Input and Assumptions - XTO Energy Inc.

and Exxon Mobil Corporation

Seller Name:
Seller Ticker:
Last Historical Year:
Valuation Date:

XTO Energy Inc.

XTO
12/31/2009
12/11/2009

Month Multiplier:
Bbl to Mcf Conversion Factor:
Conversion Units:

29
6
1000

Circularity:

Yes

Buyer Name:
Buyer Ticker:
Merger Close Date:
LBO Close Date:

Exxon Mobil Corporation

XOM
12/31/2009
12/31/2009

Blue indicates hard-coded numbers and inputs.

Black indicates formulas and text.
Green indicates links from other worksheets.
Circularity Breaker:

No

Seller Share, EV, and Cash Information:

Common Shares Outstanding:
Current Share Price ($ as Stated);
Seller Minimum Cash ($MM):

Type:
Options
RSU
Performance Shares A
Performance Shares B
Performance Shares C
Performance Shares D
Warrants

Number:
18.366
5.493
0.390
0.228
0.245
0.245
2.600

$
$

Exercise
Price:
$
38.39
$
$
$
$
$

Dilution:
1.372
5.493
1.298

50.00
55.00
77.00
85.00
20.78

Diluted Shares:
Buyer - Current Share Price:
Buyer - Minimum Cash Balance:

583.3
41.49
2

Resource Price Case:

Enterprise Value Calculation:

Equity Value:
Less: Cash & Cash-Equivalents:
Less: Net Value of Hedges:
Plus: Debt:
Plus: Asset Retirement Obligation:
Plus: Preferred Stock:
Plus: Noncontrolling Interests:
Enterprise Value:

591.5
$
$

72.83
5,000

Labels for Valuation - XTO Energy Inc. and Exxon Mobil Corporation
Trailing Twelve Months Label:
Forward Year 1:
Forward Year 2:
Forward Year 3:
Public Company Comparables:

TTM
12/31/2010
12/31/2011
12/31/2012
Precedent Transactions:

5
1
2
3
4
5

NAV
Base
Downside
Upside
DCF
NAV

24,542
(9)
(1,117)
10,487
783
34,686

Gas
Oil / NGL
$ per Mcf
$ per Bbl
$
7.00 $
75.00
$
7.00 $
75.00
4.00
50.00
10.00
100.00
7.00
75.00
7.00
75.00

Oil / Gas
Hedged
Price %
110.0%
110.0%
150.0%
90.0%
110.0%
110.0%

Company Name
Share Price
Equity Value
Enterprise Value
TTM EBITDA
Forward Year 1 EBITDA
Forward Year 2 EBITDA
TTM EBITDAX
Forward Year 1 EBITDAX
Forward Year 2 EBITDAX
Production Areas
Proved Reserves
Daily Production
Proved Developed / Total Proved:
Oil Mix %:
R / P Ratio:
TTM Proved Reserves Multiple
TTM Daily Production Multiple
TTM EBITDA Multiple
Forward Year 1 EBITDA Multiple
Forward Year 2 EBITDA Multiple
TTM EBITDAX Multiple
Forward Year 1 EBITDAX Multiple
Forward Year 2 EBITDAX Multiple
Levered Beta
Debt
Tax Rate

2
45
69
70
12
82
85
14
83
86
20
19
22
105
106
107
93
94
91
96
99
92
97
100
71
30
16

Acquirer Name
Target Name
Announcement Date
Offer Price
FX Exchange Rate
Equity Value
Enterprise Value
TTM EBITDA
TTM EBITDAX
Production Areas
Proved Reserves
Daily Production
Proved Developed / Total Proved:
Oil Mix %:
R / P Ratio:
TTM EBITDA Multiple
TTM EBITDAX Multiple
TTM Proved Reserves Multiple
TTM Daily Production Multiple

3
2
46
48
47
72
73
15
17
21
20
23
89
90
91
84
85
86
87

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):
Revenue:
EBITDAX:
Operating Income (EBIT):

3,150.0
$

Less: Taxes
Plus: DD&A
Plus: Asset Retirement Accretion
Plus: Stock-Based Compensation
Plus: Dry Hole Expense
Plus: Deferred Income Tax
Plus: Non-Cash Derivative Losses
Plus: Other Non-Cash Items
Working Capital (Increase) / Decrease:
Less: Capital Expenditures:
Unlevered Free Cash Flow
Present Value of Free Cash Flow
Normal Discount Period:
Mid-Year Discount:
Free Cash Flow Growth Rate:

$
$

8,935 $
6,818
3,097

3,465.0
9,818 $
7,416
3,323

3,799.5

4,084.4

10,762 $
8,040
3,541

11,529
8,524
3,373

(1,131)

(1,213)

(1,293)

(1,231)

3,449
57
129
26
765
5
-

3,794
63
142
29
821
5
-

4,172
70
156
32
875
5
-

4,771
89
167
39
834
5
-

682
(5,165)

153
(5,818)

174
(6,397)

291
(7,454)

1,917 $
1,828 $

1,300 $
1,127 $

1,335 $
1,052 $

1.000
0.500

2.000
1.500

3.000
2.500

4.000
3.500

(32.2%)

2.6%

(33.8%)

883
633

Natural Gas
Prices ($ Per Mcf)

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
41.62
7.00
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%

Terminal
EBITDAX
Multiples

7.0 x $
6.0 x
5.0 x
4.0 x
3.0 x
2.0 x

54.86 $
54.86
54.86
54.86
54.86
54.86

51.91 $
51.91
51.91
51.91
51.91
51.91

49.15 $
49.15
49.15
49.15
49.15
49.15

46.51 $
46.51
46.51
46.51
46.51
46.51

44.00 $
44.00
44.00
44.00
44.00
44.00

41.62
41.62
41.62
41.62
41.62
41.62

Terminal Daily
Production
Multiples

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

XTO Energy Inc. - DCF Assumptions & Share Price Calculations

12/31/2014
4,390.7
$

12,386
9,141
3,604

DCF-Specific Prices:

(1,316)

Use Multiples Method?

Use WACC for Discount Rate?
Multiple Selection:
(1 = EBITDAX, 2 = Daily Production)

5,128
96
179
42
891
5
144
(8,173)
$
$

600
391
5.000
4.500
(32.1%)

Gas
Oil / NGL
$ per Mcf
$ per Bbl
$
7.00 $
75.00

13.0%
39.36
39.36
39.36
39.36
39.36
39.36

13.0%

Price Cased Used in DCF:

Hedged
Price %
110.0%
NAV
Yes
No
2

Standard O&G Discount:

Discount Rate:

10.0%
10.0%

Terminal EBITDAX Multiple:

Terminal Daily Production Multiple:
Baseline Terminal Growth Rate:
Terminal Value:
Present Value of Terminal Value:
Sum of PV of Free Cash Flows:
Enterprise Value:
Balance Sheet Adjustments:
Implied Equity Value:
Diluted Shares Outstanding:
Implied Share Price:
Type:
Options
RSU
Performance Shares A
Performance Shares B
Performance Shares C
Performance Shares D
Warrants

Exercise
Number:
Price:
18.366 $
38.39
5.493
0.390
50.00
0.228
55.00
0.245
77.00
0.245
85.00
2.600
20.78

5.0 x
12.00
0.0%
52,689

32,716
5,030
37,745
(10,144)
27,601

593.5
46.51

Dilution:
3.206
5.493
1.438

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

WACC Analysis - XTO Energy Inc.

($ in Millions Except Per Share Data)
Discount Rate Calculation - Assumptions
Risk-Free Rate:
Equity Risk Premium:
Interest Rate on Debt:

4.39%
7.00%
5.39%

Comparable Companies - Unlevered Beta Calculation

Levered
Name
Beta
Chesapeake Energy Corporation
1.15 $
Anadarko Petroleum
1.41
Occidental Petroleum Corporation
0.98
Apache Corporation
1.19
Devon Energy Corporation
1.05
EOG Resources, Inc.
0.93

Debt
12,295
12,748
2,796
5,068
7,279
2,797

Equity
Value
$ 15,489
28,937
61,989
32,252
28,999
22,289

Tax Rate
38%
40%
40%
40%
35%
37%

Median
XTO Energy Inc.

0.93
1.10

XTO Energy Inc. - Levered Beta & WACC Calculation

Unlevered
Beta
XTO Energy Inc.
Cost of Equity Based on Comparables:
Cost of Equity Based on Historical Beta:
WACC

Unlevered
Beta
0.77
1.12
0.95
1.09
0.90
0.86

Debt

Equity
Value

0.93 $ 10,487 $ 24,542

Tax Rate
36%

Levered
Beta
1.18
12.66%
12.09%
9.90%

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:
Natural Gas (Bcf):
Natural Gas Liquids (MBbls):
Oil (MBbls):
Natural Gas Equivalents (Bcfe):

12,502
93
294
14,827

Future Estimated Development Costs:

Development Years

Year #
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Beginning
Reserves
(Bcf)
12,502
11,561
10,527
9,385
8,162
6,847
5,598
4,411
3,283
2,212
1,194
228
-

8,484
5

Natural Gas
Annual
Avg.
Production
Price
(Bcf)
$ / Mcf
941 $
6.84
1,035
6.84
1,141
6.84
1,223
6.84
1,315
6.84
1,249
6.84
1,187
6.84
1,128
6.84
1,071
6.84
1,018
6.84
967
6.84
228
6.84
6.84
6.84
6.84
6.84
6.84
6.84
6.84
6.84
6.84

Present Value of Cash Flows from Proved Reserves:

US - Texas:

Discount Rate:

Natural Gas Liquid

Beginning
Reserves
(MBbls)
93
85
76
66
55
44
33
22
12
3
-

45,520

Undeveloped Acres (Property Values in $ Millions USD):

Region:

Long-Term Production Decli

Natural Gas:
Natural Gas Liquids:
Oil:

Acres:
$ / Acre:
Value:
281,000 $
1,500 $
422

Other Business Segments:

Chemicals
12/31/2009 EBITDA:

US - Oklahoma:
US - New Mexico:
US - Arkansas:
US - Montana:
US - Utah:
US - Louisiana:
US - North Dakota:
US - Kansas:
US - West Virginia:
US - Pennsylvania:
US - Wyoming:
US - Colorado:
US - Other:
US - Offshore:
North Sea - Offshore:
Total:

176,000
21,000
216,000
92,000
84,000
39,000
191,000
58,000
119,000
13,000
2,000
76,000
45,000
133,000
1,546,000

500
300
700
500
400
700
500
500
600
1,200
400
500
300
400
600

Enterprise Value:
Balance Sheet Adjustments:
Implied Equity Value:

EV/EBITDA Multiple:
Estimated EV:

46,694
(10,144)
$ 36,550

Diluted Shares Outstanding:

Implied Share Price:
Type:
Options
RSU
Performance Shares A
Performance Shares B
Performance Shares C
Performance Shares D
Warrants

