Investor Presentation

September 2017

Content

A Snapshot of Mexico & PEMEX

Upstream

Midstream & Downstream

Overall Financial Performance

Business Outlook

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

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 2

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015

Exports of Goods and Services USD Billion

Brazil

Chile

Colombia

México

Peru

LATAM

1,400

1,300

1,200

O&G: The Industry Moving the World• According to the IEA, by 2040, crude oil demand is expected to grow 6% up to 103

MMbd, while natural gas consumption increases by 50%

31 Btoe: billion tons of oil equivalent

2 Includes geothermal, solar, wind, heat and electricity trade.

Source : Key world energy statistics & World Energy Outlook 2016, International Energy Agency,

55%

12%

12%

21%

O&G

Coal

Biofuels and waste

Other

World energy

consumption 2014

100% = 9.4 Btoe2

2

9.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

O&G Coal Biofuels andwaste

Other Fuels 2014Total

Consumption

Btoe

Industry Transport Other uses Non-energy use

2

PEMEX: The Most Important Company in Mexico

4

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

15th Logistics company in the world

by assets

Largest Tax Contributor

MXN 1.6 billion annual revenues1

8th Drilling company

5th Producer of petrochemicals in

Mexico

1st Producer of phosphates in LATAM

9 Gas Processing Complexes

74 Storage and distribution terminals

Close to 1,500 tank trucks

16 Ships with transportation capacity

of 4,618 Mb

1 Last five years average.

2 Source: Fortune 500 ranking.

258 Operating platforms

9,000 Wells

Distribution of PEMEX’s Reserves1

5

Basin

ReservesProspective

Resources2

1P

(90%)

2P

(50%)

3P

(10%)Conv.

Non

Conv.

Southeastern 7.2 11.1 14.5 11.6

Tampico

Misantla1.0 3.4 6.0 3.3

Burgos 0.2 0.3 0.4 1.5

Veracruz 0.1 0.2 0.2 0.6

Sabinas 0.0 0.0 0.0 0.4

Deepwater 0.1 0.2 1.1 6.0

Total PEMEX 8.6 15.1 22.1 18.2 5.2

MMMboe (billion barrels of oil equivalent)

Exploration

Projects

Development and

Exploitation

Projects

1 As of January 1, 2017. Numbers may not total due to rounding.

2 Prospective resources assigned to PEMEX in Round Zero

Oil and Gas

Gas

Veracruz

Tampico-

Misantla

BurgosSabinas

Gulf of Mexico

Deep Sea

Exploration

Yucatan

Platform

Southeastern

3 As of January 1, 2017. 1P includes discoveries, developments, revisions and delineations.3P replacement

rate only considers new discoveries. Reflects reserve replacements conducted by PEMEX.

PEMEX holds 95% of Mexico’s hydrocarbon reserves

Environmentally Conscious and Socially Responsible Company

6

• We strive to minimize the impact of our operations to the environment and to

maximize the benefits that a sustainable operation brings

SocialEnvironmental

Water

Residues

Emissions

Communities

Social investment

Environmental

impact studies

Economic

Sustainable development framework

Biodiversity

conservationHuman Rights

Sustainable value

chain

Project analysis

Sustainable

investment

Key Highlights / First Half-Year Recap

7

Trion block through a farm-out with BHP

Billiton

Consortium formed by PEMEX, Chevron and

Inpex was awarded Block 3 North in deep

waters of the Gulf of Mexico

Joint venture with Air Liquide for the supply of

hydrogen to our Tula refinery

Migration process without a partner of the

fields Ek and Balam in shallow waters

PEMEX was awarded two blocks in shallow

waters through consortia with DEA and

Ecopetrol

The first open season was awarded to Tesoro

Key Highlights 2Q17

8

Crude oil production remains stable: it

averaged 2,013 Mbd

Gas flaring recorded its best performance in

3 years: 4.1%

Positive net result of 121 billion pesos as of

first half 2017

Crude oil processing remains in line with

1Q17

Third consecutive quarter with positive net

results

Content

A Snapshot of Mexico & PEMEX

Upstream

Midstream & Downstream

Overall Financial Performance

Business Outlook

9

2

Upstream: Current Status and Challenges

1010

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

1Q

17

MXN bnMbd

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

Crude Oil Production

• 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

1 Includes non-capitalized maintenance.

Source: PEMEX 2017

1

-38%

+46%

Industry Cost Leader

5.2 6.1 6.87.9 8.2 6.7 5.5

2.72.3

2010 2011 2012 2013 2014 2015 2016Production cost before taxes Taxes and Duties

Production Costsa,b

(USD / boe)

2016 Benchmarking: Production Costs1

(USD / boe)

5.00

6.14

7.78

8.46

9.89

10.92

12.00

12.55

13.15

16.27

Statoil

Total S.A.

