72 11 NAV Part 4 Share Prices After

8/12/2019 72 11 NAV Part 4 Share Prices After

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Input and Assumptions - XTO Energy Inc. and Exxon Mobil Corporation

Seller Name: XTO Energy Inc. Buyer Name: Exxon Mobil Corporation

Seller Ticker: XTO Buyer Ticker: XOM

Last Historical Year: 12/31/2009 Merger Close Date: 12/31/2009

Valuation Date: 12/11/2009 LBO Close Date: 12/31/2009

Month Multiplier: 29 Blue indicates hard-coded numbers and inputs.

Bbl to Mcf Conversion Factor: 6 Black indicates formulas and text.

Conversion Units: 1000 Green indicates links from other worksheets.

Circularity: Yes Circularity Breaker: No

Seller Share, EV, and Cash Information: Gas O

$ per Mcf $

Common Shares Outstanding: 583.3 Resource Price Case: 5 NAV 7.00$ $

Current Share Price ($ as Stated); 41.49$ 1 Base 7.00$ $

Seller Minimum Cash ($MM): 2$ 2 Downside 4.00

3 Upside 10.00

4 DCF 7.00

5 NAV 7.00

Exercise

Type: Number: Price: Dilution: Enterprise Value Calculation:

Options 18.366 38.39$ 1.372 Equity Value: 24,542

RSU 5.493 5.493 Less: Cash & Cash-Equivalents: (9)

Performance Shares A 0.390 50.00$ - Less: Net Value of Hedges: (1,117)

Performance Shares B 0.228 55.00$ - Plus: Debt: 10,487

Performance Shares C 0.245 77.00$ - Plus: Asset Retirement Obligation: 783

Performance Shares D 0.245 85.00$ - Plus: Preferred Stock: -

Warrants 2.600 20.78$ 1.298 Plus: Noncontrolling Interests: -

Enterprise Value: 34,686$

Diluted Shares: 591.5

Buyer - Current Share Price: 72.83$

Buyer - Minimum Cash Balance: 5,000$

Labels for Valuation - XTO Energy Inc. and Exxon Mobil Corporation

Trailing Twelve Months Label: TTM

Forward Year 1: 12/31/2010



Public Company Comparables: Precedent Transactions:


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Company Name 2 Acquirer Name 3

Share Price 45 Target Name 2

Equity Value 69 Announcement Date 46

Enterprise Value 70 Offer Price 48

TTM EBITDA 12 FX Exchange Rate 47

Forward Year 1 EBITDA 82 Equity Value 72

Forward Year 2 EBITDA 85 Enterprise Value 73

TTM EBITDAX 14 TTM EBITDA 15

Forward Year 1 EBITDAX 83 TTM EBITDAX 17

Forward Year 2 EBITDAX 86 Production Areas 21

Production Areas 20 Proved Reserves 20

Proved Reserves 19 Daily Production 23

Daily Production 22 Proved Developed / Total Proved: 89

Proved Developed / Total Proved: 105 Oil Mix %: 90

Oil Mix %: 106 R / P Ratio: 91

R / P Ratio: 107 TTM EBITDA Multiple 84

TTM Proved Reserves Multiple 93 TTM EBITDAX Multiple 85

TTM Daily Production Multiple 94 TTM Proved Reserves Multiple 86

TTM EBITDA Multiple 91 TTM Daily Production Multiple 87

Forward Year 1 EBITDA Multiple 96

Forward Year 2 EBITDA Multiple 99

TTM EBITDAX Multiple 92

Forward Year 1 EBITDAX Multiple 97

Forward Year 2 EBITDAX Multiple 100

Levered Beta 71

Debt 30

Tax Rate 16


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Discounted Cash Flow Analysis - XTO Energy Inc.

($ in Millions Except Per Share Data and Daily Production Figures)

XTO Energy Inc. - Unlevered Free Cash Flow Projections

12/31/2010 12/31/2011 12/31/2012 12/31/2013

Daily Production (MMcfe): 3,150.0 3,465.0 3,799.5 4,084.4

Revenue: 8,935$ 9,818$ 10,762$ 11,529$

EBITDAX: 6,818 7,416 8,040 8,524

Operating Income (EBIT): 3,097 3,323 3,541 3,373

Less: Taxes (1,131) (1,213) (1,293) (1,231)

Plus: DD&A 3,449 3,794 4,172 4,771

Plus: Asset Retirement Accretion 57 63 70 89

Plus: Stock-Based Compensation 129 142 156 167

Plus: Dry Hole Expense 26 29 32 39

Plus: Deferred Income Tax 765 821 875 834

Plus: Non-Cash Derivative Losses 5 5 5 5

Plus: Other Non-Cash Items - - - -

Working Capital (Increase) / Decrease: 682 153 174 291

Less: Capital Expenditures: (5,165) (5,818) (6,397) (7,454)

Unlevered Free Cash Flow 1,917$ 1,300$ 1,335$ 883$

Present Value of Free Cash Flow 1,828$ 1,127$ 1,052$ 633$

Normal Discount Period: 1.000 2.000 3.000 4.000

Mid-Year Discount: 0.500 1.500 2.500 3.500

Free Cash Flow Growth Rate: (32.2%) 2.6% (33.8%)

XTO Energy Inc. - Net Present Value Sensitivity - Natural Gas Prices

Discount Rate

46.51$ 7.0% 8.0% 9.0% 10.0% 11.0% 12.0%

9.00$ 54.86$ 51.91$ 49.15$ 46.51$ 44.00$ 41.62$

8.00 54.86 51.91 49.15 46.51 44.00 41.627.00 54.86 51.91 49.15 46.51 44.00 41.62

6.00 54.86 51.91 49.15 46.51 44.00 41.62

5.00 54.86 51.91 49.15 46.51 44.00 41.62

4.00 54.86 51.91 49.15 46.51 44.00 41.62

XTO Energy Inc. - Net Present Value Sensitivity - Terminal EBITDAX Multiples

Discount Rate

46.51$ 7.0% 8.0% 9.0% 10.0% 11.0% 12.0%

Natura

lGas

Prices

($PerM

cf


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7.0 x 54.86$ 51.91$ 49.15$ 46.51$ 44.00$ 41.62$

6.0 x 54.86 51.91 49.15 46.51 44.00 41.62

5.0 x 54.86 51.91 49.15 46.51 44.00 41.62

4.0 x 54.86 51.91 49.15 46.51 44.00 41.62

3.0 x 54.86 51.91 49.15 46.51 44.00 41.62

2.0 x 54.86 51.91 49.15 46.51 44.00 41.62

XTO Energy Inc. - Net Present Value Sensitivity - Terminal Daily Production Multiples

Discount Rate

46.51$ 7.0% 8.0% 9.0% 10.0% 11.0% 12.0%

14.00$ 65.10$ 61.68$ 58.45$ 55.39$ 52.51$ 49.79$

13.00 59.97 56.79 53.80 50.95 48.27 45.71

12.00 54.86 51.91 49.15 46.51 44.00 41.62

11.00 49.76 47.05 44.47 42.04 39.73 37.51

10.00 44.63 42.15 39.79 37.54 35.36 33.30

9.00 39.49 37.21 35.01 32.93 30.96 29.08

Termina

l

EBITDAX

ultip

les

Termina

lDaily

Pro

duction

ultip

les


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XTO Energy Inc. - DCF Assumptions & Share Price Calculations

12/31/2014

4,390.7 Gas Oil / NGL Hedged

$ per Mcf $ per Bbl Price %

12,386$ DCF-Specific Prices: 7.00$ 75.00$ 110.0%

9,141

3,604 Price Cased Used in DCF: NAV

(1,316) Use Multiples Method? Yes

Use WACC for Discount Rate? No

5,128 Multiple Selection: 2

96 (1 = EBITDAX, 2 = Daily Production)

179

42 Standard O&G Discount: 10.0%

891 Discount Rate: 10.0%

5

- Terminal EBITDAX Multiple: 5.0 x

Terminal Daily Production Multiple: 12.00$

144 Baseline Terminal Growth Rate: 0.0%

(8,173) Terminal Value: 52,689

600$ Present Value of Terminal Value: 32,716

391$ Sum of PV of Free Cash Flows: 5,030Enterprise Value: 37,745$

5.000 Balance Sheet Adjustments: (10,144)

4.500 Implied Equity Value: 27,601$

(32.1%) Diluted Shares Outstanding: 593.5

Implied Share Price: 46.51$

Exercise

Type: Number: Price: Dilution:

13.0% Options 18.366 38.39$ 3.206

39.36$ RSU 5.493 5.493

39.36 Performance Shares A 0.390 50.00 -39.36 Performance Shares B 0.228 55.00 -

39.36 Performance Shares C 0.245 77.00 -

39.36 Performance Shares D 0.245 85.00 -

39.36 Warrants 2.600 20.78 1.438

13.0%


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39.36$

39.36

39.36

39.36

39.36

39.36

13.0%

47.18$

43.27

39.36

35.36

31.33

27.30


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WACC Analysis - XTO Energy Inc.

($ in Millions Except Per Share Data)

Discount Rate Calculation - Assumptions

Risk-Free Rate: 4.39%

Equity Risk Premium: 7.00%Interest Rate on Debt: 5.39%

Comparable Companies - Unlevered Beta Calculation

Levered Equity Unlevered

Name Beta Debt Value Tax Rate Beta

Chesapeake Energy Corporation 1.15 12,295$ 15,489$ 38% 0.77

Anadarko Petroleum 1.41 12,748 28,937 40% 1.12

Occidental Petroleum Corporation 0.98 2,796 61,989 40% 0.95

Apache Corporation 1.19 5,068 32,252 40% 1.09

Devon Energy Corporation 1.05 7,279 28,999 35% 0.90

EOG Resources, Inc. 0.93 2,797 22,289 37% 0.86

Median 0.93

XTO Energy Inc. 1.10

XTO Energy Inc. - Levered Beta & WACC Calculation

Unlevered Equity Levered

Beta Debt Value Tax Rate Beta

XTO Energy Inc. 0.93 10,487$ 24,542$ 36% 1.18

Cost of Equity Based on Comparables: 12.66%

Cost of Equity Based on Historical Beta: 12.09%

WACC 9.90%


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NAV Analysis - XTO Energy Inc.