88
6
151
46
34
27
96
35
143
5
1
23
18
80
1,174

$
Exercise
Number:
Price:
18.366 $
38.39
5.493
0.390
50.00
0.228
55.00
0.245
77.00
0.245
85.00
2.600
20.78

598.0
61.12

Dilution:
6.830
5.493
0.390
0.228
1.716

Natural Gas
Prices ($ Per Mcf)

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
54.45
6.00
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

atural Gas
es ($ Per Mcf)

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

Natural Gas
Prices ($ Per Mcf)

8.00
7.00
6.00
5.00
4.00

61.28
54.86
48.45
42.01
35.48

58.18
51.91
45.66
39.37
32.91

55.24
49.15
43.01
36.82
30.49

52.48
46.51
40.51
34.38
28.20

49.86
44.00
38.13
32.08
26.03

47.35
41.62
35.81
29.90
23.98

ong-Term Production Decline:

Natural Gas:
(5.0%)
Natural Gas Liquids:
(5.0%)
(5.0%)

Resource Prices for NAV:

Gas
Oil / NGL
$ per Mcf
$ per Bbl
$
7.00 $
75.00

Price Cased Used in NAV:

Discount Rate:

Hedged
Price %
110.0%

NAV

10.0%

Natural Gas Liquids

Annual
Avg.
Production
Price
(MBbls)
$ / Bbl
8 $
41.94
9
41.94
10
41.94
11
41.94
12
41.94
11
41.94
10
41.94
10
41.94
9
41.94
3
41.94
41.94
41.94
41.94
41.94
41.94
41.94
41.94
41.94
41.94
41.94
41.94

Beginning
Reserves
(MBbls)
294
268
239
207
173
137
102
69
38
9
-

Oil
Annual
Avg.
Production
Price
(MBbls)
$ / Bbl
27 $
76.79
29
76.79
32
76.79
34
76.79
36
76.79
35
76.79
33
76.79
31
76.79
30
76.79
9
76.79
76.79
76.79
76.79
76.79
76.79
76.79
76.79
76.79
76.79
76.79
76.79

Revenue ($ in Millions)
Natural
Total
Gas
Oil & NGL
Revenue
$
6,438 $
2,390 $
8,828
7,081
2,629
9,711
7,811
2,844
10,655
8,374
3,049
11,422
9,002
3,277
12,279
8,552
3,113
11,665
8,124
2,958
11,082
7,718
2,810
10,528
7,332
2,669
10,001
6,965
776
7,742
6,617
6,617
1,558
1,558
-

Other Business Segments:

Chemicals
12/31/2009 EBITDA:

N/A

Midstream
12/31/2009 EBITDA:

N/A

Downstream
12/31/2009 EBITDA:

N/A

EV/EBITDA Multiple:
stimated EV:

N/A
N/A

13.0%
14.0%
$
69.47 $
65.90
60.45
57.26
51.44
48.66
42.44
40.01
33.25
31.14
23.94
22.22

d on Daily Production
13.0%
$
50.55

EV/EBITDA Multiple:
Estimated EV:

N/A
N/A

EV/EBITDA Multiple:
Estimated EV:

N/A
N/A

44.97
39.36
33.61
27.83
22.04

Production & Development Expenses:

Total
Total
Annual
Production Production Development
Bcfe
Per Mcfe
Expenses
Expenses
1,150 $
0.95 $
1,092 $
1,697
1,265
0.95
1,201
1,697
1,391
1.00
1,391
1,697
1,491
1.00
1,491
1,697
1,603
1.00
1,603
1,697
1,522
1.00
1,522
1,446
1.00
1,446
1,374
1.00
1,374
1,305
1.00
1,305
1,086
1.00
1,086
967
1.00
967
228
1.00
228
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
-

Cash Flows ($ in Millions)

Pre-Tax
Cash Flows
$
6,039
6,812
7,567
8,235
8,980
10,143
9,636
9,154
8,696
6,655
5,650
1,331
-

Cash
After-Tax
Tax Rate Cash Flows
11.8% $
5,327
11.8%
6,009
11.8%
6,675
11.8%
7,264
11.8%
7,921
11.8%
8,947
11.8%
8,499
11.8%
8,075
11.8%
7,671
11.8%
5,871
11.8%
4,984
11.8%
1,174
11.8%
11.8%
11.8%
11.8%
11.8%
11.8%
11.8%
11.8%
11.8%
-

XTO Energy Inc. - Summary of Financial Statements

($ in Millions Except Per Share Data)
December 31,
Revenue:
Gas & Natural Gas Liquids:
Oil & Condensate:
Gas Gath., Proc. & Marketing:
Other:
Total Revenue:

2005

2006

Historical
2007

2008

2009

2,787 $
670
56
6
3,519

3,490 $
1,002
86
(2)
4,576

4,214 $
1,204
100
(5)
5,513

5,728 $
1,796
168
3
7,695

6,322
2,605
125
12
9,064

Net Income:

1,152 $

1,860 $

1,691 $

1,912 $

2,019

Earnings Per Basic Share:

Earnings Per Diluted Share:
Dividends Per Common Share:

2.57 $
2.52
0.18

4.07 $
4.02
0.25

3.57 $
3.52
0.41

3.58 $
3.54
0.48

3.48
3.46
0.50

Cash Flow from Operations:

Cash Flow from Investing:
Cash Flow from Financing:

2,094
(2,908)
806

2,859
(3,036)
180

3,639
(7,345)
3,701

5,235
(13,006)
7,796

5,954
(4,057)
(1,913)

Net PP&E:
Total Assets:
Total Debt:
Shareholders' Equity:

8,508
9,857
3,109
4,209

10,824
12,885
3,451
5,865

17,200
18,922
6,320
7,941

31,281
38,254
11,959
17,347

31,934
36,255
10,487
17,326

EBITDA:
EBITDAX:

2,615
2,639

3,587
3,609

4,209
4,261

5,790
5,878

7,073
7,150

XTO Energy Inc. - Production and Operational Summary

December 31,

2005

2006

Average Daily Production:

Gas (MMcf):
Natural Gas Liquids (MBbls):
Oil (MBbls):
Total Daily MMcfe:

1,033.1
10.4
39.1
1,330.1

1,186.3
11.9
45.0
1,527.7

485

558

Total Annual Production (Bcfe):

Average Realized Sale Prices After Hedging:

Gas ($ Per Mcf):
$
7.38 $
Natural Gas Liquids ($ Per Bbl):
34.10
Oil ($ Per Bbl):
52.58

Historical
2007

6.26 $
37.03
60.79

2008

2009

1,457.8
13.5
47.0
1,821.4

1,905.4
15.6
56.0
2,335.3

2,342.5
20.6
66.3
2,863.6

665

855

1,045

6.26 $
45.37
68.68

8.04 $
52.05
93.17

3.67
30.03
57.10

Annual Production Expenses (per Mcfe):

Production:
$
Taxes, Transportation & Other:
$

0.84 $
0.63 $

0.88 $
0.67 $

Proved Reserves:
Gas (Bcf):
Natural Gas Liquids (MMBbls):
Oil (MBBls):
Total Proved Reserves (Bcfe):
Total Proved Reserves (MMBOE):

6,086
47
209
7,622
1,270

6,944
53
214
8,549
1,425

Reserve Life Ratio (Years):

Proved Reserves % Oil:

15.7
16.4%

15.3
15.0%

0.93 $
0.67 $

9,441
67
241
11,289
1,882
17.0
12.8%

1.10 $
0.82 $

11,803
76
268
13,863
2,310

0.96
0.65

12,502
93
294
14,827
2,471

16.2
11.6%

14.2
11.9%

XTO Energy Inc. - Valuation Multiples

December 31,
EV / EBITDA:
EV / EBITDAX:
EV / Proved Reserves (Bcfe):
EV / Daily Production (MMcfed):

2005

2006

Historical
2007

2008

2009

$
$

4.9 x
4.9 x
2.34
12.11

2010

2011

Projected
2012

2013

2014

6,784 $
2,044
107
8,935

7,462 $
2,248
107
9,818

8,231 $
2,424
107
10,762

8,824 $
2,598
107
11,529

9,486
2,793
107
12,386

1,612 $

1,764 $

1,925 $

1,865 $

2,051

2.70 $
2.68
0.50

2.87 $
2.86
0.50

3.05 $
3.03
0.50

2.88 $
2.86
0.50

3.09
3.07
0.50

6,589
(5,165)
(1,076)

6,637
(5,818)
388

7,282
(6,397)
(521)

7,953
(7,454)
(929)

8,444
(8,173)
(137)

33,623
38,655
9,015
19,464

35,618
41,984
9,015
21,758

37,811
44,677
8,115
24,217

40,455
47,001
6,815
26,620

43,458
50,261
6,315
29,214

6,738
6,818

7,328
7,416

7,943
8,040

8,405
8,524

9,013
9,141

2010

2011

2,576.7
22.6
72.9
3,150.0

2,834.4
24.9
80.2
3,465.0

1,150

6.22 $
41.94
69.81

Projected
2012

2013

2014

3,117.9
27.4
86.2
3,799.5

3,351.7
29.4
92.7
4,084.4

3,603.1
31.6
99.7
4,390.7

1,265

1,391

1,491

1,603

6.22 $
41.94
69.81

6.22 $
41.94
69.81

6.22 $
41.94
69.81

6.22
41.94
69.81

$
$

0.95 $
0.65 $

2010
5.1 x
5.1 x

0.95 $
0.70 $

2011
4.7 x
4.7 x

1.00 $
0.70 $

Projected
2012
4.4 x
4.3 x

1.00 $
0.75 $

2013
4.1 x
4.1 x

1.00
0.75

2014
3.8 x
3.8 x

XTO Energy Inc. - Production Profile

December 31,

2005

2006

Historical
2007

2008

2009

2010

2011

Projected
2012

2013

2014

Days in Year:

365

365

365

366

365

365

365

366

365

365

1,033.1
10.4
39.1
1,330.1

1,186.3
11.9
45.0
1,527.7

1,457.8
13.5
47.0
1,821.4

1,905.4
15.6
56.0
2,335.3

2,342.5
20.6
66.3
2,863.6

2,576.7
22.6
72.9
3,150.0

2,834.4
24.9
80.2
3,465.0

3,117.9
27.4
86.2
3,799.5

3,351.7
29.4
92.7
4,084.4

3,603.1
31.6
99.7
4,390.7

377.1
3.8
14.3
485.5

433.0
4.3
16.4
557.6

532.1
4.9
17.2
664.8

697.4
5.7
20.5
854.7

855.0
7.5
24.2
1,045.2

940.5
8.3
26.6
1,149.7

1,034.6
9.1
29.3
1,264.7

1,141.1
10.0
31.6
1,390.6

1,223.4
10.7
33.8
1,490.8

1,315.1
11.5
36.4
1,602.6

14.8%
13.5%
15.3%

22.9%
14.3%
4.5%

30.7%
15.3%
19.1%

Average Daily Production:

