PHX LISTED NYSE ®

Forward-Looking Statements and Risk Factors – This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Forward-looking statements include current expectations or forecasts of future events. They may include estimates of oil and gas reserves, expected oil and gas production and future expenses, projections of future oil and gas prices, planned capital expenditures for drilling, leasehold or mineral acreage acquisitions, seismic data, statements concerning anticipated cash flow and liquidity and Panhandle’s strategy and other plans and objectives for future operations. Although Panhandle believes the expectations reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to be correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Factors that could cause actual results to differ materially from expected results are described under “Risk Factors” in Part 1, Item 1 of Panhandle’s 2015 Form 10-K filed with the Securities and Exchange Commission. These “Risk Factors” include the volatility of oil and gas prices; Panhandle’s ability to compete effectively against larger independent oil and gas companies; the availability of capital on an economic basis to fund reserve replacement costs; Panhandle’s ability to replace reserves and sustain production; uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production; the amount and timing of development expenditures; unsuccessful exploration and development drilling; declines in the values of our oil and gas properties resulting in write-downs; the negative impact lower oil and gas prices could have on our ability to borrow; current economic conditions worldwide; future legislative or regulating changes; shortages of oilfield equipment, services and qualified personnel; and drilling and operating risks. As Panhandle does not operate any of the properties in which it has an interest, we have very limited ability to exercise any influence over operations of these properties, associated costs or the timing of drilling on its properties. Do not place undue reliance on these forward-looking statements, which speak only as of the date of this release, and Panhandle undertakes no obligation to update this information. Panhandle urges you to carefully review and consider the disclosures made in this presentation and Panhandle’s filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Panhandle’s business. February 2016 Investor Presentation 2

Panhandle Oil and Gas Inc. ( PHX ) Overview UNCONVENTIONAL BUSINESS MODEL = “THE MINERAL ACREAGE ADVANTAGE”  Non-operator, participating principally with the largest E&P’s  Selective participation with working interest in most economically attractive opportunities  Results in superior returns on diversified asset base  Prudent fiscal management Currently active plays  STACK Meramec  CANA Woodford  SCOOP Woodford and Springer Founded in 1926  Public in 1979  No secondary offering in Company history  Paid dividend for over 50 consecutive years $235mm market cap (2/2/16)  Currently 16.8 million shares outstanding (subsequent to 2 for 1 split in Oct. 2014) Ranked in Top 12 of Who’s Creating Value for Shareholders, Three and Five Year Total Return ** ** Seaport Global Exploration & Production Sector Statistical Analysis: 2015 Finding & Development Cost study 3 February 2016 Investor Presentation

PHX Business Model – Lower Risk, Higher Returns February 2016 Investor Presentation D IRECT O WNERSHIP O F M INERAL R IGHTS = “T HE M INERAL A CREAGE A DVANTAGE ” PHX mineral acreage has extremely low cost basis (approximately $90/acre) Minerals ownership lowers PHX well costs verses operators as PHX has no leasehold expense PHX decides whether to participate in wells drilled (working interest) or lease rights (royalty participation only) to the operator (lease bonus income and royalty income)  Royalty participation only provides no-risk and no-cost revenues and increases net revenue interest in working interest wells  Working interest participation pays proportionate share of drilling, completion and operating costs to receive larger share of well revenues 199,000 mineral acres not currently producing Over 4,600 gross undeveloped drilling locations identified on existing acreage holdings = future opportunities to reinvest cash flow 4

PHX Business Model – Lower Risk, Higher Returns N ON -O PERATED D RILLING P ROGRAM = U SE M INERAL O WNERSHIP A S L EVERAGE Large mineral acreage ownership position provides diversity in drilling projects without additional acreage costs Leveraged our mineral acreage ownership to participate with a working interest in drilling a significant number of wells  Hold working interest in approximately 2,200 producing wells  Receive royalty interest in approximately 4,000 additional producing wells Eagle Ford acreage is HBP leasehold, not minerals PHX not responsible for prospect development costs (i.e. seismic, geological, geophysical and engineering) on working interest wells Drilling financed by cash flow First quarter 2016 production averaged 34.2 Mmcfe/d from approximately 6,200 wells Maintain low cost by paying only for drilling, completion and operating costs of wells; PHX operates with 20 full-time staff, including a complete technical staff Drill with “premier operators” in each play, including: SWN, CLR, DVN, XEC, NFX, XOM (XTO), CHK, APA, EOG 5 February 2016 Investor Presentation

