10.4% of the total public spending financing (including Mexican states and

municipalities).

• Cash injections from the Federal Government are a complement to the company´s financing of

investment projects.

• For 2020, 86.1% of PEMEX’s investment projects are financed with the company’s own resources.

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Cash Injections from the Federal Government in 2020Budgetary figures in MXN million

46,256

6,107,732

635,114

Federal Government'scontribution to PEMEX

Federal Budget PEMEX's contributionto Federal

Government

PEMEX received

0.7% of the Federal

Budget in 2020

In 2020, PEMEX’s

contribution to the

Federal Budget will be

around 10.4%

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PEMEX generates resources for the Federal Government

• All operation expenditures for exploration, production and industrial transformation come from the

company’s own resources. These expenditures are not financed by the Federal Government.

• During 2019, for the first time in ten years, operation and capital expenditures were not financed

through debt. On the contrary, PEMEX recorded a negative net indebtedness of MXN 28.7 billion.

• PEMEX is still the state-owned company that contributes the most to Mexico’s development.

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How is PEMEX contributing to the Federal Government if its

financial statements record losses?

• With the data presented here it becomes clear that PEMEX is a competitive company that

generates value for the country and in some cases, records better results that the average of the

industry.

• Since PEMEX issues debt in international markets, it must comply with IFRS rules for the

presentation of its financial statements.

• The net income/loss line in the Income Statement considers some variables that generate cash

flow but also some others that are considered virtual.

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What are Financial Statements?

• Financial statements provide information about the company, allowing its stakeholders to have a

detailed picture about the company’s financial performance.

• All financial transactions must be recorded as part of the financial statements.

• Specifically for PEMEX, according to the applicable regulations for securities issuers (Circular

Única de Emisoras, CUE), financial statements must be constructed under IFRS.

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Financial Statements’ Purpose

Measure the company’s operational and

financial performance during a specific

period

Quantify the company’s current value

considering assets and liabilities for the short,

medium and long terms, as well as the

comprehensive income/loss.

Valuation variables include:

• Asset impairment

• Exchange income/loss

• Plugging of wells, etc.

1 2Some of the used variables are:

• Ratios: EBITDA and EBITDA Margin

• Sales

• Operation and investment expenditures, etc.

Reflect the company’s performance using

variables that generate cash flow

Most of these variables do not generate cash

flow

How much is the company making?

Is it recording profits or losses?

How much is the company worth?

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Examples of variables that generate cash

flow, 2019

Examples of variables that do not

generate cash flow, 2019

Concept MXN million

Total sales 1,403,473

General expenses 152,307

Exploration expenses 10,663

Concept MXN million

Impairment (reversal) of wells,

pipelines, property, plant and

equipment

76,973

Loss due to on hold, non-viable

and non-successful wells76,279

Actuarial loss for employee

benefits320,525

Variables used in Financial Statements

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Accurate reading of PEMEX's financial statements

• If we want to talk about how much PEMEX is earning or losing, it is not accurate to use the

comprehensive income/loss reported in the company's financial statements. A better way to measure the

performance of the company is using indexes such as EBITDA, EBITDA Margin or even the net

income/loss not including the impairment of assets, nor losses due to on hold, non-viable and unsuccessful

wells.

• Unfortunately, there has been some confusion and the comprehensive income/loss item has been used

as a synonym for business profit/loss. However, this item reflects the value of the company and not its

performance. The latter would be a better way to understanding how much the company is earning or

losing in a specific period.

• PEMEX's comprehensive loss during the first half of 2020 recorded MXN 581.0 billion, but it doesn’t mean

that the company has lost that money nor that it has cost that amount to public treasury. This figure

has even been incorrectly used to calculate how much PEMEX loses per day, per hour, etc.

• The mistake of using this item as a synonym of profit or loss, lies in the fact that it considers projected

future cash flows, in addition to including items that do not generate cash flow.

12/55

Comprehensive income/loss, 2010-2019

(Includes items that do not generate cash flow)1

Real MXN billion (2019=100)

-74

-168

-525

112

-673 -753

-74

-305

45

-660

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

• PEMEX recorded its highest comprehensive

losses in 2014 and 2015.

• Comprehensive Income/Loss includes

accounting items that generate cash flow and

items that do not generate cash flow.