Gas (MMcf):
Natural Gas Liquids (MBbls):
Oil (MBbls):
Total Daily MMcfe:
Total Annual Production:
Gas (Bcf):
Natural Gas Liquids (MMBbls):
Oil (MMBbls):
Total Bcfe:

Average Daily Production Growth / (Decline) Rates:

Gas:
Natural Gas Liquids:
Oil:

22.9%
31.6%
18.3%

10.0%
10.0%
10.0%

10.0%
10.0%
10.0%

10.0%
10.0%
7.5%

7.5%
7.5%
7.5%

7.5%
7.5%
7.5%

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

($ as Stated Except Revenue in Millions)
December 31,
Average NYMEX Prices:
Gas ($ Per Mcf):
Natural Gas Liquids ($ Per Bbl):
Oil ($ Per Bbl):
NYMEX Gas Prices ($ Per Mcf):
Base Case:
Downside Case:
Upside Case:
DCF Case:
NAV Case:
Selected Case:

2005

8.62
56.57
56.57

2006

7.23
66.22
66.22

Historical
2007

6.86
72.39
72.39

2008

9.03
99.75
99.75

2009

3.99
61.82
61.82

NAV

NAV

Average Realized Sale Prices Before Hedging:

Gas ($ Per Mcf):
$
7.38
Natural Gas Liquids ($ Per Bbl):
34.10
Oil ($ Per Bbl):
52.58
Pre-Hedging Price Differential:
Gas:
Natural Gas Liquids:
Oil:

85.6%
60.3%
92.9%

Average Realized Sale Prices After Hedging:

Gas ($ Per Mcf):
$
7.04
Natural Gas Liquids ($ Per Bbl):
34.10
Oil ($ Per Bbl):
47.03

6.26
37.03
60.79

86.6%
55.9%
91.8%

Hedged Prices, % of Pre-Hedged Prices:

Gas:
95.4%
Natural Gas Liquids:
100.0%
Oil:
89.4%

7.69
37.03
60.96

6.26
45.37
68.68

91.3%
62.7%
94.9%

122.8%
100.0%
100.3%

7.50
45.37
70.08

8.04
52.05
93.17

89.0%
52.2%
93.4%

119.8%
100.0%
102.0%

7.81
48.76
87.59

3.67
30.03
57.10

97.1%
93.7%
94.0%

7.13
30.03
107.65

Revenue Growth %:

3,330 $
160
1,002
86
(2)
4,576 $

3,991 $
224
1,203
100
(5)
5,513 $

5,447
279
1,796
168
3
7,693

30.1%

20.5%

39.5%

6,096
225
2,605
125
12
9,064

2014

7.00
75.00
75.00

7.00
75.00
75.00

7.00
75.00
75.00

7.00
75.00
75.00

7.00
4.00
10.00
7.00
7.00
7.00

7.00
4.00
10.00
7.00
7.00
7.00

7.00
4.00
10.00
7.00
7.00
7.00

7.00
4.00
10.00
7.00
7.00
7.00

7.00
4.00
10.00
7.00
7.00
7.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

6.22
41.94
69.81

88.9%
55.9%
93.1%

194.3%
100.0%
188.5%

2013

Hedged Prices, % of Pre-Hedged Prices:

Base Case:
Downside Case:
Upside Case:
DCF Case:
NAV Case:
Selected Case:
NAV
Total Revenue by Segment ($ in Millions):
Gas:
$
2,655
Natural Gas Liquids:
130
Oil and Condensate:
670
Gas Gath., Proc., Marketing:
56
Other:
6
Total Revenue:
$ 3,517

Projected
2012

7.00
75.00
75.00

92.0%
48.6%
92.4%

2011

NYMEX Natural Gas Liquids Prices ($ Per Bbl):

Base Case:
Downside Case:
Upside Case:
DCF Case:
NAV Case:
Selected Case:
NAV
NYMEX Oil Prices ($ Per Bbl):
Base Case:
Downside Case:
Upside Case:
DCF Case:
NAV Case:
Selected Case:

2010

17.8%

6.84
41.94
76.79

6.22
41.94
69.81

88.9%
55.9%
93.1%

6.84
41.94
76.79

6.22
41.94
69.81

88.9%
55.9%
93.1%

6.84
41.94
76.79

6.22
41.94
69.81

75.00
50.00
100.00
75.00
75.00
$ 75.00

75.00
50.00
100.00
75.00
75.00
$ 75.00

88.9%
55.9%
93.1%

6.84
41.94
76.79

6.22
41.94
69.81

88.9%
55.9%
93.1%

6.84
41.94
76.79

110.0%
100.0%
110.0%

110.0%
100.0%
110.0%

110.0%
100.0%
110.0%

110.0%
100.0%
110.0%

110.0%
100.0%
110.0%

110.0%
150.0%
90.0%
110.0%
110.0%
110.0%

110.0%
150.0%
90.0%
110.0%
110.0%
110.0%

110.0%
150.0%
90.0%
110.0%
110.0%
110.0%

110.0%
150.0%
90.0%
110.0%
110.0%
110.0%

110.0%
150.0%
90.0%
110.0%
110.0%
110.0%

6,438
346
2,044
107
8,935

(1.4%)

7,081
381
2,248
107
9,818

7,811
420
2,424
107
$ 10,762

9.9%

8,374
450
2,598
107
$ 11,529

9.6%

9,002
484
2,793
107
$ 12,386

7.1%

7.4%

XTO Energy Inc. - Expense Projections

($ in Millions or Per Mcfe Where Noted):
December 31,

2005

Expenses Per Mcfe of Production ($ as Stated):

Production:
$
0.84
Taxes, Transportation & Other:
0.63
Exploration:
0.05
DD&A:
1.35
Accr. of Asset Retirement Obli.:
0.02
G&A (Exc. Stock-Based Comp.):
0.25
Acquisitions:
2.90
Development & Exploration:
2.69
Other Property Additions:
0.44
Total Expenses Per Mcfe:
$
9.16

2006

Historical
2007

0.88
0.67
0.04
1.57
0.03
0.22
1.10
3.67
0.68
8.86

Total Production-Linked Expenses ($ in Millions):

Production:
$
406 $
Taxes, Transportation & Other:
306
Exploration:
24
DD&A:
655
Accr. of Asset Retirement Obli.:
12
G&A (Exc. Stock-Based Comp.):
121
Acquisitions:
1,407
Development & Exploration:
1,304
Other Property Additions:
214
Total Production-Linked Exp:
$ 4,449 $

491
372
22
875
16
126
616
2,047
379
4,944

Non-Production-Linked Expenses ($ in Millions):

Gas Gathering & Processing:
11
Stock-Based Compensation:
34
Derivative FV (Gain) / Loss:
(13)
Total Non-Prod.-Linked Expense:
$
32 $
Non-Production-Linked Expense Projections:
Gas Gathering & Processing %
Gas Gath., Proc. & Marketing:
19.6%
SBC % Revenue:
1.0%

41
63
(102)
2 $

47.7%
1.4%

2008

0.93
0.67
0.08
1.78
0.03
0.25
6.03
4.01
1.00
14.79

615
444
52
1,187
22
166
4,012
2,668
666
9,832

1.10
0.82
0.10
2.37
0.04
0.25
9.89
4.28
1.07
19.93

942
703
88
2,025
31
212
8,456
3,661
913
$ 17,031

81
65
(11)
135 $

81.0%
1.2%

2009

2010

0.96
0.65
0.07
2.95
0.04
0.21
0.25
3.05
0.58
8.77

999
678
77
3,079
40
219
264
3,190
606
9,152

101
170
(85)
186 $

124
137
24
285

60.1%
2.2%

99.2%
1.5%

2011

0.95
0.65
0.07
3.00
0.05
0.22
0.50
3.39
0.60
9.43

1,092
747
80
3,449
57
253
575
3,900
690
$ 10,844

Projected
2012

0.95
0.70
0.07
3.00
0.05
0.23
0.50
3.50
0.60
9.60

1,201
885
89
3,794
63
291
632
4,427
759
$ 12,141

66
129
(37)
158 $

61.5%
1.4%

2013

1.00
0.70
0.07
3.00
0.05
0.24
0.50
3.50
0.60
9.66

1,391
973
97
4,172
70
334
695
4,867
834
$ 13,433

66
142
(37)
171 $

61.5%
1.4%

2014

1.00
0.75
0.08
3.20
0.06
0.25
0.70
3.60
0.70
10.34

1,491
1,118
119
4,771
89
373
1,044
5,367
1,044
$ 15,415

66
156
(37)
184 $

66
167
(37)
195 $

61.5%
1.4%

61.5%
1.4%

1.00
0.75
0.08
3.20
0.06
0.26
0.70
3.70
0.70
10.45

1,603
1,202
128
5,128
96
417
1,122
5,930
1,122
$ 16,747

66
179
(37)
208

61.5%
1.4%

XTO Energy Inc. - Income Statement

($ in Millions Except Per Share Data)
December 31,
Revenue:
Gas & Natural Gas Liquids:
Oil & Condensate:
Gas Gath., Proc. & Marketing:
Other:
Total Revenue:

2005
$

Expenses:
Production:
Taxes, Transportation & Other:
Exploration:
DD&A:
Accr. of Asset Retirement Obli.:
G&A (Exc. Stock-Based Comp.):
Gas Gathering & Processing:
Stock-Based Compensation:
Derivative FV (Gain) / Loss:
Total Expenses:
Operating Income:

Other (Income) / Expense:

Gain on Royalty Trusts:
Net Interest Expense:
Total Other (Income) / Exp.:
Pre-Tax Income:
Income Tax Expense:
Current:
Deferred:
Total Income Tax Exp.:

Historical
2007

2008

2009

2,787 $
670
56
6
3,519

3,490 $
1,002
86
(2)
4,576

4,214 $
1,204
100
(5)
5,513

5,728 $
1,796
168
3
7,695

6,322
2,605
125
12
9,064

406
306
24
655
12
121
11
34
(13)
1,556

491
372
22
875
16
126
41
63
(102)
1,904

615
444
52
1,187
22
166
81
65
(11)
2,621

942
703
88
2,025
31
212
101
170
(85)
4,187

999
678
77
3,079
40
219
124
137
24
5,377

1,963 $

2,672 $

2,892 $

3,508 $

3,687

153
153
$

2006

1,810 $

243
415
658

(469)
180
(289)
2,961 $

572
529
1,101

250
250
2,642 $

292
659
951

482
482

524
524

3,026 $

3,163

140
974
1,114

333
811
1,144

Net Income:
Attributable to Participating:
Net Income Used in EPS:

1,152 $
N/A
N/A

1,860 $
N/A
N/A $

1,691 $
(4)
1,687 $

1,912 $
(10)
1,902 $

2,019
(16)
2,003

Earnings Per Basic Share:

Earnings Per Diluted Share:
Dividends Per Common Share:

2.57 $
2.52
0.18

4.07 $
4.02
0.25

3.57 $
3.52
0.41

3.58 $
3.54
0.48

3.48
3.46
0.50

Average Basic Shares:

