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INVESTMENT BANKING

ACQUISITIONS & DIVESTITURES

GLOBAL EQUITY CAPITAL MARKETS

global energy sector specialists

IPAA’s Private Capital Conference / OGIS MLP Meeting

2007 in ReviewJanuary 16, 2008

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the insight behind energy success•One of the largest independent, global energy

advisory firms•Unmatched evaluation, advisory and execution capabilities•Over 150 employees, 5 locations on 3 continents

About Us

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connected, responsive, insightful

LONDON

HOUSTON

DENVER

INVESTMENT BANKINGMergers & AcquisitionsStrategic AdvisoryEquity UnderwritingFairness Opinions

ACQUISITIONS & DIVESTITURESNegotiated SaleMid-Value Negotiated

GLOBAL EQUITY CAPITAL MARKETSInstitutional ResearchInstitutional Sales Institutional TradingAsset Management

A Global Energy Advisory Firm

Core Services

CALGARY

BUENOS AIRES

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US Producer Research Coverage

• Tristone provides highly regarded, technically focused, in-depth research coverage on 25 US exploration & production companies

• Tristone’s US E&P research team is led by Joe Magner and Larry Busnardo

Initiating Coverage: US E&P

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2007 In Review

J.S. Herold & Tristone data

• Portfolio refocusing efforts put record supply of asset transactions on the market• Dominion & Anadarko led the way

• MLP’s broke into $1bln+ transactions• Linn, Breitburn & Atlas all made sizeable acquisitions

0

10,000

20,000

30,000

40,000

50,000

60,000

2000 2001 2002 2003 2004 2005 2006 2007

$MM

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

$/M

CF

E

Corporate Asset $/MCFE Weighted Average

$1.40/MCFE

$2.00/MCFE

$2.62/MCFE$2.30/MCFE

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0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Q1 - 2006 Q2 - 2006 Q3 - 2006 Q4-2006 Q1-2007 Q2-2007 Q3-2007 Q4-2007

$MM

0.00

0.40

0.80

1.20

1.60

2.00

2.40

2.80

3.20

3.60

$/M

CF

E

Asset Corporate $/MCFE

$2.44/MCFE Average

Quarterly Transaction Volumes vs. Implied $/MCFE

J.S. Herold & Tristone data

FST/Houston Exp

Apache/APC

Nippon/APC

ENI/Dominion

XTO/Dominion

McMoran/Newfield

Linn/Dominion

Plains/Pogo

Breitburn/Quicksilver

Encana/Leor

Oxy/Plains

Linn/Lamamco

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MLP Overview – Current & Prospective

J.S. Herold & Tristone data

Public MLPs

Atlas Energy Partners EV Energy PartnersBreitburn Energy Linn EnergyConstellation Energy Legacy ReservesEagle Rock Energy Partners Quest ResourcesEncore Energy Partners Vanguard Natural Resources

Prospective MLPs

Abraxas Energy Partners LP Plains ExplorationBerry Petroleum Resolute Energy Partners LPEXCO Partners LP (Pulled) VenocoPetrohawk Energy WhitingPioneer Southwest Energy Partners LP (Reduced) XTO Energy

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0

2,000

4,000

6,000

8,000

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14,000

1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007

Tra

ns

ac

tio

n V

alu

e (

$M

M)

MLP Overview - Transaction Volumes – US Onshore Transactions

MLPs acquired ~25% of transactions in 2007 vs. 15% in 2006

J.S. Herold & Tristone data

- Non-MLP Companies

- MLPs

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Top Sellers in 2007 by Value

