Criteria For the Non-Investment Grade World July 2014 CONTACT INFORMATION James Jung, CFA, FRM, CMA Senior Vice President Corporate Research & Analysis +1 416 597 7577 jjung@dbrs.com Eric Eng, MBA Vice President Corporate Research & Analysis +1 416 597 7578 eeng@dbrs.com Peter Schroeder Managing Director Corporate Research & Analysis +1 416 597 7579 ps@dbrs.com Andy Thi Senior Financial Analyst Corporate Research & Analysis +1 416 597 7337 athi@dbrs.com Eric Chun Financial Analyst Corporate Research & Analysis +1 416 597 7341 echun@dbrs.com
Angie Wong Junior Financial Analyst Corporate Research & Analysis Saadat Hussain Junior Financial Analyst Corporate Research & Analysis Salina Miao Junior Financial Analyst Corporate Research & Analysis Lin Dong Junior Financial Analyst Corporate Research & Analysis Linda Zhang Junior Financial Analyst Corporate Research & Analysis Vincent Chui Junior Financial Analyst Corporate Research & Analysis DBRS is a full-service credit rating agency established in 1976. Privately owned and operated without affliation to any fnancial institution, DBRS is respected for its independent, third-party evaluations of corporate and government issues, spanning North America, Europe and Asia. DBRSs extensive coverage of securitizations and structured fnance transactions solidifes our standing as a leading provider of comprehensive, in-depth credit analysis. 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Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 3 Oil and Gas Study Criteria For the Non-Investment Grade World TABLE OF CONTENTS Executive Summary 4 The Five Business Factors 4 Financial Risk Factors 5 Topic Two: The Natural Gas Focus 6 Natural Gas: The Global Perspective 6 Natural Gas: North American Focus 7 The Past: The Great Pricing Divergence 7 The Future: Natural Gas Environment Supports Higher Prices 9 Topic Three: Sensitivity Analysis for Oil Producers 10 Oil Could Pressure Weaker Credits 10 Characteristics of Players 11 2014 Ratings Outlook 12 Top Ten Credit Drivers 12 Overall Rankings 14 Overall Standing 15 Key Players 20 Key Credit Metrics 34 Income Statement Data in Q1 2014 39 Balance Sheet and Capital Structure in Q1 2014 44 Q1 2014 Cash Flows 49 Fiscal Year Ends 55 Aggregate Totals and Averages 59 Key Metrics 59 Key Ratios 59 Company List 60 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 4 Executive Summary Criteria for the Non-Investment Grade World is a statistical study of 163 companies in the oil and gas industry between 2008 and Q1 2014. In its review, DBRS has targeted the industry participants with characteristics indicative of a non-investment grade rating, which are ratings below BBB (low). This is the fnal study of a four part series that identifes the key characteristics used to defne the individual rating categories. DBRS recently published three studies, which focused on the AAA/AA (Best of the Best, September 2013), A (Straight As, December 2013) and BBB (Making the Grade, April 2014) rating categories. In addition, this study updates discussion on the natural gas market, the oil pricing sensitivity analysis, and the 2014 ratings outlook. In determining any rating in the oil and gas sector, DBRS places emphasis on fve key criteria. THE FIVE BUSINESS FACTORS DBRS uses fve key business factors in determining credit quality for oil and gas exploration and production (E&P) companies. These factors include: (1) Size and Business Mix; (2) Reserves of Core Operations; (3) Cost Competitiveness; (4) Sensitivity to Price/Market Volatility; and (5) Capital Flexibility. (1) Size and Business Mix Analysis: Size is one of the most critical factors in determining credit quality in the oil and gas sector, especially for non-investment grade companies. Larger entities are typically able to take a longer-term approach to resource development, with lower borrowing costs and greater diversifcation. Smaller entities on the other hand have considerably less fexibility to withstand market volatility, which increases their credit risk. Daily production is key measurement to determine size for an exploration & production (E&P) company. Common characteristics for a Non-Investment Grade rating Very small to small size (typically less than 100,000 barrels of oil equivalent per day (boe/d)) Minimal integration Minimal product mix (liquids versus dry gas) Limited geographical diversifcation (2) Reserves of Core Operations Analysis: The companys reserves quality is another important factor to determine credit quality. Non-investment grade companies generally have a relatively limited inventory of reserves that can be developed in the future. These reserves also typically have a lower quality relative to investment grade companies. Common characteristics for a Non-Investment Grade rating Weak reserve quality Short reserve life Weak ability to grow reserves and production (3) Cost Competitiveness Analysis: Non-investment grade companies generally have a relatively high cost base, with below-average operating effciency. These companies are generally not vertically integrated, with only upstream operations. Common characteristics for a Non-Investment Grade rating High cost base Low operating effciency Weak infrastructure Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 5 (4) Sensitivity to Price/Market Volatility Analysis: Non-investment grade companies have a limited ability to withstand signifcant pricing volatility and are highly susceptible to prolonged periods in low pricing environments. Common characteristics for a Non-Investment Grade rating Weak ability to withstand market volatility (5) Capital Flexibility Analysis: Non-investment grade players generally have a greater diffculty in responding to changing dynamics in the industry. The players typically have weak capital fexibility, which will negatively affect the effciency and effectiveness of capital deployment. Common characteristics for a Non-Investment Grade rating Weak capital fexibility. FINANCIAL RISK FACTORS DBRS ratings are also determined by the level of fnancial risk based on the following criteria. Key metrics for the non-investment grade rating categories are shown below. Key Credit Metrics: Key Metric BB B Debt-to-cash fow 2.0x to 3.0x > 3.0x Debt-to-capital 45% to 55% > 55% EBIT interest coverage 3.0x to 5.0x < 3.0x Analysis: Key metrics for a non-investment grade rated entity are typically much weaker versus investment grade entities. Specifcally, non-investment grade entities generally have poor balance sheets, weaker cash fow streams to service debt obligations, and much more limited access to capital to fund future capex needs. Ranking: DBRS notes that the vast majority of the companies reviewed were non-investment grade. Of the 163 companies reviewed, 110 companies had characteristics indicative of a non-investment grade rating. In determining the ranking of the companies within this study, DBRS focused primarily on fnancial statistics, sovereign infuence and to a lesser extent, business risk characteristics. The ranking within the study is presented for illustrative purposes only and in most cases, do not represent DBRSs actual ratings.
Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 6 Topic Two: The Natural Gas Focus NATURAL GAS: THE GLOBAL PERSPECTIVE What should the price of natural gas be? The price of natural gas is traditionally based on a six to one energy equivalent to oil. The ratio is based on the substitution between oil for natural gas. For example, a barrel of oil will generate approximately six million British thermal units (Btus) of energy, while one thousand cubic feet (Mcf) of gas would produce approximately one million Btus of energy. On a direct substitution basis, this would indicate that the price of natural gas should theoretically be over $16 based on an oil price of $100. However, in reality, oil and gas are not direct substitutions and are subject to supply and demand imbalances that may make this ratio invalid. Todays pricing environment in Asia, Europe and North America Natural gas pricing varies quite dramatically between Asia, Europe and North America. Asia: Natural gas prices are linked to the price of Brent oil on an energy-equivalent basis with various pricing adjustments to limit volatility. The Q1 2014 price in Japan averaged over $16/million British thermal units (MMBtu). Key suppliers to the region are Australia, Qatar, Malaysia and Indonesia. Europe: Similar to Asia, natural gas prices are closely linked to Brent oil. For example, the price for natural gas from Russia is often linked to Brent oil and sold under long-term contracts. Currently, the Russian Natural Gas border price in Germany trades just under $11/MMBtu. Key suppliers to the region are the U.K. (North Sea), Norway, the Netherlands and Russia. North America: Pricing is based on market supply and demand characteristics, which may vary quite dramatically from an energy-equivalent basis. In Q1 2014, the Henry Hub (the largest natural gas hub in North America) price averaged approximately $4.60/MMBtu. This low price, relative to Europe and Asia, is attributable to oversupply conditions that have existed since 2008. This region is self- suffcient and does not require foreign imports. Price Comparison - Henry Hub vs. Japan vs. Russia NYMEX Japan Import LNG Price U S D / M M B t u Natural Gas - Russian Natural Gas Border Price in Germany Source: Bloomberg $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2006 2007 2008 2009 2010 2011 2012 2013 2014 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 7 NATURAL GAS: NORTH AMERICAN FOCUS The North American natural gas pricing imbalance - good or bad? The defnition of an imbalance is an ineffciency within the capital markets, thus, the net impact is negative. The current pricing imbalance between North America and other regions has created many winners and losers. The main benefciaries of low natural gas prices in North America are consumers and energy- intensive industries such as oil sands players. Consumers beneft from lower utility rates and heating costs, while the industrial sector is better positioned today to handle foreign competition. The key losers during a weak natural gas pricing environment are the natural gas producers, which face tremendous margin pressures and weak proftability. To correct the overall negative impact of the imbalance, North America needs to have the ability to export an excess supply of natural gas to global markets. Shifting natural gas trends has lead to greater volatility Prior to 2008, the price of natural gas was closely linked to oil prices and natural gas production consisted primarily of conventional drilling methods used to extract a depleting resource base. Using conventional technology, natural gas supply was not keeping pace with rising consumption. The growth of consumption was primarily attributable to changes in the electricity generation mix from dirty coal to cleaner natural gas. Ultimately, this consumption shift led to concerns that North America would eventually run out of natural gas, causing a spike in pricing. Furthermore, these concerns led to the development of fracking technology, contributing to a massive oversupply of natural gas into the North America market. As a result, considerable pricing volatility followed. NYMEX AECO Differential $ Source: Bloomberg (1.5) (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2008 2009 2010 2011 2012 2013 2014 THE PAST: THE GREAT PRICING DIVERGENCE Prior to 2008, North American natural gas prices were closely linked to the price of crude oil (6:1 to 10:1), as both commodities benefted from tight supply-demand conditions. Post-2008, the great divergence occurred, as natural gas supply dramatically increased with the unexpected development of fracking technologies. This resulted in a signifcant drop in prices in North America that continues today. However, despite the cold winter that recently passed (which helped eliminate some of the excess supply conditions that existed) pricing has yet to fully recover. The section that follows outlines some of the reasons contributing to this odd pricing dynamic. