Plains Exploration & Production Co. (NYSE: PXP) announced that it has priced an underwritten public offering of $3 billion of senior notes, consisting of $1.5 billion in aggregate principal amount of 6 1/2% senior notes due 2020 and $1.5 billion in aggregate principal amount of 6 7/8% senior notes due 2023.   

The notes are being issued to fund a portion of the consideration for PXP's previously announced acquisition of oil and gas interests in the Gulf of Mexico from BP Exploration & Production Inc., BP America Production Co. and Shell Offshore Inc. Pending the use of proceeds for such purpose, PXP expects to use a portion of the net proceeds from the offering to repay borrowings outstanding under its senior revolving credit facility.

J.P. Morgan Securities LLC, Barclays Capital Inc., BMO Capital Markets Corp., Citigroup and Wells Fargo Securities LLC are acting as joint book-running managers of the offering.