Credit Suisse Investment Banking Pitch Book
Preliminary illustrative Maine NAV analysis summary
■ Preliminary analysis based on forward curve pricing as of 11/23/2012 and illustrative discount rate of 12%
Risking for illustrative purposes (RPS resource risking: 10%; Maine resource risking: 30%)
Royalty payment based on revenue from ultra-deep prospects for 2012 through end of resource life
($ in millions, except per share amounts)
Deep Shelf
Gulf of Mexico Deep Water
Traditional Shelf
Ultra Deep Shelf
Total of all regions
Others (4)
PV of NOLS
Net asset value
(-) Corporate adjustments (5)
Implied equity value
Implied price per Maine share
Implied price per Maine share - 4% royalty (8)
(2)
(3)
(5)
Implied Maine
resource case (1)
Risked 3P &
CREDIT SUISSE
resources
(100/100/100/Maine)
$498
73
524
2,990
$4,085
168
530
$4,783
(108)
$4,675
$20.52
19.62
Maine management
resource estimate
Case 1
Risked 3P &
resources
(100/70/50/10)
$434
64
484
4,406
$5,388
164
633
$6,185
(108)
$6,077
$26.42
25.09
(2)
Case 2
Risked 3P &
resources
(100/70/50/30)
$434
64
484
13,217
$14,199
163
1,107
$15,469
(108)
$15,361
$65.48
61.39
RPS resource
estimate (3)
Case 3
Risked 3P &
resources
(100/70/50/10)
$434
64
484
1,077
$2,060
184
412
$2,656
(1,065)
$1,591
$9.72
9.21
Case 4
Risked 3P &
resources
(100/70/50/30)
$434
64
484
3,232
$4,214
166
557
$4,937
(108)
(1)
Note: 3P: Proved + Probable + Possible.
Based on ultra-deep resource potential and resource risking values implied by a $1.50 per share value for a 4% override royalty interest on ultra-deep resource production; Implied 3.9 Tofe of net
risked resource potential in ultra-deep assuming 12% discount rate for illustrative purposes.
Based on net unrisked resource estimate of 83.5 Tofe per Maine management.
Based on net unrisked resource estimate of 15.2 Tofe per RPS guidance.
$4,829
$21.17
20.20
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
5View entire presentation