• Since cash flow and virtual items are mixed,

this does not reflect the profitability of the

company.

This item does not indicate the profit or

loss, but the value of the company

1. Impairment, Foreign exchange profit/loss, unsuccessful wells, others.

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Variables that determine PEMEX’s

Comprehensive Loss, 2019MXN million

-309,327

-97,082

-67,216

-264,554

78,245

2019

-659,934Comprehensive loss

Actuarial loss due to employee benefits.

Does not generate cash flow.

Impairment of assets.

Does not generate cash flow.

Loss due to on hold, non-viable and unsuccessful wells.

Does not generate cash flow.

Loss due to cashflow items, primarily due to tax

burden (MXN 360 billion in 2019).

60% of the total

comprehensive loss for 2019

resulted from accounting

items that do not generate

cash flow, they are virtual

accounting effects or

projected future cashflows

such as the impairment of

assets or pension liability.

In other words, PEMEX

is not actually losing this

amount.

Unrealized foreign exchange profit.

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Variables that determine PEMEX’s

Comprehensive Loss, 1H20 MXN million

-581,016 Comprehensive Loss

Unrealized foreign exchange loss.

Does not generate cash flow

Loss due to cashflow items, primarily due to tax

burden (MXN 114 billion in 1H20)

68% of the total comprehensive

loss for 1H20 resulted from

accounting items that do not

generate cash flow, they are

virtual accounting effects or

projected future cashflows such

as the impairment of assets

pension liability.

In other words, PEMEX

didn’t lose this amount.

Impairment reversal (7,925) and unsuccessful wells

from prior years (-3,479) Do not generate cash flow4,446

-400,423

-185,039

2020

15/55

So, does PEMEX lose or make money?

• Before taxes, PEMEX is one of the most profitable companies in the international oil industry.

• Amid the international crisis, during the first half of 2020 PEMEX recorded one of the best results

in the industry: a 20 percent EBITDA margin.

• In a highly competitive environment in the oil industry, PEMEX is between the top competitors

regarding profitability and operational efficiency.

• Unfortunately, PEMEX also has the most burdensome tax regime, not only in Mexico but in the

entire international industry.

16/55

PEMEX: a company that creates value

1. Does not include variables that do not generate cash flow. EBITDA for its acronym in English (earnings before interest, taxes,

depreciation, and amortization)

Source: Bloomberg and PEMEX Financial Statements under IFRS 2020.

• The EBITDA margin reflects the profit or income of a

company before the payment of interest, taxes, amortization

and depreciation of fixed assets in proportion to its total sales.

• It is an international standard index that allows to compare

the performance of companies by generated profit.

• During the first half of 2020, PEMEX’s results reflect

competitiveness, being above the average recorded by

leading companies in the oil industry.

• Petróleos Mexicanos shows its ability to create value under

this standard measure of profitability.

9%

10%

10%

10%

11%

12%

17%

18%

20%

34%

40%

EBITDA margin, 1H20

(EBITDA / Sales percentage)1

17/55

2019 & 1S20 Financial HighlightsMXN billion

1

2

3

4

5

6

7

8

9

10

2019Jan- Jun

2020

Sales 1,402 466

Cost of sales 1,123 396

Impairment (reverse) 97 -8

Gross Income 182 78

Transportation and distribution

expenses145 77

Operating income (loss) 37 1

EBITDA 397 97

EBITDA margin 28% 20%

Financial cost, income due to

financial derivatives127 103

Foreign exchange profit (loss) 87 -420

Taxes, duties and others 344 84

Net income (loss) -347 -606

11

12

Main factor of loss, but it is a

virtual item

Real profitability

Real profitability

Real profitability

Real profitability

18/55

PEMEX operational efficiency

• Sometimes PEMEX has been associated to inefficient management and high operating costs.

• Actually, PEMEX has the lowest operating cost indexes in the international oil industry.

• In the first half of 2020, PEMEX’s operating expenses/total sales ratio recorded 68%, while other

leading companies in the industry revealed higher ratios: Exxon 86%, BP and Shell 85%, and

Repsol 82%, just to mention a few examples.

