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The Energy Capital Conference 2013 Show Report

Consolidation is coming, and plenty of capital is available to make deals.

However, succession planning for surviving companies needs to take into

account their appropriate strategy, not just personalities, according to

speakers at Oil and Gas Investor’s annual Energy Capital Conference,

held in Houston in mid-June. The event focused on industry trends and

boardroom issues common to all upstream corporations, big and small.

Further consolidation among E&P companies is going to happen,

panelists agreed. “It’s going to be a major part of our business for the next five to 10 years,”

said R. Danny Campbell, president of Henry Resources LLC, Midland. All major basins should see

some consolidations; speakers were keen to focus on the Permian, where well-capitalized

majors (who largely left in the 1980s), have plenty of cash on hand today and are willing to pay

to get back into the booming basin.

Whatever the basin or play, likely acquisition targets will be companies that are cash-

constrained but asset-rich. The buyers, meanwhile, will be well-financed companies in search of

resource plays. “They are all fascinated by these resource plays,” said H. Craig Clark, president

and chief executive of Wishbone Energy Partners LLC, a new private-equity-backed startup

looking for assets.

And when deals are found, larger amounts of capital will be needed to develop the plays – a

dynamic of the acquisitions and divestiture market that has changed in the past 12 to 18

months. “The ability to take a 10,000-acre piece of property, drill five to 10 wells and sell a

bunch of undrilled locations has disappeared,” said Doug Swanson, a partner at EnCap

Investments LP.

Today, properties have to be more developed and need more production data and top-tier

economics.

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But that fact isn’t slowing investing, and a prime example of this can be seen in private equity,

which has fast become a big player. Swanson said he’s seen reports of $28 billion in energy-

focused private equity funds currently in the market, available to finance E&P companies.

Attendees at this year’s conference, meanwhile, also got a glimpse of what some industry

executives think. According to the results of the 11th Survey of Upstream U.S. Energy

Companies commissioned by Grant Thornton in partnership with Hart Energy, and shared with

the audience at the conference, industry leaders worry that natural gas and crude oil prices in

2013 and years to come are stuck in a rut or will fall.

“The number one concern is price uncertainty,” said Brandon Sear, National Energy Practice

Leader, Grant Thornton.

The survey of E&P, midstream and oilfield services executives found respondents do not think

average gas prices of $4 per thousand cubic feet of gas (Mcf) will solidify until 2015.

Whether those speculations come to pass remains to be seen. What we at Hart Energy do know

and can predict is that whatever comes next in this fast-evolving industry, it will be interesting,

and it will be part of the wide range of discussions we have again at next year’s Energy Capital

Conference. We hope you’ll join us then to be a part of it. See you then!

Leslie Haines Editor-in-Chief Oil and Gas Investor Hart Energy

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Did you learn from these informative speakers?

Rick Louden Co-CEO and President Argent Energy Trust

Carin Barth Corporate Director

Bill Barrett Corp. and Western Refining

Michael R. Starzer President & CEO

Bonanza Creek Energy Inc.

Dudley Viles President & CEO Bright Horizon

Resources

Scott L. Joyce Senior Vice President Capital One Energy

Banking

Jordan Marye Managing Director

Denham Capital

John Donovan Founder

Donovan Capital

Steve Antry Chairman & CEO Eagle Energy of

Oklahoma

Stephen C. Beasley Founder and CEO Eaton Group Inc.

Suzanne Paquin Nimocks

Corporate Director EnCana, ArcelorMittal,

Rowan & Owens Corning

Doug E. Swanson Partner

EnCap Investments LP

Robert Watson Jr. CEO

EnerJex Resources Inc.

Brandon Sear Partner

Grant Thornton LLP

Brandon B. Cradeur Managing Director Grant Thornton LLP

R. Danny Campbell President

Henry Resources LLC

Sylvia Barnes Managing Director

and Head KeyBanc Capital

Markets

Mark Ellis Chairman, President &

CEO Linn Energy LLC

Brian N. Thomas Managing Director

Prudential Capital Group

Eric Nielsen Managing Director

Quantum Energy Partners

John Wing Entrepreneur

Serial Entrepreneur

Mitch Kniffin Vice President

Sigma3 Integrated Reservoir Solutions Inc.

Alan R. Huffman Ph.D. Chief Technology Officer

Sigma3 Integrated Reservoir Solutions Inc.

Eric Alfuth CFO

Starboard Resources Inc.

Mike Oestmann CEO

Tall City Exploration LLC

Tim Duncan President & CEO Talos Energy LLC

David Pursell Managing Director, Head of Securities Tudor, Pickering,

Holt & Co.