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 8 WTI-NYMEX Price Comparison NYMEX WTI U S D / b b l U S D / m m c f Source: Bloomberg 0 20 40 60 80 100 120 140 160 0 2 4 6 8 10 12 14 16 18 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 WTI-NYMEX Ratio Price Ratio Mean - 12.4 Median - 9.6 Source: Bloomberg 0 10 20 30 40 50 60 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 U.S. Natural Gas Storage (Bcf) Canadian Natural Gas Storage (Bcf) Source: Canadian Gas Association Source: Canadian Gas Association B c f Record High Oct. 2012 3,908 Bcf B c f 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2014 To Date Mar. 2008 1,248 Bcf 6 Year High/Low Range 6 Year Average 2011 2012 2013 2014 0 100 200 300 400 500 600 700 800 900 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Record High Oct. 2013 821 Bcf Mar. 2012 256 Bcf 2014 To Date 6 Year High/Low Range 6 Year Average 2011 2012 2013 2014 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 9 THE FUTURE: PRICING UNCERTAINTY Should 2015 see a winter similar to this past year, natural gas prices could be driven considerably higher than currently forecasted. This is somewhat positive news for most E&Ps, especially for operators that have greater exposure to North American natural gas. However, it is unlikely to result in prices greater than $5/MMcf. Below are some supply-side and demand-side dynamics that will likely continue to affect the natural gas pricing environment going forward. Future supply-side dynamics Rig count heavily infuenced by the pricing environment: DBRS believes that E&P producers will begin to allocate more capital expenditures (capex) to natural gas production when prices surpass approximately $5/MMcf. This could limit any upside in pricing beyond $5/MMcf. Growing associated natural gas production from liquids-focused drilling: Signifcant production from unconventional plays will continue to have an impact on the level of liquids and gas volumes produced. Continued improvement in drilling and completion effciency: Exploration and production (E&P) producers have continued to increase operating effciencies for producing wells. As a result, production has continued to rise despite a drop in rig count. Future development of LNG: In May 2013, the frst natural gas project that will allow for the export of natural gas from North America to global markets was approved. Additional approvals could improve future supply-demand balances; however, lead times for these developments can exceed ten years. Future demand-side dynamics The use of natural gas from the power sector: Coal-fred generation typically becomes more cost effective when natural gas prices are over $4/MMcf. This could limit any signifcant growth in demand from the power sector. Weather conditions: As evidenced, warmer- or colder-than-average temperatures greatly infuence the demand-supply balance, and will continue to have an impact on price volatility. For example in 2014, the frigid temperatures in North America saw inventories decline substantially resulting in a signifcant increase in prices. Should North America experience another cold winter, potential shortages could exist, which would result in signifcant price volatility. Recovery of the North American economy: The pace of economic improvement could have a positive impact on demand for natural gas. Future transportation fuel: Natural gas as a substitute to fuel for the transportation industry remains in its infancy. However, new technologies and any pricing differentials could increasingly lead consumers to switch over in the long term. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 10 Topic Three: Sensitivity Analysis for Oil Producers OIL COULD PRESSURE WEAKER CREDITS DBRS has found that, should oil prices drop below the $60 per barrel level, smaller E&P issuers and mid- sized issuers with limited fnancial fexibility will likely face signifcant negative pressure on credit ratings. DBRS has stress-tested the impact of various crude oil pricing points on issuers within its ratings universe, analyzing the effects of oil prices on capex, dividends, ability to access capital market funding and asset sales/purchases. Large E&P issuers could possibly see some minor pressure on metrics; however, they would generally have suffcient fnancial fexibility and liquidity to withstand extended periods of lower pricing, with little to no rating action expected. Small E&P (<100 mboe/d) Crude Pricing Capex Dividends Capital Market Access Asset Sales 100+ signifcant expansion increasing dividends strong access limited transactions 90 expansion plans modest dividend increases good access modest increase in transactions 80 no additional expansion plans no change limited access assets sold at slight premium 70 capex below budget dividend cuts very limited access assets sold at discount <60 capex curtailment signifcant dividend cuts no access assets sold at signifcant discount Mid-sized E&P (100 to 500 mboe/d) Crude Pricing Capex Dividends Capital Market Access Asset Sales/Purchases 100+ signifcant expansion modest dividend increases strong access limited transactions 90 expansion plans modest dividend increases strong access modest increase in transactions 80 no additional expansion plans no change good access assets sold at slight premium 70 no additional expansion plans no change good access assets sold/bought at discount <60 capex below budget dividend cuts limited access assets sold/bought at signifcant discount Large E&P (> 500 mboe/d) Crude Pricing Capex Dividends Capital Market Access Asset Purchases 100+ signifcant expansion modest dividend increases strong access limited transactions 90 expansion plans no change strong access modest increase in transactions 80 no additional expansion plans no change strong access assets sold at slight premium 70 no additional expansion plans no change good access assets bought at discount <60 no additional expansion plans no change good access assets bought at signifcant discount Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 11 For smaller to mid-sized E&P issuers, sub-$60 oil prices would likely cause a signifcant shift in capex and dividend planning. Issuers slow to react to this lower pricing level could face considerable free cash fow defcits that would need to be funded with existing liquidity. Typically, liquidity for these issuers consists of: (1) existing on-balance sheet cash and credit facilities, (2) cuts to dividends and capex and, as a last resort, (3) asset sales. For those mid-sized E&P issuers, liquidity support should be sustainable for at least two years, with only a minimal impact on current ratings. However, for the smaller E&Ps, liquidity support is typically shorter-term in nature and less able to withstand price shocks. As a result, smaller E&P issuers face downside risks to current ratings, should oil prices drop below $60 for an extended period of time. Larger E&P issuers take a multiple-cycle approach to strategic planning. During sub-$60 pricing periods, they are unlikely to change plans and may see this pricing as an opportunity to acquire assets at a discount. Given their size and the strength of their fnancial profles, larger E&P issuers are unlikely to experience pressure on ratings. Larger companies have adequate access to capital markets under most conditions and maintain considerable balance sheet strength. $70 to $80 pricing results in few changes to strategic plans Large- and mid-sized E&P issuers are not likely to be affected at pricing between $70 and $80 per barrel, given their size and fnancial/liquidity profles and general long-term outlook in relation to dividends and capital spending. In contrast, at this price point, smaller E&P issuers would likely begin planning decreases to capex levels and/or dividends. Prices above $90 lead to expansionary spending At prices above $90, all E&P issuers are expected to generate considerable growth in operating cash fow. This cash fow will be used primarily to increase capex and dividends. Activity surrounding asset pur- chases and sales is likely to decrease as sellers will demand premium pricing for their assets and mid-sized players are unlikely to participate. CHARACTERISTICS OF PLAYERS Small-sized E&P DBRS defnes small-sized E&P issuers as those with production levels of 100,000 barrels of oil equivalent per day (boe/d) or less. These issuers are generally concentrated in one or few geographic regions and, due to their small size, have limited economies of scale. Small E&P issuers generally have shorter-term focus and limited balance sheet strength and fnancial fexibility, making them highly susceptible to price volatility and economic fuctuations. These characteristics limit their access to the capital markets, thus constraining their overall liquidity. As a result, many smaller E&P issuers credit quality is considered to be below investment grade, with a greater probability of rating action during economic downturn. Mid-sized E&P Mid-sized E&P issuers are those with production levels between 100,000 boe/d and 500,000 boe/d, as defned by DBRS. Issuers of this size generally beneft from greater geographic diversifcation and economies of scale; however, operations are less diversifed than those of larger E&P issuers. Issuers of this scale are more likely to withstand a short-term (i.e., one cycle) economic downturn, as they have modest liquidity and greater fnancial fexibility, as compared to smaller E&P issuers. Large-sized E&P Large-sized E&P issuers are generally more resilient to pricing shocks, due to stronger fnancial profles and access to liquidity. Operational and fnancial planning consider a longer time horizon (i.e., multiple cycles), resulting in minimal cuts to capex or dividends during cycle downturns. These issuers also beneft from greater global diversifcation, as well as economies of scale due to their high production levels (greater than 500,000 boe/d). As a result of their size and fnancial strength, larger E&P issuers are better positioned to withstand market shocks and are less likely to be subject to rating volatility during market swings. Larger E&P issuers generally have a higher ceiling for credit ratings. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 12 2014 Ratings Outlook DBRS expects generally stable credit profles in 2014, particularly for companies with production profles heavily weighted toward crude oil and/or liquids-rich natural gas (including natural gas at an oil-linked index price). Most large E&P companies are expected to live within their means by ensuring capital expenditures (capex) spending and dividends are fundable by operating cash fow, whereas smaller E&P companies are expected to generate cash fow defcits due to a high level of capex in order to ramp up production. Rating volatility is not anticipated in the near term. 2014 global oil pricing Oil prices are expected to remain well above $80 per barrel as the global economy begins to stabilize. It is expected that many companies will continue to focus growth spending on oil and oil-based natural gas in order to generate higher margins. 2014 North American natural gas pricing Pricing for natural gas in North America is expected to remain relatively fat. Some previous excess supply conditions have been alleviated; however three key challenges may limit upside potential for natural gas prices: (1) signifcant shut-in capacity, (2) coal to natural gas switching, which is uneconomic above $4 per MMcf, and (3) potential for increased drilling activity should prices go above $5 per MMcf. TOP TEN CREDIT DRIVERS In this study, DBRS collected historical data from 163 oil and gas companies between 2008 and Q1 2014. Following a review of the data and industry trends, DBRS drew the following ten key conclusions: (1) Asia drives demand for the industry. Demand from Asia is the main driving force behind strong commodity prices and production growth. Over the past decade, oil consumption growth in Asia has signifcantly outpaced production growth in the region, creating a supply-demand imbalance and placing upward pressure on global prices. (2) Key credit ratios remain strong. Following the sector turmoil of 2008, many issuers maintained conservative fnancial profles. All key credit metrics remained at or near cycle highs in Q1 2014, benefting from high oil prices. (3) Capital expenditure is focused on oil and liquids development. Capital expenditure has grown signifcantly since hitting a low point in 2009, when many companies scaled back spending to provide fexibility during the fnancial crisis. In North America, the majority of capital spending is allocated to higher-margin oil and liquids developments, shifting away from low margin natural gas drilling. (4) Revolutionary technology advances fuel growth. Recent technology advances specifcally, the development of horizontal drilling and fractionation technologies have proven incredibly successful, resulting in signifcant growth in shale oil and gas production. This new technology, coupled with lean, factory-like practices used in feld development, has shortened drilling and completion times and raised production levels. (5) Rising oil sands investment in Canada and Bakken Shale/Eagleford development in the United States Excluding reserves owned by governments, Canadas oil sands account for approximately 52% of global accessible oil reserves. In the United States, the Bakken Shale/Eagleford will likely see considerable investment for the foreseeable future. Investment in emerging markets, such as Venezuela and Iran, remains minimal, due to limitations on foreign ownership and the risk of political instability. Similar limitations can also be found in well-established growth countries such as Saudi Arabia and Russia. