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Rick MoncriefExecutive Vice PresidentBusiness Development

Caiman Energyd

Marcellus MidstreamMarch 2012

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Today’s Topics

• Chicken or the Egg

• Caiman Development

• Marcellus Volume Ramp-Up

• Residue Takeaway

• NGL Takeaway

Chicken or the Egg

3

What Comes First?

Midstream – The Chicken?

Confidence in reserves can not be determined without infrastructure to allow production data

Producer – The Egg?

Confidence in reserves underpins midstream development

Producers and Midstream operators must determine how to provide

appropriate assurances to allow for timely infrastructure development

Chicken or the Egg

4

1. Represents 4-month moving average. Counties referenced include Brooke, Marshall, Wetzel, Ohio and Tyler Counties in West Virginia and Monroe County in Ohio.

Rapid increase in activity has followed as processing infrastructure comes online (1)

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(# o

f Act

ive

Rig

s)

Fort Beeler in service

Rig Count in Caiman Footprint Caiman Producer Permits

101118

187

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50

100

150

200

2009 2010 2011

(# of Permts)

Chicken or the Egg

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Marcellus gas development can be dramatic once infrastructure in place

Using 6.2 Bcf type curve, Producers can generate 100 MMcfd running 1 rig

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MM

cd/d

Type Curve (5,000 Ft. Laterals)

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MM

cd/d

One Rig Volumes (5,000 Ft. Laterals)

Pipeline Complete Dedicated AcreagePipeline Under Construction Acreage of Producers with

VolumetricPipeline Proposed Processing Commitments (1)

NGL Pipeline Under Construction Ethane Pipeline Under Construction

___________________________1. Represents acreage of Chesapeake and CONSOL/Noble that is currently not dedicated to Caiman but for which Caiman has volumetric commitments from each company. Acreage estimate based on information available to Caiman.2. Primary residue gas takeaway pipeline owned and operated by Spectra.

Caiman has a franchise position in the rich gas area of the Marcellus Shale

Franchise system: ~231,000 dedicated acres

Residue Takeaway capacity via TETCO

Fort Beeler NGL Processing and De-ethanization Complex 545 MMcf/d of gas processing capacity by Q3 2012 30,000 Bbls/d of de-ethanization in-service by mid 2013

Moundsville Fractionation 72,500 Bbls/d of C3+ fractionation capacity by Q4 2013

Taylor NGL Processing and De-ethanization Complex 420 MMcf/d gas processing capacity in-service by year-end 2013 15,000 Bbls/d of de-ethanization in-service by early 2014

200 miles of gathering lines by year-end 2013 Over 50 miles of condensate gathering lines by year-end 2013

50 miles of ethane lines by year-end 2013

$1.3 billion invested capital in infrastructure by year-end 2013

Substantial organic growth opportunities from liquids rich Marcellus and Upper Devonian Shales in existing acreage

Adjacent to rich gas Utica Shale in Ohio

Texas Eastern (TETCO) (2)

Marshall

Greene

TylerWetzel

Monroe

WashingtonOhio

Marion

Moundsville Complex(Fractionation)

Fort Beeler Complex(NGL Processing & De-ethanization)

Belmont

1100

Btu

1350

+ B

tu

TETCO

Doddridge

Taylor Complex(NGL Processing & De-ethanization)

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Caiman Eastern Overview

+Rich Marcellus Processing Capacities

___________________________Source: MarkWest capacities taken from Chickasaw Presentation in December 2011Source: Rex Energy Corporate Presentation in March 2012.

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Caiman Energy MarkWest REX / Stonehenge

• Total rich Marcellus processing capacity will reach 2 Bcf by year-end 2013

• Caiman will represent ~ 40% of this capacity

• 300% increase since year-end 2010

Rich Marcellus play one of the most prolific and economical natural gas shale basins in NA

+Caiman Processing

Processing Facilities

Cryo I – 125 MMcf/d – Fort Beeler Complex – April 2011

Cryo II – 210 MMcf/d – Fort Beeler Complex – February 2012

Cryo III – 210 MMcf/d – Fort Beeler Complex – August 2012

Cryo IV – 210 MMcf/d – Fort Wetzel Complex – March 2013

Cryo V – 210 MMcf/d – Fort Wetzel Complex – October 2013

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Forecasted Processing Volumes

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Bbls

/d

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Caiman Fractionation Development

Fractionation Facilities

Frac I – 12,500 Bbls/d – Moundsville Complex - March 2012

Frac II – 30,000 Bbls/d – Moundsville Complex – October 2012

Frac III – 30,000 Bbls/d – Moundsville Complex – October 2013

Forecasted Fractionation Volumes

+Residue Takeaway

TETCO (Team 2012 Project) by Spectra

Adds 200 MMcf/d – Late 2012

Atlantic Access by WMB

Adds 350 MMcf/d – Late 2014

Appalachian Gateway

Dominion Expansion – Late 2012

REX Northeastern Express

Proposed extension of Rockies Express

Pipeline

NiSource West Side Expansion

Proposed expansion – Late 2014

Appalachian Gateway

Atlantic Express

REX Northeastern ExpressTETCO (Team 2012)

EQUITRANSNiSource

+NGL Takeaway

Ethane

Residue takeaway waivers

NOVA Contracted to take 50,000 Bbl/d from the

Marcellus Caiman has contracted

15,000-20,000 Bbls/d of this takeaway

TEPPCO 190,000 Bbls/d of takeaway capacity Other opportunities

Shell Cracker Shell recently announced plans to further

evaluate an ethane cracker in Beaver County, PA

Multiple ethane alternatives have materialized for Marcellus producers

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0

50,000

100,000

150,000

200,000

250,000

300,000

2011 2012 2013 2014 2015 2016

(Bbls/d)

0%

15%

30%

45%

60%

(%)

NGL TakeawayDrastically changing NGL supply / demand market in the Northeast

Surging NGL volumes changing

market dynamic in the northeast

Midstream Focus on:

• Value Maximize value for each

individual NGL component

• Take-away Keep gas and liquids

flowing

U.S. Gas Plant Fractionation: PADD I Market Share (1)

PADD I Mixed NGL Supply (1)

~54% CAGR 2011-2016

+Conclusion

Chicken or the Egg Dilemma

• Marcellus beyond this issue

• Utica will be able to utilize Marcellus infrastructure to avoid this hurdle

Downstream Infrastructure Expansions Progressing

• With Marcellus proven and Utica proving-out, necessary downstream projects emerging

Residue expansions

NGL takeaway alternatives

Further expansions / development will be required as Utica volumes develop

Everything Midstream

www.CaimanEnergy.com214.580.3700

Rick MoncriefExecutive Vice President