19/55

EBITDA and Operating Expenses Peer Comparison

1. PEMEX’s EBITDA: Earnings before interest, taxes, depreciation and amortization, impairment, undeveloped wells and net periodic

cost of employee benefits net of pension and medical payments

2. Cost of sales, general and administrative expenses

Source: Bloomberg preliminary information and PEMEX financial statements (Equinor and Repsol reports observed information)

50%59%

68%80% 81% 84% 85% 83% 85% 82% 86%

10%7%

12%2% 2%

4% 4% 7% 5% 8% 5%40% 34%

20% 18% 17%12% 11% 10% 10% 10% 9%

0%

25%

50%

75%

100%

EBITDA

SG&A

Operating Expenses

1/

2/

PEMEX’s efficiency: Operational costs below the average of O&G peers

20/55

Tax burden offsets profits

• Unlike other companies in the industry, PEMEX has a particularity in its tax base.

• While the rest of the oil companies pay taxes on generated profit, PEMEX pays taxes on gross

value associated to hydrocarbons production.

• In 2019, PEMEX’s tax/EBITDA ratio recorded 105%; three times the average of oil industry.

21/55

Comparison of the tax burden in the oil industry

1. Taxes calculated for comparable companies: Income tax and duties / royalties (17.25% on oil production profit) and PEMEX: Income

tax, royalties (7.5% on production income) and DUC.

Source: Bloomberg and PEMEX Financial Statements under IFRS 2019. Industry Tax Methodology: Upstream Petroleum, Fiscal and

Valuation Modeling, by Kent Karriel & David Wood, 2015

Taxes and duties

on EBITDA 20191

• PEMEX with a 105% Tax / EBITDA ratio is above

comparable companies.

• For the group of companies compared, the

average taxes and duties on EBITDA ratio is

36.2%

• In other words, PEMEX does create value for

the country by operating with profitability

levels higher than the industry average, but its

tax regime transfers all profits to federal

government.

20%

25%

29%

3…

35%

38%

38%

41%

52%

52%

105%

Accrued

22/55

PEMEX and budgetary balance

• In addition to using EBITDA and EBITDA margin indexes, another way to analyze PEMEX's

financial performance is through its budgetary financial balance.

• The budgetary financial balance only considers cash flow variables and is reported under

Mexico’s Accounting standards.

• Financial balance calculation includes all the income that PEMEX collects from domestic and

export sales, dividends, asset sales, among other concepts, and all expenses incurred from

operating expenses, investments, interest payments and taxes.

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PEMEX: Budgetary Financial Balance, 2019MXN billion

1. Includes MXN 3 billion for net foreign operations.

1,899

1,220

1,018

139

Total

income

Purchase

for resale

Operating

expenses

Operative

balance1Primary

Balance

before

taxes

Financial

cost

Taxes and

duties

Payment

of debt

interest

Primary

Balance

Financial

Balance1

183

201

501

875

116

-197

9.6%

PEMEX does generate value,

with a primary balance of 1.0

trillion pesos, but tax burden was

85.9% as compared to this

balance.

27

For the first time

in a decade,

PEMEX

generated a

surplus

24/55

PEMEX: financial balance 2008-2019Real 2019 MXN billion

223.0

-47.6

-82.8

-54.2 -49.5 -45.4

-162.4-176.1

-117.9-101.8

-64.0

26.4

Since 2008, PEMEX didn’t

record a positive financial

balance

2013 2014 2015 2016 2017 2018 20192008 2009 2010 2011 2012

25

26/55

Crude Oil Production1

Thousand barrels per day

1. Considers crude oil and condensates production of fields, including partners

-1.8% -2.4% -5.3% -2.9%-1.8% -2.4% -5.3% -2.9%-2.1%

2,5482,522

2,429

2,267

2,154

1,948

1,833

2012 2013 2014 2015 2016 2017 2018

-6.7%

-5%

-9.6%

-5.9%

-3.7%

-1%

1,833

1,701 1,7111,733

1,944

2,011

2,088

2,236

2018 2019 2020 2020 2021 2022 2023 2024

-7.2%0.6% 1.3%

12.2%3.4%

3.8%

7.1%

ForecatsReal

2012-2018 2018-2024

Jan-

AugAnnual

Forecast

27/55

Crude Oil Production, Jan-Aug 20201

Thousand barrels per day

1. Considers crude oil and condensates production of fields, including partners

1,749 1,755 1,771 1,747

1,677 1,655 1,6471,688

Ene Feb Mar Abr May Jun Jul Ago

Production shut-in

(OPEC+ agreement )

The decrease in production

during May-July was induced

to comply with the OPEC

agreement.

