PHX LISTED NYSE Metro Meeting Centers Boston, MA Tuesday, June 5, 2012
Distinguishing Characteristics of PHX Mineral Ownership Minerals are perpetual Drilling on minerals generates better well economics Minerals have a lower inherent risk profile Low Cost Structure Extremely low cost basis in mineral…
Panhandle Oil and Gas Inc. Profile Non-operating independent oil and gas company with current drilling projects in the Anadarko Basin Granite Wash and other western Oklahoma liquids rich gas and oil projects, Fayetteville Shale and…
UNIQUE Operational Strategy Use ownership of 254,500 mineral acres as base, legacy assets Have used mineral acreage ownership to participate with a working interest in the drilling of a significant number of wells Producing working…
UNIQUE Operational Strategy (continued) Majority of working interest drilling is on perpetually owned fee mineral acreage (minimal cost per acre, averages approximately 90 per acre) Large mineral acreage ownership position allows for…
Financial Highlights-Fiscal 2011 Year Ended September 30, 2011 2010 Revenue 44,976,651 51,938,416 Net income 8,493,912 11,419,690 Earnings per share 1.01 1.36 Net cash provided by operating activities 29,283,929 27,806,475…
Financial Highlights Fiscal 2012 Condensed Balance Sheet March 31, 2012 Current assets 9,081,773 Property and equipment 271,005,540 Less accumulated DD&A (155,307,113) Net property and equipment 115,698,427 Other 1,854,174 Total…
Financial Highlights- First Six Months 2012 Six Months Ended March 31, 2012 2011 Revenue 23,841,243 9,901,548 Net income 4,088,076 1,426,849 Earnings per share .49 .17 Net cash provided by operating activities 15,061,760…
Financing 80 million credit facility with Oklahoma banks, maturity Nov. 30, 2014 Current outstanding balance on credit facility approximately 8 million Debt and cash used to finance acquisition of Fayetteville Shale assets in October…
Fiscal 2012 Six Months 5.00 4.50 4.00 3.50 3.00 G&A, 0.63 /Mcfe 2.50 LOE/Prod Tax, 0.98 2.00 1.50 1.00 DD&A, 1.74 0.50 0.00 11 2012 East Coast Ideas Conference, Boston, MA - June 5
Asset Pyramid Non-proved undeveloped reserves on fee mineral Probable and acres, Fayetteville Shale, Woodford Shales and Granite Possible Wash (superior economics due to royalty retention) Reserves 5,100 producing wells, 66% of…
Panhandles Mineral Acreage Strategy Results Allowed the Company for many years to generate positive financial results, even during low natural gas price environment Ability to maximize return on Company assets through working…
Operating Highlights Total U.S. mineral ownership of 254,500 acres Substantial advantage of mineral ownership Participation as a working interest owner on our mineral acreage generates superior economics. We retain our proportionate…
Mineral Holdings Significant Mineral Acreage Holdings 120 Net Acres (Thousands) 100 80 60 40 20 0 OK NM TX ND AR Leasehold 2012 East Coast Ideas Conference, Boston, MA - June 5 17
Economic Impact of Participation with Mineral Interest Arkansas Fayetteville Shale Finding Cost, /Mcfe Rate of Return,%(BTAX) 2 30 59% Higher 27 % Assumptions: 1.8 25 PHX ownership - 1% W.I., 1% NRI 1.6 Typical ownership - 1%…
Reserve Statistics 2011 and Mid-Year 2012 Exceptional Reserve Growth Record proved reserves at year-end 2011 Fiscal year-end 2011 proved reserves increased to 111.7 Bcfe A 7.7% increase over 2010 Fiscal mid-year 2012 proved reserves…
Year End 2011 SEC Proved Reserves 2012 East Coast Ideas Conference, Boston, MA - June 5 20
Acquisition Strategy and Activity Acquisition Strategy Focus on acquiring both un-leased and leased mineral acreage and HBP leasehold properties in the economically depressed dry gas resource plays as well as appropriately priced…
Acquisition Strategy and Activity Leasing Strategy (Leasing of PHX mineral holdings to active operators) Lease Company minerals in situations where it is clear that the value generated by the lease bonus and royalty will exceed the…
Western Oklahoma Anadarko Basin 2012 East Coast Ideas Conference, Boston, MA - June 5 27
PHX Western Oklahoma Mineral Holdings 2012 East Coast Ideas Conference, Boston, MA - June 5 28
Western Oklahoma and Texas Panhandle Net Acreage The currently active oil and liquids plays within the outlined area include the Granite Wash, Hogshooter, Cleveland, Marmaton and Tonkawa 17,100 net mineral acres available for…
Anadarko Basin Granite Wash Potential Play Extent 10,530 net PHX acres 3.4% average NRI in 355 sections Red outline is Current Development Area Yellow outline is Potential Play Extent 2012 East Coast Ideas…
Anadarko Basin Cana Woodford Shale 2012 East Coast Ideas Conference, Boston, MA - June 5 31
Anadarko Basin Cana Woodford Shale Diverse mineral ownership across initial play and expansion areas Interest (WI or RI) in 15% of all producing wells in the play PHX wells primarily operated by Devon and Cimarex Current production…
Anadarko Basin Woodford Shale Current Development Area 3,545 net PHX acres 41 PHX producing working interest wells w/4.2% average NRI 6 PHX producing royalty interest wells 2.5% average NRI in 135 sections 744…
Arkansas Fayetteville Shale 2012 East Coast Ideas Conference, Boston, MA - June 5 34
Arkansas Fayetteville Shale Diverse mineral and leasehold ownership across the play Interest (WI or RI) in 20% of all producing wells in the play PHX wells primarily operated by Southwestern Energy Current production 11.3 Mmcfe per…
Arkansas Fayetteville Shale Current Development Area Current Development Area 10,473 net PHX acres 2.2% average NRI in 249 sections 349 PHX producing working interest wells 1,735 Undeveloped locations w/2.9% average NRI 416 PHX…
Southeastern Oklahoma Woodford Shale 2012 East Coast Ideas Conference, Boston, MA - June 5 37
Southeastern Oklahoma Woodford Shale Diverse mineral ownership across the play Interest (WI or RI) in 17% of all producing wells in the play PHX wells primarily operated by Newfield, Devon, BP and PetroQuest Current production 7.0…
Southeastern Oklahoma Woodford Shale Current Development Area 6,518 net PHX acres 162 PHX producing working interest wells w/6.1% average NRI 54 PHX producing royalty interest wells 3.3% average NRI in 210 sections 1,249…
The Panhandle Oil and Gas Advantage Broadly diversified perpetual mineral holding Total US mineral ownership of 254,500 acres Large drilling inventory in three premier resource plays plus Oklahoma/Texas oil and liquids rich plays…
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