Credit Suisse Investment Banking Pitch Book slide image

Credit Suisse Investment Banking Pitch Book

Preliminary illustrative Maine transaction matrix ($ in millions, except as indicated) % premium / (discount) to: Current 52-week high All-time high 5-day average 10-day average 20-day average 30-calendar day average 60-calendar day average 1-year average Fully diluted shares Implied equity value (¹) Corporate adjustments Implied enterprise value Pennsylvania interest (shares in millions) Florida interest after conversion (shares in millions) Enterprise value / 2012E EBITDAX 2013E EBITDAX Fully diluted shares (ex Pennsylvania and Florida interest) Implied equity value (ex Pennsylvania and Florida interest) Incremental consideration Proved reserves ($ / mcfe) Total resources ($/ mcfe) per Maine management Total resources ($/ mcfe) per RPS 2012E Production ($/ mcfe/d) 2013E Production ($ / mcfe/d) Pre-tax PV-10% Price / 2012E CFPS 2013E CFPS (2) Data (3) $48.96 62.93 38.10 38.05 38.70 CREDIT SUISSE 38.71 39.58 37.94 Data $6,739 9,815 $5.42 7.88 Florida 11/23/2012 $38.88 (20.6%) $16.57 (38.2%) 34.48 2.1% 12.39 2.2% 12.53 0.5% 12.29 0.4% (1.8%) 2.5% 949.6 $37,037 3,400 $40,437 6.0x 4.1x Data 7.2x 5.1x 12.25 11.92 12.16 Data $223 253 242 63,835 15,535 151 181 829 $0.73 1.43 Maine 11/23/12 $12.45 (24.9%) (63.9%) 0.5% (0.6%) 1.3% 1.6% 4.5% 2.4% 162.0 $2,017 1,077 $3,094 51.0 111.0 $1,382 13.9x 12.2 $12.78 0.05 0.20 $20,488 17,092 3.7x 17.0x 8.7 $15.50 24.5% (6.5%) (55.0%) 25.1% 23.8% 26.1% 26.5% 30.0% 27.4% 243.3 $3,772 176 $3,948 51.0 36.2 156.1 $2,420 17.7x 15.6 $16.31 0.06 0.25 $26,143 21,810 4.8x 21.2x 10.8 $16.00 28.5% (3.4%) (53.6%) 29.1% 27.7% 30.1% 30.6% 34.2% 31.6% 242.6 $3,881 176 $4,057 51.0 35.9 155.7 $2,491 $71 18.2x 16.0 $16.76 0.06 0.26 $26,867 22,414 4.9x 21.8x 11.2 Illustrative Maine purchase price $16.50 $17.00 32.5% (0.4%) (52.1%) 33.2% 31.7% 34.2% 34.7% 38.4% 35.7% 241.7 $3,988 176 $4,164 51.0 35.6 155.1 $2,559 $68 18.6x 16.4 $17.20 0.07 0.27 $27,576 23,005 5.0x 22.5x 11.5 36.5% 2.6% (50.7%) 37.2% 35.7% 38.3% 38.8% 42.6% 39.8% 244.9 $4,163 108 $4,271 51.0 35.4 158.5 $2,695 $136 19.1x 16.9 $17.65 0.07 0.27 $28,287 23,599 5.2x 23.2x 11.9 $17.50 40.6% 5.6% (49.2%) 41.2% 39.7% 42.3% 42.9% 46.8% 43.9% 244.0 $4,270 108 $4,378 51.0 35.1 157.9 $2,763 $68 19.6x 17.3 $18.09 0.07 0.28 $28,992 24,187 5.3x 23.9x 12.2 $18.00 44.6% 8.6% (47.8%) 45.3% 43.7% 46.4% 47.0% 51.0% 48.0% 243.1 $4,375 108 $4,483 51.0 34.9 157.2 $2,830 $67 20.1x 17.7 $18.52 0.07 0.29 Source: Florida management 5-year plan, Maine Financial Projections. Assumes 161.9 million basic shares outstanding for Maine per Maine management, 14.3 million options outstanding at a weighted average exercise price of $14.20 per share and 0.1 million RSUS. Assumes 949.3 million basic shares outstanding for Florida, 13.6 million options exercisable at weighted average price of $33.10 and RSUS of 1.3 million. Maine corporate adjustments as of 9/30/12 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. Florida corporate adjustments as of 9/30/12 based on $3.7 billion of cash, $3.5 billion of debt and $3.6 billion of noncontrolling interest per Florida 100. Assumes unrisked 3P reserves of 335 Bofe and unrisked resource potential of 63,500 Bofe, per Maine management. Assumes unrisked 3P reserves of 335 Bcfe and unrisked resource potential of 15,200 Bofe, per RPS estimates. $29,689 24,769 5.4x 24.6x 12.6 Confidential 7
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