It was not due to a natural

decrease in production.

As of August, we began to

gradually return to production

levels prior to the OPEC

agreement.

28/55

Crude Oil Production 2018-20201

Thousand barrels per day

1. Considers crude oil and condensates production of fields, including partners

-1.8% -2.4% -5.3% -2.9%-1.8% -2.4% -5.3% -2.9%-1.8% -2.3% -5.1% -2.8% -0.1% +1.3% -0.07%

1,9

32

1,8

97

1,8

67

1,8

88

1,8

70

1,8

48

1,8

43

1,8

18

1,8

27

1,7

67

1,7

16

1,7

29

1,6

42 1,7

22

1,7

10

1,6

94

1,6

83

1,6

92

1,6

97

1,7

08

1,7

30

1,6

81

1,7

22

1,7

32

1,7

49

1,7

55

1,7

71

1,7

47

1,6

77

1,6

55

1,6

47

1,6

88

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

2019 20202018

Lowest

recordShut in production

(OPEP+ agreement)

29/55

PEMEX’s Crude Oil Production 2018-20201

Thousand barrels per day

1. Considers crude oil and condensates production of fields, does not include partners.

-1.8% -2.4% -5.3% -2.9%-1.8% -2.4% -5.3% -2.9%-1.8% -2.3% -5.1% -2.8% -0.1% +1.3% -0.07%

1,9

28

1,8

93

1,8

58

1,8

79

1,8

61

1,8

39

1,8

34

1,8

03

1,8

12

1,7

53

1,7

02

1,7

14

1,6

26 1,7

06

1,6

94

1,6

78

1,6

66

1,6

76

1,6

80

1,6

90

1,7

13

1,6

63

1,7

04

1,7

13

1,7

30

1,7

36

1,7

52

1,7

26

1,6

57

1,6

35

1,6

28

1,6

69

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Lowest

recordShut in production

(OPEP+ agreement)

2019 20202018

30/55

Mexico’s Crude Oil Production Jan-Aug 20201

Thousand barrels per day

1. For PEMEX and partners as of August 2020. PEMEX (1,691 mbd) + Partners (20 mbd). For private companies, it corresponds to the

January-July average, which is the latest figure published by CNH.

1,711

2020

1,731

Private companies' production

20 Mbd (1.1%)

98.9%

PEMEX + Partners

After almost 6 years

from the energy reform,

Petróleos Mexicanos

contributes the most to

Mexico’s crude oil

production

31/55

PEMEX Achieves Production of New Developments in Record Time Thousand barrels per day

Source: PEMEX´s production data is obtained from Pemex Exloración y Producción. Private companies' data is published by Comisión

Nacional de Hidrocarburos, obtained from contracts production at www.cnh.gob.mx

121.7 Mbd

24 MbdEnergy reform

PEMEX starts

development of

20 new fields

PEMEX in

1.7 years

Private companies'

production in 6 years

PEMEX's production of new

developments is 5 times higher as

compared to private companies'

production. This was achieved in a

third of the time compared to the

private companies

0

20

40

60

80

100

120

140

Jan-1

4

Ma

r-1

4

Ma

y-1

4

Jul-1

4

Sep-1

4

No

v-1

4

Jan-1

5

Ma

r-1

5

Ma

y-1

5

Jul-1

5

Sep-1

5

No

v-1

5

Jan-1

6

Ma

r-1

6

Ma

y-1

6

Jul-1

6

Sep-1

6

No

v-1

6

Jan-1

7

Ma

r-1

7

Ma

y-1

7

Jul-1

7

Sep-1

7

No

v-1

7

Jan-1

8

Ma

r-1

8

Ma

y-1

8

Jul-1

8

Sep-1

8

No

v-1

8

Jan-1

9

Ma

r-1

9

Ma

y-1

9

Jul-1

9

Sep-1

9

No

v-1

9

Jan-2

0

Ma

r-2

0

Ma

y-2

0

Jul-2

0

Sep-2

0

32/55

Induced Temporary Shut-In Production May-July

• Some incorrect data about Petróleos Mexicanos' crude oil production was published, considering only

one of the components of total oil production.

