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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 2012 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. Annual Shareholders Meeting, March 7,

Financial Highlights - Fiscal 2012 Year Ended September 30, Revenue$48,532,317$44,976,651 Net income$7,370,996$8,493,912 Earnings per share$.88$1.01 Net cash provided by operating activities (not including lease bonus received of $7.3 mm)$25,371,196$29,283,929 Capital expenditures - Drilling - Acquisitions $25,147,306 20,144,121 $22,739,908 4,805,440 Mcfe produced10,583,4408,922,503 Average Mcfe sales price$3.86$4.87 Long-term debt$14,874,985$0 Annual Shareholders Meeting, March 7,

Condensed Balance SheetSeptember 30, 2012 Current assets $11,622,845 Property and equipment286,816,134 Less accumulated DD&A(165,199,079) Net property and equipment121,617,055 Other 1,946,830 Total assets$135,186,730 Current liabilities $7,627,742 Long-term debt 14,874,985 Deferred income taxes26,708,907 Asset retirement obligation2,122,950 Shareholders equity: Stock and paid in capital2,160,753 Retained earnings84,821,395 Deferred directors’ compensation2,676,160 Treasury stock (5,806,162) Total liabilities and equity$135,186,730 Financial Highlights - Fiscal 2012 Annual Shareholders Meeting, March 7,

Financial Highlights - First Quarter 2013 Three Months Ended December 31, Revenue$14,180,435 $13,404,333 Net income$2,148,298 $3,412,110 Earnings per share$.26 $.41 Net cash provided by operating activities$7,158,243 $7,745,652 Capital expenditures - Drilling$6,864,399 $6,344,006 - Acquisitions$330,000$18,783,949 Long-term debt$14,454,757$14,522,371 Mcfe sold3,008,3652,559,524 Average Mcfe sales price$4.24$4.59 Annual Shareholders Meeting, March 7,

PHX Stock Price History 20 % CAGR (net of dividends) Ten-Year Share Price Growth Annual Shareholders Meeting, March 7,

Operating Highlights Development of western Oklahoma/Texas Panhandle oil and natural gas liquids rich horizontal Granite Wash, Hogshooter, Cleveland, Marmaton and Tonkawa Focused development of our high quality asset base in three of the nation’s premier resource plays  Arkansas Fayetteville Shale  Anadarko Basin ‘Cana’ Woodford Shale  Southeastern Oklahoma Woodford Shale Southern Oklahoma Woodford Shale Oil Play  ~ 3,700 net mineral acres available for participation Annual Shareholders Meeting, March 7,

Quarterly Production (Oil & NGL *) Annual Shareholders Meeting, March 7, * The Company began accounting for NGL production as a separate product from gas in FY 2012 Barrels

Quarterly Production Annual Shareholders Meeting, March 7, MCFE 14 % CAGR

Reserve Statistics – 2012 Exceptional Reserve Growth Proved reserves at year-end 2012  Fiscal year-end 2012 proved reserves increased to Bcfe  An 11.7% increase over 2011 Record 3P (proved, probable and possible) reserves at year-end 2012  Fiscal year-end P reserves increased to Bcfe  A 7.4% increase over 2011 Year-end 2012 inventory of undeveloped locations  4,180 undeveloped locations Proved, probable and possible reserve appraisal performed by DeGolyer and MacNaughton Annual Shareholders Meeting, March 7,

Proved Reserve Growth PDP 15.0 % CAGR, Total 21.9 % CAGR Annual Shareholders Meeting, March 7,

Probable & Possible Undeveloped Reserve Growth 18.5 % CAGR Annual Shareholders Meeting, March 7,

Year-End 2012 Reserves and First Quarter 2013 Production and Revenue by Product Annual Shareholders Meeting, March 7, %9% 15 % 38 % First Quarter 2013 Revenue First Quarter 2013 Production Year-End 2012 SEC PDP Reserves

