The Range Bound Recovery Bruce Bullock Director, Maguire Energy Institute

Pipeline Opportunities Pipelines less materially impacted by commodity prices, however they are directly tied to the health of the U.S. and Canadian and crude and gas markets which are recovering in certain areas, most notably the Permian Basin and the Scoop/Stack.

Where Have We Been? Prices in the mid 20s in early 2016 114 E&P Bankruptcies 110 OFS Bankruptcies 16 Midstream Bankruptcies

Significant Signs of Improvement Prices in high 40s to low 50s Restructuring approaching completiom Permian property values on fire Spot market rig day rates abover $18,000 E&P firms raised over $6 billion in equity in January, 65% of all equity raised in the U.S. Service costs are increasing at 5% per quarter.

March 11, 2017.

March 11, 2017.

March 11, 2017.

March 11, 2017.

OPEC has regained market share but it could be fleeting in light of U OPEC has regained market share but it could be fleeting in light of U.S. shale gains Opec took share during the price collapse (trended SA, Mb/d) 57 56 55 54 53 52 51 50 49 44 43 42 41 40 39 38 37 36 Non- Opec Opec (rhs) J-12 J-13 J-14 J-15 J-16 J-17 Saudi (& the GCC), Iraq and Iran grow from then (3mma, yoy in kb/d) Source: Credit Suisse

U.S. Productivity Up Significantly Source: Credit Suisse

U.S. Production Again on the Rise Total US crude oil production history and forecast (3 mma, kb/d) 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 07 08 09 10 11 12 13 14 15 16 17 18 Total US liquids production history and forecast (Mb/d) Source: Credit Suisse

EIA Forecast Has a Wide Range of Uncertainty Source: EIA

Others See Shale Capping the Upside Scenarios around our central price deck: US shale limits upside, Opec and/or a fierce recession may yet set a new low ($/b, WTI) $70 $60 $50 $40 $30 $20 $80 $90 qrtr avg WTI price CS base-case fcst downside limited NT upside Source: Credit Suisse

State of the Market

Uncertainties Fiscal Policy OPEC Extension Global Economy Recession Tax reform Infrastructure package OPEC Extension Global Economy Recession