• PEMEX publishes in a disaggregated manner the flows of liquids, condensates and other components

that comprise total production. PEMEX has been consistent with this methodology in its quarterly

and annual reports.

• The official oil production figures are those reported by PEMEX in its Petroleum Statistics and are the

ones we are using for this report.

• The information saying that PEMEX's oil production recorded historic minimum levels in July is imprecise.

• It should be noted that the historical minimum production for the last 14 years was recorded in January

2019, when official production was 1,642 thousand barrels per day. Since that date, production was first

stabilized and then gradually increased from October 2019, until the induced shut-in to comply with the

OPEC agreement towards the end of April 2020.

33/55

Temporary Induced Shut-In Production During May-July

• It is worth mentioning that once the agreement with OPEC to shut-in production by 100 thousand barrels

per day, in effect in May and June, and subsequently extended to July, Pemex Exploration and

Production has begun with the gradual opening of the wells that were closed to comply with the

agreement.

• Most of the selected wells for the induced shut-in of production were mature field wells. The

reestablishment of those wells’ production is not immediate. Their reopening is in process, according to

the programmed schedule and it is already reflected in August and September.

• It is estimated that total shut-in production to comply with the agreement with OPEC+ will be

reestablished in October.

• Additionally, during July and August different meteorological phenomena affected production during some

weeks of this summer. One of the biggest effects was the impact of the Olympic Future tanker when it

lost its position due to bad wind conditions caused by the presence of a squall, which damaged the

floating production, storage and offloading vessel (FPSO) Yúum K'aak' Náab. This caused a deferred

production of approximately 68,000 barrels per day in July.

34/55

Crude Oil Production Increase from the New Fields

0

20

40

60

80

100

120

2019 2020

Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Agu Sep

Prod. 2.6 3.5 4.6 5.2 5.2 6.4 6.8 7.0 7.8 8.1 11.6 13.5 20.4 21.8 33.9 47.0 47.5 57.5 76.8 107.7 140.6

121.7 Mbd

Is the production from new

developments in September 2020

Of the 20 new

developments, 15 have

already started their

production stage with at

least one well

Development Well Sept (Mbd)

1 CahuaCahua-2 3.6

Cahua-3 1.8

2 CheekCheek-1 5.3

Cheek-45 5.9

3 Chejekbal Chejekbal-1 6.9

4 Chocol Chocol-1 0.0

5 Cibix

Cibix-1 0.8

Cibix-1001 0.9

Cibix-12 2.4

6 HokHok-4 5.5

Hok-44 3.4

7 Ixachi

Ixachi-1 2.8

Ixachi-10 3.7

Ixachi-1DL 3.4

Ixachi-2 1.5

Ixachi-20 2.8

Development Well Sept (Mbd)

8 Manik Manik-4 4.3

9 Mulach

Mulach-10 7.1

Mulach-5 10.7

Mulach-9 10.8

10 Octli Octli-2 5.6

11 QuesquiQuesqui-1 7.6

Quesqui-1DL 8.2

12 TlacameTlacame-13 7.1

Tlacame-3 6.5

13 Valeriana Valeriana-1 0.9

14 Xikin

Xikin-22 0.0

Xikin-24 1.6

Xikin-32 0.6

Total 29 wells 121.7

35/55

600

800

1,000

1,200

1,400

1,600

1,800Ja

n

Mar

May Ju

l

Sep

No

v

Jan

Mar

May Ju

l

Sep

No

v600

800

1,000

1,200

1,400

1,600

1,800

Ja

n

Ma

r

Ma

y

Ju

l

Sep

Nov

Ja

n

Ma

r

Ma

y

Ju

l

Sep

Nov

Base Incremental fields en execution New fields

PEMEX’s Effort to Stabilize and Increase Crude Oil Production 2019-2020Thousand barrels per day

1,626

1,192

2019 2020

Scenario of continuity of the

previous policy

• Annual decline 26 % or 387 Mbd• Monthly decline 32 Mbd

2019 2020

1,626

1,814

Results obtained with the new

policy 2018-20241

• Base production increased by 387 Mbd

• New developments 116 Mbd• Total increase of 503 Mbd

Base production

1. September to November 2020 are estimated figures

36/55

Dimension of the effort of Petróleos Mexicanos' workers to

maintain base production

• Due to the maturity of most of our fields, the decline in crude oil production is around 26 percent per year,

or approximately 387,000 barrels per day or 32,000 barrels per month.