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 13 (6) A growing shortage of highly skilled labour is an ongoing challenge. The skilled labour pool remains limited when compared with the numerous future projects under development. As a result, the tight labour market could lead to a repeat of the substantial cost overruns experienced in 20062008. (7) Pipeline and infrastructure constraints contribute to signifcant pricing differential. The North American oil price differential has remained volatile, with prices of Canadian light and heavy oil and North Dakota Bakken crude oil trading at discounts. Currently, there is a glut of oil supply at one of the key hubs at land-locked Cushing, Oklahoma, which has negatively affected proftability of non-integrated E&Ps. This glut is directly attributable to unanticipated oil and gas production from the Bakken Shale and Canadian oil sands, which the existing pipeline infrastructure has not been able to support. (8) Integrated operations provide natural hedge. Companies with integrated operations have been able to achieve superior returns in downstream businesses by capturing the price differential. In contrast, the price differential did not perform well in the previous commodity cycle. In general, companies with integrated operations have stronger business risk profles. (9) Regulatory issues continue to have signifcant implications for future production growth. The oil and gas sector, particularly oil sands, continues to come under increased scrutiny, as environmental issues pertaining to air, water and land have gained worldwide attention. In addition, obtaining regulatory approval for new pipelines has remained challenging, as evidenced by the Keystone XL pipelines regulatory approval permitting delays. A lack of takeaway capacity in the medium term could signifcantly affect future production growth. (10) North America makes a big bet on liquefed natural gas (LNG). LNG projects require signifcant capital investments over the next decade in North America. Many large E&P companies will contribute signifcant capital to grow LNG. Lead times are considerable and the ability to bring projects online remains highly challenging.
Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 14 Overall Rankings Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 15 Overall Standing Rank Company Name Rating EBIT EBIT Gross Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to-Cash Flow 1 Exxon Mobil Corporation - 2 Imperial Oil Limited AA (high) 3 Chevron Corporation AA 4 Royal Dutch Shell plc - 5 Total S.A. and Subsidiaries - 6 Statoil ASA - 7 CNOOC Limited 1 - 8 PetroChina Company Ltd. - 9 Sinopec Corp. - 10 BP p.l.c. A 11 Eni S.p.A. - 12 Occidental Petroleum Corporation A 13 ConocoPhillips A 14 Inpex Corporation - 15 Suncor Energy Inc. A (low) 16 Apache Corporation - 17 Husky Energy Inc. A (low) 18 Marathon Oil Corporation - 19 OMV Aktiengesellschaft - 20 Cenovus Energy Inc. A (low) 21 EOG Resources, Inc. - 22 Canadian Natural Resources Limited BBB (high) 23 BG Group plc - 24 Devon Energy Corporation BBB (high) 25 Hess Corporation - 26 Talisman Energy Inc. BBB (high) 27 OAO Gazprom 1 - 28 OAO Lukoil - 29 Rosneft - 30 Petrobras - 31 Murphy Oil Corporation BBB 32 Canadian Oil Sands Limited BBB 33 Anadarko Petroleum Corporation BBB 34 Noble Energy Inc. - 35 Encana Corporation BBB Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 16 Overall Standing Rank Company Name Rating EBIT EBIT Gross Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to-Cash Flow 36 PGNiG S.A. - 37 Energen Corporation - 38 Repsol, S.A. - 39 Ecopetrol S.A. - 40 Southwestern Energy Co. - 41 Continental Resources, Inc. - 42 Pioneer Natural Resources Company - 43 Newfeld Exploration Co. - 44 Crescent Point Energy Corporation - 45 MOL Group - 46 Concho Resources Inc. - 47 Pacifc Rubiales Energy Corp. - 48 Cimarex Energy Co. - 49 Denbury Resources Inc. - 50 The Delek Group Ltd. - 51 Chesapeake Energy Corporation - 52 JSOC Bashneft - 53 Whiting Petroleum Corporation - 54 ARC Resources Ltd. - 55 Vermilion Energy Inc. BB (low) 56 Cabot Oil & Gas Corp. - 57 Unit Corporation - 58 QEP Resources Inc. - 59 Baytex Energy Corp. - 60 Penn West Petroleum Ltd. - 61 SM Energy Company - 62 Range Resources Corporation - 63 Bonavista Energy Corporation - 64 Galp Energia SGPS, SA 1 - 65 MEG Energy Corporation - 66 Tourmaline Oil Corp. - 67 Enerplus Corporation - 68 Energy XXI (Bermuda) Limited - 69 Oasis Petroleum Inc. - 70 Pengrowth Energy Corporation - Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 17 Overall Standing Rank Company Name Rating EBIT EBIT Gross Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to-Cash Flow 71 SandRidge Energy, Inc. - 72 LightStream Resources Ltd. - 73 Stone Energy Corp. - 74 Rosetta Resources Inc. - 75 PEYTO Exploration & Development Corp. - 76 Legacy Oil & Gas Inc. - 77 Northern Oil & Gas Inc. - 78 Gran Tierra Energy Inc. - 79 Bankers Petroleum Ltd. - 80 Whitecap Resources Inc. - 81 TransGlobe Energy Corporation - 82 Parex Resources Inc. - 83 Trilogy Energy Corp. B 84 Gulfport Energy Corporation - 85 Advantage Oil & Gas Ltd. - 86 Crew Energy Inc. B 87 Grupa LOTOS S.A. - 88 Birchcliff Energy Ltd. - 89 Bonanza Creek Energy, Inc. - 90 Long Run Exploration Ltd. - 91 EPL Oil & Gas, Inc. - 92 Kosmos Energy Ltd. - 93 PDC Energy, Inc. - 94 Ultra Petroleum Corp. - 95 Kodiak Oil & Gas Corp. - 96 PT Medco Energi Internasional Tbk - 97 Laredo Petroleum Holdings, Inc. - 98 Carrizo Oil & Gas, Inc. - 99 Athabasca Oil Corporation B 100 Resolute Energy Corporation - - W&T Offshore - - YPF S.A. - - Pakistan Petroleum Limited - - Raging River Exploration Inc. - - Freehold Royalties Ltd. - Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 18 Overall Standing Rank Company Name Rating EBIT EBIT Gross Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to-Cash Flow - Mari Petroleum Company Limited - - BlackPearl Resources Inc. - - Bonterra Energy Corp. - - Oil & Gas Development Company Limited - - Surge Energy Inc. - - Bellatrix Exploration Ltd. - - Longview Oil Corp. - - Twin Butte Energy LTD. - - Vaalco Energy, Inc. - - Approach Resources Inc. - - Painted Pony Petroleum Ltd. - - Cequence Energy Ltd. - - Chinook Energy Inc. - - Renegade Petroleum Ltd. - - LINN Energy, LLC - - Exco Resources, Inc. - - Bill Barrett Corporation - - Halcn Resources Corporation - - Penn Virginia Corporation - - NuVista Energy Ltd. - - Comstock Resources Inc. - - WPX Energy, Inc. - - RMP Energy Inc. - - Warren Resources, Inc. - - Eagle Energy Trust - - Zargon Oil & Gas Ltd. - - Rock Energy Inc. - - Gastar Exploration Ltd. - - Parallel Energy Trust - - Delphi Energy Corp. - - Arcan Resources Ltd. - - Forest Oil Corporation - - Atlantic Petroleum P/F - - Connacher Oil and Gas Limited - - TORC Oil & Gas Ltd. - Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 19 Overall Standing Rank Company Name Rating EBIT EBIT Gross Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to-Cash Flow - Hellenic Petroleum S.A. - - Pinecrest Energy Inc. - - Goodrich Petroleum Corporation - - Questerre Energy Corporation - - Pan Orient Energy Corp. - - Paramount Resources Ltd. - - ShaMaran Petroleum Corp. - - Africa Oil Corp. - - Strategic Oil & Gas Ltd. - - Perpetual Energy Inc. - - Noreco SA - - Magnum Hunter Resources Corporation - - Canacol Energy Ltd. - - Isramco, Inc. - - Argent Energy Trust - - Quicksilver Resources Inc. - - Pine Cliff Energy Ltd. - - Sunshine OilSands Ltd. - - Antrim Energy Inc. - - Southern Pacifc Resources Corp. CCC - HKN, Inc. - - Anderson Energy Ltd. - - Niko Resources Ltd. - 1. 2014 fgures refect YE December 31, 2013 Ranking ($ millions where applicable) EBIT EBIT Gross Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to- Cash Flow Strong >600 >9 <25% <1.5
Average >100 to <600 >3 to <9 >25% to <40% >1.5 to <3 Below Average <100 <3 >40% >3 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 20 KEY PLAYERS Rank Rating Description 1 - Exxon Mobil Corporation (the Company) is a multinational company engaged in crude oil and natural gas production. Headquartered in Irving, Texas, the company is involved in exploration, manufacture of petroleum products, transportation, as well as the manufacture and sales of commodity petrochemicals. 2 AA (high) Imperial Oil Limited, 69.6% owned by ExxonMobil, is a refner and marketer of petroleum products and a major producer of petrochemical products in Canada. 3 AA Chevron Corporation has a portfolio of upstream assets and global downstream operations, consisting of refning and marketing operations alongside an international petrochemicals business. 4 - Royal Dutch Shell plc (The Company) is a diversifed and integrated oil and gas company, based in The Hague, Netherlands. The Company engages in the exploration and production of crude oil and natural gas, conversion of crude oil to a wide range of refned products, as well as the production and sale of petrochemicals for industrial use. 5 - Total S.A. and Subsidiaries is an integrated non-government-owned petroleum company. It has global upstream activities, downstream operations and a chemicals business. 6 - Statoil ASA (the Company) engages in the exploration and production of crude oil and natural gas, as well as transportation, refning, and marketing of petroleum and petroleum-derived products in Norway and internationally. The Company is also involved in the retail sale of stationary energy, and building and operating offshore wind farms in the U.K. 7 - CNOOC Limited (CNOOC) is a Chinese producer of offshore crude oil and natural gas and an independent oil and gas exploration and production company. CNOOC mainly engages in exploration, development, production and sales of oil and natural gas. 8 - PetroChina Company Ltd. (the Company) is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation (CNPC), headquartered in Beijing. The Company is mainly engaged in the production and sale of oil and gas related products. 9 - Sinopec Corp. is an integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading of crude oil and natural gas; producing, storing, transporting and distributing and marketing of petroleum products, petrochemical products, synthetic fber, fertilizer and other chemical products. 10 A BP p.l.c. (BP) is a multinational company with headquarters in London, England. BP is vertically integrated and engages in all areas of the oil and gas industry, including exploration and production, refning, distribution, power generation, etc. 11 - Eni S.p.A., based in Italy, is an integrated energy company involved in the exploration, production, transportation, refning and sale of oil and natural gas with operations worldwide. It also produces and sells electricity, petrochemical and petroleum products, hydrocarbons and engages in offshore and onshore hydrocarbon felds. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 21 Rank Rating Description 12 A Occidental Petroleum Corporation is a U.S.-concentrated oil and gas producer. It is also involved in manufacturing operations, midstream marketing and commodities trading. 13 A ConocoPhillips, headquartered in Houston, Texas, is an independent exploration and production company. Its principal operating regions include the U.S., Europe and Canada. 14 - Inpex Corporation (Inpex) is a Japanese company headquartered in Akasaka district, Tokyo. Inpexs main business includes: research, exploration, development, production and sales of oil, natural gas and other mineral resources, other related businesses and investment and lending to the companies engaged in these activities. 15 A (low) Suncor Energy Inc. is an integrated oil and gas company. Its upstream operations are mainly oil sands based in North America, with the balance in the North Sea and North Africa. Its downstream operations include refneries, a lubricants plant and a national network of retail stations. 16 - Apache Corporation is a Texas-based independent oil and gas company with exploration and production interests in the Gulf of Mexico, Gulf Coast Onshore in the United States, Western Canada and the United Kingdom. 17 A (low) Husky Energy Inc.s upstream and midstream operations, primarily located in Canada, include infrastructure and commodity marketing. Its downstream operations include upgrading, refning and marketing. 18 - Marathon Oil Corporation (the Company) is an energy company with worldwide operations in exploration and production of liquid hydrocarbons and natural gas, oil sands mining and the production of integrated gas products. Headquartered in Houston, Texas, the Company was formerly known as USX Corp. prior to July 2001. 19 - OMV Aktiengesellschaft is active in two core countries, Romania and Austria, in terms of exploration and production and holds a balanced international portfolio. 20 A (low) Cenovus Energy Inc. is an integrated oil company with enhanced oil recovery and oil sands properties in Western Canada, along with interests in two refneries in the United States through a joint venture. 