Credit Suisse Investment Banking Pitch Book
Preliminary illustrative Maine NAV analysis assumptions
3P reserve estimates based on Ryder Scott reserve reports
Projection model with production and costs for -3 Tcfe of net resource potential provided by Maine management
- Scaled up to 15.2 Tcfe of net unrisked resource potential per RPS guidance and 63.5 Tcfe of net unrisked resource
potential per Maine management guidance
Analyzed 14.25-year unlevered free cash flow (9/30/12-12/31/2026E)
- Discounted projected unlevered free cash flows to 9/30/12; discount rate of 12% for illustrative purposes
Cash flow from remaining reserves after 2026E discounted to 9/30/12 based on the weighted average remaining
life of production
Assumes forward curve pricing as of 11/23/2012
WTI ($/bbl)
Henry Hub ($/Mmbtu)
2012
$88.18
3.59
CREDIT SUISSE
2013
$89.69
4.07
Note:
2014
$89.99
4.32
- 10% risking for ultra-deep resource potential per RPS
- 30% risking for ultra-deep resource potential per Maine guidance
Cash G&A and non-cash G&A per Maine management guidance
Plan tax rate of 38% per Maine management
Tax basis of assets as per Maine management
(1)
(2)
2015
$88.26
4.42
2016
$86.30
4.81
2017
$85.78
4.99
Implied Maine resource case based on ultra-deep resource potential and resource risking values implied by a
$1.50 per share(2) estimate for a 4% override royalty interest on Maine's ultra-deep resource potential
- Implied 4.3 Tcfe of net risked resource potential in ultra-deep assuming 12% discount rate for illustrative
purposes
Preliminary reserve and resource risking assumed for illustrative purposes with guidance from RPS and Maine
management
2018
$85.60
5.21
2019
$85.50
5.46
Thereafter
$85.44
5.76
Tax assumptions per Maine management as follows: Capital recovery assumes 25% of future capital expenditures allocated to tangible
assets and 75% to intangible drilling costs expensed in year incurred. Tangible assets depreciated using a 7-year MACRS schedule.
Analysis doesn't account for AMT and withholding taxes.
Represents average of spot prices until 9/30/12 and forward curve pricing for remaining 2012.
Assumes fully-diluted shares outstanding of 231.8 according to Maine guidance.
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