448.1

456.1

471.9

531.6

575.6

Average Diluted Shares:

457.0

462.2

479.2

XTO Energy Inc. - Non-Cash and One-Time Expenses, EBITDA, and EBITDAX
($ in Millions)
Historical
December 31,
2005
2006
2007
Operating Income:
Plus: Non-Cash Deriv. Change:
Plus: Impairment Charge:
Plus: Gain on Prop. Exchange:
Plus: DD&A:
Plus: Asset Retirement Accr.:
Plus: Stock-Based Comp.:
EBITDA:
Plus: Exploration:
EBITDAX:

$
$

1,963 $
(39)
(10)
655
12
34
2,615 $
24
2,639 $

2,672 $
(39)
875
16
63
3,587 $
22
3,609 $

2,892 $
43
1,187
22
65
4,209 $
52
4,261 $

537.5

2008
3,508 $
(72)
128
2,025
31
170
5,790 $
88
5,878 $

579.4

2009
3,687
130
3,079
40
137
7,073
77
7,150

XTO Energy Inc. - Tax Rate Projections

December 31,
Income Tax %:
Current:
Deferred:

2005
13.4%
22.9%

2006

Historical
2007

19.3%
17.9%

11.1%
24.9%

2008
4.6%
32.2%

2009
10.5%
25.6%

XTO Energy Inc. - Balance Sheet

($ in Millions)
December 31,
Assets:
Current Assets:
Cash & Cash-Equivalents:
Accounts Receivable, Net:
Derivative Fair Value:
Current Inc. Tax Receivable:
Deferred Inc. Tax Benefit:
Other:
Total Current Assets:
PP&E:
Proved Properties:
Unproved Properties:
Other:
Total PP&E:
Accumulated DD&A:
Net PP&E:

2005

2 $
644
193
35
69
943

9,979
283
278
10,540
(2,032)
8,508

2006

Historical
2007

5 $
656
804
66
54
1,585

12,369
414
799
13,582
(2,758)
10,824

- $
852
199
118
20
98
1,287

18,671
1,050
1,376
21,097
(3,897)
17,200

2008

25 $
1,217
2,735
57
224
4,258

30,994
3,907
2,239
37,140
(5,859)
31,281

2009

9
965
1,222
170
182
2,548

34,180
3,691
2,810
40,681
(8,747)
31,934

Derivative Fair Value:

Net Gas Gathering Contracts:
Goodwill:
Other:
Total Other Assets:
Total Assets:

1
132
213
60
406
$

Liabilities & Shareholders' Equity:

Current Liabilities:
Accounts Payable:
$
Payable to Royalty Trusts:
Derivative Fair Value:
Deferred Income Taxes:
Other:
Total Current Liabilities:

56
121
215
84
476

112
215
108
435

1,023
105
1,447
140
2,715

68
97
1,475
133
1,773

9,857 $

12,885 $

18,922 $

38,254 $

36,255

739 $
13
90
38
4
884

912 $
23
37
263
5
1,240

1,264 $
30
239
4
1,537

1,912 $
13
35
940
30
2,930

1,482
28
167
342
32
2,051

Total Debt:
Derivative Fair Value:
Deferred Income Taxes:
Asset Retirement Obligation:
Other:
Total Long-Term Liabilities:

3,109
1,390
219
46
4,764

3,451
1
1,978
303
47
5,780

6,320
4
2,610
450
60
9,444

11,959
5,200
735
83
17,977

10,487
6
5,522
783
80
16,878

Stockholders' Equity:
Common Stock & APIC:
Treasury Stock:
Retained Earnings:
Accum. Other Comp. Inc.:
Total Stockholders' Equity:

1,869
(39)
2,311
68
4,209 $

2,062
(125)
3,442
486
5,865 $

3,177
(134)
4,938
(40)
7,941 $

8,321
(147)
6,588
2,585
17,347 $

8,477
(177)
8,317
709
17,326

Total Liabilities & SE:

9,857 $

12,885 $

18,922 $

38,254 $

36,255

OK!

OK!

OK!

OK!

Balance Check:

OK!

XTO Energy Inc. - Cash Flow Statement

($ in Millions)
December 31,
Operating Activities:
Net Income:
Adjustments to NI:
DD&A:
Accr. of Asset Retirement Obli.:
Stock-Based Compensation:
Dry Hole Expense:

2005
$

1,152 $
655
12
34
-

2006

Historical
2007

1,860 $
875
16
63
9

2008

2009

1,691 $

1,912 $

2,019

1,187
22
65
21

2,025
31
170
22

3,079
40
137
44

Deferred Income Tax:

Gain on Royalty Trusts:
Gain on Debt Extinguish.:
Non-Cash Deriv. (Gain) / Loss:
Other Non-Cash Items:
Other Changes:
Changes in Working Capital:
Cash Flow from Operations:

415
(39)
23
(158)
2,094

529
(469)
(39)
10
5
2,859

659
43
23
(72)
3,639

974
(72)
2
171
5,235

811
(17)
130
(24)
(265)
5,954

Investing Activities:
Proceeds from Sale of PP&E:
Acquisitions:
Development & Exploration:
Other Property Additions:
Cash Flow from Investing:

17
(1,407)
(1,304)
(214)
(2,908)

6
(616)
(2,047)
(379)
(3,036)

1
(4,012)
(2,668)
(666)
(7,345)

24
(8,456)
(3,661)
(913)
(13,006)

3
(264)
(3,190)
(606)
(4,057)

Financing Activities:
Historical Debt Proceeds:
Historical Debt Payments:
Common Stock Proceeds:
Dividends:
Senior Note and Debt Costs:
Option and Warr. Proceeds:
Stock Option Exer. Payments:
Stock Option Tax Benefits:
Treas. Stock Purch. & Other:
Cash Flow from Financing:

3,825
(2,977)
(67)
(5)
73
(20)
(23)
806

5,719
(5,377)
(109)
(9)
24
(46)
50
(72)
180

7,293
(4,433)
1,009
(170)
(18)
33
(57)
57
(13)
3,701

19,560
(14,250)
2,612
(250)
(32)
23
(70)
64
139
7,796

7,730
(9,183)
(287)
(2)
23
(23)
20
(191)
(1,913)

Revolver Borrowing:
Cash Used for Debt Repayment:
Cash Increase / (Decrease):
Beginning Cash:
Ending Cash:

(8) $
10
2 $

3 $
2
5 $

(5) $
5
- $

25 $
25 $

(16)
25
9

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

December 31,
Accounts Receivable % Revenue:
Accounts Payable % Expenses:
Dry Hole % Total Exploration:
XTO Energy Inc. - Debt Schedules
($ in Millions)

2005

2006

Historical
2007

2008

2009

18.3%
47.5%

14.3%
47.9%

15.5%
48.2%

15.8%
45.7%

10.6%
27.6%

0.0%

40.9%

40.4%

25.0%

57.1%

Historical
2009

December 31,
Maximum Revolver Borrowing:
Numerical Year:
LIBOR Curve:
Interest Income:
Effective Cash Interest Rate:

2,840

1.0

3.0

17.0

13.0

End of Year Debt Amounts:

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 - M
Senior Notes - N
Senior Notes - O
Senior Notes - P
Net Discount on Senior Notes:
Total Debt:

Interest Rate Assumptions:

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

1.0

LIBOR +
0.40%
0.50%
0.50%

Fixed
Interest

5.00%
7.50%
5.90%
6.25%
4.63%
5.75%
4.90%
5.00%
5.30%

622
500
100
250
350
550
400
400
500
500
348
400
400
735
773
1,000
591
1,399
704
(35)
10,487

Senior Notes - J
Senior Notes - K
Senior Notes - L
Senior Notes - M
Senior Notes - N
Senior Notes - O
Senior Notes - P
Undrawn Revolver Commitment Fee:
Interest Increase If > 50.0% of Revolver Utilized:
Revolver % Drawn:

50.00%

5.65%
6.25%
5.50%
6.50%
6.10%
6.75%
6.38%
0.09%
0.05%

Yearly
Amort.
Prepay
%:
Allowed?
0.0%
Yes
10.0%
Yes
10.0%
Yes
0.0%
No
0.0%
No
0.0%
No
0.0%
No
0.0%
No
0.0%
No
0.0%
No
0.0%
No

Maturity
N/A
2013
2013
2010
2012
2012
2013
2013
2013
2014
2015

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 - M
Senior Notes - N
Senior Notes - O
Senior Notes - P
Total Interest Expense:

Debt Amortization:
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

Beginning
Balance
$
622
500
100
250
350
550
400
400
500
500
348

Senior Notes - I
Senior Notes - J
Senior Notes - K
Senior Notes - L
Senior Notes - M
Senior Notes - N
Senior Notes - O
Senior Notes - P

400
400
735
773
1,000
591
1,399
704

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 - G
Senior 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

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

No
No
No
No
No
No
No
No

2015
2016
2017
2018
2018
2036
2037
2038

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 - 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
($ in Millions Except Per Share Data)
December 31,
Dividends Per Common Share:
Dividends Issued ($MM):
Stock Repurchases & Issuances:
Common Stock Proceeds ($MM):
Stock Repurchases ($MM):
Assumed Share Price:

2005
$

0.18 $
67

(23)

2006

Historical
2007

0.25 $
109

(72)

0.41 $
170

2008
0.48 $
250

1,009
(13)

2,612
139

471.9
479.2

531.6
537.5

2009
0.50
287

(191)

