Energy Sector Company ProfilesLarge-Cap Integrates, Mid-Cap Producers, Pipelines

November 11, 2012

Matthew O’Regan | Energy Portfolio ManagerAlexander Banh | Energy Portfolio ManagerRahim Kara | Energy AnalystAttiq Rehman | Energy AnalystBrendon Skingle | Energy Analyst (Engineer)

This presentation is for informational purposes only, and is not an offer to buy or sell or a solicitation to buy or sell any securities, investment products or other financial product or service, an official confirmation of any transaction, or an official statement of Limestone Capital Investment Club. Any views or opinions presented are solely those of the author and do not necessarily represent those of Limestone Capital.

2Large Cap Integrates Mid Cap Producers Midstream/Pipelines

Overview

• Royal Dutch Shell, through subsidiaries, explores for, produces, and refines petroleum, covering all segments

• Good exposure to liquified natural gas (LNG), historical strong performance in integrated gas and oil products

• Exports: Oil major BP has secured U.S. government permission to ship U.S. crude to Canada, RDS has applied for export license

• Early adopter of technology in peer group: Quest carbon capture project, construction on floating LNG project

• Diversified portfolio of products as an integrate minimizes segment-specific risk

YTD Stock Price Chart

Production News & Market Sentiment

• 2012 Q3 Financial Results:• Sales down 8.9% to $112b• Earnings $6.12b compared to $7.2b last year• Lower oil and gas prices and falling margins in

chemicals, weak demand for oil as a result of global economic slowdown

• Production: Not much growth in last 2 years, production hurt by theft, flooding & political instability in Nigeria

• 11/05/2012: Shell has sealed a two-year deal worth up to $4 billion to supply oil to mid-sized Russian refiner and retailer Bashneft

• Analysts Recommendations: $69 - $85

Royal Dutch Shell S.A. Profile

Large Cap Integrates Mid Cap Producers Midstream/Pipelines 3

Overview

• Exxon Mobil Corporation operates petroleum and petrochemicals businesses on a worldwide basis.

• Largest American oil company• Became country’s biggest gas producer three years

ago upon acquisition of XTO Energy, with specialization in shale gas drilling/exploration

• Operations include E&P of O&G, electric power generation, and coal and minerals operations, manufactures and markets fuels, lubricants, and chemicals.

• ~6.2 mmbpd of refining capacity makes XOM the world’s largest refiner

Operating Highlights: Upstream

News & Market Sentiment

• Earnings up 10% for past 9 months, but 2012 Q3 earnings still 8% lower than 2011 Q3

• Net income that topped highest forecasts from analysts as U.S. refineries diminished the impact of lower oil production and prices.

• Production problems in Kazakhstan and North Sea, upstream operations falling short of analyst estimates

• Downstream compensates for upstream weakness• Chemicals and R&M results strong• Heavy exposure to N.A. natural gas makes it sensitive

to weak domestic gas prices

ExxonMobil Profile

Crude & NGL production very stable, fluctuation in production mostly from natural gas. Declining production in all segments YTD 2012.

Downstream Segment Highlight

Percentage of earnings contributed by the refining business growing rapidly

Overview

• I’m probably not going to do this one.

Stock Price Chart

• Banh

Operating Highlights News & Market Sentiment

• Banh• Banh

Large Cap Integrates Mid Cap Producers Midstream/Pipelines 4

Total S.A. Profile

Overview

• SKINGLE

Stock Price Chart

• SKINGLE

Operating Highlights News & Market Sentiment

• SKINGLE• SKINGLE

5Large Cap Integrates Mid Cap Producers Midstream/Pipelines

Cenovus Energy Inc. (TSE:CVE)

Relative Stock Price Chart

Comparables Table

• O’Regan

• O’RaCVE, HES SU XOM HSE CVXegan

Large Cap Integrates Mid Cap Producers Midstream/Pipelines 6

Large-Cap Integrates Comparables

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Overview

• SKINGLE

Stock Price Chart

• SKINGLE

Operating Highlights News & Market Sentiment

• SKINGLE• SKINGLE

Large Cap Integrates Mid Cap Producers Midstream/Pipelines

MEG Energy Corp

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Overview

• SKINGLE

Stock Price Chart

• SKINGLE

Operating Highlights News & Market Sentiment

• SKINGLE• SKINGLE

Large Cap Integrates Mid Cap Producers Midstream/Pipelines

Tourmaline Oil Corp. (TSE:TOU)

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Overview

• Rahim

Stock Price Chart

• Rahim

Operating Highlights News & Market Sentiment

• Rahim• Rahim

Large Cap Integrates Mid Cap Producers Midstream/Pipelines

Rahim 1

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Overview

• Rahim

Stock Price Chart

• Rahim

Operating Highlights News & Market Sentiment

• Rahim• Rahim

Large Cap Integrates Mid Cap Producers Midstream/Pipelines

Rahim 2

Relative Stock Price Chart

Comparables Table

• O’Regan

• O’Regan

Large Cap Integrates Mid Cap Producers Midstream/Pipelines 11

Mid-Cap Producers Comparables

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Overview

• Attiq

Stock Price Chart

• Attiq

Operating Highlights News & Market Sentiment

• Attiq• Attiq

Large Cap Integrates Mid Cap Producers Midstream/Pipelines

Attiq 1 (TRP?)

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Overview

• Attiq

Stock Price Chart

• Attiq

Operating Highlights News & Market Sentiment

• Attiq• Attiq

Large Cap Integrates Mid Cap Producers Midstream/Pipelines

Attiq 2 (ENB?)

Relative Stock Price Chart

Comparables Table

• O’Regan

• O’Regan

14Large Cap Integrates Mid Cap Producers Midstream/Pipelines

Pipeline Comparables