Mex Exports 0.5. Bcf/d Change April 2012 YTD versus Same Period in 2011

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2 Production Efficiency, Mild Winter Stifle 2012 Market. Power Burn Reignites Market to Slow Burning Flame. Power, Industrial, LNG Exports Will Add Fuel to the Fire Going Forward Abundant Resources, Massive Infrastructure Build-Out Adequate to Meet Future Demand Gains. Northeast Supply Growth Will Drive Market Change Over Next Five Years. BENTEKENERGY.COM 2

3 Supply Total Dry Gas Prod LNG Sendout Can Imports Mex Exports Power Burn Industrial Res/Comm Demand Total (1.0) (3.5) Bcf/d Change April 2012 YTD versus Same Period in 2011 BENTEKENERGY.COM 3

4 Bcf/d Other Anadarko S. Texas Permian Barnett Fayetteville Haynesville Northeast BENTEKENERGY.COM 4

5 Mex Exports Res/Comm Power Industrial Pipe Loss to Date BENTEKENERGY.COM 5

6 HDDs Winter Season Population Weighted Heating Degree Days Warmest Winter in More Than 60 years BENTEKENERGY.COM Winter Seasons Source: BENTEK, Custom Weather 6

7 Bcf/d Total Winter Residential-Commercial Gas Demand BENTEKENERGY.COM 7

8 Supply Total U.S. Dry Gas Prod LNG Sendout Can Imports Mex Exports Power Burn Industrial Res/Comm Demand Total Supply Demand (0.5) (1.0) (0.1) (0.3) (2.0) (6.8) Bcf/d Change April 2012 YTD versus Same Period in

9 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $- $8.90 $6.74 $6.94 $8.85 $3.92 $4.37 $4.05 $2.53 Annual Average Henry Hub ($/MMBTU) BENTEKENERGY.COM 9

10 AECO $0.44 -$0.49 -$0.32 -$0.42 Dawn Sumas $0.13 -$0.28 -$0.11 -$0.12 NW Rox $0.82 -$0.47 -$0.23 -$ $0.32 $0.37 $0.39 $0.29 Transco Z6 Chicago (Nicor) $0.95 $1.03 $0.99 $0.47 $0.00 $0.08 $0.12 $0.07 PG&E $0.21 $0.16 $0.25 $0.33 SoCal $0.30 -$0.13 $0.07 $0.15 BENTEKENERGY.COM Dominion South $0.31 $0.21 $0.12 $0.02 Waha Henry Hub (Cash) $0.51 -$0.22 -$0.12 -$0.08 $3.92 $4.37 $4.05 $ prices are average of year-to-date as of Tetco M $0.72 $0.74 $0.63 $

11 Bcf/d Maintenance & Freeze-offs 2010 Avg. = 57.2 Bcf/d 2011 Avg. = 61.7 Bcf/d 2012 YTD Avg. = 63.5 Bcf/d /1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/ Fcst Source: BENTEK Supply and Demand Report, Dry Production 11

12 Liquids Plays Attract Drilling Rigs Change in rig count since Jan. 1, /+3 221/+140 3/+0 28/+19 8/+2 29/-1 44/+26 27/+23 43/+18 14/-9 90/+52 11/+3 49/+21 7/-1 231/ /-20 12/-17 78/-31 43/-50 32/ / /+5 73/+14 26/+11 Rig Increases Liquids-Rich/Oil Focused Areas 258/ /+9 72/-4 40/+22 7/ Rig Declines Source: BENTEK, September 2012 BENTEKENERGY.COM 12

13 $/MMBtu 25 As of 7/9/ Value Gap 0 WTI (Crude) Henry Hub (Natural Gas) Mont Belvieu (Natural Gas Liquids) BENTEKENERGY.COM 13