($ in Millions Except Per Share, Acreage, Production Unit, and Other Per-Unit Data)

XTO Energy Inc. - Net Asset Valuation (NAV)

Proved Reserves as of 12/31/2009: Long-Term PNatural Gas (Bcf): 12,502 Natural Ga

Natural Gas Liquids (MBbls): 93 Natural Ga

Oil (MBbls): 294 Oil:

Natural Gas Equivalents (Bcfe): 14,827

Future Estimated Development Costs: 8,484$ Discount R

Development Years 5

Natural Gas Na

Beginning Annual Avg. Beginning

Reserves Production Price Reserves

Year # (Bcf) (Bcf) $ / Mcf (MBbls)

2010 1 12,502 941 6.84$ 93

2011 2 11,561 1,035 6.84 85

2012 3 10,527 1,141 6.84 76

2013 4 9,385 1,223 6.84 66

2014 5 8,162 1,315 6.84 55

2015 6 6,847 1,249 6.84 44

2016 7 5,598 1,187 6.84 33

2017 8 4,411 1,128 6.84 22

2018 9 3,283 1,071 6.84 122019 10 2,212 1,018 6.84 3

2020 11 1,194 967 6.84 -

2021 12 228 228 6.84 -

2022 13 - - 6.84 -

2023 14 - - 6.84 -

2024 15 - - 6.84 -

2025 16 - - 6.84 -

2026 17 - - 6.84 -

2027 18 - - 6.84 -

2028 19 - - 6.84 -

2029 20 - - 6.84 -2030 21 - - 6.84 -

Present Value of Cash Flows from Proved Reserves: 45,520$

Undeveloped Acres (Property Values in $ Millions USD): Other Busin

Region: Acres: $ / Acre: Value:

US - Texas: 281,000 1,500$ 422$ 12/31/200


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US - Oklahoma: 176,000 500 88 EV/EBITDA

US - New Mexico: 21,000 300 6 Estimated E

US - Arkansas: 216,000 700 151

US - Montana: 92,000 500 46

US - Utah: 84,000 400 34

US - Louisiana: 39,000 700 27

US - North Dakota: 191,000 500 96US - Kansas: - 500 -

US - West Virginia: 58,000 600 35

US - Pennsylvania: 119,000 1,200 143

US - Wyoming: 13,000 400 5

US - Colorado: 2,000 500 1

US - Other: 76,000 300 23

US - Offshore: 45,000 400 18

North Sea - Offshore: 133,000 600 80

Total: 1,546,000 1,174$

Enterprise Value: 46,694$

Balance Sheet Adjustments: (10,144)

Implied Equity Value: 36,550$

Diluted Shares Outstanding: 598.0

Implied Share Price: 61.12$

Exercise

Type: Number: Price: Dilution:

Options 18.366 38.39$ 6.830

RSU 5.493 5.493

Performance Shares A 0.390 50.00 0.390Performance Shares B 0.228 55.00 0.228

Performance Shares C 0.245 77.00 -

Performance Shares D 0.245 85.00 -

Warrants 2.600 20.78 1.716

XTO Energy Inc. - Net Present Value Sensitivity - Natural Gas Prices

Discount Rate

61.12$ 7.0% 8.0% 9.0% 10.0% 11.0% 12.0%

9.00$ 97.02$ 91.54$ 86.46$ 81.77$ 77.37$ 73.30$

8.00 85.06 80.20 75.68 71.46 67.53 63.87

7.00 73.15 68.84 64.84 61.12 57.66 54.456.00 61.18 57.45 54.01 50.80 47.84 45.04

5.00 49.26 46.11 43.19 40.48 37.94 35.52

4.00 37.24 34.60 32.15 29.87 27.75 25.78

XTO Energy Inc. - Net Present Value Sensitivity - Natural Gas Prices - From DCF Analysis Based on Daily P

Discount Rate

-$ 7.0% 8.0% 9.0% 10.0% 11.0% 12.0%

9.00$ 67.71$ 64.46$ 61.38$ 58.45$ 55.67$ 53.06$

Natura

lGas

Prices

($Pe

rMc

f

cf


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8.00 61.28 58.18 55.24 52.48 49.86 47.35

7.00 54.86 51.91 49.15 46.51 44.00 41.62

6.00 48.45 45.66 43.01 40.51 38.13 35.81

5.00 42.01 39.37 36.82 34.38 32.08 29.90

4.00 35.48 32.91 30.49 28.20 26.03 23.98

Natura

lGas

Prices

($PerM


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roduction Decline: Resource Prices for NAV: Gas Oil / NGL Hedged : (5.0%) $ per Mcf $ per Bbl Price %

Liquids: (5.0%) 7.00$ 75.00$ 110.0%

(5.0%)

Price Cased Used in NAV: NAV

te: 10.0%

ural Gas Liquids Oil Revenue ($ in Millions)

Annual Avg. Beginning Annual Avg.

Production Price Reserves Production Price Natural Total

(MBbls) $ / Bbl (MBbls) (MBbls) $ / Bbl Gas Oil & NGL Revenue

8 41.94$ 294 27 76.79$ 6,438$ 2,390$ 8,828$

9 41.94 268 29 76.79 7,081 2,629 9,711

10 41.94 239 32 76.79 7,811 2,844 10,655

11 41.94 207 34 76.79 8,374 3,049 11,422

12 41.94 173 36 76.79 9,002 3,277 12,279

11 41.94 137 35 76.79 8,552 3,113 11,665

10 41.94 102 33 76.79 8,124 2,958 11,082

10 41.94 69 31 76.79 7,718 2,810 10,528

9 41.94 38 30 76.79 7,332 2,669 10,0013 41.94 9 9 76.79 6,965 776 7,742

- 41.94 - - 76.79 6,617 - 6,617

- 41.94 - - 76.79 1,558 - 1,558

- 41.94 - - 76.79 - - -

- 41.94 - - 76.79 - - -

- 41.94 - - 76.79 - - -

- 41.94 - - 76.79 - - -

- 41.94 - - 76.79 - - -

- 41.94 - - 76.79 - - -

- 41.94 - - 76.79 - - -

- 41.94 - - 76.79 - - -- 41.94 - - 76.79 - - -

ess Segments:

Chemicals Midstream Downstream

EBITDA: N/A 12/31/2009 EBITDA: N/A 12/31/2009 EBITDA: N/A


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Multiple: N/A EV/EBITDA Multiple: N/A EV/EBITDA Multiple: N/A

: N/A Estimated EV: N/A Estimated EV: N/A

13.0% 14.0%

69.47$ 65.90$

60.45 57.26

51.44 48.6642.44 40.01

33.25 31.14

23.94 22.22

oduction

13.0%

50.55$


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44.97

39.36

33.61

27.83

22.04


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Production & Development Expenses: Cash Flows ($ in Millions)

Total Total

Annual Production Production Development Pre-Tax Cash After-Tax

Bcfe Per Mcfe Expenses Expenses Cash Flows Tax Rate Cash Flows

1,150 0.95$ 1,092$ 1,697$ 6,039$ 11.8% 5,327$

1,265 0.95 1,201 1,697 6,812 11.8% 6,009

1,391 1.00 1,391 1,697 7,567 11.8% 6,675

1,491 1.00 1,491 1,697 8,235 11.8% 7,264

1,603 1.00 1,603 1,697 8,980 11.8% 7,921

1,522 1.00 1,522 - 10,143 11.8% 8,947

1,446 1.00 1,446 - 9,636 11.8% 8,499

1,374 1.00 1,374 - 9,154 11.8% 8,075

1,305 1.00 1,305 - 8,696 11.8% 7,6711,086 1.00 1,086 - 6,655 11.8% 5,871

967 1.00 967 - 5,650 11.8% 4,984

228 1.00 228 - 1,331 11.8% 1,174

- 1.00 - - - 11.8% -

- 1.00 - - - 11.8% -

- 1.00 - - - 11.8% -

- 1.00 - - - 11.8% -

- 1.00 - - - 11.8% -

- 1.00 - - - 11.8% -

- 1.00 - - - 11.8% -

- 1.00 - - - 11.8% -- 1.00 - - - 11.8% -


15/75


16/75

XTO Energy Inc. - Summary of Financial Statements


Historical

December 31, 2005 2006 2007 2008 2009

Revenue:

Gas & Natural Gas Liquids: 2,787$ 3,490$ 4,214$ 5,728$ 6,322$Oil & Condensate: 670 1,002 1,204 1,796 2,605

Gas Gath., Proc. & Marketing: 56 86 100 168 125

Other: 6 (2) (5) 3 12

Total Revenue: 3,519 4,576 5,513 7,695 9,064

Net Income: 1,152$ 1,860$ 1,691$ 1,912$ 2,019$

Earnings Per Basic Share: 2.57$ 4.07$ 3.57$ 3.58$ 3.48$

Earnings Per Diluted Share: 2.52 4.02 3.52 3.54 3.46

Dividends Per Common Share: 0.18 0.25 0.41 0.48 0.50

Cash Flow from Operations: 2,094 2,859 3,639 5,235 5,954

Cash Flow from Investing: (2,908) (3,036) (7,345) (13,006) (4,057)

Cash Flow from Financing: 806 180 3,701 7,796 (1,913)

Net PP&E: 8,508 10,824 17,200 31,281 31,934

Total Assets: 9,857 12,885 18,922 38,254 36,255

Total Debt: 3,109 3,451 6,320 11,959 10,487

Shareholders' Equity: 4,209 5,865 7,941 17,347 17,326

EBITDA: 2,615 3,587 4,209 5,790 7,073EBITDAX: 2,639 3,609 4,261 5,878 7,150

XTO Energy Inc. - Production and Operational Summary

Historical

December 31, 2005 2006 2007 2008 2009

Average Daily Production:

Gas (MMcf): 1,033.1 1,186.3 1,457.8 1,905.4 2,342.5

Natural Gas Liquids (MBbls): 10.4 11.9 13.5 15.6 20.6

Oil (MBbls): 39.1 45.0 47.0 56.0 66.3Total Daily MMcfe: 1,330.1 1,527.7 1,821.4 2,335.3 2,863.6

Total Annual Production (Bcfe): 485 558 665 855 1,045

Average Realized Sale Prices After Hedging:

Gas ($ Per Mcf): 7.38$ 6.26$ 6.26$ 8.04$ 3.67$

Natural Gas Liquids ($ Per Bbl): 34.10 37.03 45.37 52.05 30.03

Oil ($ Per Bbl): 52.58 60.79 68.68 93.17 57.10


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Annual Production Expenses (per Mcfe):

Production: 0.84$ 0.88$ 0.93$ 1.10$ 0.96$

Taxes, Transportation & Other: 0.63$ 0.67$ 0.67$ 0.82$ 0.65$

Proved Reserves:

Gas (Bcf): 6,086 6,944 9,441 11,803 12,502Natural Gas Liquids (MMBbls): 47 53 67 76 93

Oil (MBBls): 209 214 241 268 294

Total Proved Reserves (Bcfe): 7,622 8,549 11,289 13,863 14,827

Total Proved Reserves (MMBOE): 1,270 1,425 1,882 2,310 2,471

Reserve Life Ratio (Years): 15.7 15.3 17.0 16.2 14.2

Proved Reserves % Oil: 16.4% 15.0% 12.8% 11.6% 11.9%

XTO Energy Inc. - Valuation Multiples

Historical

December 31, 2005 2006 2007 2008 2009

EV / EBITDA: 4.9 x

EV / EBITDAX: 4.9 x

EV / Proved Reserves (Bcfe): 2.34$

EV / Daily Production (MMcfed): 12.11$


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Projected

2010 2011 2012 2013 2014

6,784$ 7,462$ 8,231$ 8,824$ 9,486$2,044 2,248 2,424 2,598 2,793

107 107 107 107 107

- - - - -

8,935 9,818 10,762 11,529 12,386

1,612$ 1,764$ 1,925$ 1,865$ 2,051$

2.70$ 2.87$ 3.05$ 2.88$ 3.09$

2.68 2.86 3.03 2.86 3.07

0.50 0.50 0.50 0.50 0.50

6,589 6,637 7,282 7,953 8,444

(5,165) (5,818) (6,397) (7,454) (8,173)