# Shares Issued (MM):

# Shares Repurchased (MM):
Net Change in Shares (MM):
Average Basic Shares (MM):
Average Diluted Shares (MM):

448.1
457.0

456.1
462.2

575.6
579.4

2010
$

1,201
885
89
3,794
63
291
66
142
(37)
6,494

1,391
973
97
4,172
70
334
66
156
(37)
7,221

1,491
1,118
119
4,771
89
373
66
167
(37)
8,156

1,603
1,202
128
5,128
96
417
66
179
(37)
8,782

3,097 $

3,323 $

3,541 $

3,373 $

3,604

2,539 $

$
$

510
510

8,824 $
2,598
107
11,529

2014

1,092
747
80
3,449
57
253
66
129
(37)
5,838

545
545

8,231 $
2,424
107
10,762

2013

7,462 $
2,248
107
9,818

436
436

9,486
2,793
107
12,386

374
374

2,778 $

3,031 $

2,937 $

3,231

328
687
1,014

357
749
1,106

346
726
1,072

381
798
1,179

1,612 $
(13)
1,599 $

1,764 $
(14)
1,750 $

1,925 $
(15)
1,909 $

1,865 $
(15)
1,850 $

2,051
(16)
2,035

2.70 $
2.68
0.50

2.87 $
2.86
0.50

3.05 $
3.03
0.50

2.88 $
2.86
0.50

3.09
3.07
0.50

299
627
927
$

Projected
2012

6,784 $
2,044
107
8,935

558
558
$

2011

592.3

609.0

625.7

642.3

659.0

596.1

2010
$

$
$

3,097 $
5
3,449
57
129
6,738 $
80
6,818 $

2010
11.8%
24.7%

2010

357 $
1,332
1,217
170
182
3,259

38,054
4,266
3,500
45,819
(12,196)
33,623

612.8

2011

629.5

Projected
2012

3,323 $
5
3,794
63
142
7,328 $
89
7,416 $

2011

Projected
2012

11.8%
24.7%

2011

11.8%
24.7%

Projected
2012

1,564 $
1,464
1,213
170
182
4,593

42,451
4,898
4,259
51,608
(15,990)
35,618

3,541 $
5
4,172
70
156
7,943 $
97
8,040 $

1,929 $
1,605
1,208
170
182
5,093

47,287
5,594
5,093
57,973
(20,162)
37,811

646.1

2013
3,373 $
5
4,771
89
167
8,405 $
119
8,524 $

2013
11.8%
24.7%

2013

1,498 $
1,719
1,204
170
182
4,773

52,615
6,637
6,137
65,388
(24,933)
40,455

662.8

2014
3,604
5
5,128
96
179
9,013
128
9,141

2014
11.8%
24.7%

2014

1,631
1,847
1,199
170
182
5,029

58,502
7,759
7,258
73,520
(30,061)
43,458

68
97
1,475
133
1,773

68
97
1,475
133
1,773

68
97
1,475
133
1,773

68
97
1,475
133
1,773

68
97
1,475
133
1,773

38,655 $

41,984 $

44,677 $

47,001 $

50,261

2,532 $
28
167
342
32
3,101

2,817 $
28
167
342
32
3,386

3,132 $
28
167
342
32
3,701

3,537 $
28
167
342
32
4,106

3,809
28
167
342
32
4,378

9,015
6
6,149
840
80
16,091

9,015
6
6,836
904
80
16,841

8,115
6
7,585
973
80
16,759

6,815
6
8,311
1,063
80
16,275

6,315
6
9,109
1,159
80
16,669

9,331
(209)
9,633
709
19,464 $

10,197
(241)
11,093
709
21,758 $

11,077
(273)
12,704
709
24,217 $

11,968
(305)
14,248
709
26,620 $

12,872
(337)
15,970
709
29,214

38,655 $

41,984 $

44,677 $

47,001 $

50,261

OK!

OK!

OK!

OK!

2010
$

2011

Projected
2012

2013

$0

2014

1,612 $

1,764 $

1,925 $

1,865 $

2,051

3,449
57
129
26

3,794
63
142
29

4,172
70
156
32

4,771
89
167
39

5,128
96
179
42

627
5
682
6,589

687
5
153
6,637

749
5
174
7,282

726
5
291
7,953

798
5
144
8,444

(575)
(3,900)
(690)
(5,165)

(632)
(4,427)
(759)
(5,818)

(695)
(4,867)
(834)
(6,397)

(1,044)
(5,367)
(1,044)
(7,454)

(1,122)
(5,930)
(1,122)
(8,173)

724
(296)
(32)
396

724
(304)
(32)
388

724
(313)
(32)
379

724
(321)
(32)
371

724
(330)
(32)
363

(900)

(1,300)

(500)

(1,472)
$
$

348 $
9
357 $

2010

1,207 $
357
1,564 $

2011

364 $
1,564
1,929 $

Projected
2012

(430) $
1,929
1,498 $

2013

133
1,498
1,631

2014

14.9%
43.4%

14.9%
43.4%

14.9%
43.4%

14.9%
43.4%

14.9%
43.4%

32.7%

32.7%

32.7%

32.7%

32.7%

2010

2011

Projected
2012

2013

2014

2010
0.30%

2011
0.30%

2012
0.50%

2013
1.00%

2014
2.00%

0.5
0.30%

2.9
0.30%

8.7
0.50%

17.1
1.00%

31.3
2.00%

- $
350
550
400
400
500
500
348
400
400
735
773
1,000
591
1,399
704
(35)
9,015 $

- $
350
550
400
400
500
500
348
400
400
735
773
1,000
591
1,399
704
(35)
9,015 $

- $
400
400
500
500
348
400
400
735
773
1,000
591
1,399
704
(35)
8,115 $

- $
500
348
400
400
735
773
1,000
591
1,399
704
(35)
6,815 $

348
400
400
735
773
1,000
591
1,399
704
(35)
6,315

0.70%
0.80%
0.80%
5.00%
7.50%
5.90%
6.25%
4.63%
5.75%
4.90%
5.00%
5.30%

0.70%
0.80%
0.80%
5.00%
7.50%
5.90%
6.25%
4.63%
5.75%
4.90%
5.00%
5.30%

0.90%
1.00%
1.00%
5.00%
7.50%
5.90%
6.25%
4.63%
5.75%
4.90%
5.00%
5.30%

1.40%
1.50%
1.50%
5.00%
7.50%
5.90%
6.25%
4.63%
5.75%
4.90%
5.00%
5.30%

2.40%
2.50%
2.50%
5.00%
7.50%
5.90%
6.25%
4.63%
5.75%
4.90%
5.00%
5.30%

5.65%
6.25%
5.50%
6.50%
6.10%
6.75%
6.38%
2.6 $

5.65%
6.25%
5.50%
6.50%
6.10%
6.75%
6.38%
2.6 $

5.65%
6.25%
5.50%
6.50%
6.10%
6.75%
6.38%
2.6 $

5.65%
6.25%
5.50%
6.50%
6.10%
6.75%
6.38%
2.6 $

5.65%
6.25%
5.50%
6.50%
6.10%
6.75%
6.38%
2.6

0.00%

0.00%

0.00%

0.00%

0.00%

5 $
2
0
6
26
32
25
19
29
25
17
21
23
46
43
65
36
94
45
559 $

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

3 $
26
32
25
19
29
25
17
21
23
46
43
65
36
94
45
548 $

10.0%
10.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%

3 $
13
16
25
19
29
25
17
21
23
46
43
65
36
94
45
519 $

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

3 $
13
9
14
25
17
21
23
46
43
65
36
94
45
453 $

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

3
12
17
21
23
46
43
65
36
94
45
405

0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
100.0%
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%
0.0%
0.0%

9 $
(2)
1,820
1,827 $
1,827 $

357 $
(2)
1,207
1,562 $
1,562 $

1,564 $
(2)
1,264
2,827 $
2,827 $

1,929 $
(2)
870
2,796 $
2,796 $

1,498
(2)
633
2,129
2,129

50 $
10
250
310 $

- $
- $

- $
350
550
900 $

- $
400
400
500
1,300 $

500
500

622 $
450
90
-

- $
-

- $
-

- $
-

1,162 $

- $

- $

- $

355
1,827 $

1,562
1,562 $

1,927
2,827 $

1,496
2,796 $

1,629
2,129

OK!

OK!

OK!

OK!

2010
$

2011

Projected
2012

2013

OK!

2014

0.50 $
296

0.50 $
304

0.50 $
313

0.50 $
321

0.50
330

724
(32)
41.49 $

724
(32)
41.49 $

724
(32)
41.49 $

724
(32)
41.49 $

724
(32)
41.49

17.5
(0.8)
16.7
592.3
596.1

17.5
(0.8)
16.7
609.0
612.8

17.5
(0.8)
16.7
625.7
629.5

17.5
(0.8)
16.7
642.3
646.1

17.5
(0.8)
16.7
659.0
662.8

Exxon Mobil Corporation - Income Statement

($ in Millions Except Per Share Data)
2005
Net Income by Segment:
E&P - United States:
E&P - International:
R&M - United States:
R&M - International:
Chemicals - Global:
Other Operations:
Existing After-Tax Interest:
Revolver After-Tax Interest:
Other Corporate:
Operating Net Income:
Special Items, Net of Taxes:
Reported Net Income:

2006

Historical
2007

Projec
2008

2009

6,200
16,529
4,111
3,771
3,403
(188)
34
33,860 $
2,270
36,130 $

5,168
21,062
4,250
4,204
4,382
(276)
300
39,090 $
410
39,500 $

4,870
21,627
4,120
5,453
4,563
(260)
237
40,610 $
40,610 $

6,243
27,539
1,649
6,502
2,957
(437)
(393)
44,060 $
1,160
45,220 $

2,893
14,214
(153)
1,934
2,309
(356)
(1,421)
19,420
(140)
19,280

Net Inc. to Noncontrolling:

% Reported:
Net Income to All:

799
2.2%
36,929 $

1,051
2.7%
40,551 $

1,005
2.5%
41,615 $

1,647
3.6%
46,867 $

378
2.0%
19,658

Earnings Per Diluted Share:

5.71 $

6.62 $

7.26 $

8.66 $

Effective Tax Rate:

Avg. Diluted Shares (MM):

38.7%
6,322.0

40.8%
5,970.0

41.8%
5,594.0

3.98

43.8%
5,221.0

43.5%
4,848.0

2008

2009

Exxon Mobil Corporation - Balance Sheet

($ in Millions)
2005
Assets:
Current Assets:
Cash & Cash-Equivalents:
Restricted Cash:
Marketable Securities:
Accounts Receivable, Net:
Inventory:
Other Current Assets:
Total Current Assets:
Long-Term Assets:
Investments & LT Receiv.:
Net PP&E:
Other / Intangible Assets:
Total Long-Term Assets:

28,671 $
4,604
27,484
9,321
3,262
73,342

20,592
107,010
7,391
134,993

2006

Historical
2007

28,244 $
4,604
28,942
10,714
3,273
75,777

23,237
113,687
6,314
143,238

33,981 $
519
36,450
11,089
3,924
85,963

28,194
120,869
7,056
156,119

Projec

31,437 $
570
24,702
11,646
3,911
72,266

28,556
121,346
5,884
155,786

10,693
169
27,645
11,553
5,175
55,235

31,665
139,116
7,307
178,088

Total Assets:
Liabilities:
Current Liabilities:
Revolver:
Notes and Loans Payable:
AP & Accrued Expenses:
Income Taxes Payable:
Total Current Liabilities:

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

Long-Term Liabilities:
Long-Term Debt:
Postretirement Benefits:
Deferred Income Taxes:
Other LT Obligations:
Total Long-Term Liabilities:
Total Liabilities:
Stockholders' Equity:
Common Stock (Excl. Par):
Treasury Stock:
Retained Earnings:
Accum. Other Comp. Inc.:
Total Stockholders' Equity:

- $
1,702
39,082
8,033
48,817

- $
2,383
45,275
10,654
58,312

- $
2,400
36,643
10,057
49,100

2,476
41,275
8,310
52,061

6,220
10,220
20,878
9,997
47,315

6,645
13,931
20,851
11,123
52,550

7,183
13,278
22,899
14,366
57,726

7,025
20,729
19,726
13,949
61,429

7,129
17,942
23,148
17,651
65,870

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

4,477 $
4,786 $
4,933 $
5,314 $
5,503
(55,347)
(83,387) (113,678) (148,098) (166,410)
163,335
195,207
228,518
265,680
276,937
(1,279)
(2,762)
1,989
(9,931)
(5,461)
$ 111,186 $ 113,844 $ 121,762 $ 112,965 $ 110,569

