1. Oil & Gas Market Update March 11, 2017 Dan Steffens, President

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4. Macro View for 2017 Crude oil prices depend on what OPEC does
Headlines and Storage Reports will drive oil prices
Most analysts believe oil reaches $60 by year-end
Lack of investment could cause shortage of oil in 2H 2018
The U.S. gas market is MUCH TIGHTER
Gas in Storage is way below last year
Weather will drive prices up & down in the short run
Supply / Demand will get more attention this summer
NGL price could double, reaching 50% of WTI
Propane inventories have fallen
Ethane demand to ramp up BIG TIME in 2017

5. EIA Crude Oil Inventory

6. Global Oil Market

7. Demand for oil is “Relentless”

8. Oil Trades in U.S. Dollars

10. U.S. Natural Gas Market ~83 Bcf per day
Natural gas prices are set by regional supply/demand
The U.S. gas market is MUCH TIGHTER than a year ago
Supply/Demand are at least 4 Bcf per day tighter
Mild Winter has masked the tightness of U.S. market
Two weeks of colder than normal weather in December pushed storage below the 5-year average
January & February warmer than normal
Cold March will leave inventories Bcf below last year
Propane inventories have already dropped BIG TIME
Double check the production mix of all of your holdings

11. Natural Gas in Storage

12. Keep an eye on Chicago https://www.wunderground.com/

13. Natural Gas Price “Thank You Mother Nature”

14. U. S. Natural Gas Production per EIA Last 6 months of 2015 = 74
U.S. Natural Gas Production per EIA Last 6 months of 2015 = Bcf per day Last 6 months of 2016 = Bcf per day Decline of 2.74 Bcf per day is SIGNIFICANT

21. Natural Gas Prices Spikes When Storage Falls Below 5-yr Average

24. NGL Prices NGL prices up 25% to 50% in Q4 and rising

25. Commodity Prices Q3 to Q4

26. Companies who primarily produce natural gas and NGLS
Antero Resources (AR)
Range Resources (RRC)
Gulfport Energy (GPOR)
Small-Caps
Comstock Resources (CRK)
PetroQuest Energy (PQ)
Mid-Stream MLPs that focus on gas

27. Central Oklahoma’s SCOOP & STACK plays will draw a lot of attention in 2017

29. Central Oklahoma’s SCOOP & STACK plays will draw a lot of attention in 2017
Cimarex Energy (XEC)
Continental Resources (CLR)
Devon Energy (DVN)
Newfield Exploration (NFX)
New to SCOOP / STACK
Gulfport Energy (GPOR)
Jones Energy (JONE)

30. Central Oklahoma’s SCOOP & STACK plays will draw a lot of attention in 2017

31. High Yield Income Portfolio

32. EPG Luncheons at The Hess Club
March 29: Houston American Energy
Permian Basin
March 30: Bearing Resources
Lithium Mining Company
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33. Sweet 16 Growth Portfolio

34. Sweet 16 Growth Portfolio Upside in 2017

35. Oil & Gas Market Update March 11, 2017 Dan Steffens, President