“THE MINERAL ACREAGE ADVANTAGE” (Economic Impact of Working Interest Participation on Mineral Acres) February 2016 Investor Presentation 6 A SSUMPTIONS :  Reserves 6.4 Bcf MbNGL + 92 MBO  Gross well cost - $7,500,000  Wellhead prices – 9/30/15 NYMEX Strip, adjusted for basis R ESULTS  25 % L OWER F INDING C OST  65 % H IGHER R ATE OF R ETURN This advantage applies to all plays in which Panhandle drills on owned mineral acres A SSUMPTIONS :  Reserves 6.4 Bcf MbNGL + 92 MBO  Gross well cost - $7,500,000  Wellhead prices – 9/30/15 NYMEX Strip, adjusted for basis R ESULTS  25 % L OWER F INDING C OST  65 % H IGHER R ATE OF R ETURN This advantage applies to all plays in which Panhandle drills on owned mineral acres Typical SCOOP Woodford Shale Well W.I.NRI  PHX ownership5%  Typical ownership5%3.75% 25 % Lower 65 % Higher

PHX Business Model – Diversified Revenue Sources 7 February 2016 Investor Presentation 73% of revenues from non-operated W.I. production  Oil and gas revenues from non-operated working interest (W.I.) production with premier operators  Ability to participate in the best plays  Selective participation in wells within a play 27% of revenues derived from royalty production on mineral holdings  Royalty interest income paid by operators on production from wells drilled on our mineral acres In addition, lease bonus income may be received from oil and gas companies to explore and develop our acreage when we do not take W.I. in wells drilled

Royalty Production and Revenue History February 2016 Investor Presentation 8 PHX has over 4,600 identified undeveloped locations and 199,000 mineral acres not currently producing available to feed continued royalty production growth Royalty Volume Growth - 12 % CAGR ( )

C ONDENSED B ALANCE S HEET D ECEMBER 31, 2015 Current assets $9,066,910 Property and equipment 450,066,670 Less accumulated DD&A (234,432,151) Net property and equipment 215,634,519 Other 173,423 Total assets $224,874,852 Current liabilities $5,824,804 Long-term debt 57,000,000 Deferred income taxes 36,025,907 Asset retirement obligation, other 2,861,160 Shareholders equity: Stock and paid in capital (16.9 mm shares) 3,196,157 Retained earnings 121,309,373 Deferred directors’ compensation 3,170,219 Treasury stock (4,512,768) Total liabilities and equity $224,874,852 Financial Highlights – First Quarter February 2016 Investor Presentation

Financial Highlights – First Quarter 2016 F IRST Q UARTER February 2016 Investor Presentation 10 Oil, NGL and natural gas sales $9,055,288 $19,519,700 Total revenue (1) $11,462,125 $30,999,170 Net income (loss) ($2,799,118) $10,233,761 Earnings per share ($0.17) $0.61 Net cash provided by operating activities $7,650,218 $15,185,489 Capital expenditures - drilling$1,286,114 $14,901,631 Long-term debt $57,000,000$78,715,107 Mcfe sold 3,143,400 3,737,483 Average Mcfe sales price $2.88$5.22 (1) Includes $11,250,265 gain on derivative contracts (FQ 2015) $ 200 Million Credit Facility, Maturity November 2018 $53 million currently outstanding $100 million borrowing base, renewed 12/2015

Price Risk Mitigation Through Hedging 11 February 2016 Investor Presentation D URATION M ONTHLY V OLUME P RICES Gas Dec-May ,000 mmbtu$2.50 floor/$3.10 ceiling Jan-Mar ,000 mmbtu$1.75 floor/$1.90 ceiling Jan-Sept ,000 mmbtu$2.15 floor/2.50 ceiling Jan-Sept ,000 mmbtu$2.43 swap Feb-Mar ,000 mmbtu$2.00 floor/2.60 ceiling Apr-Oct ,000 mmbtu$1.95 floor/2.40 ceiling Jun-Sept ,000 mmbtu$2.15 floor/2.90 ceiling

Asset Pyramid February 2016 Investor Presentation 12 Proved Reserves Fee Mineral Acreage Probable and Possible Reserves ● ~ 6,200 producing wells, 49% of revenue from gas, 51% from oil and liquids thus far in Fiscal Year 2015 ● PUD 40% of total proved reserves, principally on fee mineral acreage and held by production leasehold in shale plays ● ~ 6,200 producing wells, 49% of revenue from gas, 51% from oil and liquids thus far in Fiscal Year 2015 ● PUD 40% of total proved reserves, principally on fee mineral acreage and held by production leasehold in shale plays ● Probable and possible undeveloped reserves on fee mineral acres in the Fayetteville Shale, Oklahoma Woodford Shales and Western Oklahoma/Texas Panhandle horizontal oil plays and held by production leasehold in the Eagle Ford Shale, (superior economics due to royalty retention on mineral acres) ● Perpetually owned 199,000 acres not producing, 56,400 acres producing

