Third Quarter Earnings Conference Call November 8, 2010
Strategic Alternatives Asset Divestiture Announced Review of strategic alternatives announced June 15, 2010 - Decision to target debt reduction through asset divestitures - Concomitant evaluation of refinancing options on remaining…
Third Quarter 2010 Results Strong hydrocarbon prices coupled with continued focus on key costs drive higher EBITDA and net income - Substantial increase in oil and NGL prices vs. year-ago quarter (1) 3Q10 3Q09 % Change - Oil (per…
Third Quarter 2010 Results Production was 541 MBOE compared to 549 MBOE in the 2Q10 - Natural production decline - Although offline wells, which resulted from weather related production disruptions p p in 2Q10,, were g gradually…
South Texas La Copita Well Status Year-to-date wells drilled Garza Hitchcock 21 TD 9,800 ft Producing Heard 4 TD 10,750 ft Producing Heard 12 TD 9,600 ft Producing Brannan 11 TD 10,150 ft Awaiting fracturing & stimulation Garza…
Substantial Inventory of Projects(1) RAM has deep inventory of project locations pro forma divestiture announced 11/01/10 Non- Mature Oil Fields: Proved Proved Total Electra/Burkburnett 225 51 276 N.E. Fitts/Allen 74 4 78…
Osage Concession RAM owns 100% interest in concession in Osage County, Oklahoma covering 53,120 gross and net acres Predominantly an oil play - Primary objective: Mississippi Chat formation - Formation prospective at shallow depth…
Osage Concession Activity Update Surber 1 began production from targeted Mississippi Chat formation early September, IP of 80 BOPD with 20% oil cut, continues testing Rickets 1 Approximately 1,500 feet northeast of Surber 1…
Third Quarter 2010 Results 3Q10 EBITDA 12.0 MM vs. 11.1 MM in 3Q09 Net income increased to 1.6 MM, or 0.02 per share, compared to a loss of 3.1 MM, or 0.04 per share, in 3Q09. 3Q10 free cash flow 7.5 MM, or 0.10 per share, vs. 8.7…
Strategic Alternatives Asset Divestiture Announced Proceeds target debt reduction - Proceeds: 43.75 MM - Proceeds applied to reduction of Term B bank loan with balance outstanding of 113.3 MM at 9/30/10 11
Total Debt RAM borrowing base under existing facilities is 278.3 MM (1) Outstanding at 9/30/10 - Revolver 133.5 MM - Term 113.3 MM 400.0 350.0 300 0 300.0 Total Debt MM 250.0 200.0 141.0 133.0 137.0 147.0 142.0…
Derivative Positions (1) As of September 30, 2010 RAM has a total of 322,000 barrels of oil or 3,500 barrels per day of production hedged at an average floor price of 57.86 for the remaining 3 months of 2010. As of September 30,…
Attractive Valuation Price/Cash Flow RAM shares sell at 48% discount to group average of FY 2011 Price/Cash Flow of 4.5X 8X 7 6.2 6.3 6 ash Flow Multiple e 5.2 5.3 4.9 5 4.5 4.4 4 3.7 3.2 Ca 3 2.4 2 1.6…
Summary of Investment Considerations Advantaged operating characteristics; - Above average oil weighting compared to peers - Large inventory of low risk opportunities capable of rapid returns - Stable cash flow base supported by…
APPENDIX
Geographically Focused Areas of Operation Proved reserves of 34 MMBOE (1) Five keyy areas account for - 86% of production Appalachian Devonian Shale - 91% of total reserves (Middle Huron) Electra/ Fitts-Allen Burkburnett…
EBITDA & Free Cash Flow Per Share Non-GAAP Financial Measures Modified EBITDA, a non-GAAP measure, is determined by adjusting net income (loss) for the following: interest expense, income taxes, depreciation, amortization, accretion,…
RAM Production by Area Mature Mature Developing Fields Oil Fields* Natural Gas Fields South Texas Barnett Shale Appalachia Various Various Total Three Months Ended September 30, 2010 Aggregate Net Production Oil (MBbls) 11 1 - 205…
RAM Production by Area Mature Mature D l i Fields Developing Fi ld Oil Fields* Fi ld * N t Natural lGGas Fields Fi ld South Texas Barnett Shale Appalachia Various Various Total Nine Months Ended September 30, 2010 Aggregate Net…
Derivative Positions (1) Crude Oil (Bbls) Natural Gas (Mmbtu) Floors Ceilings Months Covered Floors Ceilings Months Covered per day Price per day Price per day Price per day Price Collars 2010 1,500 55.00 1,500 80.10 October -…
5100 East Skelly Drive Meridian Tower, Suite 650 Tulsa, Oklahoma 74135 (918)663-2800 www.ramenergy.com
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