Matt Steele President & CEO

Ursa Resources Group II LLC

Stephen Moore Economist

The Wall Street Journal

H. Craig Clark President & CEO

Wishbone Energy Partners

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Companies Represented – 192

Activa Resources LLC Adams Resources &

Energy Addax Minerals Agatsu Holdings

Alcorn Exploration AlTreo LLC Alvarez & Marsal Holdings Amegy Bank

Ankor E&P Holdings Corp. Aon International Apache Arabella Petroleum

ArcLight Capital Argent Energy Trust Associated Bank Bank of Texas

Barrier Advisors Bennett Investments BHP Billiton Petroleum Bill Barrett Corp.

BlueRock Energy Partners BNP Paribas Bonanza Creek Energy Inc. BP Energy Co.

Bracewell & Giuliani BreitBurn Energy

Partners Breitling Energy Co.'s

Bright Horizon Resources

Burleson LLP Caltex84 Resources Inc. Calvetti, Ferguson and

Wagner Capital One Bank

Cargill Inc. Castlerock Energy Group

LLC Central Resources Centurion Partners

Cessna CFO Resources Inc. Chart Resources LLC Chestnut E&P

Cholla Petroleum CHR Energy Partners LLC Clarkson Capital Markets Clear Fork Royalty

Cobalt International Energy

Community Trust Bank Crestmark DelTex Capital

Denbury Resources Inc. Denham Capital Devonshire Investors Digital Solid State

Propulsion LLC

Donovan Capital Dontech Etl. Dot Oil LLC Eagle Energy Co. of OK

Eaton Group Inc. Elite Compression

Services Embassy Oil Co.

Embraer Executive Aircraft

EnCana EnCap Investments LP Energy & Exploration

Partners Energy Spectrum

Energy XXI EnerJex Resources Inc. Enertia Software EnerVest Ltd

Enstream Capital Fairways Exploration &

Production LLC Five States Energy

Fivestones Ventures Inc.

Forge Energy Founders Aviation LLC FTI Consulting Future Petroleum Co.

LLC

Global Geophysical Grant Thornton LLP Grenadier Energy Partners GSO Capital Partners

Guggenheim Henry Resources LLC Hess Corp. Holland Services

Hunt Consolidated Energy Iberia Bank Iberia Capital Partners ING Capital LLC

Itech Recycle Solutions America

JPMorgan Chase Kayne Anderson Key Banc Capital

Markets

Knight Resources KPMG Legado Resources Lime Rock Resources

LINN Energy Localingua Longhorn Natural

Resources Looper Reed & McGraw

PC

M1 Energy Capital Macquarie Bank Macquarie Capital Magee Corp.

Maine Pointe LLC Marathon Oil Matrix Oil Corp. MBI Oil and Gas

McElvain Energy Inc. McGriff Seibels &

Williams Merit Energy Co. MexTex Operating Co.

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Michelson Energy Mizuho Securities USA

Inc. Monterey Energy Group LLC

Morgan Stanley Capital Group

Municipal Energy Resources

Murchison Oil & Gas Inc. Navajo Nation Oil and Gas Netherland, Sewell &

Associates Inc.

New Prospect Co. NGP Capital Resources

Co. Oak Hill Investment

Management O'Brien Energy Co.

Occidental Petroleum Offshore Domestic

Group Onewest Bank Opal Resources LLC

Open Choke Capital Management LLC

Opportune LLP Paramount Operating LLC Pareto Securities Inc.

Parkman Whaling LLC PayRock Energy Petro Harvester Oil & Gas Petro Reports

Phillips Energy Partners LLC

Plano Petroleum LLC PLS Inc. PNC Bank

Post Oak Energy Capital Preng & Associates Presco, Inc. Producers Energy

Prudential Capital Group Quantum Energy

Partners Quantum Resources

Management, LLC Questar

R360 Environmental Solutions

Red Willow Production Co.

Relentless Production and Development LLC

Riviera Ensley Energy Advisors

S&B Infrastructure Ltd Sabine Oil & Gas LLC San Pedro Development LLC Scotiabank

Sempra U.S. Gas and Power

SFC Energy Partners Sigma3 Integrated

Reservoir Solutions Inc. Sklar Exploration

Societe Generale Southern Star

Exploration Starboard Resources Inc. Steptoe & Johnson PLLC

Stonepoint Strategic Advisors Inc.