PHX Stock Price History 13 February 2016 Investor Presentation 15yr % CAGR / 10yr – 4.8 % CAGR Net of Dividends

PHX Investment Strategy & Current Activity Maintain the disciplined and consistent long term investment philosophy of only investing in projects that we believe will earn reasonable rates of return at NYMEX futures pricing Provide a level of protection to those returns by hedging Maintain a simple financial structure and low debt WITH THE GOAL OF CREATING MATERIAL LONG TERM VALUE PER SHARE The current low product price environment has resulted in materially lower Capital Expenditures, which we expect to continue for the duration of the low product pricing cycle Our current areas of investment focus are the SCOOP Woodford and Springer plays, plus, the STACK and CANA Woodford and Mississippian plays in central and south-central Oklahoma We continue to earn non-cost bearing royalty interest in all wells drilled on our mineral acreage, whether we participate with a working interest or not We are reducing our debt with the excess cash flow generated from our operations, hedging proceeds and lease bonuses 14 February 2016 Investor Presentation

Mineral Holdings 15 February 2016 Investor Presentation

Reserve Statistics Proved reserves at Year-End 2015  Proved developed reserves Bcfe  PUD reserves Bcfe or 40% of total proved reserves  Proved SEC Flat Pricing PV10 - $144.2 million ($2.84/Mcf, $55.27/Bo & wellhead)  Proved NYMEX Futures Pricing PV10 - $144.3 million Probable and Possible NYMEX Futures PV10 - $130.8 million (NYMEX Futures Pricing as of September 30, 2015, basis adjusted to the Company wellhead price)  Fiscal Year-End P reserves increased to a record Bcfe, a 20% increase as compared to Year-End 2014 Year-End 2015 inventory of undeveloped locations  Over 4,600 undeveloped locations Proved, Probable and Possible reserve appraisal performed by DeGolyer and MacNaughton 16 February 2016 Investor Presentation

Quarterly Production 17 February 2016 Investor Presentation MCFE

Year-End 2015 Reserves and First Quarter 2016 Production and Revenue by Product 18 February 2016 Investor Presentation 29 % 53% 33 % First Quarter 2016 Revenue First Quarter 2016 Production Year-End 2015 SEC Proved Reserves

3P Undeveloped Reserves Per Debt Adjusted Share February 2016 Investor Presentation 19 18% CAGR

Permian Basin Andrews & Winkler Counties Project 20 February 2016 Investor Presentation

21 February 2016 Investor Presentation Permian Basin Andrews & Winkler Counties Project

Panhandle leased out ~2,440 contiguous net mineral acres on the central basin uplift in Andrews and Winkler Counties, Texas The lease covers a 43.6 square mile area The block has multiple well, stacked pay potential in the Wolfcamp, Strawn, Atoka, Mississippian, Barnett and Woodford The Company generated $1.2 million in lease bonus Panhandle will receive 25% of all production and resulting non-cost bearing revenue from the leased property in the form of royalty Panhandle has the right to buy back the lease in each unit as initial unit wells are proposed up to a maximum working interest of 10% With full participation Panhandle (assuming 640 acre units), will have an average 7% working interest and an average 7.5% net revenue interest in all wells drilled on the 43.6 square mile block The first well has been drilled and is awaiting completion 22 February 2016 Investor Presentation

Permian Basin Cochran Co. San Andres Project 23 February 2016 Investor Presentation

24 February 2016 Investor Presentation Permian Basin Cochran Co. San Andres Project

Panhandle leased out 4,052 contiguous net mineral acres on the northwest shelf of the Midland Basin in Cochran Co. Texas The lease covers a ~34.5 square mile area The operator intends to drill 1.5 mile horizontal San Andres wells at ~5000’ TVD The Company generated $2.1 million in lease bonus Panhandle will receive 25% of all production and non-cost bearing revenue, proportionately reduced, from the leased property in the form of royalty payments Panhandle has the right to buy back the lease in each unit as initial unit wells are proposed up to a maximum working interest of 10% With full participation Panhandle will have a 10% working interest and a 12.1% net revenue interest in all wells drilled on the 34.5 square mile area 25 February 2016 Investor Presentation