Noncontrolling Interests:
Total Liabilities & Equity:

- $
1,771
36,120
8,416
46,307

3,527

3,804

4,282

4,558

4,823

$ 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)
2005
Operating Activities:
Net Income to Common:
Net Inc. to Noncontrolling:
Adjustments to NI:
Depreciation & Depletion:
Def. Inc. Tax / (Credit):
Pensions + / (-) Payments:
LT Obli. + / (-) Payments:
Div. + / (-) Equity Interests:
Change in AR:

2006

Historical
2007

Projec
2008

2009

36,130 $
799

39,500 $
1,051

40,610 $
1,005

45,220 $
1,647

19,280
378

10,253
(429)
254
398
(734)
(3,700)

11,416
1,717
(1,787)
(666)
(579)
(181)

12,250
124
(1,314)
1,065
(714)
(5,441)

12,379
1,399
57
(63)
921
8,641

11,917
(1,722)
731
(483)
(3,170)

Change in Inventory:
Change in Oth. Cur. Assets:
Change in AP & Accrued:
Net (Gain) on Asset Sales:
All Other Items - Net
Cash Flow from Operations:

(434)
(7)
7,806
(1,980)
(218)
48,138

(1,057)
(385)
1,160
(1,531)
628
49,286

72
280
6,228
(2,217)
54
52,002

(1,285)
(509)
(5,415)
(3,757)
490
59,725

459
132
1,420
(488)
(16)
28,438

Investing Activities:
Capital Expenditures:
Sales of Invest. and PP&E:
Decrease in Restricted Cash:
Add'tl Invest. / Advances:
Collection of Advances:
Mark. Securities Additions:
Sales of Mark. Securities:
Cash Flow from Investing:

(13,839)
6,036
(2,810)
343
(10,270)

(15,462)
3,080
(2,604)
756
(14,230)

(15,387)
4,204
4,604
(3,038)
391
(646)
144
(9,728)

(19,318)
5,985
(2,495)
574
(2,113)
1,868
(15,499)

(22,491)
1,545
(2,752)
724
(16)
571
(22,419)

Financing Activities:
Additions to LT Debt:
Payments of LT Debt:
Additions to ST Debt:
Payments of ST Debt:
Other Debt Changes:
Dividends to Common:
Dividends to Noncontrolling:
Changes in Noncontrolling:
SBC Tax Benefits:
Treasury Stock Purchased:
Common Stock Issued:
Cash Flow from Financing:

195
(81)
377
(687)
(1,306)
(7,185)
(293)
(681)
(18,221)
941
(26,941)

318
(33)
334
(451)
(95)
(7,628)
(239)
(493)
462
(29,558)
1,173
(36,210)

592
(209)
1,211
(809)
(187)
(7,621)
(289)
(659)
369
(31,822)
1,079
(38,345)

79
(192)
1,067
(1,624)
143
(8,058)
(375)
(419)
333
(35,734)
753
(44,027)

225
(68)
1,336
(1,575)
(71)
(8,023)
(280)
(113)
237
(19,703)
752
(27,283)

1,808

(2,743)

FX Rate Effect:
Cash Increase / (Decrease):
Beginning Cash:
Less: Minimum Cash:
Required Borrowing:

(787)

727

520

10,140 $
18,531

(427) $
28,671

5,737 $
28,244

(2,544) $ (20,744)
33,981
31,437

28,671 $

28,244 $

33,981 $

31,437 $

Revolver Repayments:
Ending Cash:

10,693

Exxon Mobil Corporation - Working Capital Projections

2005

2006

Historical
2007

Projec
2008

2009

Accounts Receivable % NI:

Inventory % NI:
AP & Accrued % NI:

76.1%
25.8%

73.3%
27.1%

89.8%
27.3%

54.6%
25.8%

143.4%
59.9%

100.0%

98.9%

111.5%

81.0%

214.1%

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

2005

2006

Historical
2007

Projec
2008

2009

LIBOR:
End of Year Debt Amounts:
Revolver:

Interest Rate Assumptions:

Revolver:
Interest Expense Calculations:
Revolver:

LIBOR +
0.40%

Fixed
Interest

2010

Projected
2011

2012

4,772
20,521
763
1,823
3,570
(145)
(2,247)
29,057 $
29,057 $

4,736
20,759
1,571
2,991
3,150
(144)
(19)
(2,281)
30,763 $
30,763 $

4,654
22,080
1,303
3,128
3,235
(143)
(67)
(2,315)
31,875
31,875

753
2.6%
29,810 $

797
2.6%
31,560 $

826
2.6%
32,700

6.25 $

7.12 $

43.5%
4,649.1

2010

43.5%
4,320.6

Projected
2011

5,509 $
169
25,402
9,641
5,175
45,897

34,165
146,664
7,307
188,136

5,000 $
169
26,894
10,207
5,175
47,445

36,665
153,411
7,307
197,383

7.94
43.5%
4,014.4

2012

5,000
169
27,865
10,576
5,175
48,786

39,165
160,024
7,307
206,496

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

- $
2,476
35,189
8,310
45,975

9,659 $
2,476
37,255
8,310
57,699

16,876
2,476
38,601
8,310
66,264

7,129
17,040
23,648
17,944
65,761

7,129
16,137
24,148
18,237
65,651

7,129
15,235
24,648
18,530
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!

2010
$

OK!

Projected
2011

OK!

2012

29,057 $
753

30,763 $
797

31,875
826

13,443
500
(902)
293
(318)
2,243

14,244
500
(902)
293
(318)
(1,491)

14,378
500
(902)
293
(318)
(972)

1,912
(6,086)
40,894

(566)
2,066
45,385

(369)
1,346
46,656

(22,491)
1,500
(2,740)
558
(23,173)

(22,491)
1,500
(2,740)
558
(23,173)

(22,491)
1,500
(2,740)
558
(23,173)

(8,310)
(295)
280
(14,484)
(22,809)

(8,346)
(295)
280
(23,924)
(32,285)

(8,290)
(295)
280
(22,301)
(30,606)

(95)

(95)

(95)

(5,184) $ (10,168) $
10,693
5,509
(5,000)
(5,000)
9,659
-

5,509 $

5,000 $

2010

Projected
2011

(7,218)
5,000
(5,000)
7,218
5,000

2012

87.4%
33.2%

87.4%
33.2%

87.4%
33.2%

121.1%

121.1%

121.1%

Projected
2011

2010
0.30%

- $

0.70%

- $

0.30%

9,659 $

0.70%

34 $

2012
0.50%

16,876

0.90%

119

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

Company Name
Chesapeake Energy Corporation
Anadarko Petroleum
Occidental Petroleum Corporation
Apache Corporation
Devon Energy Corporation
EOG Resources, Inc.

EBITDAX(3)
Equity
Enterprise
(1)
(1)(2)
Value
Value
TTM
12/31/2010 12/31/2011
$ 15,489 $ 29,710 $ 4,509 $
4,571 $
4,949
28,937
40,880
5,743
8,099
9,908
61,989
64,381
8,447
12,659
16,428
32,252
37,384
5,989
8,264
9,694
28,999
37,353
4,797
6,364
5,613
22,289
24,882
1,761
4,375
5,507

Maximum
75th Percentile
Median
25th Percentile
Minimum

$ 61,989 $ 64,381 $
31,439
40,006
$ 28,968 $ 37,368 $
23,951
31,620
15,489
24,882

8,447
5,927
5,270
4,581
1,761

XTO Energy Inc.

$ 24,542

7,150

Valuation Statistics

$ 34,686

Capitalization

Company Name
Chesapeake Energy Corporation
Anadarko Petroleum
Occidental Petroleum Corporation
Apache Corporation
Devon Energy Corporation
EOG Resources, Inc.

Equity
Enterprise
(1)
Value
Value(1)(2)
$ 15,489 $ 29,710
28,937
40,880
61,989
64,381
32,252
37,384
28,999
37,353
22,289
24,882

Maximum
75th Percentile
Median
25th Percentile
Minimum

$ 61,989 $ 64,381
31,439
40,006
$ 28,968 $ 37,368
23,951
31,620
15,489
24,882

XTO Energy Inc.

$ 24,542

$ 34,686

12,659
8,223
7,232
5,019
4,375

16,428
9,855
7,654
5,534
4,949

6,818

7,416

Enterprise Value /
(3)
EBITDAX

Enterprise

TTM
12/31/2010 12/31/2011
6.6 x
6.5 x
6.0 x
7.1 x
5.0 x
4.1 x
7.6 x
5.1 x
3.9 x
6.2 x
4.5 x
3.9 x
7.8 x
5.9 x
6.7 x
14.1 x
5.7 x
4.5 x
14.1 x
7.7 x
7.4 x
6.7 x
6.2 x

6.5 x
5.8 x
5.4 x
5.1 x
4.5 x

6.7 x
5.6 x
4.3 x
4.0 x
3.9 x

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, less Investments i
Obligation, plus Capital Leases, plus Unfunded Pension Obligations, plus Preferred Stock, plus Noncontrolling Interests.
(3) EBITDAX defined as Operating Income plus DD&A, plus Asset Retirement Accretion, plus Stock-Based Compensation, p
Other One-Time and Restructuring Charges, plus Exploration Expense.
(4) Oil Mix % Based on TTM Production Data rather than Reserves.

