Twelfth Annual

ENERGY

CONFERENCE

RECAP

February 29 - March 2, 2012

Exploration & Production

Lee Boothby Chairman, President & Chief Executive Officer Newfield Exploration Company

Stephen Chazen President & Chief Executive Officer Occidental Petroleum

Dan Dinges Chairman, President & Chief Executive Officer Cabot Oil & Gas

Tim Dove President & Chief Operating Officer Pioneer Natural Resources

Kevin Fitzgerald Executive Vice President & Chief Financial Officer Murphy Oil

Jim Flores Chairman, President & Chief Executive Officer Plains Exploration & Production

Jeff Hume President & Chief Operating Officer Continental Resources

Tim Leach Chairman, President & Chief Executive Officer Concho Resources

Steve Mueller President & Chief Executive Officer Southwestern Energy

John Pinkerton Chairman Range Resources

Taylor Reid Executive Vice President & Chief Operating Officer Oasis Petroleum

John Richels President & Chief Executive Officer Devon Energy

Dave Roberts Executive Vice President & Chief Operating Officer Marathon Oil

Irene Rummelhoff Senior Vice President, Strategy & Business Development Statoil ASA

Dave Stover President & Chief Operating Officer Noble Energy

Scott Woodall Chief Operating Officer Bill Barrett

Offshore Drillers

Christian Beckett Chief Executive Officer Pacific Drilling

Lawrence Dickerson President & Chief Executive Officer Diamond Offshore Drilling

Mark Keller Executive Vice President Business Development Rowan Companies

Rob Saltiel President & Chief Executive Officer Atwood Oceanics

Capital Equipment

John Gremp Chairman, President & Chief Executive Officer FMC Technologies

Loren Singletary Vice President Investor & Industry Relations National Oilwell Varco

Large Cap Service

Bernard Duroc-Danner Chairman, President & Chief Executive Officer Weatherford International

Tim Probert President, Strategy & Corporate Development Halliburton Company

Peter Ragauss Senior Vice President & Chief Financial Officer Baker Hughes Incorporated

Land Drilling & Well Intervention Services

Hans Helmerich Chairman & Chief Executive Officer Helmerich & Payne

Kenneth Huseman Chief Executive Officer & President Basic Energy Services

Kevin Neveu Chief Executive Officer Precision Drilling Corporation

Trey Whichard Vice President & Chief Financial Officer Key Energy Services

Small Cap service

David Demshur Chief Executive Officer Core Laboratories

David Dunlap President & Chief Executive Officer Superior Energy Services

Gary Kolstad President & Chief Executive Officer CARBO Ceramics

Cindy Taylor President & Chief Executive Officer Oil States International

Refining

Mike Jennings Chief Executive Officer HollyFrontier

Bill Klesse Chairman, President & Chief Executive Officer Valero Energy Corporation

Mike Palmer Senior Vice President, Supply, Distribution & Planning Marathon Petroleum Company

Dan Romasko Executive Vice President, Operations Tesoro Corporation

Coal

Brett Harvey, Chief Executive Officer & Chairman of the Board CONSOL Energy

Jim Thompson President Energy Publishing

Richard Whiting President, Chief Executive Officer & Director Patriot Coal

Simmons & Company International

Twelfth Annual Energy Conference Panel Participants

Industry Executives Discuss Changes,

Challenges and Opportunities

Now in its 12th year, Simmons annual Energy Conference brings together CEOs and other top executives from multiple segments of the energy industry. Executives meet one-on-one with investors, and engage in lively panel discussions about issues facing the industry today, as well as challenges and opportunities that lie ahead.

This year, 41 energy executives from the exploration & production, energy service and equipment, refining and coal segments participated in 11 panel discussions on topics that ranged from natural gas pricing, to international offshore plays, to North American supply bottlenecks. Among the most significant takeaways were:

The transformation of the North American energy industry, and the profound economic implications of these structural changes, in the U.S. and abroad.