14 Rates of Return on Oil and liquids Wells Remain High Bakken 48% Dry Gas Play Pinedale 19% Niobrara 22%/ 13% MarcellusDry Uinta 29% 49% 69% Cleve/Tonk 5% 40% MarcellusWet Miss Lime Piceance 53% 60% Arkoma-Wood Granite Wash 154% 47% 29% 5% Fayetteville 9% Cana-Wood Permian 80% 3% Haynesville Oil and/or Liquids Play Eagle Ford Oil/Wet 64%/ 44% 63% Price Assumptions: Gas = 12 month forward average curve for each regional pricing point (price range $3.26-$3.49/Mcf) Oil = 6 month WTI +/- differential (price range $74.98-$96.85/barrel) NGLs = weighted average $/barrel, based on current Mt. Belvieu prices and the typical composition in each region (range $27.78-$51.92 barrel) BENTEKENERGY.COM Source: BENTEK 14

15 MMcf/d (50) (100) (150) (200) (250) Growth Projected Next Month by Basin/Play Oil and Liquids-Rich Mostly Dry Gas BENTEKENERGY.COM 15

16 Bcf 4,500 4,200 3,900 3,600 3,300 3,000 2,700 2,400 2,100 1,800 1,500 U.S. Storage Inventories Storage on April 1 st = 2.5 Tcf 887 Bcf More than Bcf over 5-yr Avg. 5-Year Avg. Inventories 5-Year Avg. Inventories Forecast Capacity Source: BENTEK Storage Analytic Report and Data Warehouse, Market Call Note: Storage Forecast as of March. 30,

17 Bcf Source: EIA 17

18 Bcf/d Yr. Avg

19 BENTEKENERGY.COM 19

20 Bcf/d U.S. Power Burn per Degree Degrees Fahrenheit Source: BENTEK Power Burn Report 20

21 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 CAPP - Barge CAPP - Rail IL - Rail NAPP - Barge NAPP - Rail PRB - Rail UINTA - Rail Natural Gas 21

22 Bcf/d Thousand Short Tons of Coal Per Day At 2012 Avg. of $ Bcf/d Equivalent of Potential Coal Displacement At $4.00 Avg. Gas Prices 3.0 Bcf/d of Potential Coal Displacement 3,000 2,500 2,000 1,500 1, Delivered Cost of Coal to Power Plants PRB CAPP NAPP Illinois Uinta Imports Other Source: EIA 22

23 100% 90% Wind 80% Solar 70% 60% 50% 40% 15% 20% 29% Other Oil Nuke 30% 20% 53% 50% 38% Hydro Gas 10% 0% Coal 23

24 Bcf/d SE NE 24

25 Bcf/d SE NE MCM MCP Texas Rockies SW PNW 25

26 Bcf/d 1.6 Mexican Exports

27 Supply Total U.S. Dry Gas Prod LNG Sendout Can Imports Mex Exports Power Burn Industrial Res/Comm Demand Total Supply Demand (0.4) (0.3) (0.1) (3.3) Bcf/d Change Year-to-Date Averages versus

28 Bcf/d Per Year Bcf/d Per Year

29 Bakken Rockies Anadarko Utica/Marcellus Permian Eagle Ford Bcf/d *As of 7/30/

30 Canadian LNG Exports: 1.2 Bcf/d Kitimat LNG: 1.1 Bcf/d Douglas Channel: 0.1 Bcf/d Bakken to Midwest: 0.5 Bcf/d Northern Border: 0.3 Bcf/d Alliance: 0.2 Bcf/d Southwest to Mexico: 0.8 Bcf/d El Paso Willcox Lateral: 0.2 Bcf/d Norte Crossing: 0.4 Bcf/d Samalayuca Lateral: 0.5 Bcf/d Sasabe Lateral: 0.2 Bcf/d Texas to Mexico: 0.3 Bcf/d TETCO South Texas: 0.3 Bcf/d Northeast to Midwest: 1.2 Bcf/d ANR Lebanon Lateral: 0.4 Bcf/d TETCO TEAM & OPEN: 0.8 Bcf/d REX: 1.8 Bcf/d Dominion E. Ohio: 0.8 Bcf/d Source: BENTEK +1.2 To Premium Northeast Market: 1.1 Bcf/d Tenn Supply Diversification: 0.1 Bcf/d Millennium Minisink: 0.2 Bcf/d TETCO NJ-NY: 0.8 Bcf/d Northeast to Canada: 0.8 Bcf/d Tenn Supply Diversification: 0.2 Bcf/d Empire Tioga Extension: 0.3 Bcf/d Nat'l Fuel Northern Access: 0.3 Bcf/d Northeast to Southeast: 3.2 Bcf/d CGT Gulf Bi-Directional: Bcf/d Transco Mid-Atlantic: 0.2 Bcf/d Transco Atlantic Access: 2.3 Bcf/d Northeast LNG Exports: 0.4 Bcf/d +0.4 Cove Point LNG: 0.4 Bcf/d Southeast LNG Exports: 4.1 Bcf/d Freeport LNG: 0.9 Bcf/d Sabine LNG: 1.9 Bcf/d Cameron LNG: 1.3 Bcf/d Lake Charles LNG: 0.2 Bcf/d Excelerate LNG: 0.4 Bcf/d To Southeast Market: 1.1 Bcf/d SONAT South System: 0.4 Bcf/d Gulf South SE Market: 0.5 Bcf/d Elba Express: 0.3 Bcf/d 30