Western & South Central Oklahoma 26 February 2016 Investor Presentation

CANA Woodford and SCOOP Woodford/Springer Plays Diverse mineral ownership across initial plays Interest (WI or RI) in 11% of all producing wells in the play PHX wells primarily operated by Devon, Cimarex, Continental, Newfield and XTO Current production 3.7 Mmcfe per day Reserves  Year-End 2015 Proved – 30.7 Bcfe (17% of total)  2015 Probable – Bcfe (36% of total)  2015 Possible – 68.8 Bcfe (34% of total)  1237 Undeveloped locations identified ● Mineral ownership generates superior returns 27 February 2016 Investor Presentation

SCOOP/STACK/CANA Plays February 2016 Investor Presentation 28 SCOOP Woodford/Springer Continental, Newfield, Marathon XTO Cana Woodford Devon, Cimarex, Continental Stack Meramec/ Woodford Devon, Continental, Newfield

Eagle Ford Locator Map February 2016 Investor Presentation 29 PHX

Eagle Ford February 2016 Investor Presentation 30 Current production 607 Boepd 71 producing wells (67 Eagle Ford and 4 Pearsall), 1 well waiting on completion 107 additional undeveloped Eagle Ford locations Proved Reserves  76% Crude Oil, 13% NGL & 11% Natural Gas  Year-End 2015 Proved 5,169 Mbo MbNGL Bcf (40.8 Bcfe, 22.7% of total) Probable Reserves  YE 2015 Probable 320 Mbo + 52 MbNGL Bcf (2.5 Bcfe)

PHX Eagle Ford Shale Leasehold Acreage and Active Wells February 2016 Investor Presentation 31

The Panhandle Oil and Gas Advantage 32 February 2016 Investor Presentation Broadly diversified perpetual mineral holding/growing HBP leasehold  Total US mineral ownership of 255,000 acres with geographic and product diversity Substantial advantage in capital efficiency due to mineral ownership  Participate with minerals as a working interest owner  Lease minerals and retain a significant royalty ownership in production with no additional capital investment or operating expense  Leasing activity also presents the opportunity for highly profitable cash bonuses Rate of Return Driven Investment Philosophy Long Term Creation of Shareholder Value

PHX LISTED NYSE ® Appendix Slides

February 2016 Investor Presentation 34 Year-End 2015 SEC Proved Reserves

February 2016 Investor Presentation 35

Year-End 2015 Proved, Probable and Possible Reserves February 2016 Investor Presentation 36

Unit Costs Per MCFE 37 February 2016 Investor Presentation Total 3.29 Total 4.51 Total 3.87 Total 3.43 Total 3.40 Total 3.27 Total % Reduction Total 3.78

Annual Production Per Debt Adjusted Share February 2016 Investor Presentation 38 Total 1.63 Total 1.50 Total 1.20 Total 1.06 Total 1.11 Total.87 Oil & NGL 26% CAGR - Total 9% CAGR Total 1.59

Proved Reserves Per Debt Adjusted Share February 2016 Investor Presentation 39 Total Total Total Total Total Total 6.71 Total 6.12 Total PDP 15% CAGR – Total 19% CAGR

S.E. Oklahoma Woodford Shale 40 February 2016 Investor Presentation

Southeastern Oklahoma Woodford Shale 41 February 2016 Investor Presentation Diverse mineral ownership across the play Interest (WI or RI) in 16% of all producing wells in the play PHX wells primarily operated by Newfield, Devon, BP and PetroQuest Current production 3.5 Mmcfe per day Reserves  Year-End 2015 Proved – 18.4 Bcfe (10% of total)  2015 Probable – Bcfe (46% of total)  2015 Possible – 55.7 Bcfe (28% of total)  1,073 Undeveloped locations identified Mineral ownership generates superior returns

Southeastern Oklahoma Woodford Shale February 2016 Investor Presentation 42 Play Outline Newfield, Devon, BP, Petroquest, XTO

Arkansas Fayetteville Shale 43 February 2016 Investor Presentation

Arkansas Fayetteville Shale 44 February 2016 Investor Presentation Diverse mineral and leasehold ownership across the play Interest (WI or RI) in 23% of all producing wells in the play PHX wells primarily operated by Southwestern Energy Current production 10.5 Mmcfe per day Reserves  Year-End 2015 Proved – 50.4 Bcfe (28% of total)  2015 Probable – 43.6 Bcfe (16% of total)  2015 Possible – 57.6 Bcfe (29% of total)  1,886 Undeveloped locations identified Mineral ownership generates superior returns

Arkansas Fayetteville Shale February 2016 Investor Presentation 45