1. Muhlenkamp & Company, Inc. Intelligent Investment Management Natural Gas: An Energy Game Changer Ron Muhlenkamp © 2013. All rights reserved.

2. Natural Gas: An Energy Game Changer Consumer Environmentalist Landowner Investor

3. Natural Gas: An Energy Game Changer Consumer

4. Source: Bloomberg; Oil; Generic 1st 'CO' Future, Natural Gas; Generic 1st 'NG' Future delivery to Henry Hub Natural Gas Crude Oil 1995–3/17/2014 (Daily)

5. How Shale Gas Benefits the Homeowner Source: Muhlenkamp & Company, Inc.

6. Percent of Total U.S. Electricity Net Generation by Energy Source 2012 Source: U.S. Energy Information Administration; Electric Power Monthly, Tables 7.2b and 8.2b

9. Historical Natural Gas Consumption in the U.S. Source: Muhlenkamp & Company, Inc.

10. Working Gas in Underground Storage Compared with 5-year Range Week ending March 7, 2014 Note: The shaded area indicates the 5-year range between the minimum and maximum values for the weekly series. Between 2009-2014. Source: U.S. Energy Information Administration; Form EIA-912, “Weekly Underground Natural Gas Storage Report.” Last 24 Months 5-year average

11. Energy Source

12. Source: Bloomberg

13. Other U.S. “Consumers” of Natural Gas Utilities Over-the-Road Trucking Industry Feedstock Manufacturers

14. Natural Gas: An Energy Game Changer Consumer Environmentalist

15. Chemical Composition of Selected Fuel Sources Source: Muhlenkamp & Company, Inc.

16. Acres of land needed to produce the fuel to generate enough electricity to serve 1,000 households for one year Land Usage: Favors Natural Gas for Power Generation

17. Source: U.S. Energy Information Administration, Carbon Dioxide Emissions Coefficients Report

18. Source: U.S. Energy Information Administration, Monthly Energy Review. Note: Reflects total carbon dioxide emissions in metric tons by month.

19. Ron Muhlenkamp & Company U.S. energy-related CO2 emissions in early 2012 lowest since 1992 Source: U.S. Energy Information Administration, Monthly Energy Review. Note: Reflects total carbon dioxide emissions in metric tons by quarter.

20. What about the Water? 1)Into well 2)Flow back 3)Water table 4)Burn Methane (CH 4 ) 5)Ethanol (C 2 H 6 O)

21. Water into the Well It takes 5 million gallons to frac 1 well which drains 80 acres ft 3 7.5 Gals. Acre 43,560 ft 2 1 80 Acres 12 Inches ft 2.3 Inches of Rain X = X Source: Muhlenkamp & Company, Inc.

22. Flow Back Center for Sustainable Shale Development (CSSD) Into subsequent wells

23. Water Table…

24. Burn Methane, CH 4 CH 4 + 2O 2 → CO 2 + 2H 2 O 1 Billion ft 3 → 11 Million Gallons of H 2 O Source: Muhlenkamp & Company, Inc.

25. Fracturing: What about the Water? $5 Million + 5 million gallons H 2 O = 88 Million Gallons of H 2 O → 83 Million Gallons of H 2 O @ 6¢/Gallon = Free Energy Source: Muhlenkamp & Company, Inc.

26. Ethanol: What about the Water? ≈ 30% of U.S. corn crop is used for ethanol production 25-30” of rainfall are required to grow corn Average corn yield of 1 acre of farmland ≈ 147 bushels 1 bushel of corn ≈ 2.77 gallons of ethanol 677,724 gallons of water ≈ 450 gallons of ethanol Source: Muhlenkamp & Company, Inc.

27. Fracturing vs. Ethanol: What about the Water? Marcellus gas well uses 0.16 gallons of water to generate the energy equivalent of 1 gallon of gasoline. Ethanol requires 2,259 gallons of water to produce the energy equivalent of 1 gallon of gasoline. Shale gas is 14,000 times more water-efficient in the production of energy than corn ethanol. Source: Muhlenkamp & Company, Inc.