(1,076) 388 (521) (929) (137)

33,623 35,618 37,811 40,455 43,458

38,655 41,984 44,677 47,001 50,261

9,015 9,015 8,115 6,815 6,315

19,464 21,758 24,217 26,620 29,214

6,738 7,328 7,943 8,405 9,0136,818 7,416 8,040 8,524 9,141

Projected

2010 2011 2012 2013 2014

2,576.7 2,834.4 3,117.9 3,351.7 3,603.1

22.6 24.9 27.4 29.4 31.6

72.9 80.2 86.2 92.7 99.73,150.0 3,465.0 3,799.5 4,084.4 4,390.7

1,150 1,265 1,391 1,491 1,603

6.22$ 6.22$ 6.22$ 6.22$ 6.22$

41.94 41.94 41.94 41.94 41.94

69.81 69.81 69.81 69.81 69.81


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0.95$ 0.95$ 1.00$ 1.00$ 1.00$

0.65$ 0.70$ 0.70$ 0.75$ 0.75$

Projected

2010 2011 2012 2013 2014

5.1 x 4.7 x 4.4 x 4.1 x 3.8 x

5.1 x 4.7 x 4.3 x 4.1 x 3.8 x


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XTO Energy Inc. - Production Profile

Historical Pr

December 31, 2005 2006 2007 2008 2009 2010 2011

Days in Year: 365 365 365 366 365 365 365

Average Daily Production:

Gas (MMcf): 1,033.1 1,186.3 1,457.8 1,905.4 2,342.5 2,576.7 2,834.4

Natural Gas Liquids (MBbls): 10.4 11.9 13.5 15.6 20.6 22.6 24.9

Oil (MBbls): 39.1 45.0 47.0 56.0 66.3 72.9 80.2

Total Daily MMcfe: 1,330.1 1,527.7 1,821.4 2,335.3 2,863.6 3,150.0 3,465.0

Total Annual Production:

Gas (Bcf): 377.1 433.0 532.1 697.4 855.0 940.5 1,034.6

Natural Gas Liquids (MMBbls): 3.8 4.3 4.9 5.7 7.5 8.3 9.1

Oil (MMBbls): 14.3 16.4 17.2 20.5 24.2 26.6 29.3

Total Bcfe: 485.5 557.6 664.8 854.7 1,045.2 1,149.7 1,264.7

Average Daily Production Growth / (Decline) Rates:

Gas: 14.8% 22.9% 30.7% 22.9% 10.0% 10.0%

Natural Gas Liquids: 13.5% 14.3% 15.3% 31.6% 10.0% 10.0%

Oil: 15.3% 4.5% 19.1% 18.3% 10.0% 10.0%

XTO Energy Inc. - Resource Price, Hedging and Revenue Profile

($ as Stated Except Revenue in Millions)

Historical Pr

December 31, 2005 2006 2007 2008 2009 2010 2011

Average NYMEX Prices:

Gas ($ Per Mcf): 8.62$ 7.23$ 6.86$ 9.03$ 3.99$ 7.00$ 7.00$ $

Natural Gas Liquids ($ Per Bbl): 56.57 66.22 72.39 99.75 61.82 75.00 75.00 Oil ($ Per Bbl): 56.57 66.22 72.39 99.75 61.82 75.00 75.00

NYMEX Gas Prices ($ Per Mcf):

Base Case: 7.00$ 7.00$ $

Downside Case: 4.00 4.00

Upside Case: 10.00 10.00

DCF Case: 7.00 7.00

NAV Case: 7.00 7.00

Selected Case: NAV 7.00$ 7.00$ $

NYMEX Natural Gas Liquids Prices ($ Per Bbl):

Base Case: 75.00$ 75.00$ $


Upside Case: 100.00 100.00 DCF Case: 75.00 75.00

NAV Case: 75.00 75.00


NYMEX Oil Prices ($ Per Bbl):

Base Case: 75.00$ 75.00$ $


Upside Case: 100.00 100.00

DCF Case: 75.00 75.00

NAV Case: 75.00 75.00


Average Realized Sale Prices Before Hedging:

Gas ($ Per Mcf): 7.38$ 6.26$ 6.26$ 8.04$ 3.67$ 6.22$ 6.22$ $ Natural Gas Liquids ($ Per Bbl): 34.10 37.03 45.37 52.05 30.03 41.94 41.94

Oil ($ Per Bbl): 52.58 60.79 68.68 93.17 57.10 69.81 69.81


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XTO Energy Inc. - Income Statement


Historical

December 31, 2005 2006 2007 2008 2009

Revenue:

Gas & Natural Gas Liquids: 2,787$ 3,490$ 4,214$ 5,728$ 6,322$Oil & Condensate: 670 1,002 1,204 1,796 2,605

Gas Gath., Proc. & Marketing: 56 86 100 168 125

Other: 6 (2) (5) 3 12

Total Revenue: 3,519 4,576 5,513 7,695 9,064

Expenses:

Production: 406 491 615 942 999

Taxes, Transportation & Other: 306 372 444 703 678

Exploration: 24 22 52 88 77

DD&A: 655 875 1,187 2,025 3,079

Accr. of Asset Retirement Obli.: 12 16 22 31 40

G&A (Exc. Stock-Based Comp.): 121 126 166 212 219

Gas Gathering & Processing: 11 41 81 101 124

Stock-Based Compensation: 34 63 65 170 137

Derivative FV (Gain) / Loss: (13) (102) (11) (85) 24

Total Expenses: 1,556 1,904 2,621 4,187 5,377

Operating Income: 1,963$ 2,672$ 2,892$ 3,508$ 3,687$

Other (Income) / Expense:

Gain on Royalty Trusts: - (469) - - -Net Interest Expense: 153 180 250 482 524

Total Other (Income) / Exp.: 153 (289) 250 482 524

Pre-Tax Income: 1,810$ 2,961$ 2,642$ 3,026$ 3,163$

Income Tax Expense:

Current: 243 572 292 140 333

Deferred: 415 529 659 974 811

Total Income Tax Exp.: 658 1,101 951 1,114 1,144

Net Income: 1,152$ 1,860$ 1,691$ 1,912$ 2,019$Attributable to Participating: N/A N/A (4) (10) (16)

Net Income Used in EPS: N/A N/A 1,687$ 1,902$ 2,003$

Earnings Per Basic Share: 2.57$ 4.07$ 3.57$ 3.58$ 3.48$

Earnings Per Diluted Share: 2.52 4.02 3.52 3.54 3.46

Dividends Per Common Share: 0.18 0.25 0.41 0.48 0.50

Average Basic Shares: 448.1 456.1 471.9 531.6 575.6


22/75

Average Diluted Shares: 457.0 462.2 479.2 537.5 579.4

XTO Energy Inc. - Non-Cash and One-Time Expenses, EBITDA, and EBITDAX

($ in Millions)

Historical

December 31, 2005 2006 2007 2008 2009

Operating Income: 1,963$ 2,672$ 2,892$ 3,508$ 3,687$

Plus: Non-Cash Deriv. Change: (39) (39) 43 (72) 130

Plus: Impairment Charge: - - - 128 -

Plus: Gain on Prop. Exchange: (10) - - - -

Plus: DD&A: 655 875 1,187 2,025 3,079

Plus: Asset Retirement Accr.: 12 16 22 31 40

Plus: Stock-Based Comp.: 34 63 65 170 137

EBITDA: 2,615$ 3,587$ 4,209$ 5,790$ 7,073$

Plus: Exploration: 24 22 52 88 77

EBITDAX: 2,639$ 3,609$ 4,261$ 5,878$ 7,150$

XTO Energy Inc. - Tax Rate Projections

Historical

December 31, 2005 2006 2007 2008 2009

Income Tax %:

Current: 13.4% 19.3% 11.1% 4.6% 10.5%

Deferred: 22.9% 17.9% 24.9% 32.2% 25.6%

XTO Energy Inc. - Balance Sheet

($ in Millions)Historical

December 31, 2005 2006 2007 2008 2009

Assets:

Current Assets:

Cash & Cash-Equivalents: 2$ 5$ -$ 25$ 9$

Accounts Receivable, Net: 644 656 852 1,217 965

Derivative Fair Value: 193 804 199 2,735 1,222

Current Inc. Tax Receivable: 35 66 118 57 170

Deferred Inc. Tax Benefit: - - 20 - -

Other: 69 54 98 224 182

Total Current Assets: 943 1,585 1,287 4,258 2,548

PP&E:

Proved Properties: 9,979 12,369 18,671 30,994 34,180

Unproved Properties: 283 414 1,050 3,907 3,691

Other: 278 799 1,376 2,239 2,810

Total PP&E: 10,540 13,582 21,097 37,140 40,681

Accumulated DD&A: (2,032) (2,758) (3,897) (5,859) (8,747)

Net PP&E: 8,508 10,824 17,200 31,281 31,934


23/75

Derivative Fair Value: 1 56 - 1,023 68

Net Gas Gathering Contracts: 132 121 112 105 97

Goodwill: 213 215 215 1,447 1,475

Other: 60 84 108 140 133

Total Other Assets: 406 476 435 2,715 1,773

Total Assets: 9,857$ 12,885$ 18,922$ 38,254$ 36,255$

Liabilities & Shareholders' Equity:

Current Liabilities:

Accounts Payable: 739$ 912$ 1,264$ 1,912$ 1,482$

Payable to Royalty Trusts: 13 23 30 13 28

Derivative Fair Value: 90 37 239 35 167

Deferred Income Taxes: 38 263 - 940 342

Other: 4 5 4 30 32

Total Current Liabilities: 884 1,240 1,537 2,930 2,051

Total Debt: 3,109 3,451 6,320 11,959 10,487

Derivative Fair Value: - 1 4 - 6

Deferred Income Taxes: 1,390 1,978 2,610 5,200 5,522

Asset Retirement Obligation: 219 303 450 735 783

Other: 46 47 60 83 80

Total Long-Term Liabilities: 4,764 5,780 9,444 17,977 16,878

Stockholders' Equity:

Common Stock & APIC: 1,869 2,062 3,177 8,321 8,477

Treasury Stock: (39) (125) (134) (147) (177)Retained Earnings: 2,311 3,442 4,938 6,588 8,317

Accum. Other Comp. Inc.: 68 486 (40) 2,585 709

Total Stockholders' Equity: 4,209$ 5,865$ 7,941$ 17,347$ 17,326$

Total Liabilities & SE: 9,857$ 12,885$ 18,922$ 38,254$ 36,255$

Balance Check: OK! OK! OK! OK! OK!