Widespread enthusiasm for oil exploration and production, and the oil price outlook.

Near-universal pessimism about natural gas pricespossibly extending for several years.

A strong outlook for the service and equipment industries, both onshore and offshore, both domestic and international.

Optimism in the resumption of activity in the Gulf of Mexico, and future growth and profitability there, at least among the largest producers.

Improving global competitiveness of the US refining industry driven by low costs domestic oil and natural gas supplies.

Participants in the Simmons Conference offered frank observations of the industry and its prospects ahead. Below are some of the answers, in executives own words, to many of the questions now facing the industry.

SIMMONS & COMPANY INTERNATIONALT WELFTH ANNUAL ENERGY CONFERENCE REPORT 1

The technology-driven transformation of

the North American energy industry may

now be decades old, but many panelists

were still shaking their heads in disbelief

at the changes they have witnessed. I

was a peak oil believer until five years

ago, said Irene Rummelhoff, Senior

Vice president of Statoil ASA. What is

happening now is amazing.

Valero Energy Corp.s CEO Bill Klesse

was even more emphatic about the

historic nature of the industrys

transformation. In my 40-year

career, this unconventional oil &

gas boom is probably the biggest

thing that has ever happened, for

the U.S. and ultimately for the

world, he said. It is going to be

very remarkable, watching where

this goes in five to seven years.

Industry executives tip their hats

to engineers, who seem to have

replaced wildcatters as the heroes

of the todays North American energy

renaissance. What has changed is the

shale plays and the repeatability of these

plays, said John Pinkerton, Chairman

of Range Resources. All these brilliant

engineers have created this. The

domestic industrys transformation is

already having a substantial positive

impact on the U.S. economyand its

ability to create high-paying jobs. Fifteen

years ago we were looking at shutting

the lights off for the North American

oil & gas industry, said Continental

Resources President and COO Jeff

Hume. Now we are recruiting at colleges

and seeing those colleges reinvest in

their petroleum engineering

and geology programs. This

is a huge opportunity for

American workers.

On the oil side, at least,

most panelists think the

production upturn is still

young. We are in the

very early stages of this

whole shale and tight rock

revolution in oil, said John Richels,

CEO Devon Energy. Look what we

have done in natural gas shale plays.

The smart technical folks are not only

figuring out how to locate fracks better;

they are learning to take advantage of

natural fracks and improving efficiencies.

A well took 33 days to drill ten years ago;

now we do it in seven days. We are now

applying that technology to oil plays and

constantly developing efficiencies and

gaining better technical knowledge which

will continue to help us figure out how to

get oil out of the ground.

Unconventional activity is spreading

outward from North America, presenting

enticing long-term growth opportunities

for industry players who are positioned

to provide equipment and expertise

to promote international development

of unconventional resources. Hans

Helmerich, CEO of Helmerich & Payne,

sees exciting opportunities in many

countries. The North American energy

revolution will have positive international

implications for service companies

that have leading positions here. We

anticipate being part of the demand pull

from operators and their JV partners

as they apply their new expertise into

international markets.

Is Shock and Awe replacing Boom and Bust

as the best way to describe the oil and gas industry?

We are in the very early stages of this whole shale

and tight rock revolution in oil

John Richels, CEO, Devon Energy

2 SIMMONS & COMPANY INTERNATIONALT WELFTH ANNUAL ENERGY CONFERENCE REPORT

The overwhelming majority of

Simmons conference participants

believe the answer to that question

is no. North American producers

and service companies are placing

their bets on continued strength

in the oil market. You have the oil

market moving from strength to

strength, and gas absurdly priced,

said Bernard Duroc-Danner, CEO

of Weatherford International.

This year, the more oil you have,

the more flexible you are and the

better you do. North American

oil and liquids producers sunny

outlook might be influenced by

the relentlessly positive E&P news

coming from their unconventional