Acquisition Strategy and Activity Acquisition Strategy ● Focus on acquiring both HBP leasehold and un-leased and leased mineral acreage properties in economically depressed dry gas resource plays as well as appropriately priced oil/liquids rich properties ● Majority of purchases to date have been in the Fayetteville Shale ● Potential to expand into other dry gas plays and oil/liquids rich plays ● The goal is to add extremely low risk and long lived proved, probable and possible reserves which will generate exceptionally attractive long term returns ● This is accomplished by acquiring dry gas reserves below industry replacement cost in the cores of the nation’s lowest cost gas resource plays or acquiring appropriately priced oil/liquids rich properties Acquisition Strategy ● Focus on acquiring both HBP leasehold and un-leased and leased mineral acreage properties in economically depressed dry gas resource plays as well as appropriately priced oil/liquids rich properties ● Majority of purchases to date have been in the Fayetteville Shale ● Potential to expand into other dry gas plays and oil/liquids rich plays ● The goal is to add extremely low risk and long lived proved, probable and possible reserves which will generate exceptionally attractive long term returns ● This is accomplished by acquiring dry gas reserves below industry replacement cost in the cores of the nation’s lowest cost gas resource plays or acquiring appropriately priced oil/liquids rich properties Annual Shareholders Meeting, March 7,

Leasing Strategy (Leasing of PHX mineral holdings to active operators) ● ● Example: Northern Oklahoma Mississippian Play leased for ~$1.7MM bonus with 3 years primary term, while retaining 3/16ths royalty (proportionately reduced) in each well drilled on PHX minerals  Mississippian reserves are extremely variable and difficult to predict  PHX minerals were not generally located near viable Mississippian vertical show wells or economic Mississippian horizontal wells  Water transportation and disposal expenses make most wells uneconomic for non-operating owners as they do not share ownership with the operators in the profit center disposal systems and are captive to very high disposal fees  Produced water is saturated with salt and therefore difficult and expensive to lift from the producing wells leading to higher operating expenses and potential for environmental liability  Leasing eliminates the risk of investing capital in uneconomic projects due to low reserves, mechanical failures, low product price or high operating expense ● Will consider leasing in other plays where leasing valuations are compelling Leasing Strategy (Leasing of PHX mineral holdings to active operators) ● ● Example: Northern Oklahoma Mississippian Play leased for ~$1.7MM bonus with 3 years primary term, while retaining 3/16ths royalty (proportionately reduced) in each well drilled on PHX minerals  Mississippian reserves are extremely variable and difficult to predict  PHX minerals were not generally located near viable Mississippian vertical show wells or economic Mississippian horizontal wells  Water transportation and disposal expenses make most wells uneconomic for non-operating owners as they do not share ownership with the operators in the profit center disposal systems and are captive to very high disposal fees  Produced water is saturated with salt and therefore difficult and expensive to lift from the producing wells leading to higher operating expenses and potential for environmental liability  Leasing eliminates the risk of investing capital in uneconomic projects due to low reserves, mechanical failures, low product price or high operating expense ● Will consider leasing in other plays where leasing valuations are compelling Leasing Strategy and Activity Annual Shareholders Meeting, March 7, Lease Company minerals in situations where it is clear that the value generated by the lease bonus and royalty will exceed the potential value of participation with a working interest in wells drilled on mineral acreage

Southeastern Oklahoma Woodford Shale Diverse mineral ownership across the play Interest (WI or RI) in 17% of all producing wells in the play PHX wells primarily operated by Newfield, Devon, BP and PetroQuest Current production 5.3 Mmcfe per day Reserves  Year-End 2012 Proved – 37.6 Bcfe (30.1% of total)  Probable – 90.4 Bcfe (57.8% of total)  Possible – 72.4 Bcfe (45.0% of total) Mineral ownership generates superior returns Annual Shareholders Meeting, March 7,