31 Bcf/d Forecast -2.8 Bcf/d, or -48% Bcf/d, or -38% History Forecast 31

32 Bcf/d

33 Under Construction Year MW , , Total 22,847 Gas Burn Equivalent assumes all plants are combined-cycle running at 50% utilization with heat rates of 7.5. Source: Platts & BENTEK Generation Data 33

34 Total Installed Capacity (GW) Gas-Fired Generation Capacity Utilization Gas Generation Capacity BENTEK, EIA 34

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36 BENTEK Demand Expansions Project List ISD Plant Owner State /1/2012 Dogfish Head brewery Dogfish Head DE 6/30/2012 Methanol plant Methanex LA No. of 10/1/2012 Air separation plant Air Liquide TX 12/31/2012 Plant restart Industrial Facility Type Century Aluminum WV 2013 Projects 1/1/2013 Baytown complex ExxonMobil TX 1/1/2013 Donaldsonville Ammonia #4 Plant Debottlenecking Projec CFI Industries GA 1/1/2013 Gary Aluminum Works Facilities US Steel 2 IN 1/1/2013 Methanol facility Methanix TX Ammonia Plant Expansions 3 1/1/2013 Port Arthur Hydrocracker Valero Energy Corp TX 1/1/2013 Proppant Ethane plantcracker Projects Saint-Gobain 6 AR 7/1/2013 Ammonia plant PotashCorp LA 12/31/2013 Geismar Ethylene olefins production Plants facility Williams 2 LA 12/31/2013 Plant Gas expansion to Liquids Plants Alcoa 2 IA 12/31/2013 Steel mill expansion Steel Dynamics IN 12/31/2013 Steel Methanol mill expansion Facilities Nucor 3 NE 12/31/2013 Steel Steel mill expansion Plant Projects Nucor 6 SC 12/31/2013 Steel mill expansion Nucor TN 2014 Refining or Chemical Facilities 9 1/1/2014 Ammonia plant expansion Rentech Nitrogen Partners, LP IL 1/1/2014 Chlor-alkali plant expansion Westlake Chemical Corporation LA 1/1/2014 Coal-fired Cogen Plant at Refire Kennecott Utah Copper (KUC) UT 1/1/2014 Granger production facility FMC WY 1/1/2014 Methanol facility LyondellBasell TX 1/1/2014 St Charles Hydrocracker Valero Energy Corp LA 3/31/2014 Cedar Bayou Checmial Complex 1-hexene plant Chevron Phillips Chemical TX 4/1/2014 Atlantic Packaging cardboard recycling & paper mills City Power Co-Gen for Atlantic Packaging OT 12/31/2014 Aluminum lithium facility Alcoa IN 36