Proved

Daily

Reserves

Production

(Bcfe)
14,254.0
13,824.0
19,350.0
14,199.5
16,398.0
10,776.1

(MMcfe)
2,480.8
3,624.0
3,870.0
3,499.7
3,830.1
2,118.0

19,350.0
15,862.0
14,226.8
13,917.9
10,776.1

3,870.0
3,778.6
3,561.9
2,735.5
2,118.0

14,827.3

2,863.6

Proved
Production
Areas
US Diversified
International; US-Focused
International
International
US & Canada
US, Canada & Trinidad

US Diversified

Developed

R/P

/ Proved
58.4%
70.5%
77.3%
69.1%
70.3%
54.4%

Oil
(4)
Mix %
7.8%
30.9%
76.2%
47.8%
18.0%
15.6%

(Years)
15.7
10.5
13.7
11.1
11.7
13.9

77.3%
70.4%
69.7%
61.1%
54.4%

76.2%
43.6%
24.5%
16.2%
7.8%

15.7
13.9
12.7
11.3
10.5

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
2.88
2.47
2.29
2.08

$
$

16.64
11.92
11.51
10.83
9.75

2.34

12.11

ivatives, less Investments in Equity Companies, plus Total Debt, plus Asset Retirement
Noncontrolling Interests.
ck-Based Compensation, plus Non-Cash Derivative Losses, plus Impairment Charges, plus

Ratio

Operating Income:
Plus: DD&A:
Plus: Asset Retirement Accretion:
Plus: Stock-Based Compensation:
Plus: Non-Cash Derivative Losses:
Plus: Impairment Charge:
Plus: Other One-Time Charges:
EBITDA:
Plus: Exploration:
EBITDAX:

CHK
Chesapeake Energy Corporation
Calendarization
Old Partial
New Partial
FY
TTM
$
(8,945) $
(8,945)
1,615
1,615
140
140
497
497
11,130
11,130
72
72
$
- $
- $
4,509 $
4,509
$
- $
- $
4,509 $
4,509

Tax Rate:

38%
Production Data

Proved Reserves (Bcfe):

Production Area:
Proved Developed Reserves (Bcfe):
Daily Production (MMcfe):
Period Production (Bcfe):
Oil, Period Production (Bcfe):

14,254.0
US Diversified
8,331.0
2,480.8
905.5
905.5
70.8
70.8
Balance Sheet Data

Cash & Cash-Equivalents:

Net Value of Derivatives:
Investments in Equity Companies:
Total Debt:
Asset Retirement Obligation:
Capital Leases, Pensions & Other:
Preferred Stock:
Noncontrolling Interests:

12/31/2010
Bank:
Date:
EBITDA:
Plus: Exploration:
EBITDAX:

307
(62)
404
12,295
282
930
466
897

Equity Research Projections

12/31/2011 12/31/2012
DB
02.03.2010

$
$

4,571 $
4,571 $

4,949
4,949

N/A
N/A
N/A

Diluted Shares Calculation

Current Share Price:
Common Shares:

23.03
651.86

Restricted Shares:

19.22

Options, Warrants & Other Dilutive:

Total
Strike
0.13 $
3.82
0.26
5.20
0.12
5.54
0.42
6.11
0.09
6.95
0.38
7.80
0.11
8.58
0.43
10.08
0.25
13.31
0.09
19.72

Dilution
0.10
0.20
0.09
0.31
0.06
0.25
0.07
0.24
0.11
0.01
0.00
0.00
0.00
0.00
0.00
672.54

Total Diluted Shares:

Valuation Metrics
Equity Value:
Enterprise Value:
Beta:

EV / EBITDA:
EV / EBITDAX:
EV / Proved Reserves:
EV / Daily Production:

$
$

15,489
29,710
1.15

Valuation Multiples
TTM
12/31/2010 12/31/2011 12/31/2012
6.6 x
6.5 x
6.0 x
N/A
6.6 x
6.5 x
6.0 x
N/A
2.08
N/A
N/A
N/A
11.98
N/A
N/A
N/A
Lookup Variables

12/31/2010 EBITDA:
12/31/2010 EBITDAX:

4,571
4,571

12/31/2011 EBITDA:
12/31/2011 EBITDAX:

4,949
4,949

12/31/2012 EBITDA:
12/31/2012 EBITDAX:

N/A
N/A

TTM EV / EBITDA:
TTM EV / EBITDAX:
TTM EV / Proved Reserves:

6.6 x
6.6 x
2.08

TTM EV / Daily Production:

11.98

12/31/2010 EV / EBITDA:
12/31/2010 EV / EBITDAX:

6.5 x
6.5 x

12/31/2011 EV / EBITDA:
12/31/2011 EV / EBITDAX:

6.0 x
6.0 x

12/31/2012 EV / EBITDA:
12/31/2012 EV / EBITDAX:

N/A
N/A

Proved Developed / Total Proved:

Oil Mix %:
R / P Ratio:

58.4%
7.8%
15.7

APC
Anadarko Petroleum

orporation
Old Partial

$
$

Calendarization
New Partial
FY
$
551 $
3,532
89
309
717
115
(677)
- $
- $
4,636 $
1,107
- $
- $
5,743 $

Calendarization
TTM

Old Partial

551
3,532
89
309
717
115
(677)
4,636
1,107
5,743

40%
Production Data

Production Data

13,824.0
International; US-Focused
9,744.0
3,624.0
1,320.0
1,320.0
408.0
408.0
Balance Sheet Data

Balance Sheet Dat

$

12/31/2010

3,531
(46)
12,748
1,446
747
487

Equity Research Projections

12/31/2011 12/31/2012

Equity Research Projec

12/31/2010
MAC
11.23.2009

$
$

6,992 $
1,107
8,099 $

8,801
1,107
9,908

N/A
N/A
N/A

$
$

Diluted Shares Calculation

12,441
218
12,659

Diluted Shares Calcula

$

57.99
492.56

3.83
Total
Strike
9.48 $
42.01

Dilution
2.61
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
499.00

$
$

28,937
40,880
1.41

Valuation Multiples
TTM
12/31/2010 12/31/2011 12/31/2012
8.8 x
5.8 x
4.6 x
N/A
7.1 x
5.0 x
4.1 x
N/A
2.96
N/A
N/A
N/A
11.28
N/A
N/A
N/A
Lookup Variables

Valuation Multiple

$
$

TTM
7.9 x
7.6 x
3.33
16.64

Lookup Variables
6,992
8,099
8,801
9,908
N/A
N/A

8.8 x
7.1 x
2.96

11.28
5.8 x
5.0 x
4.6 x
4.1 x
N/A
N/A
70.5%
30.9%
10.5

OXY
Occidental Petroleum Corporation
Calendarization
New Partial
FY
TTM
$
4,669 $
4,669
3,117
3,117
36
36
151
151
170
170
37
37
$
- $
8,180 $
8,180
267
267
$
- $
8,447 $
8,447

Apache Corporation
Old Partial

$
$

Calendarization
New Partial
FY
$
326
5,213
105
104
(2)
242
- $
- $
5,989
- $
- $
5,989

40%
Production Data

1,410.0
1,074.0

Production Data
19,350.0
International
14,957.0
3,870.0
1,410.0
1,074.0

1,277.4
610.4

Balance Sheet Data

Balance Sheet Data

$

1,230
(339)
1,732
2,796
722
1,419
78

Equity Research Projections

12/31/2011 12/31/2012

12/31/2010

Equity Research Projections

12/31/2011 12/31/2012

MS
01.28.2010
$
$

16,176
252
16,428

$
$

17,681
287
17,968

$
$

Diluted Shares Calculation

8,264 $
8,264 $

9,694
9,694

N/A
N/A
N/A

Diluted Shares Calculation

$

76.00
811.96

1.51
Total
Strike
2.41 $
30.40
1.09
24.66

Dilution
1.45
0.73
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
815.64

Total
Strike
5.92 $
72.29
1.56
216.00
1.04
162.00
0.26
81.00
0.84
108.00
0.78
34.68

61,989
64,381
0.98

Valuation Multiples
12/31/2010 12/31/2011 12/31/2012
5.2 x
4.0 x
3.6 x
5.1 x
3.9 x
3.6 x
N/A
N/A
N/A
N/A
N/A
N/A
Lookup Variables

$
$

Valuation Multiples
TTM
12/31/2010 12/31/2011
6.2 x
4.5 x
3.9 x
6.2 x
4.5 x
3.9 x
2.63
N/A
N/A
10.68
N/A
N/A
Lookup Variables

12,441
12,659
16,176
16,428
17,681
17,968

7.9 x
7.6 x
3.33

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

APA
Apache Corporation

326
5,213
105
104
(2)
242
5,989
5,989

DVN
Devon Energy Corporation
Calendarization
Old Partial
New Partial
FY
TTM
$
(4,526) $
(4,526)
2,108
2,108
91
91
209
209
121
121
6,408
6,408
386
386
$
- $
- $
4,797 $
4,797
$
- $
- $
4,797 $
4,797

40%

35%

ation
TTM
$

$
$

Data

Production Data
14,199.5
International
9,813.4
3,499.7
1,277.4
610.4

Pr

1,398.0
252.0

et Data

16,398.0
US & Canada
11,532.0
3,830.14
1,398.0
252.0

Balance Sheet Data

$

2,048
(266)
5,068
1,784
63
-

12/31/2010

646
304
7,279
1,513
512
-

Equity Research Projections

12/31/2011 12/31/2012

WF
01.28.2010

Equity R
PCP
11.18.2009

$
$

alculation

Bala
$

Projections

6,364 $
6,364 $

5,613
5,613

N/A
N/A
N/A

Diluted Shares Calculation

$

94.63
336.55

Ca

Diluted
$

63.89
446.80

1.84

6.17

Dilution
1.40
0.00
0.00
0.26
0.00
0.78
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
340.82

Total
Strike
12.16 $
59.07

32,252
37,384
1.19

ultiples
12/31/2012
N/A
N/A
N/A
N/A

ables

Dilution
0.92
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
453.88

$
$

28,999
37,353
1.05

Valuation Multiples
TTM
12/31/2010 12/31/2011 12/31/2012
7.8 x
5.9 x
6.7 x
N/A
7.8 x
5.9 x
6.7 x
N/A
2.28
N/A
N/A
N/A
9.75
N/A
N/A
N/A
Lookup Variables

Valu

Loo

8,264
8,264

6,364
6,364

9,694
9,694

5,613
5,613

N/A
N/A

N/A
N/A

6.2 x
6.2 x
2.63

7.8 x
7.8 x
2.28

10.68

9.75

4.5 x
4.5 x

5.9 x
5.9 x

3.9 x
3.9 x

6.7 x
6.7 x

N/A
N/A

N/A
N/A

69.1%
47.8%
11.1

70.3%
18.0%
11.7

EOG
EOG Resources, Inc.
Old Partial

$
$

Calendarization
New Partial
FY
$
971 $
1,549
95
(846)
306
(535)
- $
- $
1,540 $
221
- $
- $
1,761 $

TTM

Calendarization
New Partial

Old Partial

971
1,549
95
(846)
306
(535)
1,540
221
1,761

- $

- $

37%
Production Data

Production Data

10,776.1
US, Canada & Trinidad
5,858.2
2,118.0
773.0
773.0
120.9
120.9
Balance Sheet Data

Balance Sheet Data

$

12/31/2010

686
(65)
41
2,797
456
1
-

Equity Research Projections

12/31/2011 12/31/2012

12/31/2010

Equity Research Projections

12/31/2011

MS
01.12.2010
$
$

4,028 $
347
4,375 $

5,092
415
5,507

N/A
N/A
N/A

$
$

Diluted Shares Calculation

6,738 $
80
6,818 $

7,328
89
7,416

Diluted Shares Calculation

$

86.05
252.58

3.64
Total
Strike
0.48 $
16.60
1.43
18.37
0.68
23.42
2.31
61.94
3.44
82.13

Dilution
0.38
1.12
0.50
0.65
0.16
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
259.02

$
$

Total
18.37
2.60
0.39
0.23
0.25
0.25

22,289
24,882
0.93

Valuation Multiples
TTM
12/31/2010 12/31/2011 12/31/2012
16.2 x
6.2 x
4.9 x
N/A
14.1 x
5.7 x
4.5 x
N/A
2.31
N/A
N/A
N/A
11.75
N/A
N/A
N/A
Lookup Variables

$
$

Valuation Multiples
TTM
12/31/2010
4.9 x
5.1 x
4.9 x
5.1 x
2.34
N/A
12.11
N/A
Lookup Variables