21 - EOG Resources, Inc. and its subsidiaries engage in crude oil and natural gas exploration, development, production and marketing with operations located primarily in the United States, Canada, U.K., China, Trinidad and Tobago and Argentina. It is headquartered in Houston, Texas. 22 BBB (high) Canadian Natural Resources Limited (CNRL) is an oil and gas exploration, development and production company located in Calgary, Alberta, with operations focused in Canada and smaller interests internationally. 23 - BG Group plc (the Company) is an international company engaged in the exploration and production of natural gas products. 24 BBB (high) Devon Energy Corporation has a portfolio of reserves in North America. It is a producer in the Canadian oil sands and the Texas Barnett Shale formation. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 22 Rank Rating Description 25 - Hess Corporation is a global energy company engaged in the exploration and production of crude oil and natural gas, as well as in refning and marketing refned petroleum products, natural gas and electricity. 26 BBB (high) Talisman Energy Inc. is an internationally diversifed oil and gas exploration and production company, with production located in North America, the North Sea, Southeast Asia and other international areas. 27 - OAO Gazprom is a global energy company headquartered in Russia Federation. Its major business lines are geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel as well as generation and marketing of heat and electric power. 28 - OAO Lukoil is an international vertically-integrated oil & gas company, accounting for 2.1% of global output of crude oil. 29 - Rosneft (the Company) is a publicly traded oil and gas company based in Russia. The Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs. 30 - Petrobras (the Company) is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil and was founded in 1953. The Company owns oil refneries and oil tankers and is engaged in development of advanced technology from deep-water and ultra-deep water oil production. 31 BBB Murphy Oil Corporation is engaged mainly in worldwide offshore oil and gas exploration and production. It also owns a U.K. refnery and marketing operations in both the U.K. and the United States. 32 BBB Canadian Oil Sands Limited has a working interest in Syncrude Canada Limited, which operates an oil sands mine, as well as bitumen extraction and upgrading facilities in Alberta. 33 BBB Anadarko Petroleum Corporation (Anadarko) is a large, diversifed oil and gas producer. The majority of Anadarkos assets are located in the U.S., representing about 90% of total proved reserves. 34 - Noble Energy Inc. is an energy company with core operations onshore in the United States, in the deepwater Gulf of Mexico, offshore in the eastern Mediterranean, and offshore in West Africa. 35 BBB Encana Corporation is a North American energy producer focused on its portfolio of natural gas, oil and natural gas liquids. 36 - PGNiG S.A. is a Polish oil and gas exploration and production company engaged in the trade, distribution, oil and gas exploration and production as well as gas storage and processing in Poland. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 23 Rank Rating Description 37 - Energen Corporation (the Company) is an independent producer of domestic oil, natural gas and natural gas liquids, and is headquartered in Birmingham, Alabama. More than 90% of the Companys proved reserves are located in the Permian basin in West Texas and in the San Juan basin in New Mexico and Colorado. 38 - Repsol S.A. is a Spanish multinational oil and gas company based in Madrid, Spain. It operates in all areas of the oil and gas industry, including exploration and production, refning, distribution and marketing, petrochemicals, power generation and trading. 39 - Ecopetrol S.A. is a Colombian energy company that focuses on oil and gas exploration, production, transportation and marketing. 40 - Southwestern Energy Company is an independent energy company primarily engaged in natural gas and crude oil exploration, development and production within North America. Currently, its operations are principally focused on the development of unconventional oil and natural gas. 41 - Continental Resources, Inc. is a petroleum liquids producer based in Oklahoma City. It is a leaseholder in the Bakken Play of North Dakota and Montana, and also has a presence in the Anadarko Woodford Play of Oklahoma and the Red River Units Play of North Dakota, South Dakota and Montana. 42 - Pioneer Natural Resources Company (the Company) is an independent company involved in the exploration and production of oil and gas, and natural gas liquids in the United States and South Africa. The Company is headquartered in Irving, Texas. 43 - Newfeld Exploration Company is an independent crude oil and natural gas exploration and production company headquartered in The Woodlands, Texas. Its operations include the Mid-Continent, the Rocky Mountains, onshore Texas and the Gulf of Mexico. 44 - Crescent Point Energy Corporation engages in acquiring, exploiting, developing and holding interests in light and medium oil and gas properties mainly in Saskatchewan and Alberta. 45 - MOL Group (the Company) is an international, integrated oil and gas company from Hungary. In addition to the Companys refnery and commercial position in the CEE region, increasing focus is now being given to its exploration and production assets. 46 - Concho Resources Inc. (the Company) is an independent oil and natural gas company based in Midland, Texas. The Company is engaged in the acquisition, development and exploration of oil and natural gas properties, and has operations primarily in the Permian Basin of Southeast New Mexico and West Texas. 47 - Pacifc Rubiales Energy Corp. (the Company) is a conventional oil and gas company that engages in the exploration, development and production of oil and natural gas in Colombia, Peru and Guatemala. It also operates oil pipelines in Colombia. The Company is headquartered in Toronto. 48 - Cimarex Energy Co. is a Denver-based independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 24 Rank Rating Description 49 - Denbury Resources Inc. (the Company) is an independent oil and gas company headquartered in Dallas, Texas. The Company is a large oil and natural gas producer in both Mississippi and Montana and holds an operating acreage in the Rocky Mountain and Gulf Coast regions. 50 - The Delek Group Ltd., an integrated energy company in Israel, is engaged in natural gas exploration and production activities. 51 - Chesapeake Energy Corporation, based in Oklahoma, engages in the acquisition, exploration, development and production of natural gas and oil properties in the United States. 52 - JSOC Bashneft (Bashneft) is a vertically integrated oil company based on the largest fuel and energy producers of the Republic of Bashkortostan. Bashneft sells its products in Russia and exports them to Eastern and Western Europe and Kazakhstan. 53 - Whiting Petroleum Corporation (the Company) is an independent exploration and production company that acquires, explores, develops, and produces crude oil, natural gas liquids, and natural gas in the United States. The Company is headquartered in Denver, Colorado. 54 - ARC Resources Limited is a Canadian conventional oil and gas company. It currently operates in Western Canada, holding interests in petroleum and natural gas properties and assets. 55 BB (low) Vermilion Energy Inc. is engaged in oil and gas exploration and production. Its operations are internationally diversifed, with production located in Canada, France, Australia and the Netherlands. 56 - Cabot Oil & Gas Corporation (the Company) is an independent oil and gas company headquartered in Houston, Texas. The Company is engaged in the development, exploitation and exploration of oil and gas properties exclusively in the continental United States. 57 - Unit Corporation is a diversifed energy company engaged through its subsidiaries in the exploration for and production of oil and natural gas, the acquisition of producing oil and natural gas properties, the contract drilling of onshore oil and natural gas wells, and the gathering and processing of natural gas. 58 - QEP Resources, Inc. engages in the domestic oil and natural gas exploration and production industry, with operations focused in the Rocky Mountain and Midcontinent regions of the U.S. Its activities include drilling, completing and equipping oil and natural gas wells for itself and its partners. 59 - Baytex Energy Corporation (the Company) is a conventional Canadian oil and gas company operating mainly in the Western Canadian Sedimentary Basin. The Company has a presence in the United States, offering heavy oil, light oil and natural gas liquids. 60 - Penn West Petroleum Ltd. (the Company) is a petroleum and natural gas exploration and production company with reserves located in Western Canada and the United States. The Company was formerly known as Penn West Energy Trust. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 25 Rank Rating Description 61 - SM Energy Company is an independent energy company engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids in onshore North America. 62 - Range Resources Corporation (Range) is an independent oil and gas exploration and production company based in Fort Worth, Texas. Range produces shale gas from the Devonian-aged Marcellus Shale in Pennsylvania. 63 - Bonavista Energy Corporation is a conventional oil and gas company with properties located in Alberta, British Columbia and Saskatchewan. 64 - Galp Energia SGPS, SA (the Company) is Portugals oil and natural gas integrated operator. The Company focuses on exploration and production of oil and natural gas to refning and marketing oil products, natural gas marketing and sales and power generation. 65 - MEG Energy Corporation (the Company) is a Canadian oil sands company focused on sustainable development and production in Albertas Athabasca region. The Company owns a 50% interest in a dual pipeline system with Devon Energy Corporation. 66 - Tourmaline Oil Corporation (the Company) is engaged in the acquisition, exploration, development, and production of crude oil and natural gas properties in the Western Canadian Sedimentary Basin. The Company is based in Calgary, Canada. 67 - Enerplus Corporation (the Company) is engaged in the development and exploration of crude oil and natural gas in Canada and the United States. The Company is headquartered in Calgary, Alberta. 68 - Energy XXI (Bermuda) Limited is an oil-focused company with assets in South Louisiana and on the Gulf of Mexico Shelf. It operates fve oilfelds on the Gulf of Mexico Shelf. 69 - Oasis Petroleum Inc. (the Company) is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources. The Company has its operations in the Bakken Shale, located in Montana and North Dakota. 70 - Pengrowth Energy Corporation (the Company) is an oil and gas producer headquartered in Calgary, Alberta. The Company explores for crude oil, natural gas and liquids in Alberta, British Columbia, Saskatchewan and Nova Scotia. 71 - SandRidge Energy Inc. (SandRidge) focuses on drilling conventional oil wells in shallow carbonate reservoirs. Based in Oklahoma City, SandRidge is a developer of the Mississippian Oil Play, with assets in the Permian Basin and the Gulf of Mexico. 72 - LightStream Resources Ltd. is a light oil-focused exploration and production company. Principal operating areas include southeastern Saskatchewan, targeting the Bakken formation and conventional Mississippian reservoirs, central Alberta, focusing on the Cardium formation, and north-central Alberta, engaging in exploring for light oil resource plays. 73 - Stone Energy Corporation is an independent oil and natural gas exploration and production company headquartered in Lafayette, Louisiana, with additional offces in New Orleans, Louisiana, Houston, Texas and Morgantown, West Virginia. 74 - Rosetta Resources Inc. is an independent oil and gas company based in Houston, and is engaged in the exploration, development and exploitation of onshore energy resources in the U.S. 75 - Peyto Exploration & Development Corp. (the Company) is engaged in the exploration and development of gas properties. The Company has operations located halfway between the Northwest Territories and the U.S. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 26 Rank Rating Description 76 - Legacy Oil & Gas Inc. (the Company) is an intermediate oil and natural gas company based in Calgary, Alberta. The Companys assets are focused in southeast Saskatchewan and southwest Alberta. 77 - Northern Oil and Gas Inc. is an oil and gas exploration and production company, and it is a Williston Basin Bakken and Three Forks pure play in western North Dakota and eastern Montana. 