37 Bcf/d

38 P. Libertad 620 MW (2014) Guaymas I (2015) 108 MW CC Guaymas II (2017) 747 MW CC Guaymas III (2018) 747 MW Topolobampo I (2016) 320 MW CC Topolobampo II (2016) 700 MW CC Topolobampo III (2017) 700 MW CC Norte II (2013) 459 MW CC Norte III (2015) 954 MW CC Norte IV (2019) 918 MW CC Norte V (2022) 944 MW CC Norte VI (2025) 918 MW El Paso Wilcox Lateral: 185 MMcf/d, Apr El Paso Samalayuca Lateral: 97 MMcf/d, Jul El Paso Sasabe: MMCf/d, Jul Total El Paso: 482-1,052 MMcf/d Mazatlan (2016) 300 MW ,302 MW %; 7.5 heat rate CC Mazatlan (2021) 867 MW Source: Comision Federal de Electricidad (CFE) 38

39 Supply Total Dry Gas Prod LNG Sendout Can Imports Mex Exports Power Burn Industrial Res/Comm Pipe Loss LNG Exports Demand Total (0.1) (2.5) Bcf/d Change Forecast Compared to

40 $/MMBtu $7.00 $6.50 $6.00 $5.50 $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 Technology Unlocks Abundant Supply. Demand Grows in All Sectors. Tighter Market Than 2012, 2011 BENTEK Forecast (In August 2010) Nymex Forward Curve (in August 2010) Current Nymex Forward Curve BENTEK Forecast (In May 2012) 40

41 North American LNG Export Projects BENTEKENERGY.COM Project Country Peak Capacity (Bcf/d) Annual Capacity (Mtpa) Annual Capacity (Bcf/Year) Location 1 Cove Point U.S Lusby, MD Northeast U.S. Region 2 Jordan Cove U.S Coos Bay, OR Pacific Northwest U.S. 3 Oregon LNG U.S Warrenton, OR Pacific Northwest U.S. 4 Cambridge Energy U.S Savannah, GA Southeast U.S. 5 Cameron U.S Cameron Parish, LA Southeast U.S. 6 Carib Energy U.S NA Southeast U.S. 7 Elba Island U.S Savannah, GA Southeast U.S. 8 Gulf LNG U.S Pascagoula, MS Southeast U.S. 9 Lake Charles LNG U.S Cameron Parish, LA Southeast U.S. 10 Sabine Pass U.S Cameron Parish, LA Southeast U.S. 11 SB Power Solutions U.S NA Southeast U.S. 12 Corpus Christi U.S Corpus Christi, TX Texas 13 Excelerate Offshore U.S Offshore Texas Texas 14 Freeport U.S Freeport, TX Texas 15 Golden Pass U.S Sabine Pass, TX Texas 16 Gulf Coast LNG U.S ,022.0 Brownsville, TX Texas 17 Douglas Channel LNG Canada Douglas Channel, BC Western Canada 18 Kitimat LNG Canada Bish Cove, BC Western Canada 19 Shell Kitimat Canada Kitimat, BC Western Canada Total ,395.8 Total Canada ,115.5 Total U.S ,

42 $/MMBtu $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Global Gas Price Comparison Henry Hub LNG Japan/Korea Spot Crg DES UK NBP DA $/MMbtu BENTEKENERGY.COM 42

43 Bcf/d North American LNG Exports Forecast (Base Case) DC Kitimat Freeport Cameron Sabine Pass Capacity BENTEKENERGY.COM 43

44 Production growth slows but continues as high oil and liquid prices drive associated gas production growth and a backlog of uncompleted wells foster continuing production increases. Canadian and LNG imports continue to decline as U.S. production grabs more market share. Gas continues to gain a greater share of the power market as gas prices remain attractive relative to coal and environmental regulations promote greater gas usage. Industrial demand climbs as new industrial projects are built in the U.S. Residential/Commercial demand posts moderate gains due to the price advantage of natural gas over propane and fuel oil. Mexican exports grow as the country plans further expansion of its pipeline, utility infrastructure and gas-fired power plant infrastructure and new border crossing pipeline capacity is built. Henry Hub prices gain ground relative to the extreme lows seen in 2012, but price increases are hindered by abundant gas resources and production growth. Henry averages about $4.27 from 2013 through

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46 Bcf/d Columbia Gas Dominion Other Texas Eastern Transco Tennessee BENTEKENERGY.COM Source: BENTEK Pipeline Flow Data. PA/WV Production Receipts 46

