Evercore Investment Banking Pitch Book
Financial Analysis
Overriding Royalty Interest - Unrisked
Unrisked
Ultra Deep Revenue
Marketing and Transportation Costs
Severance and Ad Valorem Taxes
Net Ultra Deep Revenue
Overriding Royalty Interest
5.0% of Revenue
Discount Rate
(1)
8.0%
9.0%
10.0%
11.0%
12.0%
15.0%
20.0%
Strip
$1.177.4
1,062.7
961.6
872.1
792.9
603.9
399.7
2013E
$75/$3
Overriding Royalty Interest Summary - Unrisked
$801.2
723.2
654.5
593.8
$--
539.9
411.5
272.7
T
Price Deck
S--
Unrisked Sensitivity (20 Year Term, 5%) - Price (Total Value)
2014E
$70.5
(2.3)
$68.2
$3.4
2015E
711.6
542.3
359.4
$372.8
$358.6
(2.5)
$17.9
$90/$4 $105/$5
$1,056.1
$1.311.0
953.3
1,183.4
862.7
782.6
1,070.9
971.5
883.4
673.2
446.0
2016E
$731.5
(22.4)
$701.9
$35.1
2017E
30
$1.260.1
(36.2
$1,211.7
$60.6
Discount Rate
8.0%
9.0%
($ in millions, except per share values)
10.0%
11.0%
12.0%
15.0%
20.0%
2018E
$1,945.4
(53.1)
$1,775.3
$88.8
Strip
$5.14
4.64
4.20
3.81
2019E
3.46
2.63
1.74
$2,491.9
(71.8)
(21.9)
$2,398.2
$119.9
Unrisked Sensitivity (20 Year Term, 5%) - Price ($/unit)
$75/$3
2020E
$3.50
3.16
$3,172.6
(91.6)
(34.6)
2.86
2.59
2.36
1.80
1.19
$3,046.4
Price Deck
$152.3
$90/ $4
$4.61
4.16
3.76
3.41
Confidential
3.10
2.37
1.57
2021E
$3,736.9
(107.9)
(78.4)
$3,550.6
$177.5
$105/$5
$5.72
5.16
4.67
4.24
3.85
2.94
1.95
Based on a $16.90 per share aggregate implied offer value and 2292 million ORRI Trust units (based on 231.9 million fully diluted shares assuming a December 31, 2012 closing date, less couverted options and RSUs that roll into
Freeport options and RSU:)
EVERCORE PARTNERS
2022E
$4,201.5
(121.4)
(124.0)
$3,956.0
$197.8
(¹)
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