78 - Gran Tierra Energy Inc. (Gran Tierra or the Company) is an international oil and gas exploration and production company headquartered in Calgary, Alberta. The Company currently holds interests in producing and has prospective properties in Colombia, Argentina, Peru and Brazil. 79 - Bankers Petroleum Ltd. (the Company) is a Canadian-based oil and gas exploration and production company focused on developing oil and gas reserves in Albania. The Company operates and has the rights to develop the Patos-Marinza heavy oilfeld and has a 100% interest in the Kuova oilfeld. 80 - Whitecap Resources Inc. (the Company) is engaged in the acquisition, development, and production of crude oil and natural gas in western Canada. The Company is based in Calgary, Canada. 81 - TransGlobe Energy Corporation (TransGlobe or the Company) is an international exploration and production company based in Calgary, with oil interests in Egypt and Yemen. 82 - Parex Resources Inc. (Parex) is an oil and gas exploration company with a portfolio of high impact prospects in the prolifc Llanos Basin and Middle Magdalena Basin of Colombia and onshore Trinidad and Tobago. Headquartered in Calgary, Alberta, Parex holds interests in 17 onshore exploration blocks. 83 B Trilogy Energy Corporation is a Canadian energy corporation that owns and operates many properties to exploit gas reservoirs. 84 - Gulfport Energy Corporation (the Company) is an oil and gas exploration and production company headquartered in Oklahoma City. The Companys principal producing properties are located along the Louisiana Gulf Coast and in the Permian Basin in West Texas. 85 - Advantage Oil & Gas Ltd. (the Company) is a Canadian oil and gas company based in Calgary, Alberta. The Company owns and operates properties located in Alberta, British Columbia and Saskatchewan. 86 B Crew Energy Inc. (the Company) is an oil and natural gas producer based in Calgary, Alberta. Its activities are concentrated in Alberta, northeast British Columbia and Saskatchewan. The Companys focus is on the development and expansion of its core natural gas and light oil producing areas and exploration of its large, undeveloped land base. 87 - Grupa LOTOS S.A. (the Company) is an oil company engaged in the business of production and processing of crude oil, as well as wholesale and retail sale of high quality petroleum products. The Company is a producer and supplier of a number of products, including unleaded gasoline, diesel oil, diesel oil for heating purposes (light fuel oil), aviation fuel and heavy fuel oil. It also specialises in the production and sale of lubricating oils and bitumens. 88 - Birchcliff Energy Ltd. (the Company) is a Calgary-based intermediate oil and gas company that explores, develops and produces natural gas, light oil and natural gas liquids. The Companys operations are concentrated in the Peace River Arch area of Alberta. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 27 Rank Rating Description 89 - Bonanza Creek Energy, Inc. (the Company) is an exploration and production company focused on the extraction of oil and associated liquids-rich natural gas in the United States. The Companys operations are focused in the Wattenberg Field in the DJ Basin of Colorado and the Cotton Valley sands of southern Arkansas. 90 - Long Run Exploration, Ltd. (the Company) is an intermediate oil company focused on light-oil development and exploration in western Canada. The Company is focused in three areas in Alberta, namely Triassic oil, Duvernay, and Carbonate oil. 91 - EPL Oil & Gas, Inc. (the Company) is an independent oil and natural gas exploration and production company. The Companys current operations are concentrated in the U.S. GOM shelf & Gulf Coast, focusing on the state and federal waters offshore LA. 92 - Kosmos Energy Ltd. is a pathfnding oil and gas exploration and production company headquartered in Bermuda. Its primary areas of operation are underexplored regions of Africa and South America. 93 - PDC Energy (the Company) is a 40-year old independent natural gas and oil company. The company operates in Colorado, Ohio, and West Virginia. 94 - Ultra Petroleum Corporation (Ultra or the Company) is an independent energy company engaged in the exploration and production of oil and natural gas. Its primary asset is the sand river play in the Green River basin of Wyoming. 95 - Kodiak Oil & Gas Corp. is an independent exploration and production company. It is focused on exploring, developing and producing oil and natural gas in the U.S. Rocky Mountain region, and has core operations in the Williston Basin in Montana and North Dakota, and the Vermillion Basin of the Great Green River basin. 96 - PT Medco Energi Internasional Tbk (Medco Energi) is an Indonesian company operating in the oil & gas exploration and production business listed on the Jakarta Stock Exchange since 1994. Currently, Medco Energi is focused on oil & gas exploration, development and production, and power generation. 97 - Laredo Petroleum, Inc. (the Company) is an independent energy company with headquarters in Tulsa, Oklahoma. The Company is focused on the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions of the United States. 98 - Carrizo Oil & Gas, Inc. (the Company) is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas. The Companys current operations are principally focused in producing oil and gas shales primarily in the Eagle Ford Shale in South Texas, the Niobrara Formation in Colorado, the Marcellus Shale in Pennsylvania, and the Utica Shale in Ohio. 99 B Athabasca Oil Corporation is an Alberta-based company focused on the development of oil sands in the Athabasca region in northeastern Alberta and light oil resources in northwestern Alberta. 100 - Resolute Energy Corporation (Resolute) is a private company engaged in the acquisition, development and production of domestic oil and gas. Resolutes primary producing assets are its properties in Aneth Field, located in the Paradox Basin in southeast Utah and Hilight Field, a conventional gas feld in the Powder River Basin of northeastern Wyoming. - - W&T Offshore, Inc. is an independent oil and natural gas acquisition, exploitation and exploration company, with a focus primarily in the Gulf of Mexico. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 28 Rank Rating Description - - YPF S.A. (the Company), acronym for Yacimientos Petrolferos Fiscales (Treasury Petroleum Fields), is a vertically integrated Argentine energy company. The Company engages in the exploration and production of oil and gas, as well as in transportation, refning, and marketing of gas and petroleum products. - - Pakistan Petroleum Limited is a major supplier of natural gas in addition to producing crude oil, natural gas liquids and liquefed petroleum gas. - - Raging River Exploration Inc. engages in the exploration, development, and production of oil and gas properties in western Canada. It primarily focuses its operations on the Dodsland light oil play in southwestern Saskatchewan. Raging River Exploration Inc. is headquartered in Calgary, Canada. - - Freehold Royalties Ltd. is an oil and gas company based in Calgary, Alberta. The companys royalty interests are a major contributor to operating and fnancial performance and are not subject to expenses such as operating and capital costs. The companys assets generate income from crude oil, natural gas, natural gas liquids, and potash. - - Mari Petroleum Company Limited (the Company) is an exploration and production company located in Pakistan. It operates the countrys second largest gas reservoir at Mari Field, District Ghotki, Sindh. The Company is primarily engaged in exploration, development and production of hydrocarbon potentials in the country. - - BlackPearl Resources Inc. (the Company) is a publicly held Canadian oil and gas company. The Companys focus is heavy oil and oil sands assets located in western Canada. - - Bonterra Energy Corp. is an oil and gas company headquartered in Calgary, Alberta, with an asset base of properties across Western Canada. - - Oil & Gas Development Company Limited (the Company), headquartered in Islamabad Pakistan, explores, develops, produces, and sells oil and gas resources. The Company primarily produces crude oil, gas, liquefed petroleum gas, and sulphur. - - Surge Energy Inc. (Surge Energy or the Company) is an oil-focused oil and gas company with operations in Alberta, Manitoba and North Dakota. - - Bellatrix Exploration Ltd. (Bellatrix) is a Canada-based oil and gas company. Bellatrix is engaged in the exploration, acquisition, development and production, of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. - - Longview Oil Corp. (Longview or the Company) is a Canada-based oil and natural gas production, exploitation and acquisition company in the Western Canadian sedimentary basin. It aims to acquire and operate primarily producing crude oil properties. The Company was a wholly owned subsidiary of Advantage Oil & Gas Ltd (Advantage). Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 29 Rank Rating Description - - Twin Butte Energy Limited (the Company) is an oil and gas company based in Calgary. The Company focuses on heavy oil in the greater Lloydminster area along the Alberta and Saskatchewan border. - - Vaalco Energy, Inc. (the Company) is a Houston, Texas based independent energy company engaged in the acquisition, exploration, development and production of crude oil and natural gas. The Companys properties and exploration activities are located in Gabon and Angola. - - Approach Resources Inc. (the Company) is an independent energy company headquartered in Fort Worth, Texas. The Company focuses on exploring for and developing oil and gas reserves in the West Texas Permian Basin. - - Painted Pony Petroleum Ltd. is a Canadian public resource company based in Calgary, Alberta, with operations in Saskatchewan, Alberta and British Columbia. - - Cequence Energy Ltd. is a natural gas and oil resource company based in Calgary, Alberta. Its properties are located in the Deep Basin, with Simonette as its primary focus area. - - Chinook Energy Inc. is a balanced mid-sized producer based in Calgary, Alberta. Its international oil and gas exploration and production operations are focused in Tunisia and Western Canada. - - Renegade Petroleum Ltd. (Renegade) is an exploitation and exploration focused light oil producer. Renegades primary focus areas are located in southeast Saskatchewan in various pools, such as Bakken, Souris Valley, Frobisher, Midale and Kisby, as well as the Dodsland area of the Viking play in west-central Saskatchewan. - - LINN Energy, LLC (the Company) is an independent oil and natural gas company headquartered in Houston, Texas. The Companys core focus areas are the Mid-Continent, Permian basin, Hugoton basin, Rockies, Michigan and California. - - EXCO Resources, Inc. (the Company) is a natural gas and oil company headquartered in Dallas, Texas. The Company is engaged in the exploration, exploitation, development and production of onshore natural gas and oil properties. Its operations are focused in the Permian Basin, the Appalachian basin and the East Texas/North Louisiana area. - - Bill Barrett Corporation (the Company) is an oil and natural gas exploration and development company headquartered in Denver, Colorado. The Companys assets are located in the Rocky Mountain region with active exploration and development properties located throughout the area. - - Halcn Resources Corporation is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids- rich assets in the United States. - - Penn Virginia Corporation (the Company) is an independent oil and gas company engaged primarily in the exploration, development and production of oil, natural gas liquids and natural gas in various domestic onshore regions of the United States, with a primary focus in Texas, and to a lesser extent, the Mid-Continent, Mississippi and the Marcellus Shale in Appalachia. The company is headquartered in Radnor, PA. