Debtwire’s team of reporters and analysts host a roundtable discussion exploring the valuation issues, potential intercreditor conflicts and procedural milestones that will play out in the bankruptcy case. | 21 September 2015

DEBTWIRE BROADCAST: SAMSON RESOURCES SEEKS SPEEDY BANKRUPTCY

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AGENDA

Opening Remarks: Kate Marino

Sign of the times: Madalina IacobCase overviewWhat’s next?

Financial Analysis: Thomas RorickPro Forma FinancialsCorporate Organizational Structure

Chapter 11 Proceedings: Richard M. GoldmanPrepetition Restructuring NegotiationsRSA TermsContentious First-Day HearingValuation

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SIGN OF THE TIMES: CASE OVERVIEW

Samson’s bankruptcy filing:

Samson’s assets uneconomical at current natural gas and oil prices

Drilling halted

After six months of arduous restructuring negotiations, the debtor seeks a speedy court process

Unsecured bondholders attempted to leapfrog lenders

Out-of-court plan vs. Chapter 11 filing

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SIGN OF THE TIMES: WHAT’S NEXT?

What options do the unsecured bondholders have to extract more value?

Given the size and timing of Samson’s bankruptcy, how might it impact other E&P bankruptcies that follow?

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FINANCIAL ANALYSIS: PRE-PETITION CAPITAL STRUCTURE

1) On 16 September, USD 942m was outstanding on the company's revolver. 2) Samson's term loan is subject to a 1% LIBOR floorSources: SEC Filings, Management Presentations, Markit, TRACE.

PRE-PETITION CAPITAL STRUCTURE (USD m) as of 31 March 2015

Instrument Coupon Face Amount

Est. Cash Interest Price Market

Amount Maturity LTM Face Leverage

LTM Market Leverage

Reserve based revolver 1 L+ 3.0% 942 31 95 893 21 Dec. 2016 1.7x 1.6x

Second lien term loan 2 L+ 4.0% 1,000 50 16 159 25 Sep. 2018

Total secured debt 1,942 81 1,052 3.6x 1.9x

Senior unsecured notes 9.8% 2,250 219 1 23 15 Feb. 2020

Total debt 4,192 301 1,074 7.7x 2.0x

Cash and cash equivalents 129 129

Net debt 4,063 945 7.5x 1.7x

LTM Adj. EBITDAX: 541

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FINANCIAL ANALYSIS: INTERIM BUDGET

Note: The Interim Budget includes disbursements on account of prepetition and other claims that remain subject to court approval1) Net collections presented net of the revenue related disbursements described in the Debtor's Motion for Entry of Interim and Final Orders (I) Authorizing Payment of (A) Mineral Payments and (B)

Working Interest Disbursements.Source: Court Filings.

INTERIM BUDGET (USD m)Projected Week 1 2 3 4 5 6 7 8 9 10 11 12 13 13

Week TotalWeek Ending 9/18 9/25 10/2 10/9 10/16 10/23 10/30 11/6 11/13 11/20 11/27 12/4 12/11 12/18

