PLATTS ROCKIES OIL & GAS CONFERENCE - UINTA BASIN UPDATE STUART E. NANCE – VP - MARKETING

Denver, Colorado – April 15, 2013

2

3

What I will attempt to cover during this presentation………

From the Program

• Production, expansion, prospects

• Drilling programs/reports, lessons learned

• Local differential with WTI

• Logistics, infrastructure

• New markets beyond Utah

• Potential for gas pipelines to be converted to oil service

• New plays in Nevada

4

What you’d really like to know - Uinta Basin Wax Crude

• What is it?

• Where is it found?

• Who produces it?

• Where are markets?

Types of Wax Crude oil Produced from Uinta Basin, UT

5

UNITA BASIN WAX CRUDE – UNIQUE PHYSICAL PROPERTIES

6

Black Wax Crude

• 29 - 35 o API gravity.

• +/- 100 o F Pour Point.

• .01 mass % Sulfur content.

• Highly Paraffinic crude.

• Very Low Acid content (TAN < .1)

• Low metals & Nitrogen content.

• Carbon Residue – very low.

Yellow Wax Crude

• 40 - 45 o API gravity.

• +/- 100 o F Pour Point.

• .01 mass % Sulfur content.

• Highly Paraffinic crude.

• Very Low Acid content (TAN <.1)

• Very Low metals & Nitrogen content.

• Carbon Residue – very low.

Yellow and Black Wax Crude

• Excellent Feed for certain Lubes plants – due to High Paraffin content.

• Possible Cracker Feed – might be able to bypass Crude Unit in certain refineries.

• Excellent Anode Grade Coke Feedstock – due to extremely low metals content (For refineries with cokers) – Anodes are used in metals smelting.

UINTA BASIN – Northeastern UT – Uinta/Duchesne Co.

7

• Altamont Bluebell

• Monument Butte

• Central Basin

UNITA BASIN WAX CRUDE – TOP OPERATORS

8

Newfield Exploration (NYSE: NFX)

Bill Barrett Corporation (NYSE: BBG)

EP Energy Corporation - (Apollo Capital Management)

Berry Petroleum (NYSE: BRY) – to be acquired - Linn Energy

Crescent Point Energy – (TSX:CPG) – acquired Ute Energy

Estimated Gross Wax Production ~ 60,000+ b/d

Operators in Uinta Basin – Duchesne/Uintah Counties, UT

9

Map of Producing Areas – Uinta Basin, UT

10

11

BENTEK CRUDE OIL PRODUCTION MONITOR – UINTA BASIN

12

BENTEK CRUDE OIL PRODUCTION MONITOR – UINTA BASIN

13

WAX CRUDE OIL POSTED PRICES – SLC MARKETS

Chevron Crude Oil Posted Prices – Bulletin 13-E70 - Effective April 12, 2013

East of the Rockies Price Change

Altamont Yellow Wax $75.79 (2.22)

Uinta Basin Black Wax $74.79 (2.22)

http://crudemarketing.chevron.com/posted_pricing_daily.asp

14

Big West Oil, LLC Posted Prices – Bulletin 12-438 – Effective April 12, 2013

Utah Yellow Wax $74.79

Utah Brown Wax $74.04

Utah Black Wax $74.04

http://www.bigwestoil.com/files/bwo_4_2013.pdf

NYMEX WTI settlement on April 12, 2013 - $91.29 (down $2.22) SLC Wax Crude Postings are ~ 82% of WTI Futures on this date.

OIL PRICES – FROM MORGAN STANLEY – EVAN CALIO

15

REFINING CAPACITY - SALT LAKE CITY, UT. AREA

16

Total SLC area refining capacity ~ 175,000 b/d

Estimated Wax crude refining capacity ~ 65,000 b/d – varies seasonally

PADD IV SCHEDULED TURNAROUNDS - 2013

17

SLC, UT AREA REFINERIES – PRIMARY MARKET

18

HOLLY FRONTIER – Woods Cross, UT

• NYSE – HFC, HEP

• Market Cap = $ 9.5 B / $2.3 B

• 10 yr supply agreement with NFX

20,000 b/d wax crude supplied

WAX CRUDE MARKETS – SLC EXPANSIONS

19

SLC, UT AREA REFINERIES – PRIMARY MARKET

20

TESORO – SLC, UT • NYSE – TSO, TLLP • Market Cap = $ 7.1 B / $2.4 B • Largest refiner in SLC, UT • 18,000 B/d Contract with NFX

• 7 year term for wax supplies.

