Credit Suisse Investment Banking Pitch Book
Preliminary illustrative Maine NAV analysis summary
■ Preliminary analysis based on forward curve pricing as of 11/28/2012 and illustrative discount rate of 12%
■ Proved, probable, and possible reserves risked at 100%, 70%, and 50%, respectively, per RPS guidance
■ Resource risking for illustrative purposes (RPS resource risking: 13%; Maine resource risking: 30%)
See page 16 for a summary of RPS' revision to ultra-deep resource estimates
Royalty payment based on revenue from ultra-deep prospects for 2012 through end of resource life
(S in millions, except per share amounts)
Deep Shelf
Gulf of Mexico Deep Water
Traditional Shelf
Ultra Deep Shelf
Total of all regions
Others (3)
PV of NOLS
Net asset value
(-) Corporate adjustments (4)
Implied equity value
Implied price per Maine share
Implied price per Maine share - 4% royalty (5)
Note:
(2)
(3)
(5)
RPS resource
estimate (1)
Case 1
RPS risking
CREDIT SUISSE
$433
64
483
2,237
$3,216
173
473
$3,863
(108)
$3,755
$16.65
15.99
Maine management
resource estimate
Case 2
RPS risking
$433
64
483
6,027
$7,007
165
675
$7,846
(108)
$7,738
$33.41
31.64
(2)
Case 3
Maine risking
$433
64
483
13,383
$14,363
163
1,106
$15,632
(108)
$15,524
$66.16
62.04
3P: Proved + Probable + Possible.
Based on net unrisked resource estimate of 21.5 Tofe per RPS guidance.
Based on net unrisked resource estimate of 83.5 Tofe per Maine management.
Others include PV of G&A and tax shield related to existing PP&E.
Maine corporate adjustments based on $191.9 million of cash and cash equivalents, $700 million of 5.75% convertible preferred stock, $188.9 million of 4% convertible notes, $12 million of 8%
convertible preferred stock, $87.8 million of 5.25% of convertible notes and $300 million of 11.875% senior notes per Maine 100 for Q3 2012.
Royalty on resource potential.
Confidential
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