1. 2008 – Thoughts To Ponder IPAA Private Capital Conference January 16, 2008 Dan Pickering

2. 2 What’s It Going To Be? …or Uh-Oh? Yippee!!

3. 3 Who Is Tudor, Pickering, Holt & Co.? Energy Specialists Research, Investment Banking, Property A&D ~ 50 Employees Houston/Denver Offices Our clients are: □ Institutional Investors □ Companies Seeking Capital □ Companies Buying/Selling Assets

4. 4 NYMEX Current Month Oil Price

5. 5 What If Oil Falls by $20/bbl?

6. 6 What If It Doesn’t?

7. 7 What If China / India Slow? Cumulative Growth In Oil Consumption 2003 - 2006 Incremental Demand ~ 5.1 mmbbls/day China / India

8. 8 What If China / India Accelerate?

9. 9 Does Inventory Matter?

10. 10 How Scary Is The World? Iran Venezuela Mexico West Africa Iraq Russia Deepwater The Unknown

11. 11 What If The Winter Stays Cold?

12. 12 What If Gas Trades At $9/mcf? Source: Smith Bits, TPH

13. 13 What If U.S. Drilling Holds Steady? U.S. Onshore43.244.946.4 +1.5 U.S. Offshore7.57.0 0 LNG1.52.23.0 +0.8 Canada Imports7.97.76.9 -0.8 Total Supply60.161.863.3 +1.5 +2.4% y/y *All figures in bcf/day 200620072008 2008 Gas Supply Snapshot

14. 14 Is There Too Much LNG? 2008E = +5.5 bcf/day 2009E = +4 bcf/day Global Supply

15. 15 What If The Credit Crunch Lingers? E&P 2008 Free Cash Flow @ $7/mcf

16. 16 What About Alternative Energy?

17. 17 Elections And Energy?

18. 18 What If We Were In Another Business?!

19. 19 Conclusions Everything Is Intertwined You want lower oil prices! Gas Is Global Risk Management Alternatives Are Real…And Small Energy Is Still The Best Game In Town

20. 20 Put in Final Presentation Slide Here Tudor, Pickering & Co. Securities, Inc. is a leading institutional brokerage firm focusing on energy-sector research for institutional investors. The Company, a NASD broker-dealer, develops investment ideas for our clients by actively covering the E&P and oil service industries, while monitoring energy subsectors such as coal, nuclear, tankers and alternative energy. In addition to research activities, Tudor, Pickering has executed share repurchases and helped energy companies raise equity capital via co-manager and syndicate positions in numerous energy offerings including CPX, HERO, WARR, BAS, XCO. Our research is provided to institutional clients via published reports, concise emails, and through direct interaction with our highly rated analysts and unique, specialized sales force. Tudor Pickering has 42 employees working from our main Houston office and two satellite offices in Denver, Colorado and New Orleans, Louisiana. The firm was established in February 2004 as Pickering Energy Partners and combined with Tudor Capital in February 2007. Contact Us Houston: 713-333-2960 Denver: 303-300-1902 New Orleans: 504-371-5563

21. 21 Disclaimer TudorPickering does not provide accounting, tax or legal advice. In addition, we mutually agree that, subject to applicable law, you (and your employees, representatives and other agents) may disclose any aspects of any potential transaction or structure described herein that are necessary to support any U.S. federal income tax benefits, and all materials of any kind (including tax opinions and other tax analyses) related to those benefits, with no limitations imposed by TudorPickering. The information contained herein is confidential (except for information relating to United States tax issues) and may not be reproduced in whole or in part. TudorPickering assumes no responsibility for independent verification of third-party information and has relied on such information being complete and accurate in all material respects. To the extent such information includes estimates and forecasts of future financial performance (including estimates of potential cost savings and synergies) prepared by, reviewed or discussed with the managements of your company and/ or other potential transaction participants or obtained from public sources, we have assumed that such estimates and forecasts have been reasonably prepared on bases reflecting the best currently available estimates and judgments of such managements (or, with respect to estimates and forecasts obtained from public sources, represent reasonable estimates). These materials were designed for use by specific persons familiar with the business and the affairs of your company and TudorPickering materials. Under no circumstances is this presentation to be used or considered as an offer to sell or a solicitation of any offer to buy, any security. Prior to making any trade, you should discuss with your professional tax, accounting, or regulatory advisers how such particular trade(s) affect you. This brief statement does not disclose all of the risks and other significant aspects of entering into any particular transaction.