Capital One Securities Energy Conference

December 10, 2014

Core UpstreamProducing Areas

9

41%

12%18%

17%11%

1%

Gas53%

Oil22%

NGL25%

Key focus areas include:

Gulf Coast:

– Wilcox (Southeast Texas)

Mid-Continent:

− Hoxbar (Western Oklahoma)

− Granite Wash (Texas Panhandle)

− Mississippian (Kansas)

Upside resource potential:

– 1,400 – 1,800 gross wells

– 75% average working interest

– 760 – 960 gross MMBoe

– 47% liquids (16% oil, 31% NGLs)

2014 CapEx Breakdown: $718 Million Budget Q3 2014 Daily Production: 50.1 MBoe/d

Granite Wash

MississippianWilcox

Hoxbar Play

MarmatonOther

SOHOTGranite Wash

Mid Continent Region

Upper Gulf Coast Region

Mississippian

Wilcox

Hoxbar (Oil/Liquids)SOHOT – Medrano & Marchand Sands

11

Medrano Vertical Producer

Medrano Horizontal Producer

Extensional Area

Core Area

Claiborne #1‐4HDiscovery 2011Claiborne #1‐4HDiscovery 2011

Ezra Flowers 1‐20H  (2013)

IP30: 4,770 mcfe/d

Ezra Flowers 1‐20H  (2013)

IP30: 4,770 mcfe/dJobe 31‐3H (2013)IP30: 7,870 mcfe/dJobe 31‐3H (2013)IP30: 7,870 mcfe/d

Cody 1‐36H   (2014)IP30: 5,090 mcfe/dCody 1‐36H   (2014)IP30: 5,090 mcfe/d

Marchand Vertical Producer

Marchand HorizontalProducer

Extensional Area

Core Area

Rosey Havenstrite 1‐30H  (2014)

IP30:  1,312 boe/d

Rosey Havenstrite 1‐30H  (2014)

IP30:  1,312 boe/d

Allen 16‐1H   (2013)

IP30: 897 boe/d

Allen 16‐1H   (2013)

IP30: 897 boe/d

GB Ranch 1‐30H   (2014)

IP30: 1,210 boe/d

GB Ranch 1‐30H   (2014)

IP30: 1,210 boe/d

EOG: Jobe #1‐31H (2014)

IP30: 1,877 boe/d

EOG: Jobe #1‐31H (2014)

IP30: 1,877 boe/d

2015 Activity:

3 rigs

18-23 wells

37% 2015 projected growth

Medrano Single Well Parameters:

EUR: 3.2 Bcfe

Well cost: $4.9 million

ROR: 59%

33% liquids (8% oil)

150-200 core locations

60% avg. working interest

Marchand Single Well Parameters:

EUR: 440 MBoe

Well cost: $7.0 million

ROR: 410%

89% liquids (80% oil)

50 core locations

60% avg. working interest

Medrano Marchand

Granite Wash (Liquids)

12

2015 Activity:

2–4 rigs total

15-30 net wells

Upside Resource Potential:

700 – 900 wells

70% average WI

2,520 – 3,240 Bcfe

Historical Highlights:

Completed 93 operatedhorizontal wells since 2008

Average WI: 80%

Q3 ‘14 avg. production:112 MMcfe/d

Average IP30: 5.3 MMcfe/d

52% liquids (12% oil)

CAGR: 37% (5 years)

Single Well Parameters:

EUR: 3.6 Bcfe

Well Cost: $5.8 million

ROR: 32%

Buffalo Wallow Highlights:

Completed 9 “H” wellsGW [B, C(3), D, E(3), F] zones

Average WI: 100%

Average IP30: 4.2 MMcfe/d

45% liquids (7% oil)

Focus GW “B” & “C” zones

IP30: 5.5 MMcfe/d

49% liquids (12% oil)

Six new horizontal wells

GW [B(2), C(2), A, G] zones

Upsized frac

Anticipated first sales: 12/2014

Buffalo Wallow

40,600 N.A.96% H.B.P.40,600 N.A.96% H.B.P.

Mississippian (Oil)

13

153,000 net acres153,000 net acres

Highlights:

Q3 ‘14 avg. production: 1,860 Boe/d

71% liquids (61% oil)

Avg. working interest: 100%

Developed geologic model

Acquiring 86 sq. mile 3D

CAGR: 183% (3 years)

Single Well Parameters:

Geologic model / new frack wells

Average IP30: 282 Boe/d (12 wells)

EUR: 150 MBoe

Well cost: $3.0 million

ROR: 55%

Core Leasehold

KansasKansas

OklahomaOklahoma

Horizontal Wells by Operator

UNITTAPSTONECHESAPEAKEDEVON RANGESANDRIDGEOTHER 

UNIT LEASEHOLD

Central Kansas Uplift

153,000 net acres153,000 net acres

2015 Activity:

1 rig

5-20 wells

Upside Resource Potential:

300 – 4500 wells

70% average WI

45 – 70 MMBoe