Sulzer Pumps Suntrust Bank Tall City Exploration

Talos Energy LLC Tempus Aircraft Terra Environmental

Technologies Texas Crude Energy LLC

Texas Independent Exploration

The Dernick Co.'s The Hise Co. The Trimountaine

Group LLC

The Wall Street Journal Tradition Midstream THP Partners Tudor, Pickering, Holt &

Co.

TVM Capital UHY Advisors Union Bank URSA Resources

W&T Offshore Inc. Weisser, Johnson & Co. Wells Fargo US Energy Development

Corp.

WildHorse Resources Willis Global Energy Wishbone Energy Partners

LLC ZaZa Energy

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Energy Capital Conference Statistics

Attendees

Total Registered 378

Countries Represented

Canada – Alberta, Ontario Nigeria United States of America

19 U.S. States Represented

California Colorado Connecticut Florida

Illinois Kansas Louisiana Maryland

Massachusetts Nevada New York North Dakota

Ohio Oklahoma Pennsylvania Texas

Utah Virginia West Virginia

7th Annual Energy Capital Conference 2014 – Save the Date

The 7th annual Energy Capital Conference has been expanded to address asset capital,

intellectual capital and financial capital, in Houston, the energy capital. Today's boardroom

discussions focus on preparing for the new landscape in oil and gas. What opportunities and

challenges will come with pervasive consolidation? How can companies prepare the next

tranche of senior leadership? How can margins be improved through drilling efficiencies?

Where can growing companies find the right capital?

Discuss, strategize and network with the best at the Energy Capital Conference. Additional

information, including the agenda and speakers will be available soon. Mark your calendars for

June 9-10, 2014, as the Energy Capital Conference returns to the Omni Houston Hotel.

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Energy Capital Conference 2013 Audience Breakdown

Attendee by Job Function

Attendee by Company Type

Administrative 2%

Consulting 3%

Legal 3%

Engineering Mgmt./

Tech/R&D/Field 7% Sales/Marketing

11% Other/Unspecified

12%

General / Corporate

Management 62%

Service and Supply 11% Oil and Gas

Operator - Public Company

15%

Midstream/ Consulting/Other

18%

Oil and Gas Operator -

Privately Held 24%

Banking/Finance 32%

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2012

Oil and Gas Investor

Excellence Awards

Through triumphs, turmoil or uncertainty the executives who run successful companies cannot be timid. No matter what kind of seas they encounter, they must maintain a steady hand on the tiller and a steady course, keeping their compass fixed on the goals set forth by the board and their senior management teams. So it was in 2012 for these companies and individuals, the award winners in Oil and Gas Investor’s 10th Annual Excellence Awards program. They were nominated by their peers and our readers, selected by the editors and were awarded their trophies during the 6th annual Energy Capital Conference in June.

Executive of the Year Mark Ellis

Chairman, President, CEO Linn Energy LLC

Best Financing of the Year Linn Energy LLC

A&D Deal of the Year Denbury Resources Inc.

Best Discovery Cobalt Energy International Inc.

Best Field Rejuvenation Plano Petroleum LLC

Best Performance of the Year Bonanza Creek Energy Inc.

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Presented at the Energy Capital Conference

Oil and Gas Investor’s Inaugural “Twenty UNDER 40”

The “Twenty UNDER 40” list showcases 20 younger E&P professionals who demonstrate impressive initiative and talent, inspire and motivate colleagues, are engaged with their communities, and are expected to lead the industry in the future.

Eric Alfuth CFO

Starboard Resources

Matt Blomstedt Senior Staff BD

Sabine Oil and Gas

Shawn Canaday VP Finance

Berry Petroleum

Joseph DeWoody President

Clear Fork Royalty

Ian Doiron VP Acquisitions Phillips Energy

Partners

Tim Duncan President & CEO

Talos Energy

Matt Gentry VP BD Engineering

Forge Energy

Lauren Germinario Land Manager

Navajo Nation Oil and Gas Co.

Kate Gibson Attorney

Central Resources

Jason Hoisager President

Arabella Petroleum

Jeff Kummer VP Operations

MBI Oil and Gas

Michael Magilton VP Treasurer

Quantum Resources

Lance Robertson VP Eagle Ford

Operations Marathon Oil Co.

Gregory Robbins VP Corp.

Development Memorial Production

Partners

Josh Rowan Project Services

Support BHP

Bryan Sheffield President

Parsley Energy

Dwayne T. Stewart President

Fairways Exploration Production LLC

Robert Watson CEO

Enerjex

Justin Woody VP Engineering &

Geoscience Questar Corp.

Janet Yang Director of Strategic

Planning and Analysis W&T Offshore

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Photos from 2013 Energy Capital Conference

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