XTO Energy Inc. - Cash Flow Statement

($ in Millions)

HistoricalDecember 31, 2005 2006 2007 2008 2009

Operating Activities:

Net Income: 1,152$ 1,860$ 1,691$ 1,912$ 2,019$

Adjustments to NI:

DD&A: 655 875 1,187 2,025 3,079

Accr. of Asset Retirement Obli.: 12 16 22 31 40

Stock-Based Compensation: 34 63 65 170 137

Dry Hole Expense: - 9 21 22 44


24/75

Deferred Income Tax: 415 529 659 974 811

Gain on Royalty Trusts: - (469) - - -

Gain on Debt Extinguish.: - - - - (17)

Non-Cash Deriv. (Gain) / Loss: (39) (39) 43 (72) 130

Other Non-Cash Items: 23 10 23 2 (24)

Other Changes: - - - - -

Changes in Working Capital: (158) 5 (72) 171 (265)Cash Flow from Operations: 2,094 2,859 3,639 5,235 5,954

Investing Activities:

Proceeds from Sale of PP&E: 17 6 1 24 3

Acquisitions: (1,407) (616) (4,012) (8,456) (264)

Development & Exploration: (1,304) (2,047) (2,668) (3,661) (3,190)

Other Property Additions: (214) (379) (666) (913) (606)


Financing Activities:

Historical Debt Proceeds: 3,825 5,719 7,293 19,560 7,730

Historical Debt Payments: (2,977) (5,377) (4,433) (14,250) (9,183)

Common Stock Proceeds: - - 1,009 2,612 -

Dividends: (67) (109) (170) (250) (287)

Senior Note and Debt Costs: (5) (9) (18) (32) (2)

Option and Warr. Proceeds: 73 24 33 23 23

Stock Option Exer. Payments: (20) (46) (57) (70) (23)

Stock Option Tax Benefits: - 50 57 64 20

Treas. Stock Purch. & Other: (23) (72) (13) 139 (191)

Cash Flow from Financing: 806 180 3,701 7,796 (1,913)

Revolver Borrowing:

Cash Used for Debt Repayment:

Cash Increase / (Decrease): (8)$ 3$ (5)$ 25$ (16)$

Beginning Cash: 10 2 5 - 25

Ending Cash: 2$ 5$ -$ 25$ 9$

XTO Energy Inc. - Working Capital and Cash Flow Statement Projections

Historical

December 31, 2005 2006 2007 2008 2009

Accounts Receivable % Revenue: 18.3% 14.3% 15.5% 15.8% 10.6%

Accounts Payable % Expenses: 47.5% 47.9% 48.2% 45.7% 27.6%

Dry Hole % Total Exploration: 0.0% 40.9% 40.4% 25.0% 57.1%

XTO Energy Inc. - Debt Schedules

($ in Millions)


25/75

Historical

December 31, 2009

Maximum Revolver Borrowing: 2,840

Numerical Year:

LIBOR Curve:

Interest Income: 1.0 3.0 17.0 13.0 1.0

Effective Cash Interest Rate:

End of Year Debt Amounts:

Revolver: 622$

Term Loan A: 500

Term Loan B: 100

Senior Notes - A 250

Senior Notes - B 350

Senior Notes - C 550

Senior Notes - D 400

Senior Notes - E 400

Senior Notes - F 500

Senior Notes - G 500

Senior Notes - H 348

Senior Notes - I 400

Senior Notes - J 400

Senior Notes - K 735

Senior Notes - L 773

Senior Notes - M 1,000

Senior Notes - N 591Senior Notes - O 1,399

Senior Notes - P 704

Net Discount on Senior Notes: (35)

Total Debt: 10,487$

Fixed

Interest Rate Assumptions: LIBOR + Interest

Revolver: 0.40%

Term Loan A: 0.50%

Term Loan B: 0.50%

Senior Notes - A 5.00%Senior Notes - B 7.50%

Senior Notes - C 5.90%

Senior Notes - D 6.25%

Senior Notes - E 4.63%

Senior Notes - F 5.75%

Senior Notes - G 4.90%

Senior Notes - H 5.00%

Senior Notes - I 5.30%


26/75

Senior Notes - J 5.65%

Senior Notes - K 6.25%

Senior Notes - L 5.50%

Senior Notes - M 6.50%

Senior Notes - N 6.10%

Senior Notes - O 6.75%

Senior Notes - P 6.38%Undrawn Revolver Commitment Fee: 0.09%

Interest Increase If > 50.0% of Revolver Utilized: 50.00% 0.05%

Revolver % Drawn:

Interest Expense Calculations:

Revolver:

Term Loan A:

Term Loan B:

Senior Notes - A

Senior Notes - B

Senior Notes - C

Senior Notes - D

Senior Notes - E

Senior Notes - F

Senior Notes - G

Senior Notes - H

Senior Notes - I

Senior Notes - J

Senior Notes - K

Senior Notes - L

Senior Notes - MSenior Notes - N

Senior Notes - O

Senior Notes - P

Total Interest Expense:

Yearly

Beginning Amort. Prepay

Debt Amortization: Balance %: Allowed? Maturity

Revolver: 622$ 0.0% Yes N/A

Term Loan A: 500 10.0% Yes 2013

Term Loan B: 100 10.0% Yes 2013Senior Notes - A 250 0.0% No 2010

Senior Notes - B 350 0.0% No 2012

Senior Notes - C 550 0.0% No 2012

Senior Notes - D 400 0.0% No 2013

Senior Notes - E 400 0.0% No 2013

Senior Notes - F 500 0.0% No 2013

Senior Notes - G 500 0.0% No 2014

Senior Notes - H 348 0.0% No 2015


27/75

Senior Notes - I 400 0.0% No 2015

Senior Notes - J 400 0.0% No 2016

Senior Notes - K 735 0.0% No 2017

Senior Notes - L 773 0.0% No 2018

Senior Notes - M 1,000 0.0% No 2018

Senior Notes - N 591 0.0% No 2036

Senior Notes - O 1,399 0.0% No 2037Senior Notes - P 704 0.0% No 2038

Sources of Funds:

Beginning Cash Balance:

Less: Minimum Cash Balance:

Plus: Cash Flow Available for Debt Repayment:

Subtotal Before Revolver:

Revolver Borrowing Required:

Total Sources of Funds:

Uses of Funds:

Mandatory Debt Repayment:

Term Loan A:

Term Loan B:

Senior Notes - A

Senior Notes - B

Senior Notes - C

Senior Notes - D

Senior Notes - E

Senior Notes - F

Senior Notes - GSenior Notes - H

Senior Notes - I

Senior Notes - J

Senior Notes - K

Senior Notes - L

Senior Notes - M

Senior Notes - N

Senior Notes - O

Senior Notes - P

Mandatory Repayment Total:

Optional Debt Repayment:

Revolver:

Term Loan A:

Term Loan B:

Senior Notes - A

Senior Notes - B

Senior Notes - C

Senior Notes - D


28/75

Senior Notes - E

Senior Notes - F

Senior Notes - G

Senior Notes - H

Senior Notes - I

Senior Notes - J

Senior Notes - KSenior Notes - L

Senior Notes - M

Senior Notes - N

Senior Notes - O

Senior Notes - P

Optional Repayment Total:

Excess Cash Generated on Balance Sheet:

Total Uses of Funds:

Balance Check:

XTO Energy Inc. - Dividends and Stock Repurchases / Issuances


Historical

December 31, 2005 2006 2007 2008 2009

Dividends Per Common Share: 0.18$ 0.25$ 0.41$ 0.48$ 0.50$

Dividends Issued ($MM): 67 109 170 250 287

Stock Repurchases & Issuances:Common Stock Proceeds ($MM): - - 1,009 2,612 -

Stock Repurchases ($MM): (23) (72) (13) 139 (191)

Assumed Share Price:

# Shares Issued (MM):

# Shares Repurchased (MM):

Net Change in Shares (MM):

Average Basic Shares (MM): 448.1 456.1 471.9 531.6 575.6

Average Diluted Shares (MM): 457.0 462.2 479.2 537.5 579.4


29/75

Projected

2010 2011 2012 2013 2014

6,784$ 7,462$ 8,231$ 8,824$ 9,486$2,044 2,248 2,424 2,598 2,793

107 107 107 107 107

- - - - -

8,935 9,818 10,762 11,529 12,386

1,092 1,201 1,391 1,491 1,603

747 885 973 1,118 1,202

80 89 97 119 128

3,449 3,794 4,172 4,771 5,128

57 63 70 89 96

253 291 334 373 417

66 66 66 66 66

129 142 156 167 179

(37) (37) (37) (37) (37)

5,838 6,494 7,221 8,156 8,782

3,097$ 3,323$ 3,541$ 3,373$ 3,604$

- - - - -558 545 510 436 374

558 545 510 436 374

2,539$ 2,778$ 3,031$ 2,937$ 3,231$

299 328 357 346 381

627 687 749 726 798

927 1,014 1,106 1,072 1,179

1,612$ 1,764$ 1,925$ 1,865$ 2,051$(13) (14) (15) (15) (16)

1,599$ 1,750$ 1,909$ 1,850$ 2,035$

2.70$ 2.87$ 3.05$ 2.88$ 3.09$

2.68 2.86 3.03 2.86 3.07

0.50 0.50 0.50 0.50 0.50

592.3 609.0 625.7 642.3 659.0


30/75

596.1 612.8 629.5 646.1 662.8

Projected

2010 2011 2012 2013 2014

3,097$ 3,323$ 3,541$ 3,373$ 3,604$

5 5 5 5 5

- - - - -

- - - - -

3,449 3,794 4,172 4,771 5,128

57 63 70 89 96

129 142 156 167 179

6,738$ 7,328$ 7,943$ 8,405$ 9,013$

80 89 97 119 128

6,818$ 7,416$ 8,040$ 8,524$ 9,141$

Projected

2010 2011 2012 2013 2014

11.8% 11.8% 11.8% 11.8% 11.8%

24.7% 24.7% 24.7% 24.7% 24.7%

Projected

2010 2011 2012 2013 2014

357$ 1,564$ 1,929$ 1,498$ 1,631$

1,332 1,464 1,605 1,719 1,847

1,217 1,213 1,208 1,204 1,199

170 170 170 170 170

- - - - -

182 182 182 182 182

3,259 4,593 5,093 4,773 5,029

38,054 42,451 47,287 52,615 58,502

4,266 4,898 5,594 6,637 7,759

3,500 4,259 5,093 6,137 7,258

45,819 51,608 57,973 65,388 73,520

(12,196) (15,990) (20,162) (24,933) (30,061)