WAX CRUDE MARKETS – SLC EXPANSIONS

21

SLC, UT AREA REFINERIES – PRIMARY MARKET

22

CHEVRON – SLC, UT

• NYSE – CVX

• Market Cap = $ 233 B

BIG WEST REFINING – SLC, UT

• Privately Owned – CH. 11 reorg 2010.

• Market Cap = N/A – Private Company

SLC, UT AREA REFINERIES – PRIMARY MARKET

23

SILVER EAGLE – Woods Cross, UT

• Wholly-Owned Sub of IGI The International Group, Inc., - Toronto

• Market Cap = Private Company

• Total Capacity – 15,000 BOPD

• Runs Yellow Wax exclusively

UINTAH GATEWAY UPGRADER PROJECT

• http://vernalutah.org/powerpoints/VinceMametToddDanaUBEnergySummit.pdf

Uinta Oil – Local (SLC) Markets – Near Term Expansions

24

• Minor Expansion at Holly Frontier’s Woods Cross Refinery – 2,500 BOPD additional wax crude capacity – completed in Nov, 2012 following turnaround in October, 2012.

• Holly Frontier Woods Cross Air Permit is pending in Utah for Major Expansion. • Tesoro SLC expansion – refinery in turnaround now – back up end of April, 2013.

Additional wax capacity being added in 2 phases (2Q13 and 2014).

• Chevron possible SLC expansion – no details available - not quantified at present. • Silver Eagle expansion completed in 1Q13.

Uinta Oil Play – Markets – Rail Loading Options

25

Utah Railway @ Helper, UT

Union Pacific @ Wellington, UT

Uinta Oil Play

WAX CRUDE MARKETS – BEYOND SLC – RAIL OPTIONS

26

RAIL MARKETS

• Trans-loading Options currently under evaluation

• Focus on Logistics - Pour Point challenges and downstream handling required.

• Targets - W. Coast, Gulf Coast, East Coast Markets

• Coiled & Insultated rail cars required – used fo Candian Bitumen, asphalt, VGO.

• Rail directly to Refinery w/ facilities to receive coiled rail cars = Optimal Solution.

• Rail to “Other” terminals, etc. = Most Likely Initial Solution.

• “Other” could = barges, trucks, heated pipelines.

SUMMIT MIDSTREAM, LLC – UINTA HOT OIL PIPELINE

27

Questar Southern Trails Pipeline - Gas to Oil Conversion

• Questar Southern Trails Pipeline - Extends from Blanco, NM to Cal border

• Southern Trails Pipeline is a 488-mile line extending from the Blanco hub in the San Juan Basin of northern New Mexico to delivery interconnects with California utilities. Southern Trails has a total daily transportation capacity of 80 MMcf and interconnects with several major pipelines serving the region.

28

Presentation from Midwest Analyst Meetings April 9-11, 2013

Questar Southern Trails Pipeline – Gas to Oil Conversion

29 Presentation from Midwest Analyst Meetings April 9-11, 2013

Kinder Morgan Freedom Pipeline – Gas to Oil Conversion

30

EXPLORATION ACTIVITY – NEVADA – NOBLE ENERGY

31 http://www.nobleenergyinc.com/Exploration/Our-Value-125.html

APPENDIX – ADDITIONAL COMPANY SPECIFIC INFO

32

Bill Barrett Corporation - Uinta Oil Program

33 2 Assuming $90 WTI and $4 HH

34

Bill Barrett Corp – 2012 Results for Uinta Oil Development

35

36

Bill Barrett Corporation – Typical Well Production Profile

37

38

EP Energy Presentation – Highlighting Altamont Results

39