• In order to compensate for this decline, one of the most successful strategies of this administration was

to carry out major drilling and repair activities in mature fields.

• In addition, the work of attending to the wells in order to give continuity to their productive life through

minor repairs, stimulations and inductions was increased.

• All these activities have resulted in a 387 thousand barrels per day increase in the production of mature

fields, which has compensated the natural decline of the oil fields.

• This last part is extremely relevant, since from a simplistic analysis, the effort that to stop the natural fall

of the production could be minimized. This is a great achievement for PEMEX’s technicians.

• All the above allowed the company to stabilize production in a first stage, and to reach net production

increases due to drilling of wells in new fields in a second stage.

37/55

Lifting CostUSD per barrel

-1.8% -2.4% -5.3% -2.9%-1.8% -2.4% -5.3% -2.9%-2.1%

0.0%

6.8

7.98.2

9.4

7.8

10.9

13.7

2012 2013 2014 2015 2016 2017 2018

14.3%

-16.8%

39.5%

26%

3.9%16%

13.714.1

13.8

2018 2019 2020 2021 2022 2023 2024

2.4% -1.8%

Forecats

Real

Between 2017 and

2018, costs increased

32.7% annual

average

In two years a

minimum 2% reduction

is expected by the end

of 2020

2012-2018 2018-2024

38/55

39/55

Budgetary InvestmentMXN billion

-1.8% -2.4% -5.3% -2.9%-1.8% -2.4% -5.3% -2.9%-2.1%

0.0%312

334

359

306 299

194 189

2012 2013 2014 2015 2016 2017 2018

-14.7%-2.3%

-35.3%-2.6%

7.6%

6.9%

189201

305

2018 2019 2020 2021 2022 2023 2024

51.4%

6.8%

ForecastRealBetween 2014 and 2018

PEMEX's investment fell

13.7% annual average

and debt increased

Without new debt,

investment is

expected to grow

more than 50% by the

end of the year

2012-2018 2018-2024

40/55

Results of Austerity and Expense Discipline 2015-2020MXN million

2015 2016 2017 2018 20192020

(Jan-Jun)

Cleaning and sanitation materials and others 72 59 45 33 8 10

Mobile phones 13 11 8 7 2 0

Technical consulting 3,435 3,361 2,884 2,276 751 236

Research and Investigation 275 65 22 109 13 15

Services from third parties 1,205 284 629 1,243 761 658

Social Communication 119 165 211 244 12 17

Travel expenses 3,154 2,683 2,436 883 471 191

Conferences, conventions and events 26 12 42 11 0 0

TOTAL 8,300 6,640 6,277 4,805 2,019 1,128

8,3006,640 6,277

4,805

2,019 1,128

Efficiency, austerity and

expense discipline at

PEMEX

Note: Total may not equal the exact sum of the figures due to rounding.

41/55

Crude Oil Processing in the National Refining SystemThousand barrels per day

-1.8% -2.4% -5.3% -2.9%-1.8% -2.4% -5.3% -2.9%-2.1%

1,199 1,2241,155

1,065

933

767

612

2012 2013 2014 2015 2016 2017 2018

-7.8%

-12%

-18%

-20%

-5.6%2.1%

612 592 582

681

1,114

1,253

1,5201,565

2018 2019 2020 2020 2021 2022 2023 2024

-3.3% -1.7

17%

64%

12%

21%3%

ForecastReal

2012-2018 2018-2024

Jan-Aug Annual

forecast

42/55

Results of the Strategy to Combat Fuel Theft, 2018-2020Thousand barrels per day

74

23

5 5 5 5 5 4 3 3 4 4 6 5 4 5 4 4 3 4 5 5 5 5 5 5 6 6 6 4 6 2 3 3 36 6 6

2 4 3 4 4

Dec 0

1-2

0

Dec 2

1-3

1

Avg.

201

9

Avg.