33,623 35,618 37,811 40,455 43,458


31/75

68 68 68 68 68

97 97 97 97 97

1,475 1,475 1,475 1,475 1,475

133 133 133 133 133

1,773 1,773 1,773 1,773 1,773

38,655$ 41,984$ 44,677$ 47,001$ 50,261$

2,532$ 2,817$ 3,132$ 3,537$ 3,809$

28 28 28 28 28

167 167 167 167 167

342 342 342 342 342

32 32 32 32 32

3,101 3,386 3,701 4,106 4,378

9,015 9,015 8,115 6,815 6,315

6 6 6 6 6

6,149 6,836 7,585 8,311 9,109

840 904 973 1,063 1,159

80 80 80 80 80

16,091 16,841 16,759 16,275 16,669

9,331 10,197 11,077 11,968 12,872

(209) (241) (273) (305) (337)9,633 11,093 12,704 14,248 15,970

709 709 709 709 709

19,464$ 21,758$ 24,217$ 26,620$ 29,214$

38,655$ 41,984$ 44,677$ 47,001$ 50,261$

OK! OK! OK! OK! $0

Projected2010 2011 2012 2013 2014

1,612$ 1,764$ 1,925$ 1,865$ 2,051$

3,449 3,794 4,172 4,771 5,128

57 63 70 89 96

129 142 156 167 179

26 29 32 39 42


32/75

627 687 749 726 798

- - - - -

- - - - -

5 5 5 5 5

- - - - -

- - - - -

682 153 174 291 1446,589 6,637 7,282 7,953 8,444

- - - - -

(575) (632) (695) (1,044) (1,122)

(3,900) (4,427) (4,867) (5,367) (5,930)

(690) (759) (834) (1,044) (1,122)

(5,165) (5,818) (6,397) (7,454) (8,173)

- - - - -

- - - - -

724 724 724 724 724

(296) (304) (313) (321) (330)

- - - - -

- - - - -

- - - - -

- - - - -

(32) (32) (32) (32) (32)

396 388 379 371 363

- - - - -

(1,472) - (900) (1,300) (500)

348$ 1,207$ 364$ (430)$ 133$

9 357 1,564 1,929 1,498

357$ 1,564$ 1,929$ 1,498$ 1,631$

Projected

2010 2011 2012 2013 2014

14.9% 14.9% 14.9% 14.9% 14.9%

43.4% 43.4% 43.4% 43.4% 43.4%

32.7% 32.7% 32.7% 32.7% 32.7%


33/75

Projected

2010 2011 2012 2013 2014

2010 2011 2012 2013 2014

0.30% 0.30% 0.50% 1.00% 2.00%

0.5 2.9 8.7 17.1 31.3

0.30% 0.30% 0.50% 1.00% 2.00%

-$ -$ -$ -$ -$

- - - - -

- - - - -

- - - - -

350 350 - - -

550 550 - - -

400 400 400 - -

400 400 400 - -

500 500 500 - -

500 500 500 500 -

348 348 348 348 348

400 400 400 400 400

400 400 400 400 400

735 735 735 735 735

773 773 773 773 773

1,000 1,000 1,000 1,000 1,000

591 591 591 591 5911,399 1,399 1,399 1,399 1,399

704 704 704 704 704

(35) (35) (35) (35) (35)

9,015$ 9,015$ 8,115$ 6,815$ 6,315$

0.70% 0.70% 0.90% 1.40% 2.40%

0.80% 0.80% 1.00% 1.50% 2.50%

0.80% 0.80% 1.00% 1.50% 2.50%

5.00% 5.00% 5.00% 5.00% 5.00%7.50% 7.50% 7.50% 7.50% 7.50%

5.90% 5.90% 5.90% 5.90% 5.90%

6.25% 6.25% 6.25% 6.25% 6.25%

4.63% 4.63% 4.63% 4.63% 4.63%

5.75% 5.75% 5.75% 5.75% 5.75%

4.90% 4.90% 4.90% 4.90% 4.90%

5.00% 5.00% 5.00% 5.00% 5.00%

5.30% 5.30% 5.30% 5.30% 5.30%


34/75

5.65% 5.65% 5.65% 5.65% 5.65%

6.25% 6.25% 6.25% 6.25% 6.25%

5.50% 5.50% 5.50% 5.50% 5.50%

6.50% 6.50% 6.50% 6.50% 6.50%

6.10% 6.10% 6.10% 6.10% 6.10%

6.75% 6.75% 6.75% 6.75% 6.75%

6.38% 6.38% 6.38% 6.38% 6.38%2.6$ 2.6$ 2.6$ 2.6$ 2.6$

0.00% 0.00% 0.00% 0.00% 0.00%

5$ 3$ 3$ 3$ 3$

2 - - - -

0 - - - -

6 - - - -

26 26 13 - -

32 32 16 - -

25 25 25 13 -

19 19 19 9 -

29 29 29 14 -

25 25 25 25 12

17 17 17 17 17

21 21 21 21 21

23 23 23 23 23

46 46 46 46 46

43 43 43 43 43

65 65 65 65 6536 36 36 36 36

94 94 94 94 94

45 45 45 45 45

559$ 548$ 519$ 453$ 405$

10.0% 10.0% 10.0% 70.0% 0.0%

10.0% 10.0% 10.0% 70.0% 0.0%100.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 100.0% 0.0% 0.0%

0.0% 0.0% 100.0% 0.0% 0.0%

0.0% 0.0% 0.0% 100.0% 0.0%

0.0% 0.0% 0.0% 100.0% 0.0%

0.0% 0.0% 0.0% 100.0% 0.0%

0.0% 0.0% 0.0% 0.0% 100.0%

0.0% 0.0% 0.0% 0.0% 0.0%


35/75

0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0%0.0% 0.0% 0.0% 0.0% 0.0%

9$ 357$ 1,564$ 1,929$ 1,498$

(2) (2) (2) (2) (2)

1,820 1,207 1,264 870 633

1,827$ 1,562$ 2,827$ 2,796$ 2,129$

- - - - -

1,827$ 1,562$ 2,827$ 2,796$ 2,129$

50$ -$ -$ -$ -$

10 - - - -

250 - - - -

- - 350 - -

- - 550 - -

- - - 400 -

- - - 400 -

- - - 500 -

- - - - 500- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

310$ -$ 900$ 1,300$ 500$

622$ -$ -$ -$ -$

450 - - - -

90 - - - -

- - - - -

- - - - -

- - - - -

- - - - -


36/75

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

1,162$ -$ -$ -$ -$

355 1,562 1,927 1,496 1,629

1,827$ 1,562$ 2,827$ 2,796$ 2,129$

OK! OK! OK! OK! OK!

Projected

2010 2011 2012 2013 2014

0.50$ 0.50$ 0.50$ 0.50$ 0.50$

296 304 313 321 330

724 724 724 724 724

(32) (32) (32) (32) (32)

41.49$ 41.49$ 41.49$ 41.49$ 41.49$

17.5 17.5 17.5 17.5 17.5

(0.8) (0.8) (0.8) (0.8) (0.8)

16.7 16.7 16.7 16.7 16.7

592.3 609.0 625.7 642.3 659.0

596.1 612.8 629.5 646.1 662.8


37/75

Exxon Mobil Corporation - Income Statement


Historical

2005 2006 2007 2008 2009

Net Income by Segment:

E&P - United States: 6,200 5,168 4,870 6,243 2,893E&P - International: 16,529 21,062 21,627 27,539 14,214

R&M - United States: 4,111 4,250 4,120 1,649 (153)

R&M - International: 3,771 4,204 5,453 6,502 1,934

Chemicals - Global: 3,403 4,382 4,563 2,957 2,309

Other Operations: - - - - -

Existing After-Tax Interest: (188) (276) (260) (437) (356)

Revolver After-Tax Interest: - - - - -

Other Corporate: 34 300 237 (393) (1,421)

Operating Net Income: 33,860$ 39,090$ 40,610$ 44,060$ 19,420$

Special Items, Net of Taxes: 2,270 410 - 1,160 (140)

Reported Net Income: 36,130$ 39,500$ 40,610$ 45,220$ 19,280$

Net Inc. to Noncontrolling: 799 1,051 1,005 1,647 378

% Reported: 2.2% 2.7% 2.5% 3.6% 2.0%

Net Income to All: 36,929$ 40,551$ 41,615$ 46,867$ 19,658$

Earnings Per Diluted Share: 5.71$ 6.62$ 7.26$ 8.66$ 3.98$

Effective Tax Rate: 38.7% 40.8% 41.8% 43.8% 43.5%

Avg. Diluted Shares (MM): 6,322.0 5,970.0 5,594.0 5,221.0 4,848.0

Exxon Mobil Corporation - Balance Sheet

($ in Millions)

Historical

2005 2006 2007 2008 2009

Assets:

Current Assets:

Cash & Cash-Equivalents: 28,671$ 28,244$ 33,981$ 31,437$ 10,693$

Restricted Cash: 4,604 4,604 - - -

Marketable Securities: - - 519 570 169

Accounts Receivable, Net: 27,484 28,942 36,450 24,702 27,645

Inventory: 9,321 10,714 11,089 11,646 11,553Other Current Assets: 3,262 3,273 3,924 3,911 5,175

Total Current Assets: 73,342 75,777 85,963 72,266 55,235

Long-Term Assets:

Investments & LT Receiv.: 20,592 23,237 28,194 28,556 31,665

Net PP&E: 107,010 113,687 120,869 121,346 139,116

Other / Intangible Assets: 7,391 6,314 7,056 5,884 7,307

Total Long-Term Assets: 134,993 143,238 156,119 155,786 178,088


38/75

Total Assets: 208,335$ 219,015$ 242,082$ 228,052$ 233,323$

Liabilities:

Current Liabilities:

Revolver: -$ -$ -$ -$ -$

Notes and Loans Payable: 1,771 1,702 2,383 2,400 2,476AP & Accrued Expenses: 36,120 39,082 45,275 36,643 41,275

Income Taxes Payable: 8,416 8,033 10,654 10,057 8,310

Total Current Liabilities: 46,307 48,817 58,312 49,100 52,061

Long-Term Liabilities:

Long-Term Debt: 6,220 6,645 7,183 7,025 7,129

Postretirement Benefits: 10,220 13,931 13,278 20,729 17,942

Deferred Income Taxes: 20,878 20,851 22,899 19,726 23,148

Other LT Obligations: 9,997 11,123 14,366 13,949 17,651

Total Long-Term Liabilities: 47,315 52,550 57,726 61,429 65,870

Total Liabilities: 93,622$ 101,367$ 116,038$ 110,529$ 117,931$

Stockholders' Equity:

Common Stock (Excl. Par): 4,477$ 4,786$ 4,933$ 5,314$ 5,503$

Treasury Stock: (55,347) (83,387) (113,678) (148,098) (166,410)

Retained Earnings: 163,335 195,207 228,518 265,680 276,937

Accum. Other Comp. Inc.: (1,279) (2,762) 1,989 (9,931) (5,461)

Total Stockholders' Equity: 111,186$ 113,844$ 121,762$ 112,965$ 110,569$

Noncontrolling Interests: 3,527 3,804 4,282 4,558 4,823

Total Liabilities & Equity: 208,335$ 219,015$ 242,082$ 228,052$ 233,323$

Balance Check: OK! OK! OK! OK! OK!