Southeastern Oklahoma Woodford Shale Annual Shareholders Meeting, March 7, Blue outline is Current Development Area Current Development Area  6,518 net PHX acres  163 PHX producing working interest wells w/6.1% average NRI  60 PHX producing royalty interest wells  4.4% average NRI in 897 undeveloped WI locations  359 additional undeveloped RI locations Current Development Area  6,518 net PHX acres  163 PHX producing working interest wells w/6.1% average NRI  60 PHX producing royalty interest wells  4.4% average NRI in 897 undeveloped WI locations  359 additional undeveloped RI locations

Arkansas Fayetteville Shale Diverse mineral and leasehold ownership across the play Interest (WI or RI) in 22% of all producing wells in the play PHX wells primarily operated by Southwestern Energy Current production 14.1 Mmcfe per day Reserves  Year-End 2012 Proved – 48.2 Bcfe (38.6% of total)  Probable – 29.8 Bcfe (19.1% of total)  Possible – 46.0 Bcfe (28.6% of total) Mineral ownership generates superior returns Annual Shareholders Meeting, March 7,

Arkansas Fayetteville Shale Annual Shareholders Meeting, March 7, Current Development Area  4.8% average NRI in 800 undeveloped WI locations  1,205 additional undeveloped RI locations Current Development Area  4.8% average NRI in 800 undeveloped WI locations  1,205 additional undeveloped RI locations Current Development Area  10,473 net PHX acres  459 PHX producing working interest wells w/3.0% average NRI  543 PHX producing royalty interest wells Current Development Area  10,473 net PHX acres  459 PHX producing working interest wells w/3.0% average NRI  543 PHX producing royalty interest wells

Anadarko Basin ‘Cana’ Woodford Shale Diverse mineral ownership across initial play and expansion areas Interest (WI or RI) in 12% of all producing wells in the play PHX wells primarily operated by Devon and Cimarex Current production 2.1 Mmcfe per day Reserves  Year-End 2012 Proved – 9.4 Bcfe (7.5% of total)  Probable – 34.6 Bcfe (22.1% of total)  Possible – 34.5 Bcfe (21.4% of total) ● Mineral ownership generates superior returns Annual Shareholders Meeting, March 7,

Anadarko Basin Woodford Shale Annual Shareholders Meeting, March 7, Reserve Assessment Area  3,545 net PHX acres  57 PHX producing working interest wells w/3.0% average NRI  7 PHX producing royalty interest wells  3.8% average NRI in 437 undeveloped WI locations  330 additional RI locations Reserve Assessment Area  3,545 net PHX acres  57 PHX producing working interest wells w/3.0% average NRI  7 PHX producing royalty interest wells  3.8% average NRI in 437 undeveloped WI locations  330 additional RI locations Red outline is Core Development Area Yellow outline is Potential Play Extent Blue outline is 3P Reserve Assessment Area

Western Oklahoma and Texas Panhandle Net Acreage Annual Shareholders Meeting, March 7,  The currently active oil and liquids plays within the outlined area include the Granite Wash, Hogshooter, Cleveland and Marmaton  ~ 17,100 net mineral acres available for PHX participation  ~ 320 net leasehold acres available for PHX participation  ~ 8,400 net mineral acres leased in the past with PHX retained royalty  2,743 acres leased from surface to base of Virgilian (Tonkawa Equivalent )  The currently active oil and liquids plays within the outlined area include the Granite Wash, Hogshooter, Cleveland and Marmaton  ~ 17,100 net mineral acres available for PHX participation  ~ 320 net leasehold acres available for PHX participation  ~ 8,400 net mineral acres leased in the past with PHX retained royalty  2,743 acres leased from surface to base of Virgilian (Tonkawa Equivalent )

Annual Shareholders Meeting, March 7, 2013 PHX Drilling Activity in Western Oklahoma and the Texas Panhandle Wells 2013 Wells

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