202

0

Ja

n 2

02

0

Fe

b 2

02

0

Ma

r 2

02

0

Apr

20

20

Ma

y 2

02

0

Ju

n 2

02

0

Ju

l 20

20

Aug

20

20

Sep

20

20

1-S

ep

2-S

ep

3-S

ep

4-S

ep

5-S

ep

6-S

ep

7-S

ep

8-S

ep

9-S

ep

10-S

ep

11-S

ep

12-S

ep

13-S

ep

14-S

ep

15-S

ep

16-S

ep

17-S

ep

18-S

ep

19-s

ep

20-s

ep

21-s

ep

22-s

ep

23-s

ep

24-s

ep

25-s

ep

26-s

ep

27-s

ep

28-s

ep

29-s

ep

30-s

ep

2018

Source: Comisión Nacional de Seguridad, Informe Seguridad http://www.informeseguridad.cns.gob.mx/

Fuel theft has decreased by 95%

as compared to the average for 2018

43/55

Losses due to Fuel SubstractionMXN billion

1. Prices at storage facilities, does not include taxes (IEPS and IVA)

2. As compared to 2018

36.2

3.62.03.2 1.0 0.4

2018 2019 Jan-Aug 2020

Automotive gasolines & diesel LPG

Successful strategy

against fuel

substraction

Estimated savings for

PEMEX in two years

amount to MXN 71.8

billion2

1 1 1

44/55

GDP O&G Contribution 2018-2020

Fuente: INEGI

• PEMEX’s activity is recorded in the secondary sector of the economy. Particularly in the "Oil and gas extraction

activity".

• This activity has recorded a positive trend since 1Q19, contributing to national development.

• By 3Q19, oil and gas extraction ranked fourth in the level of contribution to the secondary sector.

• By 2Q20, oil and gas extraction moved to second place, displacing the transport equipment manufacturing

industry.

12.2%11.9% 11.9% 11.6%

11.0% 11.2%11.4%

11.8% 11.9%

15.0%

10.5%

11.5%

12.5%

13.5%

14.5%

15.5%

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Oil and gas extraction

45/55

O&G Industry Contribution to National GDP, 2017-2020

1. MXN billion, constant 2013 figures.

Source: INEGI

• This graph shows the evolution of the oil and gas extraction industry as part of Mexico's total GDP.

• The crisis caused by the coronavirus pandemic caused that, in absolute terms, the oil and gas extractioncontribution to total GDP decreased by approximately MXN 1.5 billion, as compared to the same quarter of last

year. The growth rate in the same period was -0.25%.

• In percentage terms, the contribution of the oil and gas extraction activity had a greater participation in 2Q20,recording a 4% contribution to total GDP.

710 714

674 671 657 656 651618

589 595611 613 620

594

4.0% 3.9%3.8%

3.6% 3.6% 3.5% 3.5%

3.3% 3.2% 3.2%3.3% 3.3%

3.4%

4.0%

400

450

500

550

600

650

700

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020

Va

lue o

f co

ntr

ibutio

n to

to

tal G

DP

1

Pe

rce

nta

ge

sh

are

in

to

tal

GD

P

Growth rate Δ: -0.25%

46/55

47/55

Financial DebtUSD billion

1. Preliminary figures

-1.8%-2.4% -5.3% -2.9%-1.8%-2.4% -5.3% -2.9%

-2.1% 0.0%

60.064.0

78.0

87.0

96.0

103.0106.0

50

60

70

80

90

100

110

120

2012 2013 2014 2015 2016 2017 2018

11.5%

10.3%

7.3%

2.9%

21.9%

6.7%

10

6.0

10

5.0

105.0

10

5.0

10

5.0

105.0

10

4.0

103

104

105

106

107

2018 2019 2020 2021 2022 2023 2024

-0.9% 0%

ForecastObserved

2012-2018 2018-20241

48/55

Maturity Profile

USD billion

1. Represents the pending amount to be covered by the 2020’s financing program, considering the refinancing operations performed in

the first half of the year. Does not considers revolving credit facilities and short-term credits, nor accrued interests.