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 30 Rank Rating Description - - NuVista Energy Ltd. is a company engaged in exploration, development and production activities on properties located in three operating regions of the Western Canadian Sedimentary Basin. - - Comstock Resources, Inc. (the Company) is a growing independent energy company engaged in the acquisition, development, production and exploration of oil and natural gas properties. The Companys operations are primarily focused in Texas and Louisiana. - - WPX Energy, Inc. is an independent natural gas and oil exploration and production company engaged in the development of unconventional properties. It is based in Tulsa, Oklahoma, with operations and interests in Colorado, New Mexico, North Dakota, Pennsylvania, Wyoming, Argentina and Colombia. - - RMP Energy Inc. is an oil and gas company with assets concentrated in West Central Alberta and southeastern Saskatchewan. - - Warren Resources, Inc. (the Company) is an independent energy company engaged in the acquisition, exploration, development and production of domestic onshore crude oil and gas reserves. The Company focuses primarily on the exploration and development of waterfood oil recovery properties in the Wilmington Field within the Los Angeles Basin of California. - - Eagle Energy Trust (the Trust) is an unincorporated open-ended limited purpose trust. The Trust is engaged in the acquisition, development, and production of petroleum reserves in the United States. The Trust is based in Calgary, Canada. - - Zargon Oil & Gas Ltd. (the Company) is engaged in exploring, developing, and producing oil and natural gas in Canada and the United States. The Company is based in Calgary, Canada. - - Rock Energy Inc. is an exploration and production company. Its current assets are primarily heavy oil properties in the Plains area and Southwest Saskatchewan. - - Gastar Exploration Ltd. is engaged in the exploration, development and production of natural gas, natural gas liquids, oil and condensate in the United States. - - Parallel Energy Trust (the Trust) is an unincorporated open-ended limited purpose trust. The Trusts objective is to create returns for investors through the acquisition and development of conventional oil and natural gas reserves and production with unexploited potential, located in certain regions of the United States. - - Delphi Energy Corp. (the Company) is an oil and gas company operating in Alberta, Canada. It is engaged in the exploration for, development and production of crude oil and natural gas from properties and assets located in Western Canada. The Companys operations are primarily concentrated in the Deep Basin of North West Alberta, with the Deep Basin located at Bigstone, Hythe and Wapiti as its three core areas. - - Arcan Resources Ltd. is a junior oil producer located in the Swan Hills area of north central Alberta. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 31 Rank Rating Description - - Forest Oil Corporation (the Company) is an independent oil and gas exploration and production company. The Company is engaged in the exploration, acquisition, development, production and marketing of natural gas and crude oil in the United States and has principal reserves and producing properties in Arkansas, Louisiana, Oklahoma and Texas. - - Atlantic Petroleum P/F (the Company) is a full cycle exploration and production company. The Companys main focus is offshore North West Europe. It has a total of 40 oil and gas licences in the UK, Faroe Islands, Ireland, Norway & the Netherlands, and produces oil & gas from three felds in the United Kingdom North Sea. - - Connacher Oil and Gas Limited (Connacher or the Company) is a Calgary- based exploration, development and production company active in the production and sale of bitumen. Connachers principal asset is a 100 percent interest in approximately 500 million barrels of bitumen reserves located on the Companys Great Divide oil sands leases near Fort McMurray, Alberta. - - TORC Oil and Gas Ltd. (the Company) is a Canada-based company engaged in the acquisition, exploration, development and production of crude oil and natural gas assets. The Company produces crude oil, natural gas liquids and natural gas within Canada and the United States. - - Hellenic Petroleum S.A. is an energy group in south-east Europe and an industrial and commercial company in Greece. Its activities consist of refning & marketing, petrochemicals, hydrocarbon exploration and production, and natural gas and power. - - Pinecrest Energy Inc. is a Calgary, Alberta based petroleum and natural gas exploration, production and development company, with operations in the Canadian provinces of Alberta and Saskatchewan. - - Goodrich Petroleum Corporation is an independent exploration and production company that drills for, acquires, develops and produces natural gas and crude oil primarily in the Haynesville Shale and Cotton Valley Trend in East Texas and North Louisiana, the Eagle Ford Shale oil window of South Texas, and in the Tuscaloosa Marine Shale of South Mississippi and Louisiana. - - Questerre Energy Corporation (the Company) is an independent energy company focused on unconventional oil and gas projects. The Company has base production and reserves in the tight oil bakken and Torquay of southeast Saskatchewan. - - Pan Orient Energy Corp. (the Company) is a Canadian junior oil and natural gas company based in Calgary, Alberta. The Company owns on-shore properties in Thailand and Indonesia, as well as Canadian oil sand properties. - - Paramount Resources Ltd. (the Company) is engaged in the exploration, development, production, processing, transportation and marketing of natural gas, crude oil and natural gas liquids in Western Canada, as well as Montana and North Dakota, United States. The Company is headquartered in Calgary. - - ShaMaran Petroleum Corp. (the Company) engages in the acquisition, exploration, and development of oil and gas properties in the Kurdistan region of Iraq. The Company is based in Vancouver, Canada. - - Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia as well as Puntland (Somalia). Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 32 Rank Rating Description - - Strategic Oil & Gas Ltd. (the Company) engages in the exploration and development of petroleum and natural gas reserves in Western Canada. The Company holds interests in various oil and natural gas properties located in Amber, Conrad, Steen River, Larne, and Taber areas of Alberta, Canada, and in Northeast British Columbia. It also has properties located in Wyoming, United States. Strategic Oil & Gas Ltd. was incorporated in 1987 and is headquartered in Calgary, Canada. - - Perpetual Energy Inc. (the Company) is an independent energy company that is involved in the acquisition, exploration and development of oil and gas properties in Alberta. The Company was formerly known as Paramount Energy Trust prior to June 2010. - - Noreco SA (Noreco) is an independent Norwegian oil and gas company with focus on exploration, development and production in the North Sea region. Noreco operates in Norway, Denmark and the United Kingdom, and employs around 70 oil and gas professionals. - - Magnum Hunter Resources Corporation is an independent oil and gas company engaged in the exploration for and the exploitation, acquisition, development and production of crude oil, natural gas and natural gas liquids resources in the United States and Canada. - - Canacol Energy Ltd. (Canacol) and its subsidiaries are primarily engaged in petroleum and natural gas exploration and development activities in Colombia, Brazil, Ecuador and Guyana. Canacols primary producing property is the Rancho Hermoso feld in Colombia. - - Isramco, Inc. (the Company) together with its subsidiaries, engages in the acquisition, development, production, and exploration of oil and natural gas properties in the United States and Israel. The Company was founded in 1982 and is based in Houston, Texas. - - Argent Energy Trust owns, operates and manages oil and gas properties located primarily in South Texas and Oklahoma, with drilling prospects focused in the Eagle Ford, Austin Chalk and Wilcox. - - Quicksilver Resources Inc. focuses on development of unconventional natural gas and oil reservoirs found in fractured shale gas and coal seams in North America. - - Pine Cliff Energy Ltd. (the Company) engages in the exploration, development, and production of natural gas, crude oil, and natural gas liquids primarily in Canada. The Company primarily holds interest in the Carrot Creek assets in the Western Canadian Sedimentary Basin, and the Southern Alberta assets. - - Sunshine Oilsands Ltd. (the Company) is a Canada-based oil sand accumulations exploration and development company. Its business area focuses on the oil sands leases in the Athabasca oil sands area of Alberta. The Company is engaged in the exploration, development and production of oil sands leases. Its principal operating regions in the Athabasca area are at West Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer and Portage. - - Antrim Energy Inc. is a Canadian-based international oil and gas exploration and production company with assets offshore in the United Kingdom North Sea and Ireland. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 33 Rank Rating Description - CCC Southern Pacifc Resource Corp. is a publicly traded oil and gas company engaged in the development, exploration and production of in-situ oil sands and heavy oil assets in Western Canada. - - HKN, Inc. (the Company) is a publicly traded company incorporated in 1973 in the State of California and reincorporated in 1979 in the State of Delaware. Main operations of the Company are oil and gas exploration, development and production. - - Anderson Energy Ltd. is an oil and gas development company. Its principal property is in central Alberta around the Sylvan Lake and Pembina felds. - - Niko Resources Ltd. (the Company) is focused on sustained growth through successful exploration. The Company is currently a non-government landowner in both Indonesia and Trinidad and is involved in the feld of international oil and natural gas exploration and production. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 34 KEY CREDIT METRICS 2014 Q1 Summary Key credit metrics remained relatively fat for the period; however, the industry continues to beneft from top-of-the-cycle conditions in the liquids segment. Ongoing weakness of North American natural gas prices continues to negatively impact proftability for operators with signifcant exposure to this market. 2014 Outlook DBRS expects oil prices to remain well above average, at above $80 for WTI. At these levels, most issuers are able to fund current capex projects primarily with internally generated cash fow. North American natural gas fundamentals are expected to remain relatively weak, given current conditions. Those issuers with >70% of their production mix in North American natural gas will likely continue to experience weak credit metrics. Key Credit Metrics Company Name Rating Adjusted Total Debt-to-Cash Flow EBIT Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to- EBITDA CapEx-to- Depreciation Exxon Mobil Corporation - 0.71 108.93 16.3% 0.63 1.38 Imperial Oil Limited AA (high) 1.64 39.73 26.5% 1.50 1.38 Chevron Corporation AA 0.80 98.74 15.5% 0.70 1.96 Royal Dutch Shell plc - 1.17 20.21 20.0% 0.97 1.73 Total S.A. and Subsidiaries - 2.20 24.90 34.4% 1.54 1.05 Statoil ASA - 2.39 42.96 45.8% 1.22 2.17 CNOOC Limited 1 - 0.00 0.00 30.9% 1.16 1.54 PetroChina Company Ltd. - 1.85 9.43 31.1% 1.87 2.34 Sinopec Corp. - 2.80 8.06 39.8% 15.78 2.98 BP p.l.c. A 2.34 13.35 29.0% 1.87 1.73 Eni S.p.A. - 1.58 8.45 32.4% 1.07 1.25 Occidental Petroleum Corporation A 0.61 33.76 15.1% 0.54 1.29 ConocoPhillips A 1.43 9.31 31.6% 1.29 1.61 Inpex Corporation - 0.69 N.M. 16.3% 0.77 2.13 Suncor Energy Inc. A (low) 1.31 11.16 23.6% 1.06 2.20 Apache Corporation - 1.14 10.96 24.0% 0.96 N.M. Husky Energy Inc. A (low) 1.13 9.01 22.6% 1.02 0.81 Marathon Oil Corporation - 1.27 22.52 25.4% 0.79 1.90 OMV Aktiengesellschaft - 1.63 13.66 27.1% 1.74 1.58 Cenovus Energy Inc. A (low) 1.84 7.20 38.4% 1.65 7.52 EOG Resources, Inc. - 0.86 16.09 29.3% 0.82 1.61 Canadian Natural Resources Limited BBB (high) 1.50 8.78 30.3% 1.31 2.50 BG Group plc - 2.68 13.20 38.6% 2.61 1.47 Devon Energy Corporation BBB (high) 2.65 6.59 38.6% 2.56 1.56 Hess Corporation - 1.79 7.90 30.0% 1.78 2.43 Talisman Energy Inc. BBB (high) 3.39 1.44 36.8% 2.17 0.27 OAO Gazprom 1 - 0.92 38.36 15.8% 0.85 3.33 OAO Lukoil - 0.77 24.30 13.8% 0.69 2.58 Rosneft - 2.35 8.18 42.6% 2.06 2.55 Petrobras - 7.69 3.32 58.8% 7.18 1.35 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 35 Key Credit Metrics Company Name Rating Adjusted Total Debt-to-Cash Flow EBIT Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to- EBITDA CapEx-to- Depreciation Murphy Oil Corporation BBB 1.66 11.21 37.6% 1.64 0.01 Canadian Oil Sands Limited BBB 1.16 10.44 25.9% 0.95 2.58 Anadarko Petroleum Corporation BBB 2.45 6.76 48.1% 1.84 1.41 Noble Energy Inc. - 1.61 5.28 36.1% 1.64 2.64 Encana Corporation BBB 2.20 2.81 33.7% 2.07 1.99 PGNiG S.A. - 1.04 15.34 17.5% 0.97 1.28 Energen Corporation - 2.23 5.23 40.7% 2.23 1.02 Repsol, S.A. - 2.71 8.82 30.2% 1.52 2.39 Ecopetrol S.A. - 0.61 24.56 16.2% 0.41 1.35 Southwestern Energy Co. - 0.84 13.94 32.5% 0.79 1.28 Continental Resources, Inc. - 1.86 7.94 54.8% 1.69 1.28 Pioneer Natural Resources Company - 1.29 4.38 29.8% 1.73 3.21 Newfeld Exploration Co. - 2.62 2.51 53.3% 3.04 3.96 Crescent Point Energy Corporation - 0.99 10.16 20.2% 0.89 1.96 MOL Group - 2.03 9.68 30.8% 1.19 2.04 Concho Resources Inc. - 2.37 4.09 49.5% 2.18 2.66 Pacifc Rubiales Energy Corp. - 3.88 8.60 63.8% 2.81 0.35 Cimarex Energy Co. - 0.71 15.65 20.6% 0.70 1.13 Denbury Resources Inc. - 2.91 3.89 41.3% 2.62 3.54 The Delek Group Ltd. - 58.86 0.81 68.5% 11.30 0.94 Chesapeake