4,028
4,375
5,092
5,507
N/A
N/A

16.2 x
14.1 x
2.31

11.75
6.2 x
5.7 x
4.9 x
4.5 x
N/A
N/A
54.4%
15.6%
13.9

XTO
XTO Energy Inc.
Calendarization
FY
$
3,687 $
3,079
40
137
130
$
7,073 $
77
$
7,150 $

TTM
3,687
3,079
40
137
130
7,073
77
7,150
36%

Production Data
14,827.3
US Diversified
9,004.9
2,863.6
1,045.2
1,045.2
145.2
145.2
Balance Sheet Data
$

9
1,117
10,487
783
-

uity Research Projections

12/31/2012
N/A
N/A
$
$

7,943
97
8,040

iluted Shares Calculation

$

41.49
583.34

5.49
Strike
$
38.39
20.78
50.00
55.00
77.00
85.00

Dilution
1.37
1.30
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
591.51

24,542
34,686
1.10

Valuation Multiples
12/31/2011 12/31/2012
4.7 x
4.4 x
4.7 x
4.3 x
N/A
N/A
N/A
N/A
Lookup Variables
6,738
6,818
7,328
7,416
7,943
8,040

4.9 x
4.9 x
2.34

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

Precedent Transactions - Oil & Gas M&A Deals Worth Over $2 Billion USD with North American-Based Sellers Since 1/1
($ in Millions USD Except Per Share, Reserve, and Production Data)
XTO Energy Inc. - Comparable M&A Transactions
Announce
Acquirer Name
Suncor Energy Inc.
Denbury Resources Inc.
Petrobank Energy and Resources Ltd.
Shell Canada Limited
XTO Energy Inc.

Target Name
Petro-Canada
Encore Acquisition Company
TriStar Oil & Gas Ltd.
Duvernay Oil Corp.
Hunt Petroleum Corp.
Maximum
75th Percentile
Median
25th Percentile
Minimum

Date
3/23/2009
11/3/2009
8/5/2009
7/14/2008
6/10/2008

Transaction Value
Equity
Value(1)
$ 15,515
2,875
2,112
5,193
4,186
$ 15,515
5,193
$ 4,186
2,875
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, less Investments i
Obligation, plus Capital Leases, plus Unfunded Pension Obligations, plus Preferred Stock, plus Noncontrolling Interests.
(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-Based Compensation, p
Other One-Time and Restructuring Charges, plus Exploration Expense.

erican-Based Sellers Since 1/1/2008

Transaction Value
Enterprise
Value(2)
$ 19,407
4,419
2,478
5,696
4,480
$ 19,407
5,696
$ 4,480
4,419
2,478

Production
Areas
Canada
US Diversified
Canada
Canada
US Diversified

Proved
Developed
/ Proved
54.0%
80.1%
74.0%
50.2%
62.0%

Oil
Mix % (3)
71.9%
65.4%
72.9%
10.7%
N/A

80.1%
74.0%
62.0%
54.0%
50.2%

72.9%
72.2%
68.7%
51.7%
10.7%

R/P
Ratio
(Years)
8.4
12.1
6.9
9.8
N/A

Operating Metrics - TTM:

Proved
Daily
Reserves Production
(4)
EBITDAX
(Bcfe)
(MMcfe)
$ 7,477
7,716.0
2,508.2
518
1,114.2
259.4
210
316.0
122.4
267
467.7
144.6
1,200
1,052.0
261.8

12.1 $
10.4
9.1 $
8.0
6.9

7,477 $
1,200
518 $
267
210

Derivatives, less Investments in Equity Companies, plus Total Debt, plus Asset Retirement
us Noncontrolling Interests.
Stock-Based Compensation, plus Non-Cash Derivative Losses, plus Impairment Charges, plus

7,716 $
1,114
1,052 $
468
316

2,508
262
259
145
122

Transaction Va

Transaction Valuation Multiples:

Proved

Daily

(4)

EBITDAX
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 $
11.8 x
8.5 x
3.7 x
2.6 x

12.18 $
7.84
4.26
3.97
2.52

39.39
20.24
17.11
17.04
7.74

TSX:PCA
Petro-Canada
Suncor Energy Inc.

Calendarization
Interim Period:
FY Ends:
Old Partial
New Partial
Operating Income:
Plus: DD&A:
Plus: Asset Retirement Accretion:
Plus: Stock-Based Compensation:
Plus: Non-Cash Derivative Losses:
Plus: Impairment Charge:
Plus: Other One-Time Charges:
EBITDA:
Plus: Exploration:
EBITDAX:

$
$

FY
5,753
2,155
79
706
8,693
587
9,280

12/31/2008
12/31/2008
TTM
$
5,753
2,155
79
706
$
8,693
587
$
9,280

Production Data
Proved Reserves (Bcfe):
Production Areas:
Proved Developed Reserves (Bcfe):
Daily Production (MMcfe):
Period Production (Bcfe):
Oil, Period Production (Bcfe):

7,716.0
Canada
4,166.6
2,508.2
918.0
660.0

918.0
660.0
Balance Sheet Data

Cash & Cash-Equivalents:

Net Value of Derivatives:
Investments in Equity Companies:
Total Debt:
Asset Retirement Obligation:
Capital Leases, Pensions & Other:
Preferred Stock:
Noncontrolling Interests:

Equity Research Projections

N/A
N/A

N/A
Bank:
Date:
EBITDA:
Plus: Exploration:
EBITDAX:

1,445
4,749
1,527
-

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

Announcement Date:

3/23/2009

FX Exchange Rate:
Offer Price Per Share:
Common Shares:
Restricted Shares:

Options, Warrants & Other Dilutive:

Total
Strike
22.13 $
37.00
0.83
7.21
46.00

0.8057
39.55
484.60
Dilution
1.43
0.83
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
486.85

Total Diluted Shares:

Transaction Valuation Metrics
Equity Value:
Enterprise Value:

EV / EBITDA:
EV / EBITDAX:
EV / Proved Reserves:
EV / Daily Production:

$
$

TTM
2.8 x
2.6 x
3.12
9.60

Valuation Multiples
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

19,256
24,087

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

Lookup Variables
TTM EV / EBITDA:
TTM EV / EBITDAX:
TTM EV / Proved Reserves:
TTM EV / Daily Production:
Proved Developed / Total Proved:
Oil Mix %:
R / P Ratio:

$
$

2.8 x
2.6 x
3.12
9.60
54.0%
71.9%
8.4

EAC
Encore Acquisition Company
Denbury Resources Inc.

ro-Canada
Energy Inc.

Calendarization
Interim Period:
FY Ends:
Old Partial
New Partial
$
388 $
(39) $
159
217
10
10
38
106
26
0
(1)
$
622 $
293 $
30
44
$
652 $
337 $

Calendarization

FY
796
228
14
(300)
60
(4)
794
39
834

9/30/2009
12/31/2008
TTM
$
369
286
14
(232)
33
(4)
$
465
53
$
518

Interim Period:
FY Ends:
Old Partial
$
(42)
118
3
129
7
$
215
$
215

Production Data

63.6
44.7

69.1
44.7

Production Data
1,114.2
US Diversified
892.8
259.4
86.7
92.2
60.3
60.3

21.7
15.7

Balance Sheet Data

Balance Sheet Dat

$

7
23
1,243
54
1
275

Equity Research Projections

N/A
N/A

N/A

Equity Research Projec

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 Calcula

11/3/2009

Total
Strike
1.73 $
19.85

1.0000
50.00
55.54
0.92
Dilution
1.04
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
57.51

Transaction Valuation Metrics

Transaction Valuation M
$

$
$

TTM
9.5 x
8.5 x
3.97
17.04

Valuation Multiples
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

2,875
4,419

Valuation Multiple
N/A
N/A
N/A
N/A
N/A

Lookup Variables

$
$

TTM
11.8 x
11.8 x
8.38
21.63

Lookup Variables

$
$

9.5 x
8.5 x
3.97
17.04
80.1%
65.4%
12.1

TS
TriStar Oil & Gas Ltd.
Petrobank Energy and Resources Ltd.

Duvernay Oil Corp.

Shell Canada Limited

Calendarization

New Partial
$
(78) $
119
5
37
5
$
87 $
$
87 $

Calendarization

FY
158
246
7
(73)
13
352
352

6/30/2009
12/31/2008
TTM
$
122
247
9
(166)
11
$
224
$
224

Interim Period:
FY Ends:
Old Partial
New Partial
$
16 $
(17) $
39
47
2
3
7
41
4
6
$
68 $
79 $
$
68 $
79 $

Production Data

22.4
17.7

FY
61
158
9
10
21
259
259

Production Data
316.0
Canada
233.8
122.4
45.9
33.5

45.2
31.5

11.3
1.2

Balance Sheet Data

13.2
1.3

45.9
5.0

Balance Sheet Data

$

(0)
348
42
-

Equity Research Projections

N/A
N/A

Equity Research Projections

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

N/A
N/A
N/A

N/A
N/A
N/A

Diluted Shares Calculation

8/5/2009

Total
Strike
4.24 $
11.23

0.9357
14.75
152.04
Dilution
1.01
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

Total
Strike
5.42 $
29.30

Transaction Valuation Metrics

Transaction Valuation Metrics

$

Valuation Multiples
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

2,257
2,648

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

Lookup Variables

$
$

TTM
21.3 x
21.3 x
12.30
39.77

Valuation Multiples
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Lookup Variables

$
$

11.8 x
11.8 x
8.38
21.63
74.0%
72.9%
6.9

DUV
Duvernay Oil Corp.
Shell Canada Limited

HNT
Hunt Petroleum Corp.
XTO Energy Inc.

ation

Calendarization
3/31/2008
12/31/2007
TTM
$
28
165
10
44
23
$
270
$
270

Interim Period:
FY Ends:
Old Partial
New Partial
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
N/A
N/A
N/A
N/A

Data

FY
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

6/30/2008
12/31/2007
TTM
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$
1,200
N/A
$
1,200

Production Data
467.7
Canada
234.6
144.6
47.8
5.1

1,052.0
US Diversified
652.2
261.8
-

et Data

Balance Sheet Data

$

(42)
15
464
16
-

Projections

Equity Research Projections

N/A
N/A

N/A
N/A
N/A

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

alculation

198
337
155
-

N/A
N/A
N/A

N/A
N/A
N/A

Diluted Shares Calculation

7/14/2008

6/10/2008

0.9904
83.00
59.67
-

1.0000

Dilution
3.51
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

Total

tion Metrics

Strike

Dilution
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

Transaction Valuation Metrics

$

5,244
5,751

ultiples
N/A
N/A
N/A
N/A
N/A

ables

$
$

TTM
3.7 x
3.7 x
4.26
17.11

Valuation Multiples
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

4,186
4,480

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

Lookup Variables

$
$

21.3 x
21.3 x
12.30
39.77
50.2%
10.7%
9.8

$
$

3.7 x
3.7 x
4.26
17.11
62.0%
N/A
N/A