PEMEX

BP

Exxon Mobil

Royal Dutch / Shell

Connoco Phillips

Eni S.P.A.

Chevron-Texaco

Petrobras

11

9.47.8

• The development of exploitation strategies focused on shallow waters has allowed PEMEX to

maintain very competitive production costs, as compared to most of its peers in the oil and gas

industry.

• Lower production costs provide greater flexibility, especially under lower crude oil price scenarios.

a) Figures in nominal values.

b) Source: 20-F Form (2016, 2014

& 2012).

1. Source: Annual Reports

and SEC Reports 2016.

Upstream: New Production Frontiers

12

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

Upstream: Business Plan

• Concentrates on assignments that are profitable after taxes

Business Plan

Scenario

13

• 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

1313

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

and investment through different business schemes such as JVs and farm-outs to

maintain and gradually increase the production platform.

2,6

01

2,5

77

2,5

33

2,5

48

2,5

22

2,4

29

2,2

67

2,1

54

1,9

44

1,9

51

1,9

82

2,0

17

2,1

41

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 PEMEX

production

* Includes PEMEX’s production -estimations sent to the Ministry of Finance on September 2017- and others -as considered in the Business

Plan published in November 2016.

Upstream: Recent Developments (Trion & Block 3)

Trion

Trion 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

14

Upstream: Upcoming Developments

Ayín-Batsil

Ek-Balam

Ogarrio & Cárdenas-Mora

San

Ramón &

Basilio

151 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

Farm-outs (Round 2)

• Ogarrio, Cárdenas-Mora &

Ayín-Batsil

Board of Directors approves

second deep-water farm-out

• Maximino-Nobilis

Migrations without a partner

• Ek-Balam

May 2, 2017

• Future case-by-case analysis

CSIEE1

• Advanced model contract

• San Ramón and Blasillo to

be signed during the 2H17

TrionMaximino-

Nobilis

Content

A Snapshot of Mexico & PEMEX

Upstream

Midstream & Downstream

Overall Financial Performance

Business Outlook

16

3

99

90

90

70

60

3

2

France

USA

China

Japan

South Africa

India

Mexico

Iran

Midstream: Investment Opportunities

171 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

Downstream: Current Status and Challenges

18

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

billion

Achievements

• Hydrogen supply JV with Air Liquide

Future Projects

• Hydrogen supply JVs for Madero and Cadereyta refineries

77.7 76.9 76.971.0 68.6 66.1

61.7

51.645.9 47.7

30

40

50

60

70

80

90

20042006200820102012201420152016 Jan Feb

Equivalent Distillation Capacity Usage%

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

2017

5.7 4.2 3.4

9.212.2 10.7 10.1 11.2

12.7

26.3

31.0 29.9

0

5

10

15

20

25

30

35

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Jan Feb

Non-Scheduled Shutdowns Index%

International reference (goal)

2017

49.2

41.9

36.211

-108.9

29.4

-120

-80

-40

0

40

Impact of the Strategic Initiatives on the Financial Balance1 until 2025

(MXN billion in cash flow)

Midstream & Downstream: Business Plan

19

Financial

Balance

2025

(Equivalent to

-96.3 in 2017)

Partnerships

Safe and reliable

operations

Acknowledgment

and efficiency in

transportation

costs

Stolen

ProductResult

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

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

revenues.

Midstream & Downstream: Upcoming Developments

2

3

45

20

• The Mexican fuels market is moving towards an open, competitive and market-driven price

structure

• Pemex Logistics is offering its non-used storage and distribution capacity to third-parties,

which will yield additional revenues

PEMEX auctioned

20% of its capacity in

Baja California and

Sonora, at fees 10%

above the minimum

required

1

Content

A Snapshot of Mexico & PEMEX

Upstream

Midstream & Downstream

Overall Financial Performance

Business Outlook

21

4

Positive Trend

-20,000

-10,000

0

10,000

20,000

1Q

12

4Q

12

3Q

13

2Q

14

1Q

15

4Q

15

3Q

16

2Q

17

Operating IncomeUSD million

-12,000

-7,000

-2,000

3,000

1Q

12

4Q

12

3Q

13

2Q

14

1Q

15

4Q

15

3Q

16

2Q

17

Net ResultUSD million

22

• 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 7.3 years.

