Evercore Investment Banking Pitch Book
Financial Analysis
Overriding Royalty Interest - Risked
Risked
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
8.0%
9.0%
10.0%
11.0%
12.0%
15.0%
20.0%
Strip
$609.9
557.1
509.9
467.8
430.0
338.0
234.3
Overriding Royalty Interest Summary - Risked
2013E
$75/$3
$--
$-
Price Deck
$417.2
381.1
348.9
320.1
294.2
231.3
160.5
Risked Sensitivity (20 Year Term, 5%) - Price (Total
Value)
2014E
$90/54
$54.1
(1.8)
$52.3
$2.6
$548.9
501.4
459.0
421.1
387.2
304.4
211.2
2015E
$278.1
$105/ $5
$267.4
(8.7)
$13.4
$680.6
621.7
569.2
522.2
480.1
377.5
262.0
2016E
$542.6
(16.6)
(5.5)
$520.4
$26.0
2017E
29
$929.1
(26.7)
(9.2)
$893.3
$44.7
Discount Rate
8.0%
9.0%
10.0%
11.0%
($ in millions, except per share values)
12.0%
15.0%
20.0%
2018E
$1.350.6
(38.8)
(12.7)
$1,299.1
$65.0
Strip
$2.66
2.43
2.22
2.04
2019E
1.88
1.47
1.02
$1.821.9
(52.4)
(16.2)
$1,753.2
$87.7
Risked Sensitivity (20 Year Term, 5%) - Price
($/unit)
$75/ $3
2020E
$1.82
1.66
1.52
1.40
$2,260.4
(65.1)
(21.9)
$2,173.4
Price Deck
1.28
1.01
0.70
$108.7
$90/ $4
$2.39
2.19
2.00
1.84
Confidential
1.69
1.33
0.92
2021E
$2,406.8
(69.2)
(36.0)
$2,301.6
$115.1
$105/ $5
$2.97
2.71
2.48
2.28
2.09
1.65
1.14
Based on a $16.90 per share aggregate implied offer value and 229.2 million ORRI Trust units (based on 231.9 million fully diluted shares assuming a December 31, 2012 closing date, less couverted options and RSU that roll into
Freeport options and RSU:)
EVERCORE PARTNERS
2022E
$2,456.1
(70.5)
(49.6)
$2,336.0
$116.8
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