Beginning cash balance 135.2 129.5 144.2 139.1 145.8 130.0 134.1 121.2 120.5 115.0 126.8 116.5 128.9 127.8 135.2 Net collections 1 6.7 25.5 11.9 18.6 3.7 17.7 6.0 24.3 3.8 18.3 2.8 18.6 8.7 2.9 169.7 Disbursements Lease operating expense (0.0) (0.9) (1.2) (1.6) (1.8) (2.5) (2.4) (2.6) (2.8) (2.2) (2.6) (2.6) (2.6) (25.8)Transportation (3.0) (0.4) (0.4) (1.5) (0.4) (0.4) (0.5) (0.5) (1.4) (0.5) (0.3) (0.3) (9.3)JIB Payables (0.4) (0.7) (0.6) (0.7) (0.3) (0.6) (0.6) (0.7) (0.3) (0.6) (0.6) (0.4) (0.4) (0.4) (7.1)Capex (0.2) (0.3) (0.6) (0.9) (1.1) (1.5) (1.7) (1.7) (1.7) (1.5) (1.5) (1.7) (1.8) (16.3)Lien motion (8.0) (8.0) (8.0) (7.1) (7.1) (7.1) (7.1) (52.3)Payroll & benefits (1.1) (0.2) (3.5) (0.2) (3.5) (0.2) (3.5) (0.1) (3.5) (0.1) (3.5) (0.1) (0.2) (3.5) (23.1)Rent & utilities (0.1) (0.7) (0.1) (0.2) (0.2) (0.8) (0.2) (0.2) (0.2) (0.2) (0.8) (0.2) (0.2) (0.2) (4.2)UCC professionals (0.0) (0.1) (0.1)Other (1.9) (0.5) (0.9) (0.6) (0.6) (0.6) (0.6) (9.5) (0.6) (0.6) (0.6) (0.9) (0.5) (2.5) (20.8)Total disbursements (6.5) (10.3) (14.4) (11.9) (14.5) (13.5) (16.3) (22.0) (9.3) (6.5) (10.4) (6.2) (5.9) (11.2) (158.9)Net cash flow from operations 0.2 15.2 (2.4) 6.7 (10.8) 4.1 (10.4) 2.3 (5.5) 11.8 (7.6) 12.4 2.9 (8.3) 10.7 Net cash flow after other expenses (2.7) 14.7 (2.4) 6.7 (15.9) 4.1 (10.4) (0.7) (5.5) 11.8 (7.6) 12.4 (1.2) (8.3) (4.8)Revolver interest (2.6) (2.6) (2.6) (7.8)Cash flow after debt services (2.7) 14.7 (5.1) 6.7 (15.9) 4.1 (12.9) (0.7) (5.5) 11.8 (10.3) 12.4 (1.2) (8.3) (12.7)Paydowns to revolver (3.1) (3.1)Operating cash 129.5 144.2 139.1 132.8 116.9 121.0 108.1 94.9 89.4 101.3 91.0 96.9 90.8 82.5 82.5 Restricted cash 13.0 13.0 13.0 13.0 25.5 25.5 25.5 25.5 32.0 37.0 37.0 37.0 Ending cash 129.5 144.2 139.1 145.8 130.0 134.1 121.2 120.5 115.0 126.8 116.5 128.9 127.8 119.5 119.5

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FINANCIAL ANALYSIS: PRO FORMA BALANCE SHEET

Source: Disclosure Statement filed 17 September 2015, Exhibit D.

ADJUSTED PRO FORMA BALANCE SHEET (USD M)2015 2016 2017 2018 2019 2020

Cash and cash equivalents 244 274 214 246 340 450 Accounts receivable, net 70 85 118 136 137 135 Net derivative assets, net 52 6 - - - -Prepaids & other 11 12 15 16 16 16 Total current assets 377 378 346 398 493 601

Net oil and gas properties (full cost method) 1,117 1,160 1,369 1,578 1,742 1,884 Net other property, plant and equipment 20 21 20 20 19 17 Deferred charges 20 16 12 8 4 0 Other long term assets 37 29 28 28 28 28 Total noncurrent assets 1,194 1,225 1,429 1,634 1,793 1,929

Total assets 1,571 1,603 1,775 2,031 2,286 2,530 Accounts payable 8 20 26 27 24 23 Accrued liabilities 75 78 92 97 88 85 Oil and gas revenues held for distribution 39 35 45 54 57 57 Total current liabilities 122 132 163 179 168 166

Long-term debt 775 775 775 775 775 775 Other long-term liabilities 87 93 105 117 127 136 Deferred income taxes - 22 71 153 245 331 Noncurrent liabilities 862 890 951 1,045 1,147 1,242 Total liabilities 984 1,022 1,114 1,224 1,315 1,407

Additional paid-in capital 325 325 325 325 325 325 Accumulated other comprehensive income / (loss) - (47) (52) (52) (52) (52)Retained earnings 262 302 388 535 698 850 Total shareholder's equity 587 580 661 808 971 1,123

Total liabilities & shareholder's equity 1,571 1,603 1,775 2,031 2,286 2,530

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FINANCIAL ANALYSIS: PRO FORMA INCOME STATEMENT

ADJUSTED PRO FORMA INCOME STATEMENT (USD M)2016 2017 2018 2019 2020

Net production Crude oil (mmbls) 3 4 5 5 5 Natural gas (Bcf) 96 99 101 99 89 NGL (MMbbls) 3 4 4 4 4 Total net production (Bcfe) 133 145 154 155 144 Natural gas 229 285 313 311 279 NGL 39 52 64 67 61 Midstream income 16 21 26 28 29 Natural gas and natural gas liquids revenue 284 359 403 406 368 Crude oil revenue 161 226 305 333 339 Operating revenue 444 585 708 739 707 Realized commodity derivatives 47 6 - - -Total net revenue 491 591 708 739 707 Net operating expenses Lease operating expense 132 125 125 124 120 Severance tax 23 32 41 45 45 Ad valorem tax 11 12 13 13 12 DD&A 137 149 158 160 149 Accretion of ARO 6 12 12 10 9 G&A, net of recoveries 81 81 81 81 81 Total net operating expenses 389 411 430 433 416 Income / (loss) from operations 102 180 277 306 291 Interest (income) expense 40 45 48 51 54 Income / (loss) before income taxes 62 135 229 255 238 Income tax provision (benefit) 22 49 83 92 86 Net income 40 86 147 163 152

Source: Disclosure Statement filed 17 September 2015, Exhibit D.