Energy Corporation - 2.56 3.52 42.3% 2.22 2.75 JSOC Bashneft - 1.78 11.12 39.6% 1.33 3.50 Whiting Petroleum Corporation - 1.56 6.91 40.6% 1.45 1.57 ARC Resources Ltd. - 1.18 10.61 24.3% 1.04 0.55 Vermilion Energy Inc. BB (low) 1.52 15.14 36.6% 1.10 7.00 Cabot Oil & Gas Corp. - 1.09 9.57 35.7% 0.99 1.94 Unit Corporation - 1.06 22.20 23.6% 3.57 4.07 QEP Resources Inc. - 2.92 2.95 50.3% 2.64 1.53 Baytex Energy Corp. - 1.09 7.54 37.0% 1.15 3.05 Penn West Petroleum Ltd. - 2.60 1.49 25.7% 2.12 3.01 SM Energy Company - 1.96 7.02 61.5% 1.73 2.05 Range Resources Corporation - 3.97 3.12 57.8% 3.14 1.89 Bonavista Energy Corporation - 1.94 5.62 32.1% 1.72 3.21 Galp Energia SGPS, SA 1 - 4.40 2.79 35.0% 3.41 N/A MEG Energy Corporation - 11.72 1.42 47.4% 10.75 1.64 Tourmaline Oil Corp. - 0.91 21.17 13.8% 0.89 1.98 Enerplus Corporation - 1.41 4.99 35.8% 1.28 1.65 Energy XXI (Bermuda) Limited - 3.22 2.67 60.6% 2.66 1.64 Oasis Petroleum Inc. - 5.63 3.31 60.0% 4.21 2.74 Pengrowth Energy Corporation - 3.06 2.18 32.6% 2.29 1.55 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 36 Key Credit Metrics Company Name Rating Adjusted Total Debt-to-Cash Flow EBIT Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to- EBITDA CapEx-to- Depreciation SandRidge Energy, Inc. - 4.19 1.93 51.7% 2.92 3.45 LightStream Resources Ltd. - 3.14 2.13 51.8% 2.59 3.06 Stone Energy Corp. - 1.98 3.37 51.2% 1.64 2.17 Rosetta Resources Inc. - 2.96 5.40 54.7% 2.80 1.35 PEYTO Exploration & Development Corp. - 1.64 8.58 36.5% 1.46 2.28 Legacy Oil & Gas Inc. - 2.66 3.25 33.9% 2.23 1.74 Northern Oil & Gas Inc. - 2.76 3.56 51.4% 2.28 1.78 Gran Tierra Energy Inc. - 0.05 N/A 1.1% 0.04 1.66 Bankers Petroleum Ltd. - 0.37 28.12 15.4% 0.35 1.67 Whitecap Resources Inc. - 1.45 11.07 22.2% 1.27 1.93 TransGlobe Energy Corporation - 1.11 21.32 21.5% 0.66 5.09 Parex Resources Inc. - 0.30 27.95 13.2% 0.24 1.16 Trilogy Energy Corp. B 2.13 2.93 47.2% 1.74 1.46 Gulfport Energy Corporation - 1.09 2.63 12.3% 1.38 5.95 Advantage Oil & Gas Ltd. - 1.51 6.03 20.5% 1.35 0.57 Crew Energy Inc. B 2.46 0.96 31.9% 2.22 1.33 Grupa LOTOS S.A. - 7.78 1.23 42.2% 7.88 1.53 Birchcliff Energy Ltd. - 2.22 6.40 32.9% 1.93 0.43 Bonanza Creek Energy, Inc. - 1.73 5.29 43.8% 1.67 2.51 Long Run Exploration Ltd. - 1.87 5.41 42.6% 1.68 3.80 EPL Oil & Gas, Inc. - 2.04 3.80 52.9% 1.82 2.85 Kosmos Energy Ltd. - 2.03 3.64 43.1% 2.21 2.23 PDC Energy, Inc. - 2.96 2.03 40.8% 2.63 2.15 Ultra Petroleum Corp. - 4.35 4.16 109.8% 3.63 1.78 Kodiak Oil & Gas Corp. - 3.56 3.22 64.8% 3.08 1.81 PT Medco Energi Internasional Tbk - 4.43 2.83 56.6% 3.48 2.68 Laredo Petroleum Holdings, Inc. - 4.17 2.22 54.3% 3.36 2.29 Carrizo Oil & Gas, Inc. - 2.36 1.98 51.6% 2.29 2.53 Athabasca Oil Corporation B 97.16 (2.61) 14.3% 32.46 2.91 Resolute Energy Corporation - 5.45 1.13 57.8% 4.08 2.34 W&T Offshore - 2.20 1.59 68.7% 2.07 0.92 YPF S.A. - 1.17 3.39 39.2% 1.24 5.11 Pakistan Petroleum Limited - 0.00 146.50 0.2% 0.00 2.44 Raging River Exploration Inc. - 0.46 52.64 14.0% 0.41 1.54 Freehold Royalties Ltd. - 0.39 34.64 14.3% 0.32 1.26 Mari Petroleum Company Limited - 0.57 15.19 12.1% 0.27 1.77 BlackPearl Resources Inc. - 0.09 26.73 1.4% 0.09 2.39 Bonterra Energy Corp. - 1.05 15.86 23.0% 1.00 1.67 Oil & Gas Development Company Limited - 0.00 N/A 0.0% 0.00 1.10 Surge Energy Inc. - 2.63 6.24 28.8% 2.20 2.24 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 37 Key Credit Metrics Company Name Rating Adjusted Total Debt-to-Cash Flow EBIT Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to- EBITDA CapEx-to- Depreciation Bellatrix Exploration Ltd. - 2.13 10.18 27.2% 1.59 4.27 Longview Oil Corp. - 1.93 7.36 34.0% 1.58 1.45 Twin Butte Energy LTD. - 2.29 9.90 42.5% 1.50 3.44 Vaalco Energy, Inc. - 0.00 N/A 0.0% 0.00 1.10 Approach Resources Inc. - 1.97 3.11 26.2% 1.82 6.97 Painted Pony Petroleum Ltd. - 0.89 (5.58) 6.6% 1.06 1.19 Cequence Energy Ltd. - 1.44 5.39 17.1% 1.23 1.62 Chinook Energy Inc. - 0.98 6.31 20.7% 0.89 3.50 Renegade Petroleum Ltd. - 2.23 1.93 38.1% 1.86 1.92 LINN Energy, LLC - 7.20 1.36 62.9% 6.22 1.50 Exco Resources, Inc. - 4.51 1.14 79.3% 3.76 2.63 Bill Barrett Corporation - 3.95 0.88 51.9% 3.18 2.30 Halcn Resources Corporation - 6.05 0.64 72.2% 5.27 3.26 Penn Virginia Corporation - 5.27 0.62 61.2% 3.94 1.56 NuVista Energy Ltd. - 0.38 2.52 13.4% 1.03 1.15 Comstock Resources Inc. - 3.68 (0.39) 50.4% 3.08 1.44 WPX Energy, Inc. - 3.15 (1.29) 36.1% 3.09 0.57 RMP Energy Inc. - 1.50 12.27 30.7% 1.41 1.89 Warren Resources, Inc. - 0.36 9.91 33.3% 1.60 4.80 Eagle Energy Trust - 2.11 6.07 27.1% 1.88 2.85 Zargon Oil & Gas Ltd. - 0.93 4.03 42.0% 1.78 1.38 Rock Energy Inc. - 0.42 26.21 15.1% 0.42 2.75 Gastar Exploration Ltd. - 6.19 1.61 60.6% 4.33 2.13 Parallel Energy Trust - 5.51 1.70 44.3% 4.41 1.49 Delphi Energy Corp. - 2.77 3.86 36.9% 2.24 1.70 Arcan Resources Ltd. - 7.51 1.50 57.9% 4.80 4.20 Forest Oil Corporation - 2.77 0.79 96.4% 2.64 (0.18) Atlantic Petroleum P/F - 1.10 53.00 41.8% 1.28 1.49 Connacher Oil and Gas Limited - 12.32 0.21 86.9% 10.48 1.69 TORC Oil & Gas Ltd. - 0.84 5.85 9.8% 1.07 1.61 Hellenic Petroleum S.A. - (26.69) (0.46) 61.8% 24.25 3.12 Pinecrest Energy Inc. - 2.92 (0.48) 41.8% 3.47 2.16 Goodrich Petroleum Corporation - 5.83 (0.51) 60.8% 4.88 1.53 Questerre Energy Corporation - 0.16 N/A 0.8% 0.18 2.07 Pan Orient Energy Corp. - 0.18 N/A 1.8% 0.23 1.43 Paramount Resources Ltd. - 17.66 (0.75) 51.2% 11.64 2.08 ShaMaran Petroleum Corp. - (57.17) (0.39) 31.1% (59.14) 0.87 Africa Oil Corp. - (0.21) N.M. 0.3% (0.29) N.M. Strategic Oil & Gas Ltd. - 4.65 (7.13) 29.9% 3.80 0.99 Perpetual Energy Inc. - 6.34 (0.41) 82.6% 4.54 3.32 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 38 Key Credit Metrics Company Name Rating Adjusted Total Debt-to-Cash Flow EBIT Interest Coverage Adjusted Gross Debt in Capital Structure Adjusted Total Debt-to- EBITDA CapEx-to- Depreciation Noreco SA - 3.92 (0.89) 66.5% N.M. 1.89 Magnum Hunter Resources Corporation - 25.04 (0.29) 58.2% 9.98 3.09 Canacol Energy Ltd. - 2.90 (2.76) 37.5% 2.84 1.29 Isramco, Inc. - 3.35 4.23 86.8% 2.81 1.16 Argent Energy Trust - 4.33 (2.80) 35.0% 4.77 2.37 Quicksilver Resources Inc. - (48.30) 0.38 215.1% 12.90 3.88 Pine Cliff Energy Ltd. - 0.00 7.52 0.0% 0.00 3.43 Sunshine OilSands Ltd. - (0.87) (4.38) 1.9% (1.39) 4.82 Antrim Energy Inc. - (0.18) (23.60) 6.6% (0.23) 11.83 Southern Pacifc Resources Corp. CCC (49.60) (0.20) 63.6% 39.90 1.61 HKN, Inc. - (0.92) (102.42) 1.9% (0.38) 5.11 Anderson Energy Ltd. - 9.93 (0.16) 76.2% 3.96 0.99 Niko Resources Ltd. - (9.25) (3.87) 58.7% (13.03) 2.11 1. 2014 fgures refect YE December 31, 2013 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 39 INCOME STATEMENT DATA IN Q1 2014 Q1 2014 Summary Earnings on a trailing twelve months basis ending March 31, 2014, increased modestly primarily due to the favourable pricing environment and companies ongoing cost cutting initiatives. 2014 Outlook DBRS anticipates earnings will likely be fat in 2014, as a modest increase in revenues is expected to be more than offset by increasing depreciation levels and ongoing cost pressures despite the cost cutting initiatives. Income Statement Data ($ Millions where Applicable) Company Name Rating Net Revenue EBITDA EBIT EBIT Margin Ratio Net Income Before Non- Recurring Items Exxon Mobil Corporation - 419,218 56,480 39,216 9.4% 30,710 Imperial Oil Limited AA (high) 33,920 4,900 3,695 10.9% 2,816 Chevron Corporation AA 208,433 39,928 25,093 12.0% 19,184 Royal Dutch Shell plc - 448,083 47,207 27,909 6.2% 18,215 Total S.A. and Subsidiaries - 224,901 36,175 25,332 11.3% 14,334 Statoil ASA - 120,296 43,486 33,326 27.7% 11,985 CNOOC Limited 1 - 42,050 21,829 12,646 30.1% 9,750 PetroChina Company Ltd. - 345,792 51,590 27,380 7.9% 20,900 Sinopec Corp. - 435,686 26,757 15,088 3.5% 9,971 BP p.l.c. A 370,701 28,410 14,507 3.9% 15,562 Eni S.p.A. - 162,869 36,467 24,058 14.8% 10,296 Occidental Petroleum Corporation A 24,671 14,232 8,878 36.0% 5,630 ConocoPhillips A 55,662 19,259 11,740 21.1% 8,013 Inpex Corporation - 13,320 7,321 7,321 55.0% 1,766 Suncor Energy Inc. A (low) 40,092 12,327 7,915 19.7% 5,372 Apache Corporation - 16,028 11,509 6,015 37.5% 2,877 Husky Energy Inc. A (low) 23,360 5,857 2,828 12.1% 1,928 Marathon Oil Corporation - 14,089 8,486 5,719 40.6% 2,169 OMV Aktiengesellschaft - 41,463 4,425 2,765 6.7% 1,529 Cenovus Energy Inc. A (low) 19,350 3,820 1,988 10.3% 788 EOG Resources, Inc. - 15,330 8,090 4,389 28.6% 3,029 Canadian Natural Resources Limited BBB (high) 16,786 8,717 4,004 23.9% 2,782 BG Group plc - 14,972 8,106 5,837 39.0% 3,555 Devon Energy Corporation BBB (high) 12,156 6,157 3,342 27.5% 1,113 Hess Corporation - 21,732 5,844 3,011 13.9% 2,461 Talisman Energy Inc. BBB (high) 4,841 2,408 438 9.0% (218) OAO Gazprom 1 - 164,796 64,650 51,498 31.2% 37,639 OAO Lukoil - 143,363 18,800 12,901 9.0% 9,767 Rosneft - 160,033 33,262 19,783 12.4% 16,218 Petrobras - 139,611 31,249 18,246 13.1% 14,574 Murphy Oil Corporation BBB 5,295 3,047 1,461 27.6% 896 Canadian Oil Sands Limited BBB 4,152 1,759 1,274 30.7% 970 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 40 Income Statement Data ($ Millions where Applicable) Company Name Rating Net Revenue EBITDA EBIT EBIT Margin Ratio Net Income Before Non- Recurring Items Anadarko Petroleum Corporation BBB 16,891 10,498 6,469 38.3% 3,592 Noble Energy Inc. - 5,053 3,215 1,588 31.4% 1,171 Encana Corporation BBB 6,936 3,191 1,603 23.1% 1,166 PGNiG S.A. - 10,014 2,127 1,319 13.2% 916 Energen Corporation - 1,805 894 367 20.3% 231 Repsol, S.A. - 56,319 11,034 8,490 15.1% 1,292 Ecopetrol S.A. - 38,575 16,068 13,059 33.9% 7,980 Southwestern Energy Co. - 3,750 2,303 1,470 39.2% 770 Continental Resources, Inc. - 3,872 3,016 1,991 51.4% 1,179 Pioneer Natural Resources Company - 3,337 1,652 736 22.0% 1,383 Newfeld Exploration Co. - 1,972 1,223 514 26.1% 326 Crescent Point Energy Corporation - 3,088 2,396 819 26.5% 534 MOL Group - 24,372 3,720 2,495 10.2% 698 Concho Resources Inc. - 2,509 1,736 911 36.3% 397 Pacifc Rubiales Energy Corp. - 4,652 2,599 1,177 25.3% 458 Cimarex Energy Co. - 2,171 1,527 874 40.2% 634 Denbury Resources Inc. - 2,549 1,382 844 33.1% 391 The Delek Group Ltd. - 9,944 594 318 3.2% (174) Chesapeake Energy Corporation - 18,900 6,094 3,211 17.0% 1,832 JSOC Bashneft - 17,271 3,268 2,814 16.3% 1,854 Whiting Petroleum Corporation - 2,783 1,862 936 33.6% 600 ARC Resources Ltd. - 1,542 1,037 469 30.4% 295 Vermilion Energy Inc. BB (low) 1,269 960 620 48.9% 245 Cabot Oil & Gas Corp. - 1,870 1,274 573 30.6% 331 Unit Corporation - 388 193 106 27.2% 69 QEP Resources Inc. - 3,123 1,498 496 15.9% 367 Baytex Energy Corp. - 1,199 661 322 26.8% 202 Penn West Petroleum Ltd. - 2,311 1,234 268 11.6% 199 SM Energy Company - 2,411 1,544 742 30.8% 444 Range Resources Corporation - 1,889 1,067 561 29.7% 275 Bonavista Energy Corporation - 915 607 253 27.7% 82 Galp Energia SGPS, SA 1 - 19,620 996 503 2.6% 331 MEG Energy Corporation - 1,411 394 212 15.1% (5) Tourmaline Oil Corp. - 888 670 279 31.5% 195 Enerplus Corporation - 1,447 866 287 19.8% 70 Energy XXI (Bermuda) Limited - 1,221 770 369 30.2% 122 Oasis Petroleum Inc. - 788 540 309 39.2% 129 Pengrowth Energy Corporation - 1,347 745 195 14.4% 10 SandRidge Energy, Inc. - 1,915 1,100 512 26.8% 58 LightStream Resources Ltd. - 1,080 804 296 27.4% 100 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 41 Income Statement Data ($ Millions where Applicable) Company Name Rating Net Revenue EBITDA EBIT EBIT Margin Ratio Net Income Before Non- Recurring Items Stone Energy Corp. - 956 632 274 28.7% 78 Rosetta Resources Inc. - 869 597 349 40.1% 199 PEYTO Exploration & Development Corp. - 604 529 287 47.5% 168 Legacy Oil & Gas Inc. - 507 353 124 24.5% 43 Northern Oil & Gas Inc. - 383 284 151 39.4% 44 Gran Tierra Energy Inc. - 547 372 215 39.4% 115 Bankers Petroleum Ltd. - 486 314 211 43.5% 67 Whitecap Resources Inc. - 476 359 186 39.0% 99 TransGlobe Energy Corporation - 314 216 164 52.2% 82 Parex Resources Inc. - 496 318 131 26.5% 62 Trilogy Energy Corp. B 504 327 115 22.9% 36 Gulfport Energy Corporation - 325 219 66 20.3% 213 Advantage Oil & Gas Ltd. - 273 190 75 27.4% 2 Crew Energy Inc. B 352 208 17 4.8% 51 Grupa LOTOS S.A. - 9,124 280 56 0.6% 17 Birchcliff Energy Ltd. - 341 243 130 38.1% 74 Bonanza Creek Energy, Inc. - 471 313 155 33.0% 66 Long Run Exploration Ltd. - 462 272 89 19.3% 56 EPL Oil & Gas, Inc. - 670 399 200 29.8% 20 Kosmos Energy Ltd. - 836 372 162 19.4% (50) PDC Energy, Inc. - 498 254 108 21.7% 58 Ultra Petroleum Corp. - 1,034 703 458 44.3% 350 Kodiak Oil & Gas Corp. - 997 734 385 38.6% 169 PT Medco Energi Internasional Tbk - 886 342 262 29.5% 39 Laredo Petroleum Holdings, Inc. - 675 450 231 34.3% 132 Carrizo Oil & Gas, Inc. - 565 397 164 29.0% 59 Athabasca Oil Corporation B 112 17 (124) (110.1%) (118) Resolute Energy Corporation - 362 179 55 15.3% 75 W&T Offshore - 979 581 136 13.9% 40 YPF S.A. - 15,681 4,056 1,988 12.7% 1,112 Pakistan Petroleum Limited - 1,081 684 601 55.6% 413 Raging River Exploration Inc. - 203 162 