Exxon Mobil Corporation - Cash Flow Statement

($ in Millions)

Historical

2005 2006 2007 2008 2009

Operating Activities:

Net Income to Common: 36,130$ 39,500$ 40,610$ 45,220$ 19,280$Net Inc. to Noncontrolling: 799 1,051 1,005 1,647 378

Adjustments to NI:

Depreciation & Depletion: 10,253 11,416 12,250 12,379 11,917

Def. Inc. Tax / (Credit): (429) 1,717 124 1,399 -

Pensions + / (-) Payments: 254 (1,787) (1,314) 57 (1,722)

LT Obli. + / (-) Payments: 398 (666) 1,065 (63) 731

Div. + / (-) Equity Interests: (734) (579) (714) 921 (483)

Change in AR: (3,700) (181) (5,441) 8,641 (3,170)


39/75

Change in Inventory: (434) (1,057) 72 (1,285) 459

Change in Oth. Cur. Assets: (7) (385) 280 (509) 132

Change in AP & Accrued: 7,806 1,160 6,228 (5,415) 1,420

Net (Gain) on Asset Sales: (1,980) (1,531) (2,217) (3,757) (488)

All Other Items - Net (218) 628 54 490 (16)

Cash Flow from Operations: 48,138 49,286 52,002 59,725 28,438

Investing Activities:

Capital Expenditures: (13,839) (15,462) (15,387) (19,318) (22,491)

Sales of Invest. and PP&E: 6,036 3,080 4,204 5,985 1,545

Decrease in Restricted Cash: - - 4,604 - -

Add'tl Invest. / Advances: (2,810) (2,604) (3,038) (2,495) (2,752)

Collection of Advances: 343 756 391 574 724

Mark. Securities Additions: - - (646) (2,113) (16)

Sales of Mark. Securities: - - 144 1,868 571


Financing Activities:

Additions to LT Debt: 195 318 592 79 225

Payments of LT Debt: (81) (33) (209) (192) (68)

Additions to ST Debt: 377 334 1,211 1,067 1,336

Payments of ST Debt: (687) (451) (809) (1,624) (1,575)

Other Debt Changes: (1,306) (95) (187) 143 (71)

Dividends to Common: (7,185) (7,628) (7,621) (8,058) (8,023)

Dividends to Noncontrolling: (293) (239) (289) (375) (280)

Changes in Noncontrolling: (681) (493) (659) (419) (113)

SBC Tax Benefits: - 462 369 333 237

Treasury Stock Purchased: (18,221) (29,558) (31,822) (35,734) (19,703)Common Stock Issued: 941 1,173 1,079 753 752

Cash Flow from Financing: (26,941) (36,210) (38,345) (44,027) (27,283)

FX Rate Effect: (787) 727 1,808 (2,743) 520

Cash Increase / (Decrease): 10,140$ (427)$ 5,737$ (2,544)$ (20,744)$

Beginning Cash: 18,531 28,671 28,244 33,981 31,437

Less: Minimum Cash:

Required Borrowing:

Revolver Repayments:

Ending Cash: 28,671$ 28,244$ 33,981$ 31,437$ 10,693$

Exxon Mobil Corporation - Working Capital Projections

Historical

2005 2006 2007 2008 2009


40/75

Accounts Receivable % NI: 76.1% 73.3% 89.8% 54.6% 143.4%

Inventory % NI: 25.8% 27.1% 27.3% 25.8% 59.9%

AP & Accrued % NI: 100.0% 98.9% 111.5% 81.0% 214.1%

Exxon Mobil Corporation - Debt and Interest Schedule for New Debt Issuances

Historical

2005 2006 2007 2008 2009

LIBOR:

End of Year Debt Amounts:

Revolver: -$

Fixed

Interest Rate Assumptions: LIBOR + Interest

Revolver: 0.40%

Interest Expense Calculations:

Revolver:


41/75

Projected

2010 2011 2012

4,772 4,736 4,65420,521 20,759 22,080

763 1,571 1,303

1,823 2,991 3,128

3,570 3,150 3,235

- - -

(145) (144) (143)

- (19) (67)

(2,247) (2,281) (2,315)

29,057$ 30,763$ 31,875$

- - -

29,057$ 30,763$ 31,875$

753 797 826

2.6% 2.6% 2.6%

29,810$ 31,560$ 32,700$

6.25$ 7.12$ 7.94$

43.5% 43.5% 43.5%

4,649.1 4,320.6 4,014.4

Projected

2010 2011 2012

5,509$ 5,000$ 5,000$

- - -

169 169 169

25,402 26,894 27,865

9,641 10,207 10,5765,175 5,175 5,175

45,897 47,445 48,786

34,165 36,665 39,165

146,664 153,411 160,024

7,307 7,307 7,307

188,136 197,383 206,496


42/75

234,033$ 244,828$ 255,282$

-$ 9,659$ 16,876$

2,476 2,476 2,47635,189 37,255 38,601

8,310 8,310 8,310

45,975 57,699 66,264

7,129 7,129 7,129

17,040 16,137 15,235

23,648 24,148 24,648

17,944 18,237 18,530

65,761 65,651 65,542

111,736$ 123,351$ 131,805$

5,503 5,503 5,503

(180,894) (204,818) (227,120)

297,389 319,511 342,800

(5,276) (5,091) (4,905)

116,722$ 115,105$ 116,278$

5,576 6,372 7,198

234,033$ 244,828$ 255,282$

OK! OK! OK!

Projected

2010 2011 2012

29,057$ 30,763$ 31,875$753 797 826

13,443 14,244 14,378

500 500 500

(902) (902) (902)

293 293 293

(318) (318) (318)

2,243 (1,491) (972)


43/75

1,912 (566) (369)

- - -

(6,086) 2,066 1,346

- - -

- - -

40,894 45,385 46,656

(22,491) (22,491) (22,491)

1,500 1,500 1,500

- - -

(2,740) (2,740) (2,740)

558 558 558

- - -

- - -

(23,173) (23,173) (23,173)

- - -

- - -

- - -

- - -

- - -

(8,310) (8,346) (8,290)

(295) (295) (295)

- - -

280 280 280

(14,484) (23,924) (22,301)- - -

(22,809) (32,285) (30,606)

(95) (95) (95)

(5,184)$ (10,168)$ (7,218)$

10,693 5,509 5,000

(5,000) (5,000) (5,000)

- 9,659 7,218

- - -

5,509$ 5,000$ 5,000$

Projected

2010 2011 2012


44/75

87.4% 87.4% 87.4%

33.2% 33.2% 33.2%

121.1% 121.1% 121.1%

Projected

2010 2011 2012

0.30% 0.30% 0.50%

-$ 9,659$ 16,876$

0.70% 0.70% 0.90%

-$ 34$ 119$


45/75

Comparable Companies - North American Oil & Gas E&P Companies with Over 10 Tcfe Proved Reserves

($ in Millions Except Per Share, Reserve, and Production Data)

Operating Statistics Capitalization

Equity Enterprise EBITDAX(3)

Company Name Value(1)

Value(1)(2)

TTM 12/31/2010 12/31/2011Chesapeake Energy Corporation 15,489$ 29,710$ 4,509$ 4,571$ 4,949$

Anadarko Petroleum 28,937 40,880 5,743 8,099 9,908

Occidental Petroleum Corporation 61,989 64,381 8,447 12,659 16,428

Apache Corporation 32,252 37,384 5,989 8,264 9,694

Devon Energy Corporation 28,999 37,353 4,797 6,364 5,613

EOG Resources, Inc. 22,289 24,882 1,761 4,375 5,507

Maximum 61,989$ 64,381$ 8,447$ 12,659$ 16,428$

75th Percentile 31,439 40,006 5,927 8,223 9,855

Median 28,968$ 37,368$ 5,270$ 7,232$ 7,654$

25th Percentile 23,951 31,620 4,581 5,019 5,534

Minimum 15,489 24,882 1,761 4,375 4,949

XTO Energy Inc. 24,542$ 34,686$ 7,150$ 6,818$ 7,416$

Valuation Statistics Capitalization Enterprise Value /

Equity Enterprise EBITDAX(3)

Company Name Value(1)

Value(1)(2)

TTM 12/31/2010 12/31/2011

Chesapeake Energy Corporation 15,489$ 29,710$ 6.6 x 6.5 x 6.0 x

Anadarko Petroleum 28,937 40,880 7.1 x 5.0 x 4.1 x

Occidental Petroleum Corporation 61,989 64,381 7.6 x 5.1 x 3.9 x

Apache Corporation 32,252 37,384 6.2 x 4.5 x 3.9 x

Devon Energy Corporation 28,999 37,353 7.8 x 5.9 x 6.7 x

EOG Resources, Inc. 22,289 24,882 14.1 x 5.7 x 4.5 x

Maximum 61,989$ 64,381$ 14.1 x 6.5 x 6.7 x

75th Percentile 31,439 40,006 7.7 x 5.8 x 5.6 x

Median 28,968$ 37,368$ 7.4 x 5.4 x 4.3 x

25th Percentile 23,951 31,620 6.7 x 5.1 x 4.0 x

Minimum 15,489 24,882 6.2 x 4.5 x 3.9 x

XTO Energy Inc. 24,542$ 34,686$ 4.9 x 5.1 x 4.7 x

(1) Valuation as of 12/11/2009.

(2) Enterprise Value defined as Equity Value less Cash & Cash Equivalents, less Net Value of Derivatives, les

Obligation, plus Capital Leases, plus Unfunded Pension Obligations, plus Preferred Stock, plus Noncontrolli

(3) EBITDAX defined as Operating Income plus DD&A, plus Asset Retirement Accretion, plus Stock-Based C

Other One-Time and Restructuring Charges, plus Exploration Expense.

(4) Oil Mix % Based on TTM Production Data rather than Reserves.


