NYSE: PHX Midwest IDEAS Investor Conference August 31, 2011 Chicago, IL Gleacher Center University of Chicago
Distinguishing Characteristics of PHX Mineral Ownership Minerals are perpetual Minerals generate better well economics Minerals have a lower inherent risk profile Long Term Dividend Payment History No Shareholder Dilution No Debt…
Panhandle Oil and Gas Inc. Profile Non-operating independent oil and gas company with current drilling projects in two Woodford Shales, Fayetteville Shale, Anadarko Basin Granite Wash and other western Oklahoma liquids rich gas and…
UNIQUE Operational Strategy Use ownership of 255,700 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 70 per acre) Large mineral acreage ownership position allows for diversity in…
Financial Highlights-Fiscal 2010 Year Ended September 30, 2010 2009 Revenue 51,938,416 37,272,614 Net income (loss) 11,419,690 (2,405,021) Earnings (loss) per share 1.36 (.29) Net cash provided by operating activities 27,806,475…
Financial Highlights - Nine Months 2011 Condensed Balance Sheet June 30, 2011 Current assets 15,567,043 Property and equipment 234,005,117 Less accumulated DD&A (142,590,914) Net property and equipment 91,414,203 Other 1,840,136…
Financial Highlights Nine Months 2011 Nine Months Ended June 30, 2011 2010 Revenue 32,567,424 39,640,106 Net income (loss) 5,849,531 8,383,244 Earnings (loss) per share .70 1.00 Net cash provided by operating activities 20,841,594…
Financing 80 million credit facility with Oklahoma banks, maturity November 30, 2014 Current outstanding balance on credit facility; 0 Paid off debt with cash flow (no equity issuance) 35 million borrowing base Natural Gas Swaps…
Nine Month 2011 Actual Cost Structure 5.00 4.50 4.00 3.50 G&A, 0.70 3.00 /Mcfe 2.50 LOE/Prod Tax, 1.16 2.00 1.50 1.00 DD&A, 1.66 0.50 0.00 Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 11
Asset Pyramid Fee Perpetually owned 198,000 open acres, Mineral 56,000 producing or leased acres Acreage Resource/ Non-proved undeveloped reserves on fee Shale Play mineral acres, Fayetteville Shale, Woodford Probable and…
Operating Highlights Total U.S. mineral ownership of 255,700 acres Superior investment economics Participation as a working interest owner on our mineral acreage generates superior economics. We retain our proportionate share of…
Mineral Holdings Significant Mineral Acreage Holdings 120 100 Net Acres (Thousands) 80 60 40 20 0 OK NM TX ND AR Leasehold Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 16
Economic Impact of Participation with Mineral Interest Finding Cost, /Mcfe Rate of Return,% (BTAX) Arkansas Fayetteville Shale 2 30 1.8 Assumptions: 19% Lower 60% Higher 24% 25 1.6 1.54 PHX ownership - 1% W.I., 1% NRI 1.4 1.25…
Reserve Statistics 2010 Exceptional Reserve Growth Record proved reserves at year-end 2010 Fiscal year-end 2010 proved reserves increased to 103.7 Bcfe A 74% increase over 2009 Record 3P (proved, probable and possible) reserves at…
Year End 2010 SEC Proved Reserves Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 19
YE 2010 Proved, Probable and Possible Reserves Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 20
Southeastern Oklahoma Woodford Shale Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 23
Southeastern Oklahoma Woodford Shale Diverse mineral ownership across the play Interest (WI or RI) in 22% of all producing wells in the play PHX wells primarily operated by Newfield, Devon and BP Current production 6.8 Mmcfe per day…
Southeastern Oklahoma Woodford Shale Current Development Area 6,518 net PHX acres 154 PHX producing working interest wells w/6.1% average NRI 53 PHX producing royalty interest wells 3.6% average NRI in 210 sections 1,214…
Arkansas Fayetteville Shale Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 26
Arkansas Fayetteville Shale Diverse mineral ownership across the play Interest (WI or RI) in 16% of all producing wells in the play PHX wells primarily operated by Southwestern Energy and Chesapeake Current production 6.2 Mmcfe per…
Arkansas Fayetteville Shale Current Development Area Current Development Area 8,474 net PHX acres 2.2% average NRI in 249 sections 139 PHX producing working interest wells 1,735 Undeveloped locations w/4.1% average NRI 369 PHX…
Anadarko Basin Cana Woodford Shale Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 29
Anadarko Basin Cana Woodford Shale Diverse mineral ownership across initial play and expansion areas Interest (WI or RI) in 17% 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 27 PHX producing working interest wells w/4.8% average NRI 5 PHX producing royalty interest wells 2.8% average NRI in 135 sections 1,063…
Western Oklahoma Anadarko Basin Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 32
Anadarko Basin Granite Wash Reserve Study Area 500 net PHX Acres 2.5% average NRI in 30 sections 100 Probable/Possible Undeveloped locations Potential Development Area 10,530 net PHX acres 3.4% average NRI in 355…
PHX Western Oklahoma Mineral Holdings Midwest Ideas Investor Conference, August 31, 2011, Chicago, IL 34
Acquisition Strategy and Activity Acquisition Strategy Focus on adding both un-leased and leased mineral acreage in our core producing areas Capitalize on the opportunity to purchase mineral interests in the economically depressed dry…
The Panhandle Oil and Gas Advantage Broadly diversified perpetual mineral holding Total US mineral ownership of 255,700 acres Large drilling inventory in four premier resource plays Anadarko Basin Cana Woodford Shale Arkansas…
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