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What A Difference A Few Months Makes!

Presentation toIPAA Capital Markets / HEFG

*Disclaimers on page 9 of this document.

August 7, 2008Dan Pickering

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$6

$7

$8

$9

$10

$11

$12

$13

$14

Aug-05 Nov-05 Feb-06 May-06 Aug-06 Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08

$/m

cf

22

Natural Gas 12 Month Strip

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0.8

1.0

1.2

1.4

1.6

J an-08 Feb-08 Mar-08 Apr-08 May-08 J un-08 J ul-08

Inde

xed

to 1

2/31

/07

Clo

se P

rice

E&P Oil Service Majors S&P 500

Energy Stocks – Hero And Goat

2008 Stock Performance

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What Is Happening?

Fastest Pullback In A Decade

Stock Market Stinks

Global Economic Fears Growing

Pain Vortex FACT OR FICTION?

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$6

$7

$8

$9

$10

$11

$12

$13

$14

Aug-05 Nov-05 Feb-06 May-06 Aug-06 Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08

$/m

cf

What Is Happening In Gas?

Wellhead Supply Is Growing

Gas Storage Datapoints Weak

Haynesville Emerges

Other Commodities Softer

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What Are E&P Stocks “Telling Us”?

XTO’s Net Asset Value

YE’08 Proved Reserves NAV

Barnett 2P/3PBakken 2P/3P

Fayetteville 2P/3P

Other 2P/3P

$78/share

$56/ share

+$7/ share

+$8/ share

+$1/ share+$6/ share

Closing stock price 8/ 4/ 08 = $43.54/ share

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Stock Upside At $70/bbl, $7/mcf

NAV @ TPH Risked Reserves, $70/ bbl and $7/ mcf

-20%

0%

20%

40%

60%

80%

100%

RRC XTO CHK NBL HK APC DVN XCO PXP SWN APA NFX KWK UPL OXY EOG SD CXG

Ups

ide

from

8/4

/08

Clos

ing

Pric

e

Average = +42%

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Sunrise Or Sunset?

Sometimes Stocks Convey Information……And Sometimes Just Sentiment

Stocks Are Either: Way CHEAP… …Or Cycle Is TOAST

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Put in Final Presentation Slide Here

Tudor, Pickering, Holt & Co. Securities, Inc. is a leading institutional brokerage firm focusing on energy-sector research for institutional investors. The Company, a NASD broker-dealer, develops investment ideas for our clients by actively covering the E&P

and oil service industries, while monitoring energy subsectors such as coal, nuclear, tankers and alternative energy.

In addition to research activities, Tudor, Pickering, Holt has executed share repurchases and helped energy companies raise equity capital via co-manager and syndicate positions in numerous energy offerings including BAS, CHK, COG, CPX, CRZO, EPB, EQT,

GDP, HERO, KBR, REXX, RRC, SD, XCO, XTO.

Our research is provided to institutional clients via published reports, concise emails, and through direct interaction with our highly rated analysts and unique, specialized sales force.

Tudor, Pickering, Holt has ~65 employees working from our main Houston office and also in Denver, Colorado. The firm was established in February 2004 as Pickering Energy Partners and combined with Tudor Capital in February 2007.

Contact UsHouston: 713-333-2960Denver: 303-300-1902

101010

Disclaimer

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