Forward-Looking Statements and Terminology Used
This presentation includes forward-looking statements, which give the Company's current expectations or forecasts of future events based
on currently available information. Forward-looking statements are statements that are not historical facts, such as expectations regarding
drilling plans, including the acceleration thereof, production rates and guidance, resource potential, incremental transportation capacity,
exit rate guidance, net present value, development plans, progress on infrastructure projects, exposures to weak natural gas prices,
changes in the Company's liquidity, changes in acreage positions, expected expenses, expected capital expenditures, and projected debt
balances. The assumptions of management and the future performance of the Company are subject to a wide range of business risks and
uncertainties and there is no assurance that these statements and projections will be met. There are risks and uncertainties associated
with the Company’s recent acquisition of Permian Basin assets. Factors that could affect the Company's business include, but are not
limited to: the risks associated with drilling of oil and natural gas wells; the Company's ability to find, acquire, market, develop, and
produce new reserves; the risk of drilling dry holes; oil and natural gas price volatility; derivative transactions (including the costs
associated therewith and the abilities of counterparties to perform thereunder); uncertainties in the estimation of proved, probable, and
possible reserves and in the projection of future rates of production and reserve growth; inaccuracies in the Company's assumptions
regarding items of income and expense and the level of capital expenditures; uncertainties in the timing of exploitation expenditures;
operating hazards attendant to the oil and natural gas business; drilling and completion losses that are generally not recoverable from
third parties or insurance; potential mechanical failure or underperformance of significant wells; availability and limitations of capacity in
midstream marketing facilities, including processing plant and pipeline construction difficulties and operational upsets; climatic conditions;
availability and cost of material, supplies, equipment and services; the risks associated with operating in a limited number of geographic
areas; actions or inactions of third-party operators of the Company's properties; the Company's ability to retain skilled personnel; diversion
of management's attention from existing operations while pursuing acquisitions or dispositions; availability of capital; the strength and
financial resources of the Company's competitors; regulatory developments; environmental risks; uncertainties in the capital markets;
general economic and business conditions; industry trends; and other factors detailed in the Company's most recent Form 10-K, Form 10-
Q and other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize (or the
consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially
from those forecasted or expected. The Company undertakes no obligation to publicly update or revise any forward-looking statements
except as required by law. For filings reporting year-end 2012 reserves, the SEC permits the optional disclosure of probable and possible
reserves. The Company has elected not to report probable and possible reserves in its filings with the SEC. We use the term “net risked
resources” or “inventory” to describe the Company’s internal estimates of volumes of natural gas and oil that are not classified as proved
reserves but are potentially recoverable through exploratory drilling or additional drilling or recovery techniques. Estimates of unproved
resources are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk
of actually being realized by the Company. Estimates of unproved resources may change significantly as development provides
additional data, and actual quantities that are ultimately recovered may differ substantially from prior estimates.
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