1. Equity Research Published by Raymond James & Associates Raymond James Energy Group (800) 945-6275 © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 Marshall.Adkins@RaymondJames.com Jim.Rollyson@RaymondJames.com Collin.Gerry@RaymondJames.com Please read disclosure/risk information and Analyst Certification at the end of the presentation. Equity Research November 13, 2013 © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 Please read disclosure/risk information and Analyst Certification at the end of the presentation. Published by Raymond James & Associates Raymond James Energy Group IPAA: RJ Energy Outlook Raymond James Energy Group (800) 945-6275 Marshall.Adkins@RaymondJames.com Jim.Rollyson@RaymondJames.com Collin.Gerry@RaymondJames.com

2. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 2 Game Change in U.S. Oil & Gas! Oil price structurally challenged –Global oil demand is sputtering –U.S. oil supply up huge! –Oil market is telling you there is a problem! –Bulls must count on additional disruptions U.S. nat gas poised for longer-term recovery –Demand poised to surge –But plenty of gas @ $4.00

3. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 3 Oil Outlook Without Strong Global Economic Recovery, Oil Will Be Structurally Challenged

4. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 4 Why Are We Worried About Oil? Oil inventories rising despite massive supply outages (3+ MMBpd offline since 2010) Oil inventories on track to max out in 2014 OPEC excess capacity near 20+ year high Will Saudi/OPEC cut an additional 2 MMBpd? If not, oil prices are moving lower

5. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 5 How Does Our Oil Forecast Stack Up? In-Line with Consensus for 2013 10 –15% below consensus in 2014 10 –20% below Consensus in 2015 + Way Below Street for 2015 WTI-Brent Spreads Source: Thomson Reuters; Raymond James Research

6. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 Does the Market Now Get It? 6 Source: Bloomberg; Raymond James Research

7. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 7 Long Term Strip is Coming Our Way Source: FactSet; Raymond James Research

8. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 8 North American crude supply growing ±1.5 million BPD over next several years. “Other” supply growth outpacing declines Global demand growing about half as fast as supply (700,000 – 900,000 BPD) What are the Headwinds for Oil?

9. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 9 Staggering U.S. Oil Supply Growth!

10. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 10 Near-Term Supply Growth Very Visible

11. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 11 U.S. Actuals Tracking Above RJ 2012 Forecast Source: EIA; Raymond James Research

12. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 12 Efficiency Improvements Outpacing Our Model Source: EOG Source: Raymond James; Drilling Info

13. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 Won’t Steep Declines Cause Oil Supply to Slow? 13

14. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 14 Growing Supply is Not the Only Problem

15. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 15 What is “New Normal” For Oil Demand Growth?

16. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 16 Why is Oil Demand Growth Slowing?

17. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 17 Efficiency Gains are Real

18. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 18 Are People Driving Less? -Urbanization? -Demographics? -Low Employment? -High Gasoline Prices? -Internet?

19. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 19 Better Mileage + Less Driving = Falling Demand

20. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 20 U.S. Demand Falling But Lumpy Source: IEA; Raymond James Research

21. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 21 Japanese Oil Demand Fell 8/10 Years Last Decade

22. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 Is China Worse than People Think?

23. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 23 Global Oil Demand is Facing Serious Headwinds

24. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 24 Where Does That Leave Our Global Oil Model

25. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 25 Question Is Not “If” But “When?”

26. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 If Fundamentals Suck, Why is Spot So High? 26 Source: IEA; Raymond James Research

27. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 27 Where Could We Be Wrong? U.S. Supply & Global Demand #’s Conservative Bad Data? –Data May be Wrong…But It’s Consistently Wrong –Either Way Demand is Worse Than Pre-2008 More MENA Supply Interruptions?

28. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 28 What Solves Structural Oil Problems? Robust Global Economic Recovery –Difficult With De-levering & High Oil Prices Cut Supply –Temporary Solution –OPEC Excess Capacity Becomes Problem **Lower Oil Prices** - SOLUTION! –Slows U.S. Drillers –Spurs the Global Economy

29. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 29 WTI Disconnect Isn’t Going Away

30. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 30 Watch Light/Sweet Oil Import Timing!

31. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 31 Gulf Coast Spread Widens When Light is Gone

32. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 32 North American Timing Will Be “Squishy”

33. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 33 Where is our WTI vs. Consensus? Source: FactSet; Raymond James Research

34. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 34 What About U.S. Natural Gas?

35. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 35 Low Prices & Weather Solved Oversupply in 2013

36. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 36 How Do We Offset Supply Growth?

37. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 37 Gas to Coal Switching Key To Late 2013 Pricing

38. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 38 Gas Growth Slowing But Not Down!

39. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 39 Well Productivity Now 5x-10x Better?

40. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 40 Lower Oil Prices Are Bullish For Gas!

41. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 Huge Nat U.S. Demand Growth Coming… 41

42. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 …Driven Largely by Industrial Gas Demand 42

43. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 43 And Wave of LNG Export Facilities?

44. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 44 U.S. Gas Prices Drift Slowly Higher

45. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 45 Who Are The “Winners” In This New World? Energy Spectrum: –Infrastructure, Refiners & Niche Stories U.S. wins as trade deficit shrinks U.S. manufacturing wins –Gas input costs provide huge cost advantage U.S. dollar goes higher U.S. workers & consumers win

46. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 46 Outlook For Oil Independence? (Pay Attention To This Graph!)

47. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 47 What About the Non-Oil Trade Deficit?

48. Equity Research Published by Raymond James & Associates © 2013 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 48 Conclusion Game Changed For U.S. Gas 5 Years Ago Oil Game Changing Now! Oil Decline Pushed Out by Interruptions U.S. Nat Gas Price Improvement Here to stay!