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FINANCIAL ANALYSIS: PRO FORMA CASH FLOWS

ADJUSTED PRO FORMA STATEMENT OF CASH FLOWS (USD M)2016 2017 2018 2019 2020

Net income / (loss) 40 86 147 163 152

Adjustments

Commodity derivatives, net (47) (6)

Cash settlement of commodity derivatives, net 50 7 0

DD&A 137 149 158 160 149

Asset retirement obligation accretion 6 12 12 10 9

Amortization of debt cost not capitalized 4 4 4 4 4

Provision for deferred income taxes 22 49 83 92 86

Net change in operating assets and liabilities

Accounts receivable, net (19) (34) (18) (1) 2

Prepaids & other (1) (2) (2) (0) 0

Accounts payable 4 3 0 (0) (0)

Accrued liabilities (28) 6 4 0 (2)

Oil and gas revenues held for distribution (4) 11 9 3 0

Deferred credits and other long term liabilities 9 1 (0) 0 0

Net cash provided by operating activities 173 285 397 430 400

Cash flow from investing activities

Capital expenditures (excluding interest) (143) (346) (365) (336) (290)

Net cash provided by investing activities (143) (346) (365) (336) (290)

Cash flow from financing activities - - - - -

Cash and cash equivalents at beginning of period 244 274 214 246 340

Change in cash from net activities 31 (61) 32 94 110

Cash and cash equivalents at end of period 274 214 246 340 450

Source: Disclosure Statement filed 17 September 2015, Exhibit D.

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Sources: Restructuring Support Agreement, SEC Filings.

FINANCIAL ANALYSIS: SOURCES & USES

ESTIMATED SOURCES & USES (USD, m)

Sources:

New Money Investment

Minimum Equity Rights Offering 325

Maximum New Debt 125

Total Sources: 450

Uses:

Reduction in RBL Facility 292

Cash fee to funders of New Debt 3

Work fee payable to Backstop Parties 10

Cash added to balance sheet 114

Miscellaneous 31

Total Uses: 450

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FINANCIAL ANALYSIS: PRO FORMA CAPITAL STRUCTURE

SUMMARY PRO FORMA CAPITAL STRUCTURE (USD m)

Instrument Coupon Face Amount Adj. Pro Forma

Face AmountPro Forma

Est. Interest Price Maturity LTM Face Leverage

Pro Forma Face Leverage

Reserve based revolver 1 L+ 3.0% 942 (292) 650 22 95 15 Jan. 2021 1.7x 1.8x

Second lien term loan 2 L+ 4.0% 1,000 (1,000) - - 16 25 Sep. 2018

New second lien term loan 3 8.5% - 125 125 11 - 15 Jan. 2021

Total secured debt 1,942 775 32 3.6x 2.1x

Senior unsecured notes 9.8% 2,250 (2,250) - - 1 15 Feb. 2020

Total debt 4,192 775 32 7.7x 2.1x

Cash and cash equivalents 4 129 114 244

Net debt 4,063 531 7.5x 1.4x

Equity value 5 - 500 500

Enterprise Value 4,063 1,031 - 2.8x

LTM Adj. EBITDAX: 541 2015E Adj. EBTIDAX: 368

1) The current RSA contemplates a new USD 750m revolver with a five-year maturity.2) Samson's term loan is subject to a 1% LIBOR floor.3) The new five-year second lien debt will bear interest at 8.5% for the first year. Interest will increase by 50bps after 12 months and will increase 50bps every each six months thereafter.4) As of 18 September 2015, Samson had USD 135m in cash. Pro forma cash balance of USD 244m is as of 31 December 2015.5) Equity value assumes a USD 1.275bn enterprise value as contemplated in the RSA.Sources: SEC Filings, Management Presentations, Court Filings, Markit, TRACE.

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Note: Reserves adjusted for Arkoma asset sale in March 2015.Sources: Debtwire Analytics, SEC Filings.