Average Debt’s Maturity

Years

5.0

5.5

6.0

6.5

7.0

7.5

8.0

dic

-11

jun-1

2

dic

-12

jun-1

3

dic

-13

jun-1

4

dic

-14

jun-1

5

dic

-15

jun-1

6

dic

-16

jun-1

7

7.22

Net Indebtedness Trend

Note: All numbers in billion pesos; exchange rate: 18.6 pesos per dollar

Debt ceiling for 2018 pending approval 23

2017 Debt ceiling: 150 bn

pesos (≈8 bn dollars)

Financing needs for the year:

94 bn pesos (≈5 bn dollars)

• Any additional transaction throughout the year would be aimed to term-out

PEMEX’s maturity profile or substitute bank financing.

Since 2016, financial deficit

has decreased. In addition,

net indebtedness for 2017 is

substantially lower than

previous years, confirming the

trend stated in our Business

Plan

132 147

102 94 89

223

195

240

150 142

0

50

100

150

200

250

2014 2015 2016 2017 2018*

Financial Deficit Available Debt Ceiling

Bill

ion P

esos

24

Diversified Debt Structure

By Currency By Interest Rate By InstrumentBy Currency

Exposure

66%

14%

3%

0%2%

13%

1%

Dollar Euros

UDIS British Pounds

Yens Pesos

Swiss Francs

82%

18%

Fixed Floating

71%

12%

4%

5% 4% 2%

Int. Bonds

Cebures

ECAs

Int. Bank Loans

Domestic Bank Loans

Others

83%

1%1%

15%

Dollar Yen

UDIS Pesos

• PEMEX’s portfolio strategy has prioritized the development of new sources of financing to

diversify its investor base and currencies

• To reduce external impacts, the company has chosen a hedging strategy that matches its

U.S. dollar-based income structure

Note: As of June 30, 2017. Sums may not total due to rounding.

Credit Rating Agencies recognize PEMEX’s strategic importance for Mexico

25Source: PEMEX.

Full Rating Reports are available at http://www.pemex.com/en/investors/debt/Paginas/credit-ratings.aspx

2017 PEMEX annual rating revisions highlight:

Key energy

supplier

Close linkage to

Mexican

Government &

fiscal relevance

Stable finances

Expectation of

improved

profitability

due to the

Energy Reform

Rating Agency Last Revision Global Scale Outlook National Scale

Fitch August 2017 BBB+ Stable AAA(mex)

S&P August 2017 BBB+ Stable mxAAA

Moody’s April 2017 Baa3 Negative Aa3.mx

R&I April 2017 BBB+ Stable N.A.

HR Ratings September 2017 HR A- (G) Stable HR AAA

Markets respond positively to PEMEX’s strategy

26

PEMEX’s efforts and business strategy have yielded tangible results, as shown in

the spread between PEMEX’s 10Y benchmark and both Mexico’s UMS 10Y and

US Treasury.

Source: Bloomberg

Investment Considerations

27

Today

Financial

Balance

2020-2021

Strategic company in Mexico and worldwide

Production goals met

Net result improved by

MXN 266bn in 1H17

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.

Content

A Snapshot of Mexico & PEMEX

Upstream

Midstream & Downstream

Overall Financial Performance

Business Outlook

28

5

Financial Outlook: Scenarios with Realistic Premises

29

2017 marks an inflection point:

• Primary Surplus (first time since 2012): 8.4 billion pesos

• Attainable Production Platform: 1.944 million barrels per day

• Conservative Price Projection:42 dollars per barrel

In 2016 PEMEX exceeded its financial cash flow and production goal

Financial Cash Flow(Billion pesos)

5558

5960

61

4246

5557

56

48

56

68

71 71

40

45

50

55

60

65

70

75

2017 2018 2019 2020 2021

Price of Oil(Dollars per Barrel)

BRENT Futuros Pemex Petrobras

Source: Bloomberg, Petrobras and PEMEX

-32

-58-40-49

-36

-133-147

-102-89

-64

-1

43-35

3

92

145

-200

-150

-100

-50

0

50

100

150

200

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

Bill

ion

pe

sos

Business Plan Improved

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

1,9

51

2,0

37

2,0

72

2,1

92

0

500

1,000

1,500

2,000

2,500

3,000

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

Tho

usa

nd

s o

f b

arre

ls p

er

day

Oil Production*(Thousands of barrels per day)

Business Plan Actual Improved

* Business Plan published in November 2016, with

information up to October 2016

Investor Relations

(+52 55) 1944-9700

ri@pemex.com

www.pemex.com/en/investors