46/75

Proved Daily Proved R / P

Reserves Production Production Developed Oil Ratio

(Bcfe) (MMcfe) Areas / Proved Mix %(4)

(Years)14,254.0 2,480.8 US Diversified 58.4% 7.8% 15.7

13,824.0 3,624.0 International; US-Focused 70.5% 30.9% 10.5

19,350.0 3,870.0 International 77.3% 76.2% 13.7

14,199.5 3,499.7 International 69.1% 47.8% 11.1

16,398.0 3,830.1 US & Canada 70.3% 18.0% 11.7

10,776.1 2,118.0 US, Canada & Trinidad 54.4% 15.6% 13.9

19,350.0 3,870.0 77.3% 76.2% 15.7

15,862.0 3,778.6 70.4% 43.6% 13.9

14,226.8 3,561.9 69.7% 24.5% 12.7

13,917.9 2,735.5 61.1% 16.2% 11.3

10,776.1 2,118.0 54.4% 7.8% 10.5

14,827.3 2,863.6 US Diversified 60.7% 13.9% 14.2

Enterprise Value /

Proved Daily

Reserves Production

2.08$ 11.98$

2.96 11.28

3.33 16.64

2.63 10.68

2.28 9.75

2.31 11.75

3.33$ 16.64$

2.88 11.92

2.47$ 11.51$

2.29 10.83

2.08 9.75

2.34$ 12.11$

s Investments in Equity Companies, plus Total Debt, plus Asset Retirement

g Interests.

mpensation, plus Non-Cash Derivative Losses, plus Impairment Charges, plus


47/75

CHK

Chesapeake Energy Corporation

Calendarization

Old Partial New Partial FY TTM

Operating Income: (8,945)$ (8,945)$

Plus: DD&A: 1,615 1,615Plus: Asset Retirement Accretion: - -

Plus: Stock-Based Compensation: 140 140

Plus: Non-Cash Derivative Losses: 497 497

Plus: Impairment Charge: 11,130 11,130

Plus: Other One-Time Charges: 72 72

EBITDA: -$ -$ 4,509$ 4,509$

Plus: Exploration: - -

EBITDAX: -$ -$ 4,509$ 4,509$

Tax Rate: 38%

Production Data

Proved Reserves (Bcfe): 14,254.0

Production Area: US Diversified

Proved Developed Reserves (Bcfe): 8,331.0

Daily Production (MMcfe): 2,480.8

Period Production (Bcfe): 905.5 905.5

Oil, Period Production (Bcfe): 70.8 70.8

Balance Sheet Data

Cash & Cash-Equivalents: 307$Net Value of Derivatives: (62)

Investments in Equity Companies: 404

Total Debt: 12,295

Asset Retirement Obligation: 282

Capital Leases, Pensions & Other: 930

Preferred Stock: 466

Noncontrolling Interests: 897

Equity Research Projections

12/31/2010 12/31/2011 12/31/2012

Bank: DBDate: 02.03.2010

EBITDA: 4,571$ 4,949$ N/A

Plus: Exploration: - - N/A

EBITDAX: 4,571$ 4,949$ N/A

Diluted Shares Calculation

Current Share Price: 23.03$

Common Shares: 651.86


48/75

Restricted Shares: 19.22

Options, Warrants & Other Dilutive: Total Strike Dilution

0.13 3.82$ 0.10

0.26 5.20 0.20

0.12 5.54 0.09

0.42 6.11 0.310.09 6.95 0.06

0.38 7.80 0.25

0.11 8.58 0.07

0.43 10.08 0.24

0.25 13.31 0.11

0.09 19.72 0.01

0.00

0.00

0.00

0.00

0.00

Total Diluted Shares: 672.54

Valuation Metrics

Equity Value: 15,489$

Enterprise Value: 29,710

Beta: 1.15

Valuation Multiples

TTM 12/31/2010 12/31/2011 12/31/2012EV / EBITDA: 6.6 x 6.5 x 6.0 x N/A

EV / EBITDAX: 6.6 x 6.5 x 6.0 x N/A

EV / Proved Reserves: 2.08$ N/A N/A N/A

EV / Daily Production: 11.98$ N/A N/A N/A

Lookup Variables

12/31/2010 EBITDA: 4,571

12/31/2010 EBITDAX: 4,571

12/31/2011 EBITDA: 4,94912/31/2011 EBITDAX: 4,949

12/31/2012 EBITDA: N/A

12/31/2012 EBITDAX: N/A

TTM EV / EBITDA: 6.6 x

TTM EV / EBITDAX: 6.6 x

TTM EV / Proved Reserves: 2.08$


49/75

TTM EV / Daily Production: 11.98$

12/31/2010 EV / EBITDA: 6.5 x

12/31/2010 EV / EBITDAX: 6.5 x

12/31/2011 EV / EBITDA: 6.0 x

12/31/2011 EV / EBITDAX: 6.0 x

12/31/2012 EV / EBITDA: N/A

12/31/2012 EV / EBITDAX: N/A

Proved Developed / Total Proved: 58.4%

Oil Mix %: 7.8%

R / P Ratio: 15.7


50/75


51/75

3.83

Total Strike Dilution

9.48 42.01$ 2.61

0.00

0.00

0.000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

499.00

28,937$

40,880

1.41

Valuation Multiples

TTM 12/31/2010 12/31/2011 12/31/2012 TTM8.8 x 5.8 x 4.6 x N/A 7.9 x

7.1 x 5.0 x 4.1 x N/A 7.6 x

2.96$ N/A N/A N/A 3.33$

11.28$ N/A N/A N/A 16.64$

Lookup Variables

6,992

8,099

8,8019,908

N/A

N/A

8.8 x

7.1 x

2.96$


52/75

11.28$

5.8 x

5.0 x

4.6 x

4.1 x

N/A

N/A

70.5%

30.9%

10.5


53/75

OXY

Occidental Petroleum Corporation Apach

Calendarization Calendarization

New Partial FY TTM Old Partial New Partial FY

4,669$ 4,669$ 326$

3,117 3,117 5,21336 36 105

151 151 104

- - (2)

170 170 -

37 37 242

-$ 8,180$ 8,180$ -$ -$ 5,989$

267 267 -

-$ 8,447$ 8,447$ -$ -$ 5,989$

40%

Production Data Production Data

19,350.0

International

14,957.0

3,870.0

1,410.0 1,410.0 1,277.4

1,074.0 1,074.0 610.4

Balance Sheet Data Balance Sheet Data

1,230$(339)

1,732

2,796

722

1,419

-

78

Equity Research Projections Equity Research Projections

12/31/2011 12/31/2012 12/31/2010 12/31/2011 12/31/2012

MS01.28.2010

16,176$ 17,681$ 8,264$ 9,694$ N/A

252 287 - - N/A

16,428$ 17,968$ 8,264$ 9,694$ N/A

Diluted Shares Calculation Diluted Shares Calculation

76.00$

811.96


54/75

1.51

Total Strike Dilution Total Strike

2.41 30.40$ 1.45 5.92 72.29$

1.09 24.66 0.73 1.56 216.00

0.00 1.04 162.00

0.00 0.26 81.000.00 0.84 108.00

0.00 0.78 34.68

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

815.64

61,989$

64,381

0.98

Valuation Multiples Valuation Multiples

12/31/2010 12/31/2011 12/31/2012 TTM 12/31/2010 12/31/20115.2 x 4.0 x 3.6 x 6.2 x 4.5 x 3.9 x

5.1 x 3.9 x 3.6 x 6.2 x 4.5 x 3.9 x

N/A N/A N/A 2.63$ N/A N/A

N/A N/A N/A 10.68$ N/A N/A

Lookup Variables Lookup Variables

12,441

12,659

16,17616,428

17,681

17,968

7.9 x

7.6 x

3.33$


55/75

16.64$

5.2 x

5.1 x

4.0 x

3.9 x

3.6 x

3.6 x

77.3%

76.2%

13.7


56/75

APA DVN

e Corporation Devon Energy Corporation

Calendarization

TTM Old Partial New Partial FY TTM

326$ (4,526)$ (4,526)$

5,213 2,108 2,108105 91 91

104 209 209

(2) 121 121

- 6,408 6,408

242 386 386

5,989$ -$ -$ 4,797$ 4,797$

- - -

5,989$ -$ -$ 4,797$ 4,797$

40% 35%

Production Data

14,199.5 16,398.0

International US & Canada

9,813.4 11,532.0

3,499.7 3,830.14

1,277.4 1,398.0 1,398.0

610.4 252.0 252.0

Balance Sheet Data

2,048$ 646$(266) 304

- -

5,068 7,279

1,784 1,513

63 512

- -

- -


12/31/2010 12/31/2011 12/31/2012

WF PCP01.28.2010 11.18.2009

6,364$ 5,613$ N/A

- - N/A

6,364$ 5,613$ N/A


94.63$ 63.89$

336.55 446.80


57/75

1.84 6.17

Dilution Total Strike Dilution

1.40 12.16 59.07$ 0.92

0.00 0.00

0.00 0.00

0.26 0.000.00 0.00

0.78 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

340.82 453.88

32,252$ 28,999$

37,384 37,353

1.19 1.05

Valuation Multiples

12/31/2012 TTM 12/31/2010 12/31/2011 12/31/2012N/A 7.8 x 5.9 x 6.7 x N/A

N/A 7.8 x 5.9 x 6.7 x N/A

N/A 2.28$ N/A N/A N/A

N/A 9.75$ N/A N/A N/A

Lookup Variables

8,264 6,364

8,264 6,364

9,694 5,6139,694 5,613

N/A N/A

N/A N/A

6.2 x 7.8 x

6.2 x 7.8 x

2.63$ 2.28$


58/75

10.68$ 9.75$

4.5 x 5.9 x

4.5 x 5.9 x

3.9 x 6.7 x

3.9 x 6.7 x

N/A N/A

N/A N/A

69.1% 70.3%

47.8% 18.0%

11.1 11.7


59/75

EOG

EOG Resources, Inc.

Calendarization Calenda

Old Partial New Partial FY TTM Old Partial New Partial

971$ 971$

1,549 1,549- -

95 95

(846) (846)

306 306

(535) (535)

-$ -$ 1,540$ 1,540$ -$ -$

221 221

-$ -$ 1,761$ 1,761$ -$ -$

37%

Production Data Producti

10,776.1

US, Canada & Trinidad

5,858.2

2,118.0

773.0 773.0

120.9 120.9

Balance Sheet Data Balance S

686$(65)

41

2,797

456

1

-

-

Equity Research Projections Equity Resear

12/31/2010 12/31/2011 12/31/2012 12/31/2010 12/31/2011

MS01.12.2010

4,028$ 5,092$ N/A 6,738$ 7,328$

347 415 N/A 80 89

4,375$ 5,507$ N/A 6,818$ 7,416$

Diluted Shares Calculation Diluted Share

86.05$

252.58


60/75

3.64

Total Strike Dilution Total

0.48 16.60$ 0.38 18.37

1.43 18.37 1.12 2.60

0.68 23.42 0.50 0.39

2.31 61.94 0.65 0.233.44 82.13 0.16 0.25

0.00 0.25

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

259.02

22,289$

24,882

0.93

Valuation Multiples Valuation

TTM 12/31/2010 12/31/2011 12/31/2012 TTM 12/31/201016.2 x 6.2 x 4.9 x N/A 4.9 x 5.1 x

14.1 x 5.7 x 4.5 x N/A 4.9 x 5.1 x

2.31$ N/A N/A N/A 2.34$ N/A

11.75$ N/A N/A N/A 12.11$ N/A

Lookup Variables Lookup

4,028

4,375

5,0925,507

N/A

N/A

16.2 x

14.1 x

2.31$


61/75

11.75$

6.2 x

5.7 x

4.9 x

4.5 x

N/A

N/A

54.4%

15.6%

13.9


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XTO

XTO Energy Inc.

rization

FY TTM

3,687$ 3,687$

3,079 3,07940 40

137 137

130 130

- -

- -

7,073$ 7,073$

77 77

7,150$ 7,150$

36%

on Data

14,827.3

US Diversified

9,004.9

2,863.6

1,045.2 1,045.2

145.2 145.2

heet Data

9$1,117

-

10,487

783

-

-

-

ch Projections

12/31/2012

N/AN/A

7,943$

97

8,040$

s Calculation

41.49$

583.34


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5.49

Strike Dilution

38.39$ 1.37

20.78 1.30

50.00 0.00

55.00 0.0077.00 0.00

85.00 0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

591.51

24,542$

34,686

1.10

Multiples

12/31/2011 12/31/20124.7 x 4.4 x

4.7 x 4.3 x

N/A N/A

N/A N/A

ariables

6,738

6,818

7,3287,416

7,943

8,040

4.9 x

4.9 x

2.34$


64/75

12.11$

5.1 x

5.1 x

4.7 x

4.7 x

4.4 x

4.3 x

60.7%

13.9%

14.2


65/75

Precedent Transactions - Oil & Gas M&A Deals Worth Over $2 Billion USD with North American-Base

($ in Millions USD Except Per Share, Reserve, and Production Data)

XTO Energy Inc. - Comparable M&A Transactions

Transacti

Announce EquityAcquirer Name Target Name Date Value

(1)

Suncor Energy Inc. Petro-Canada 3/23/2009 15,515$

Denbury Resources Inc. Encore Acquisition Company 11/3/2009 2,875

Petrobank Energy and Resources Ltd. TriStar Oil & Gas Ltd. 8/5/2009 2,112

Shell Canada Limited Duvernay Oil Corp. 7/14/2008 5,193

XTO Energy Inc. Hunt Petroleum Corp. 6/10/2008 4,186

Maximum 15,515$

75th Percentile 5,193

Median 4,186$

25th Percentile 2,875

Minimum 2,112

(1) Valuation as of announcement date, assuming per-share offer price from acquirer.