FINANCIAL ANALYSIS: SUMMARY PV-10 ANALYSIS

SUMMARY PV-10 ANALYSIS

1Q15 daily production (Mmcfe/d) 518

YE14 oil proved reserves (Mbbl) 22,611

YE14 gas proved reserves (Mmcf) 840,151

YE14 NGL proved reserves (Mbbl) 26,414

Estimated PDP PV-10 value $769

Estimated PDP PV-9 value $785

95% of PDP PV-9 value $746

Hedge book value $105

PDP PV-10 Value + Hedge Book (USD m) $874

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FINANCIAL ANALYSIS: CORPORATE ORGANIZATIONAL STRUCTURE

Source: Court documents.

2.3%

Samson Contour Energy E&P, LLC (Del.)

Samson Contour Energy Co. (Del.)

Samson Resources Company (Okla.)

Samson Investment Company (Nev.)

Samson Resources Corporation (Del.)

Samson Aggregator L.P.Management & Employees 97.3%

Samson Kelly Operating Company, Ltd. (Tex.)

Geodyne Resources, Inc. (Del.)

PYR Energy Corporation (Md.)

SGH Enterprises, Inc.(Del.)

OSN Production Ltd.(Alberta)

Cimarron Oil Field Supply LLC (Okla.)

Samson-International, Ltd.(Okla.)

Samson Canada Holdings, ULC (Alberta)

Samson Financial Limited Partnership (Alberta)

Samson Lone Star, LLC(Del.)

1%

99%

11%

Samson Holdings, Inc.(Del.)

89%

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CHAPTER 11 PROCEEDINGS

Prepetition restructuring negotiations

In February, Samson made a USD 110m coupon payment to unsecured noteholders.

That payment, in addition to a March amendment to Samson’s RBL facility, bought Samson six months to negotiate a consensual restructuring framework.

During that time, Samson entertained proposals from groups of second lien lenders and unsecured noteholders, respectively.

The noteholder proposal, which contemplated an out-of-court restructuring, provided for a USD 650m capital investment that would entitle the unsecureds to leapfrog past the second lien lenders. For numerous reasons, including restructuring contingencies and possible violations of an

intercreditor agreement, Samson rejected that proposal.

Alternatively, Samson accepted a court-supervised restructuring proposal from the second lien lender group.

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CHAPTER 11 PROCEEDINGS

Material terms of restructuring support agreement

Restructuring support agreement (RSA) entered into on 14 August.

RSA provides for a reduction in first lien indebtedness and cancellation of second lien and unsecured debt, and preferred and common equity interests. RSA de-levers Samson by USD 3bn and reduces annual debt service by USD 250m.

Second lien lenders agreed to infuse new capital up to USD 480m, in exchange for new common equity in reorganized company, less new common equity issued to rights offering participants, backstop parties and GUC holders. GUC holders entitled to 1% equity interest of reorganized company if vote in favor of

plan, or .5% equity interest if reject plan, subject to MIP dilution.

Preservation of valuable tax attributes.

Mutual releases with Samson, first liens, second liens, preferred equity and common equity.

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CHAPTER 11 PROCEEDINGS

Contentious first-day hearing

Samson and the secured lenders did themselves no favors during the first-day hearing.

Samson’s cash collateral motion, which was met by objections from the US Trustee and ad hoc noteholder group, viscerally angered Judge Sontchi.

The debtors’ offer, and lenders’ request, for an adequate protection package that included liens and claims on Samson’s unencumbered property caused Judge Sontchi to become irate and refer to the lenders as “pigs” and “hogs”.

Ultimately, the lenders conceded and waived adequate protection during the interim period between the first and second day hearings.

Other typical first-day relief, such as authority to remit wages, taxes, insurance payments and other necessary expenses for Samson to continue to operate in the ordinary course of business, was granted.

Stage is set for a contentious second-day hearing on 14 October at 10am.

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CHAPTER 11 PROCEEDINGS

Valuation is key

Samson’s support for plan confirmation assumes that the second liens are the fulcrum security, which in turn depends on a collateral valuation that exceeds USD 950m (the RBL facility claim).

If the noteholder group is able to challenge this valuation and prove that the collateral value is insufficient to cover the RBL facility, then: The RBL lenders would become the fulcrum security; Second liens and unsecureds would share pari passu in any reorganization proceeds; and Samson would be forced to start its reorganization from scratch.

Given the significant stake resting on valuation of Samson’s assets, there is little doubt that the unsecured noteholders will challenge any valuation and attempt to prove that the second liens are out of the money.

Additionally, expect the noteholder group to conduct investigations to determine whether any claims can be asserted on account of 2011 LBO transaction, creation, perfection and validity of first and second lien loans, and RSA negotiations/releases.