6.7

9.6 9.4 8.7 8.6

6.7 4.2

9.1 7.5

4.4 3.6

0.3 0.1

23.7

201

9

202

0

202

1

202

2

202

3

202

4

202

5

202

6

202

7

202

8

202

9

203

0

203

1

203

2

20

33

→

1

1.6

6.0 5.5 6.3 8.5

4.0

8.7 9.8

4.3 3.6 4.7 3.9

30.2

201

9

202

0

202

1

202

2

202

3

202

4

202

5

202

6

202

7

202

8

202

9

203

0

203

1

203

2

20

33

→

Before

As of December 31, 2018

Current

As of June 30, 2020

This administration has performed the largest refinancing operations in the history of PEMEX: more than

USD 30 billion of refinanced financial liabilities.

49/55

Ten-year PEMEX’s bond yield

5.0

5.5

6.0

6.5

7.0

7.5

8.0

201

8-0

2-2

3

201

8-0

4-2

3

201

8-0

6-2

3

201

8-0

8-2

3

201

8-1

0-2

3

201

8-1

2-2

3

201

9-0

2-2

3

201

9-0

4-2

3

201

9-0

6-2

3

201

9-0

8-2

3

201

9-1

0-2

3

201

9-1

2-2

3

202

0-0

2-2

3

Rendim

iento

(%

)

PEMEX 10 years

Maximum:

20/11/18

7.65%

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

202

0-0

3-0

2

202

0-0

3-1

6

202

0-0

3-3

0

202

0-0

4-1

3

202

0-0

4-2

7

202

0-0

5-1

1

202

0-0

5-2

5

202

0-0

6-0

8

202

0-0

6-2

2

202

0-0

7-0

6

202

0-0

7-2

0

202

0-0

8-0

3

Rendim

iento

(%

)

PEMEX 10 years

Maximum:

27/04/2020

12.05%

Pre-Covid-19 Period: Feb 2018 - Feb 2020 Covid-19 Period: Mar 2020- Jul 2020

28/02/2020:

6.25%

11/08/2020:

7.54%

The maximum during Covid-19 recorded 12.05%, as compared to the 7.65%maximum

in the pre-Covid period

Yie

ld (

%)

Yie

ld (

%)

50/55

51/55

PEMEX will continue to be the most important tax

contributor in 2021

• According to the proposed 2021 Federal Budget, PEMEX estimates to transfer around MXN 897.2

billion to the Federal Government in the form of direct and indirect contributions

• From this amount, PEMEX will get back a MXN 45 billion capitalization to finance part of its

investment projects. This represents 0.7% of the total federal budget for the year.

• In other words, PEMEX will contribute with MXN 852.2 billion to the Mexican State next year.

52/55

PEMEX contributions to the Federal Government for 2021 MXN million

1. Consider an annual average price of the Mexican crude oil mix of USD 42.1 per barrel

PEMEX's transfers tothe government

897,170 Total

Direct taxes(DUC1 & others)

Indirect taxes(IEPS & IVA)

PEMEX will

continue to be

the most

important tax

contributor in

2021

352,570

544,600

Federal GovernmentSupport

Capitalizations for the new refinery

Total support from the Federal Government

45,050

53/55

Final Thoughts

1. Preliminary figures at October 2, 2020.

2. Reference nominal GDP as of 2Q20.

• PEMEX is the main contributor to the Mexican State.

• During January-August 2020, PEMEX handed MXN 438.1 billion to the Federal Government in

the form of direct and indirect contributions.1

• PEMEX’s contributions finance around 10.4% of the total federal expenditures (including Mexican

states and municipalities.

• In 2019, PEMEX’s total income recorded MXN 1.9 trillion which represents 9.5% of the GDP.2

• Petróleos Mexicanos usually does not receive budgetary resources from the Federal Government,

except for some occasional cash injections that this year amount to 0.75% of the total federal

budget.

54/55

Final Thoughts

• All operation expenditures for exploration, production and industrial transformation come from the

company’s own resources. These expenditures are not financed by the Federal Government.

• During 2019, for the first time in ten years, operation and capital expenditures were not financed

through debt. On the contrary, PEMEX recorded a negative net indebtedness of MXN 28.7 billion.

• PEMEX is consolidated as one of the main companies of the oil and gas industry. Its EBITDA

margin in the first half of 2020 recorded 20%.

• PEMEX is still the state-owned company that contributes the most to Mexico’s development.

Investor Relations

(+52 55) 9126-2940

ri@pemex.com

www.pemex.com/en/investorsSonda de Campeche