Evercore Investment Banking Pitch Book
Preliminary Discussion Materials
Overriding Royalty Interest - Unrisked
Unrisked
Ultra Deep Revenue
Marketing and Transportation Costs
Severance and Ad Valorem Taxes
Net Ultra Deep Revenue
Overriding Royalty Interest
4,0% of Revenue
Discount Rate
8,0%
9.0%
10.0%
11.0%
12.0%
15,0%
20.0%
5 Years
Discount Rate
$73.7
71.2
68.8
66.6
64.4
58.4
50.0
10 Years
8.0%
9.0%
10.0%
11.0%
12.0%
15.0%
20.0%
$2.9
$14.0
Unrisked Sensitivity (Strip Pricing) - Term (Total Value)
Term
15 Years 20 Years
$382.1
358.5
336.6
316.3
297.6
249.0
188.2
Strip
2013E
$895.6
809.2
732.9
665.5
605.7
462.9
308.2
Overriding Royalty Interest Summary - Unrisked
2014E
2015E
2016E
2017E
2018E
$75/$3
$702.0
643,9
591.6
544.5
501.9
396,8
276.2
$73.6
$594.8
537.5
486.9
442.2
402.5
307.8
205.2
(2.3)
$71.3
$360,4
$895.6
809.2
732.9
665.5
605.7
462.9
308.2
Unrisked Sensitivity (20 Year Term) - Price (Total Value)
Price Deck
(11.1)
$349.2
Life
$1,273.0
1,087.7
941.0
822.6
725.5
518.6
325.8
$90/ $4 $105/$5
$787.5
711.6
644.7
585.5
533.0
407.5
271.7
$686,0
$980.2
885.8
802.5
728.7
663.4
507.3
338.1
$665.4
(20.6)
$26.6
Discount Rate
$1,144.7
(33.3)
$1,111.4
8.0%
9.0%
10.0%
11.0%
12.0%
15.0%
20.0%
Discount Rate
$1,685.3
(49.0)
Note: Based on a $17.00 per share aggregate implied offer value, 231.6 millon fully diluted shares and a March 1, 2013 closing date.
EVERCORE PARTNERS
3
$1,636.4
5 Years
8.0%
9.0%
10.0%
11.0%
12.0%
15.0%
20.0%
$0.32
0.31
0.30
0.29
0.28
0.25
0.22
Strip
($ in millions, except per share values)
2019E
$2,288.2
(66.5)
$3.87
3.49
3.16
2.87
2.61
2.00
1.33
$2,221.7
10 Years
$44.5
$65.5
$88.9
Unrisked Sensitivity (Strip Pricing) - Term ($/Share)
Term
15 Years
$3.03
2.78
2.55
2.35
2.17
1.71
1.19
$1.65
1.55
1.45
1.37
1.28
1.08
0.81
2020E
$75/$3
$2,925.3
$2.57
2.32
2.10
1.91
1.74
1.33
0.89
(85.1)
$2,832.3
$113.3
20 Years
$90/ $4
Confidential
$3.40
3.07
2.78
2.53
2.30
$3,449.2
(100.4)
(47.5)
1.76
1.17
2021E
$3,301.3
Unrisked Sensitivity (20 Year Term) - Price ($/Share)
Price Deck
$3.87
3.49
3.16
2.87
261
2.00
1.33
$132.1
Life
$105/ $5
$4.23
3.82
$3,891.2
(113.3)
(90.9)
$3,687.1
3.46
3.15
2.86
2.19
1.46
20221
$5.50
4.70
4.06
3.55
$147.5
3.13
2.24
1.41
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