47 Bcf/d 3.0 Tennessee 300 Line Est TGP Forward Haul Est TGP Back Haul Capacity BENTEKENERGY.COM Source: Northeast Observer 47

48 Bcf/d Production Zone 5 Interconnects (Mostly Canadian Imports at Niagara) BENTEKENERGY.COM 48

49 Bcf/d 2.5 Transco Leidy Line Supply Storage Production BENTEKENERGY.COM 49

50 MMcf/d 2,500 2,000 1,500 1, Leidy Production Receipts from TGP 300 Leidy Interconnects Longhaul Supply BENTEKENERGY.COM 50

51 Bcf/d NE Prod REX Midcon Corridor LNG Canadian Imports YTD Southeast Corridor BENTEKENERGY.COM Source: Northeast Observer; Taming the Beast Daily Refreshable Data 51

52 Non Producing Wells 1,400 1,200 1, Non-producing Wells by PA County Bradford Lycoming Tioga Susquehanna Clearfield Other Counties BENTEKENERGY.COM 52

53 Barnett Potential Northeast Production Profile (Bcf/d) BENTEK Forecast: 6.8 Bcf/d of Growth Legacy Production Wet Marcellus Lean Marcellus Utica Marcellus BENTEKENERGY.COM 53

54 Bcf/d TGP 300 Line; MPL; Transco Constitution to IGT Commonwealth Transco Atl.Access TGP NSD; MPL;NFG Bradford Susquehanna Lycoming Tioga Sullivan Clearfield Other Counties Capacity BENTEKENERGY.COM 54

55 BENTEKENERGY.COM 55

56 Bcf/d Production Inflows BENTEKENERGY.COM 56

57 Bcf/d PowerBurn Industrial ResComm BENTEKENERGY.COM 57

58 Bcf/d Power Burn Up 1.2 Bcf/d from Average BENTEKENERGY.COM 58

59 Bcf/d 8.0 Gas Demand from Power by Pipeline East Tennessee Columbia Gas Dominion Iroquois Algonquin SONAT Tennessee Transco Texas Eastern BENTEKENERGY.COM 59

60 BENTEKENERGY.COM 60

61 BENTEKENERGY.COM 61

62 $/MMBtu $35.00 Average Price of Residential Heating Fuels in NE $30.00 $25.00 Value Gap $20.00 $15.00 $10.00 $5.00 $0.00 Gas Heating Oil Propane BENTEKENERGY.COM 62

63 Marcellus Well Inventory Will Sustain Production Growth Marcellus Investment, Particularly in Northern Pennsylvania, Needs to Slow to Avoid Constraints Power Sector Growth Over the Longterm Lags Production Gains Northeast Production Displaces Longhaul Pipeline Inflows from Other Regions, but Becomes Seasonally Net Long BENTEKENERGY.COM 63

64 BENTEK is an energy market analytics company, focused on the natural gas, natural gas liquids, crude oil and related energy sectors. Rocco Canonica Contact Any Analyst Direct at (303) DISCLAIMER. THIS REPORT IS FURNISHED ON AN AS IS BASIS. BENTEK DOES NOT WARRANT THE ACCURACY OR CORRECTNESS OF THE REPORT OR THE INFORMATION CONTAINED THEREIN. BENTEK MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE USE OF ANY INFORMATION CONTAINED IN THIS REPORT IN CONNECTION WITH TRADING OF COMMODITIES, EQUITIES, FUTURES, OPTIONS OR ANY OTHER USE. BENTEK MAKES NO EXPRESS OR IMPLIED WARRANTIES AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANT- ABILITY OR FITNESS FOR A PARTICULAR PURPOSE. RELEASE AND LIMITATION OF LIABILITY: IN NO EVENT SHALL BENTEK BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFIT) ARISING OUT OF OR RELATED TO THE ACCURACY OR CORRECTNESS OF THIS REPORT OR THE INFORMATION CONTAINED THEREIN,WHETHER BASED ON WARRANTY, CONTRACT, TORT OR ANY OTHER LEGAL THEORY. BENTEKENERGY.COM 64