(2) Enterprise Value defined as Equity Value less Cash & Cash Equivalents, less Net Value of Derivatives,

Obligation, plus Capital Leases, plus Unfunded Pension Obligations, plus Preferred Stock, plus Noncontr

(3) Oil Mix % Based on TTM Production Data rather than Reserves.

(4) EBITDAX defined as Operating Income plus DD&A, plus Asset Retirement Accretion, plus Stock-Base

Other One-Time and Restructuring Charges, plus Exploration Expense.


66/75

Sellers Since 1/1/2008

Operating Metrics - TTM:

on Value Proved R / P Proved Daily

Enterprise Production Developed Oil Ratio Reserves ProductionValue

(2)Areas / Proved Mix %

(3)(Years) EBITDAX

(4)(Bcfe) (MMcfe)

19,407$ Canada 54.0% 71.9% 8.4 7,477$ 7,716.0 2,508.2

4,419 US Diversified 80.1% 65.4% 12.1 518 1,114.2 259.4

2,478 Canada 74.0% 72.9% 6.9 210 316.0 122.4

5,696 Canada 50.2% 10.7% 9.8 267 467.7 144.6

4,480 US Diversified 62.0% N/A N/A 1,200 1,052.0 261.8

19,407$ 80.1% 72.9% 12.1 7,477$ 7,716$ 2,508$

5,696 74.0% 72.2% 10.4 1,200 1,114 262

4,480$ 62.0% 68.7% 9.1 518$ 1,052$ 259$

4,419 54.0% 51.7% 8.0 267 468 145

2,478 50.2% 10.7% 6.9 210 316 122

less Investments in Equity Companies, plus Total Debt, plus Asset Retirement

olling Interests.

d Compensation, plus Non-Cash Derivative Losses, plus Impairment Charges, plus


67/75

Transaction Valuation Multiples:

Proved DailyEBITDAX

(4)Reserves Production

2.6 x 2.52$ 7.74$

8.5 x 3.97 17.04

11.8 x 7.84 20.24

21.3 x 12.18 39.39

3.7 x 4.26 17.11

21.3 x 12.18$ 39.39$

11.8 x 7.84 20.24

8.5 x 4.26 17.11

3.7 x 3.97 17.04

2.6 x 2.52 7.74


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TSX:PCA

Petro-Canada

Suncor Energy Inc.

Calendarization

Interim Period: 12/31/2008

FY Ends: 12/31/2008Old Partial New Partial FY TTM

Operating Income: 5,753$ 5,753$

Plus: DD&A: 2,155 2,155

Plus: Asset Retirement Accretion: 79 79

Plus: Stock-Based Compensation: - -

Plus: Non-Cash Derivative Losses: - -

Plus: Impairment Charge: - -

Plus: Other One-Time Charges: 706 706

EBITDA: 8,693$ 8,693$

Plus: Exploration: 587 587

EBITDAX: 9,280$ 9,280$

Production Data

Proved Reserves (Bcfe): 7,716.0

Production Areas: Canada

Proved Developed Reserves (Bcfe): 4,166.6

Daily Production (MMcfe): 2,508.2

Period Production (Bcfe): 918.0 918.0

Oil, Period Production (Bcfe): 660.0 660.0

Balance Sheet DataCash & Cash-Equivalents: 1,445$

Net Value of Derivatives: -

Investments in Equity Companies: -

Total Debt: 4,749

Asset Retirement Obligation: 1,527

Capital Leases, Pensions & Other: -

Preferred Stock: -

Noncontrolling Interests: -


N/A N/A N/ABank: N/A

Date: N/A

EBITDA: N/A N/A N/A

Plus: Exploration: N/A N/A N/A

EBITDAX: N/A N/A N/A


Announcement Date: 3/23/2009


69/75

FX Exchange Rate: 0.8057

Offer Price Per Share: 39.55$

Common Shares: 484.60

Restricted Shares: -

Options, Warrants & Other Dilutive: Total Strike Dilution

22.13 37.00$ 1.430.83 0.83

7.21 46.00 0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Total Diluted Shares: 486.85

Transaction Valuation Metrics

Equity Value: 19,256$

Enterprise Value: 24,087

Valuation Multiples

TTM N/A N/A N/A

EV / EBITDA: 2.8 x N/A N/A N/A

EV / EBITDAX: 2.6 x N/A N/A N/A

EV / Proved Reserves: 3.12$ N/A N/A N/A

EV / Daily Production: 9.60$ N/A N/A N/A

Lookup Variables

TTM EV / EBITDA: 2.8 x

TTM EV / EBITDAX: 2.6 xTTM EV / Proved Reserves: 3.12$

TTM EV / Daily Production: 9.60$

Proved Developed / Total Proved: 54.0%

Oil Mix %: 71.9%

R / P Ratio: 8.4


70/75

EAC

Encore Acquisition Company

Denbury Resources Inc.

Calendarization

Interim Period: 9/30/2009 Interim Period:

FY Ends: 12/31/2008 FY Ends:Old Partial New Partial FY TTM Old Partial

388$ (39)$ 796$ 369$ (42)$

159 217 228 286 118

- - - - -

10 10 14 14 3

38 106 (300) (232) 129

26 - 60 33 -

0 (1) (4) (4) 7

622$ 293$ 794$ 465$ 215$

30 44 39 53 -

652$ 337$ 834$ 518$ 215$

Production Data

1,114.2

US Diversified

892.8

259.4

63.6 69.1 86.7 92.2 21.7

44.7 44.7 60.3 60.3 15.7

Balance Sheet Data7$

23

-

1,243

54

1

-

275


N/A N/A N/A N/AN/A

N/A

N/A N/A N/A N/A

N/A N/A N/A N/A

N/A N/A N/A N/A


11/3/2009


71/75

1.0000

50.00$

55.54

0.92

Total Strike Dilution

1.73 19.85$ 1.040.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

57.51


2,875$

4,419

Valuation Multiples

TTM N/A N/A N/A TTM

9.5 x N/A N/A N/A 11.8 x

8.5 x N/A N/A N/A 11.8 x

3.97$ N/A N/A N/A 8.38$

17.04$ N/A N/A N/A 21.63$

Lookup Variables

9.5 x

8.5 x3.97$

17.04$

80.1%

65.4%

12.1


72/75

TS

TriStar Oil & Gas Ltd. Duve

Petrobank Energy and Resources Ltd. Shell C

Calendarization Calendarization

6/30/2009 Interim Period:

12/31/2008 FY Ends:New Partial FY TTM Old Partial New Partial FY

(78)$ 158$ 122$ 16$ (17)$ 61$

119 246 247 39 47 158

- - - - - -

5 7 9 2 3 9

37 (73) (166) 7 41 10

- - - - - -

5 13 11 4 6 21

87$ 352$ 224$ 68$ 79$ 259$

- - - - - -

87$ 352$ 224$ 68$ 79$ 259$

Production Data Production Data

316.0

Canada

233.8

122.4

22.4 45.2 45.9 11.3 13.2 45.9

17.7 31.5 33.5 1.2 1.3 5.0

Balance Sheet Data Balance Sheet Data-$

(0)

-

348

42

-

-

-

Equity Research Projections Equity Research Projections

N/A N/A N/A N/A N/AN/A

N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

Diluted Shares Calculation Diluted Shares Calculation

8/5/2009


73/75

0.9357

14.75$

152.04

-

Total Strike Dilution Total Strike

4.24 11.23$ 1.01 5.42 29.30$0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

153.05

ransaction Valuation Metrics Transaction Valuation Metrics

2,257$

2,648

Valuation Multiples Valuation Multiples

N/A N/A N/A TTM N/A N/A

N/A N/A N/A 21.3 x N/A N/A

N/A N/A N/A 21.3 x N/A N/A

N/A N/A N/A 12.30$ N/A N/A

N/A N/A N/A 39.77$ N/A N/A

Lookup Variables Lookup Variables

11.8 x

11.8 x8.38$

21.63$

74.0%

72.9%

6.9


74/75

DUV HNT

nay Oil Corp. Hunt Petroleum Corp.

nada Limited XTO Energy Inc.

Calendarization

3/31/2008 Interim Period: 6/30/2008

12/31/2007 FY Ends: 12/31/2007TTM Old Partial New Partial FY TTM

28$ N/A N/A N/A N/A

165 N/A N/A N/A N/A

- N/A N/A N/A N/A

10 N/A N/A N/A N/A

44 N/A N/A N/A N/A

- N/A N/A N/A N/A

23 N/A N/A N/A N/A

270$ N/A N/A N/A 1,200$

- N/A N/A N/A N/A

270$ N/A N/A N/A 1,200$

Production Data

467.7 1,052.0

Canada US Diversified

234.6 652.2

144.6 261.8

47.8 -

5.1 -

Balance Sheet Data-$ 198$

(42) -

15 -

464 337

16 155

- -

- -

- -


N/A N/A N/AN/A N/A

N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A


7/14/2008 6/10/2008


75/75

0.9904 1.0000

83.00$

59.67

-

Dilution Total Strike Dilution

3.51 0.000.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

63.18 0.00


5,244$ 4,186$

5,751 4,480

Valuation Multiples

N/A TTM N/A N/A N/A

N/A 3.7 x N/A N/A N/A

N/A 3.7 x N/A N/A N/A

N/A 4.26$ N/A N/A N/A

N/A 17.11$ N/A N/A N/A

Lookup Variables

21.3 x 3.7 x

72 11 NAV Part 4 Share Prices After

Documents

Transcript of 72 11 NAV Part 4 Share Prices After