28. Source: MarcellusGas.org

29. Examples of Typical Shale Fracturing Mixture Makeup Source: AXPC

30. Natural Gas: An Energy Game Changer Consumer Environmentalist Landowner

31. Natural Gas in Pennsylvania Round I

32. Source: sjvgeology.org

33. Source: Oil and Gas Field Atlas of The Butler Quadrangle

35. Natural Gas in Pennsylvania Round II

36. 6 Laterals (wells) seen here Range Resources (Dry Gas): 1)Average distance of lateral in 2013: 5,000 feet 2)Currently drill with 25 fracture stages

38. Source: Oil and Gas Field Atlas of The Butler Quadrangle

39. Source: Range Resources; Pennsylvania’s Marcellus Gas Play Its History, Potential, and Challenges, 8/31/11 Total Disturbance during drilling, including access road, drilling pad and required pipeline infrastructure: Horizontal (yellow) develops 1,000 acres per pad with 1% surface disturbance Vertical (purple boxes) on 1,000 foot spacing develop 23 acres per well with 19% total surface disturbance (old industry method)

40. 10 Laterals (wells) seen here Range Resources (Dry Gas): 1)Average distance of lateral in 2013: 5,000 feet 2)Currently drill with 25 frac stages 1 Unit 640 Acres Source: Muhlenkamp & Company

42. Source: National Geographic

43. Source: Range Resources

44. Source: Range Resources: October 29, 2013; Company Presentation

45. U.S. Natural Gas Pipeline Network

46. October 29, 2013; Company Presentation

47. Source: Range Resources

48. October 29, 2013; Company Presentation

49. © Muhlenkamp & Company, Inc. 2013 * Typical Marcellus Shale dry gas well pad as of 8/1/13: assumes 58 year well life, 80 acre spacing, 6 Bcfe EUR (Estimated Ultimate Recovery) per well, 8 wells total, $4/MMBtu Dry Gas Price. Per Acre Estimate of Pre-Tax Cumulative Dollars Received by the Landowner Over the Life of a Typical Marcellus Shale Dry Gas Well in Southwestern Pennsylvania*

50. © Muhlenkamp & Company, Inc. 2013 * Typical Marcellus Shale dry gas well pad in SW Pennsylvania as of 8/1/13 ** EUR = Estimated Ultimate Recovery Estimate of Pre-Tax Cash Flows to the Landowner from a Typical Marcellus Shale Dry Gas Well in Southwestern Pennsylvania*

51. Natural Gas: An Energy Game Changer Consumer Environmentalist Landowner Investor

52. Source: Bloomberg; Oil; Generic 1st 'CO' Future, Natural Gas; Generic 1st 'NG' Future delivery to Henry Hub Natural Gas Crude Oil 1995–3/17/2014 (Daily)

53. Source: Examiner.com; 12/6/12

54. Source: Bloomberg

55. America’s Natural Gas Highway® The Clean Energy Solution Natural Gas: Diesel Replacement for America’s Trucking Corridors Source: Clean Energy Fuels; http://www.cleanenergyfuels.com/buildingamerica.html

56. What’s Next Changing Supply/Demand Dynamics Natural Gas Liquids (NGLs) Emphasis on products downstream of ethylene. Liquefied Petroleum Gas (LPG) exports continue to increase with U.S. playing a key role. Crude Oil North American production continues to grow mostly from unconventional resources. U.S. refined product exports continue to grow, enabled by increasing crude oil supplies. Natural Gas Markets will grow substantially, including power generation, and Liquefied Natural Gas (LNG) exports. Shut-in wells ready to respond to increases in prices, likely assuring low prices for years to come.

57. Natural Gas Exploration & Production Cabot Oil & Gas Chesapeake Energy Range Resources Rex Energy Southwestern Energy Oil & Gas Services Halliburton Company Schlumberger LTD Baker Hughes Distribution Clean Energy Engine Conversion Westport Innovations Fuel Systems American Power Group LNG Plant Construction Chicago Bridge Fluor Corp. KBR Inc. Feedstock U.S. chemical companies

58. Muhlenkamp & Company, Inc. Intelligent Investment Management Questions and Responses

59. Muhlenkamp & Company, Inc. Intelligent Investment Management The comments made by Muhlenkamp & Company are opinions and are not intended to be investment advice or a forecast of future events.

60. Muhlenkamp & Company, Inc. Intelligent Investment Management © 2013. All rights reserved.