J.S. Herold & Tristone data

SellerTotal Deal

Values, $MM Deal Count

Implied$/Proved

MCFE Comments

13,332 4 2.08 E&P asset divestitures

4,662 8 2.45Non-core asset sales, debt

reduction

4,350 4 2.55 Corporate sale to Plains

2,550 1 N/A Corporate sale to Encana

1,656 1 2.25 Corporate sale to Forest

1,550 1 2.81 Sale of Putnam field to Oxy

1,530 2 1.95Sale of assets to Atlas &

Range

1,450 1 2.72Non-core asset sales to

Breitburn

1,284 3 3.30Portfolio refocusing – largest GOM sales to

McMoran Laramie Energy

945 1 2.23 Corporate sale to Plains

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Top Buyers in 2007 by Value

J.S. Herold & Tristone data

Buyers

Total Deal Values,

$MMDeal

Count

Implied$/Proved

MCFE Comments

4,757 1 4.47 Bought Dominion GOM assets

4,686 2 2.42 Pogo, Laramie

4,025 1 1.31 Bought various Dominion assets

3,050 2 1.86Dominion’s Rockies/San Juan/South

Texas, Arrington (Barnett Shale)

2,715 4 2.03 Dominion’s MidCon, Lamamco, Pogo

2,550 1 N/A Leor Energy

1,671 4 2.60 Quicksilver

FOREST OIL 1,656 1 2.25 Houston Exploration

1,550 1 2.81 Plains Permian assets

1,236 2 1.96 DTE’s Antrim Shale assets

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Top Buyers in 2007 by Count

J.S. Herold & Tristone data

BuyerTotal Deal

Values, $MMDeal

Count

Implied$/Proved

MCFE Comments

156 6 2.30Permian & Mid-Continent

acquisitions

1,137 5 2.19Various asset acquisitions,

largest was Austin Chalk form APC

2,715 4 2.03Acquisitions across US, largest

from Quicksilver

1,671 4 2.6Mid-Continent focused

transactions, largest from Dominion

468 4 1.56Several Barnett Shale, Permian

& Rocky acquisitions

125 4 1.27Acquisitions across Mid-Continent & Gulf Coast

1,017 3 2.16Gas-weighted assets in Mid-Continent & Permian basin

651 3 2.91Appalachia & Mid-Continent

acquisitions

548 3 3.80Various high PDP acquisitions

including Montierra & Escambia

483 3 2.58Various Cherokee basin

acquisitions

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Tombstones & New Entrants

Notable Corporate Sales

Ascent Energy Inc. Pinnacle Gas ResourcesDominion E&P Pogo Producing CompanyDTE E&P The Houston Exploration CompanyGoldking Energy Corp Whittier Energy CorpPeoples E&P

New Entrants

Highmount (Loews Corp) Sojitz CorporationMilagro Energy Talon Oil & Gas

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2007 Transaction Values by Region vs. 2006

J.S. Herold & Tristone data

Mid-Continent transactions grew the most in 2007, while GOM transactions were not as large as 2006

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Mid-Continent

Gulf Coast Appalachian Rockies Permian South Texas NLA/ETX West Coast North Texas GOM

$MM

2007 Values 2006 Values

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Top Buyers by Region

J.S. Herold & Tristone data

El Paso Corporation $875

Milagro Energy 825

EV Energy Partners LP 750

Gulf Coast

BreitBurn Energy Partners LP $1,450 Loews Corp $4,025

Atlas Energy Resources LLC 1,236 Plains Exploration & Production Co 3,740

Range Resources Corporation 315 Linn Energy LLC 2,715

Eni SpA $4,757 EnCana Corporation $2,550

Nippon / Mitsui 1,200 Petrohawk Energy Corporation 169

McMoRan Exploration Company 1,100 EV Energy Partners LP 96

Appalachian Mid-Continent

NLA/ ETX GOM

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Top Buyers by Region

J.S. Herold & Tristone data

Occidental Petroleum Corporation $1,550

Apache Corporation 1,000

EV Energy Partners LP 160

Permian

XTO Energy Incorporated $2,500 Swift Energy Company $245

Plains Exploration & Production Co 945 Comstock Resources 203

Newfield 522 St Mary Land & Exploration 183

XTO Energy Incorporated $550 BreitBurn Energy Partners LP $92

Pioneer Natural Resources 150 Venoco Inc. 87

South Texas

West Coast North Texas

Rockies

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What’s Ahead for 2008

Tristone Capital is a Member of the CIPF, SIPC, IDA and FINRA

• Consolidation

• MLPs• Equity markets• New entries?

• Prices• Gas inventory• Crude – Can it sustain $100/bbl

• Election Year – Same old story “Big Oil”