PROPOSED ARRANGEMENT AND VOTING INFORMATION FEBRUARY 2016 INVESTOR PRESENTATION 1
BACKGROUND Long Runs capital structure is challenged as a result of the significant decline in commodity prices that has occurred subsequent to the Deep Basin acquisitions in 2014 Price of oil has declined from WTI US95/Bbl in…
FINANCIAL CHALLENGES Funds Flow vs. WTI Net Debt to Funds Flow vs. WTI 90 110 7.00 110 80 100 100 6.00 70 90 90 Net debt/Funds Flow Ratio 5.00 60 Funds Flow (MM) 80 80 WTI (US) WTI (US) 50 4.00 70 70 40…
THE PROPOSED SOLUTION Long Run entered into an arrangement agreement on December 20, 2015 (the Arrangement) with Calgary Sinoenergy Investment Corp. (the Purchaser), who has proposed to acquire: i. All of the outstanding common shares…
WHY VOTE FOR THE ARRANGEMENT Significant premium to both shareholders and debentureholders Provides certainty of value and near-term liquidity to shareholders and debentureholders in a challenging commodity price environment In…
BOARD OF DIRECTORS RECOMMENDATION Long Runs Board of Directors has unanimously determined that: i. The Arrangement is in the best interests of Long Run, Long Run shareholders and Long Run debentureholders ii. The consideration to be…
MACQUARIE FAIRNESS OPINION Long Run retained Macquarie Capital as lead financial advisor in connection with the Arrangement Macquarie Capital provided the Long Run Board with a fairness opinion The fairness opinion states that, in…
WHAT HAPPENS NEXT Timeline 2015 December 21 Arrangement announced December 24 Long Runs lending syndicate agreed to a forbearance to allow Long Run, the Purchaser and the bank syndicate to work towards mutually acceptable credit…
WHAT HAPPENS IF THE ARRANGEMENT CLOSES On closing of the Arrangement: 1) Long Run will become a wholly-owned subsidiary of Calgary Sinoenergy Investment Corp. 2) Long Runs common shares and debentures will be delisted from the…
SPECIAL MEETING & VOTING INFORMATION 11
THE LONG RUN SPECIAL MEETING The special meeting of Long Run securityholders is being held to consider and approve the Arrangement The details of the Arrangement can be found in Long Runs Information Circular dated January 29, 2016…
WHEN AND WHERE IS THE MEETING Date: February 29, 2016 Time: 2:00pm Calgary time (Mountain time) Location: Livingston Place Conference Centre 2nd Floor 222 3rd Avenue SW Calgary, Alberta T2P 0B4 Proxy Cut-off: February 25,…
HOW DO I VOTE Registered Shareholder or Debentureholder If your shares/debentures are registered in your name (i.e. you hold paper share or debenture certificates) you can vote your securities in person at the meeting or vote your…
HOW DO I VOTE Beneficial Shareholder or Debentureholder If your securities are not registered in your own name, they will be held in the name of a nominee, which is usually a trust company, securities broker or other financial…
HOW DO I VOTE Help with Voting Your Shares or Debentures Please contact Long Runs proxy solicitation agent: D.F. King 1-800-833-2158 Banks, brokers and collect calls: 201-806-7301 Email: inquiriesdfking.com 16
WHO CAN ATTEND AND VOTE AT THE MEETING Registered shareholders and debentureholders of Long Run as of the January 15, 2016 record date are able to attend and vote their shares or debentures in person at the meeting on February 29,…
EXCHANGING YOUR SHARES OR DEBENTURES 18
HOW DO I EXCHANGE MY SHARES OR DEBENTURES FOR CASH Registered shareholders/debentureholders: 1. Complete the Letter of Transmittal that was included with the Information Circular and attach your share/debenture certificates and any…
HOW DO I CONTACT THE DEPOSITARY Registered Shareholders and Debentureholders If your shares or debentures are registered in your name (i.e. you hold a share/debenture certificate) please contact: CST Trust Company (416) 682-3860…
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