99 48.6% 63 Freehold Royalties Ltd. - 184 152 92 50.2% 65 Mari Petroleum Company Limited - 960 84 69 7.2% 66 BlackPearl Resources Inc. - 192 102 28 14.4% 16 Bonterra Energy Corp. - 271 203 107 39.4% 71 Oil & Gas Development Company Limited - 2,362 1,649 1,500 63.5% 1,022 Surge Energy Inc. - 258 170 69 26.6% 52 Bellatrix Exploration Ltd. - 328 219 114 34.7% 78 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 42 Income Statement Data ($ Millions where Applicable) Company Name Rating Net Revenue EBITDA EBIT EBIT Margin Ratio Net Income Before Non- Recurring Items Longview Oil Corp. - 129 79 40 31.1% 20 Twin Butte Energy LTD. - 423 232 82 19.4% 29 Vaalco Energy, Inc. - 153 73 55 35.9% 23 Approach Resources Inc. - 207 140 56 27.1% (9) Painted Pony Petroleum Ltd. - 80 37 (2) (2.5%) 1 Cequence Energy Ltd. - 118 73 27 22.5% 13 Chinook Energy Inc. - 196 99 25 12.7% 10 Renegade Petroleum Ltd. - 276 149 39 14.0% 4 LINN Energy, LLC - 2,624 1,522 623 23.7% 229 Exco Resources, Inc. - 695 412 138 19.9% (41) Bill Barrett Corporation - 558 338 71 12.8% 106 Halcn Resources Corporation - 1,084 680 179 16.5% 248 Penn Virginia Corporation - 481 324 58 12.0% (140) NuVista Energy Ltd. - 217 106 20 9.0% (211) Comstock Resources Inc. - 562 312 (29) (5.1%) (63) WPX Energy, Inc. - 2,995 773 (143) (4.8%) 198 RMP Energy Inc. - 134 100 41 30.6% 24 Warren Resources, Inc. - 162 73 30 18.3% 33 Eagle Energy Trust - 74 48 15 20.7% (0) Zargon Oil & Gas Ltd. - 132 69 24 17.8% 10 Rock Energy Inc. - 76 42 9 12.2% 2 Gastar Exploration Ltd. - 114 73 34 29.8% 45 Parallel Energy Trust - 101 53 19 18.4% 8 Delphi Energy Corp. - 110 61 23 20.7% 11 Arcan Resources Ltd. - 102 63 27 26.1% (4) Forest Oil Corporation - 553 355 101 18.3% (136) Atlantic Petroleum P/F - 102 62 38 37.2% 21 Connacher Oil and Gas Limited - 431 101 18 4.1% (94) TORC Oil & Gas Ltd. - 184 94 18 9.9% (2) Hellenic Petroleum S.A. - 12,764 144 (140) (1.1%) (270) Pinecrest Energy Inc. - 83 34 (3) (3.0%) (1) Goodrich Petroleum Corporation - 255 104 (25) (10.0%) (84) Questerre Energy Corporation - 26 11 1 5.7% 8 Pan Orient Energy Corp. - 30 20 5 17.3% (203) Paramount Resources Ltd. - 245 96 (51) (20.8%) (83) ShaMaran Petroleum Corp. - 0 (2) (3) N/A (6) Africa Oil Corp. - 0 (9) (9) N/A (43) Strategic Oil & Gas Ltd. - 50 20 (4) (7.4%) (5) Perpetual Energy Inc. - 211 86 (13) (6.4%) (60) Noreco SA - 177 (0) (67) (38.1%) 5 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 43 Income Statement Data ($ Millions where Applicable) Company Name Rating Net Revenue EBITDA EBIT EBIT Margin Ratio Net Income Before Non- Recurring Items Magnum Hunter Resources Corporation - 334 90 (21) (6.3%) (42) Canacol Energy Ltd. - 191 58 21 10.9% 7 Isramco, Inc. - 79 40 28 35.6% 13 Argent Energy Trust - 128 48 (23) (17.6%) (113) Quicksilver Resources Inc. - 512 156 97 19.0% 135 Pine Cliff Energy Ltd. - 45 22 3 5.8% 3 Sunshine OilSands Ltd. - 0 (12) (13) N/A (33) Antrim Energy Inc. - 0 (6) (6) N/A (3) Southern Pacifc Resources Corp. CCC 115 17 (13) (11.5%) (39) HKN, Inc. - 1 (3) (4) (375.1%) (2) Anderson Energy Ltd. - 47 23 (2) (3.4%) (35) Niko Resources Ltd. - 129 (29) (138) (106.6%) (7) 1. 2014 fgures refect YE December 31, 2013 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 44 BALANCE SHEET AND CAPITAL STRUCTURE IN Q1 2014 Q1 2014 Summary Total debt remained at elevated levels in Q1 2014, as issuers continue to spend aggressively on capex. Despite high debt levels, many issuers maintained strong balance sheets and have built signifcant cash balances to buffer any unexpected market shocks. 2014 Outlook The balance sheets for the sector are well positioned to sustain near-term pricing volatility shocks. However, should pricing collapse, the companies will likely curtail capex or reduce dividends to preserve liquidity. Balance Sheet and Capital Structure ($ Millions where Applicable) Company Name Rating Cash & Cash Equivalents DBRS Adjusted Total Debt DBRS Adjusted Total Equity Adjusted Gross Debt in Capital Structure DBRS Adjusted Total Capital Exxon Mobil Corporation - 5,601 35,713 182,891 16.3% 218,604 Imperial Oil Limited AA (high) 102 7,347 20,361 26.5% 27,708 Chevron Corporation AA 16,183 27,842 151,810 15.5% 179,652 Royal Dutch Shell plc - 11,924 45,729 183,130 20.0% 228,859 Total S.A. and Subsidiaries - 23,659 55,864 106,384 34.4% 162,248 Statoil ASA - 21,978 52,934 62,663 45.8% 115,597 CNOOC Limited 1 - 2,365 25,213 56,436 30.9% 81,649 PetroChina Company Ltd. - 8,544 96,491 213,440 31.1% 309,931 Sinopec Corp. - 18,986 422,157 639,451 39.8% 1,061,608 BP p.l.c. A 27,358 53,249 130,200 29.0% 183,449 Eni S.p.A. - 8,795 39,169 81,618 32.4% 120,787 Occidental Petroleum Corporation A 2,332 7,723 43,369 15.1% 51,092 ConocoPhillips A 7,730 24,818 53,621 28.3% 78,439 Inpex Corporation - 6,311 5,665 29,080 16.3% 34,745 Suncor Energy Inc. A (low) 4,846 13,074 42,258 23.6% 55,332 Apache Corporation - 1,643 11,089 35,177 24.0% 46,266 Husky Energy Inc. A (low) 1,518 5,998 20,535 22.6% 26,533 Marathon Oil Corporation - 1,964 6,730 19,805 25.4% 26,535 OMV Aktiengesellschaft - 11,761 7,687 20,725 27.1% 28,412 Cenovus Energy Inc. A (low) 815 6,289 10,099 38.4% 16,388 EOG Resources, Inc. - 1,667 6,629 16,033 29.3% 22,663 Canadian Natural Resources Limited BBB (high) 19 11,446 26,337 30.3% 37,783 BG Group plc - 6,344 21,166 33,654 38.6% 54,820 Devon Energy Corporation BBB (high) 2,027 15,758 25,046 38.6% 40,804 Hess Corporation - 1,288 10,406 24,242 30.0% 34,648 Talisman Energy Inc. BBB (high) 532 5,228 8,989 36.8% 14,217 OAO Gazprom 1 - 20,957 54,798 292,991 15.8% 347,789 OAO Lukoil - 2,326 12,904 80,567 13.8% 93,471 Rosneft - 6,254 68,511 92,134 42.6% 160,645 Petrobras - 34,685 224,265 157,214 58.8% 381,479 Murphy Oil Corporation BBB 1,021 5,006 8,304 37.6% 13,310 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 45 Balance Sheet and Capital Structure ($ Millions where Applicable) Company Name Rating Cash & Cash Equivalents DBRS Adjusted Total Debt DBRS Adjusted Total Equity Adjusted Gross Debt in Capital Structure DBRS Adjusted Total Capital Canadian Oil Sands Limited BBB 292 1,665 4,759 25.9% 6,424 Anadarko Petroleum Corporation BBB 5,924 19,353 20,917 48.1% 40,270 Noble Energy Inc. - 1,354 5,281 9,361 36.1% 14,642 Encana Corporation BBB 2,162 6,610 5,234 33.7% 11,844 PGNiG S.A. - 1,216 2,064 9,746 17.5% 11,810 Energen Corporation - 35 1,995 2,911 40.7% 4,906 Repsol, S.A. - 6,113 16,821 38,815 30.2% 55,636 Ecopetrol S.A. - 2,475 6,523 33,782 16.2% 40,304 Southwestern Energy Co. - 19 1,827 3,800 32.5% 5,628 Continental Resources, Inc. - 52 5,082 4,188 54.8% 9,269 Pioneer Natural Resources Company - 257 2,858 6,724 29.8% 9,582 Newfeld Exploration Co. - 107 3,712 3,250 53.3% 6,962 Crescent Point Energy Corporation - 15 2,132 8,422 20.2% 10,554 MOL Group - 1,058 4,439 9,965 30.8% 14,403 Concho Resources Inc. - 0 3,791 3,861 49.5% 7,653 Pacifc Rubiales Energy Corp. - 306 7,295 4,141 63.8% 11,436 Cimarex Energy Co. - 5 1,075 4,148 20.6% 5,223 Denbury Resources Inc. - 8 3,619 5,148 41.3% 8,767 The Delek Group Ltd. - 1,610 6,717 3,091 68.5% 9,808 Chesapeake Energy Corporation - 1,004 13,527 18,477 42.3% 32,004 JSOC Bashneft - 3,687 4,350 6,643 39.6% 10,993 Whiting Petroleum Corporation - 406 2,691 3,941 40.6% 6,633 ARC Resources Ltd. - 10 1,081 3,369 24.3% 4,450 Vermilion Energy Inc. BB (low) 151 1,058 1,832 36.6% 2,890 Cabot Oil & Gas Corp. - 25 1,257 2,269 35.7% 3,526 Unit Corporation - 1 690 2,235 23.6% 2,925 QEP Resources Inc. - 4 3,962 3,916 50.3% 7,878 Baytex Energy Corp. - 2 759 1,290 37.0% 2,049 Penn West Petroleum Ltd. - 0 2,611 7,562 25.7% 10,173 SM Energy Company - 236 2,675 1,675 61.5% 4,350 Range Resources Corporation - 0 3,355 2,450 57.8% 5,804 Bonavista Energy Corporation - 2 1,044 2,209 32.1% 3,254 Galp Energia SGPS, SA 1 - 1,503 3,677 6,416 36.4% 10,093 MEG Energy Corporation - 890 4,237 4,706 47.4% 8,943 Tourmaline Oil Corp. - 0 595 3,703 13.8% 4,298 Enerplus Corporation - 6 1,108 1,987 35.8% 3,095 Energy XXI (Bermuda) Limited - 304 2,048 1,333 60.6% 3,380 Oasis Petroleum Inc. - 56 2,277 1,520 60.0% 3,797 Pengrowth Energy Corporation - 315 1,706 3,528 32.6% 5,234 SandRidge Energy, Inc. - 1,180 3,214 2,998 51.7% 6,212 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 46 Balance Sheet and Capital Structure ($ Millions where Applicable) Company Name Rating Cash & Cash Equivalents DBRS Adjusted Total Debt DBRS Adjusted Total Equity Adjusted Gross Debt in Capital Structure DBRS Adjusted Total Capital LightStream Resources Ltd. - 0 2,080 1,934 51.8% 4,014 Stone Energy Corp. - 203 1,035 986 51.2% 2,021 Rosetta Resources Inc. - 55 1,675 1,385 54.7% 3,060 PEYTO Exploration & Development Corp. - 0 773 1,345 36.5% 2,117 Legacy Oil & Gas Inc. - 13 788 1,536 33.9% 2,325 Northern Oil & Gas Inc. - 8 649 613 51.4% 1,262 Gran Tierra Energy Inc. - 391 16 1,478 1.1% 1,494 Bankers Petroleum Ltd. - 51 109 596 15.4% 704 Whitecap Resources Inc. - 0 457 1,601 22.2% 2,058 TransGlobe Energy Corporation - 108 142 518 21.5% 660 Parex Resources Inc. - 40 76 500 13.2% 576 Trilogy Energy Corp. B 0 567 666 46.0% 1,233 Gulfport Energy Corporation - 170 302 2,165 12.3% 2,467 Advantage Oil & Gas Ltd. - 0 256 991 20.5% 1,247 Crew Energy Inc. B 0 461 986 31.9% 1,447 Grupa LOTOS S.A. - 111 2,209 3,019 42.2% 5,228 Birchcliff Energy Ltd. - 0 471 961 32.9% 1,432 Bonanza Creek Energy, Inc. - 131 523 672 43.8% 1,195 Long Run Exploration Ltd. - 0 457 616 42.6% 1,073 EPL Oil & Gas, Inc. - 4 724 644 52.9% 1,368 Kosmos Energy Ltd. - 528 821 1,085 43.1% 1,906 PDC Energy, Inc. - 147 667 968 40.8% 1,635 Ultra Petroleum Corp. - 8 2,552 (228) 109.8% 2,324 Kodiak Oil & Gas Corp. - 16 2,261 1,228 64.8% 3,489 PT Medco Energi Internasional Tbk - 374 1,191 914 56.6% 2,105 Laredo Petroleum Holdings, Inc. - 548 1,513 1,302 54.3% 2,815 Carrizo Oil & Gas, Inc. - 62 908 853 51.6% 1,761 Athabasca Oil Corporation B 150 559 3,353 14.3% 3,912 Resolute Energy Corporation - 1 728 531 57.8% 1,260 W&T Offshore - 20 1,202 547 68.7% 1,749 YPF S.A. - 388 5,015 7,775 39.2% 12,789 Pakistan Petroleum Limited - 33 3 1,707 0.2% 1,711 Raging River Exploration Inc. - 0 66 405 14.0% 471 Freehold Royalties Ltd. - 0 49 293 14.3% 342 Mari Petroleum Company Limited - 70 22 164 12.1% 186 BlackPearl Resources Inc. - 69 9 628 1.4% 636 Bonterra Energy Corp. - 0 203 678 23.0% 881 Oil & Gas Development Company Limited - 0 0 3,796 0.0% 3,796 Surge Energy Inc. - 0 373 922 28.8% 1,295 Bellatrix Exploration Ltd. - 0 348 934 27.2% 1,282 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 47 Balance Sheet and Capital Structure ($ Millions where Applicable) Company Name Rating Cash & Cash Equivalents DBRS Adjusted Total Debt DBRS Adjusted Total Equity Adjusted Gross Debt in Capital Structure DBRS Adjusted Total Capital Longview Oil Corp. - 0 124 241 34.0% 365 Twin Butte Energy LTD. - 0 349 473 42.5% 823 Vaalco Energy, Inc. - 81 0 245 0.0% 245 Approach Resources Inc. - 4 254 716 26.2% 970 Painted Pony Petroleum Ltd. - 0 39 559 6.6% 598 Cequence Energy Ltd. - 0 90 437 17.1% 528 Chinook Energy Inc. - 16 88 338 20.7% 426 Renegade Petroleum Ltd. - 0 277 450 38.1% 727 LINN Energy, LLC - 68 9,466 5,591 62.9% 15,057 Exco Resources, Inc. - 95 1,548 405 79.3% 1,953 Bill Barrett Corporation - 58 1,075 995 51.9% 2,070 Halcn Resources Corporation - 0 3,586 1,381 72.2% 4,967 Penn Virginia Corporation - 10 1,276 808 61.2% 2,085 NuVista Energy Ltd. - 0 109 705 13.4% 814 Comstock Resources Inc. - 2 961 946 50.4% 1,907 WPX Energy, Inc. - 58 2,387 4,233 36.1% 6,620 RMP Energy Inc. - 0 141 318 30.7% 459 Warren Resources, Inc. - 2 117 235 33.3% 352 Eagle Energy Trust - 0 90 243 27.1% 334 Zargon Oil & Gas Ltd. - 0 123 170 42.0% 292 Rock Energy Inc. - 0 18 100 15.1% 118 Gastar Exploration Ltd. - 27 318 207 60.6% 525 Parallel Energy Trust - 0 234 294 44.3% 529 Delphi Energy Corp. - 3 137 235 36.9% 372 Arcan Resources Ltd. - 0 302 219 57.9% 521 Forest Oil Corporation - 48 936 35 96.4% 971 Atlantic Petroleum P/F - 32 79 110 41.8% 189 Connacher Oil and Gas Limited - 20 1,056 160 86.9% 1,216 TORC Oil & Gas Ltd. - 0 101 927 9.8% 1,028 Hellenic Petroleum S.A. - 65 3,484 2,151 61.8% 5,635 Pinecrest Energy Inc. - 0 119 165 41.8% 284 Goodrich Petroleum Corporation - 1 508 328 60.8% 837 Questerre Energy Corporation - 42 2 244 0.8% 246 Pan Orient Energy Corp. - 36 4 248 1.8% 252 Paramount Resources Ltd. - 16 1,119 1,065 51.2% 2,184 ShaMaran Petroleum Corp. - 122 148 327 31.1% 475 Africa Oil Corp. - 434 2 930 0.3% 932 Strategic Oil & Gas Ltd. - 38 75 176 29.9% 251 Perpetual Energy Inc. - 0 389 82 82.6% 471 Noreco SA - 83 579 292 66.5% 871 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 48 Balance Sheet and Capital Structure ($ Millions where Applicable) Company Name Rating Cash & Cash Equivalents DBRS Adjusted Total Debt DBRS Adjusted Total Equity Adjusted Gross Debt in Capital Structure DBRS Adjusted Total Capital Magnum Hunter Resources Corporation - 64 901 648 58.2% 1,549 Canacol Energy Ltd. - 36 166 277 37.5% 443 Isramco, Inc. - 3 113 17 86.8% 130 Argent Energy Trust - 1 230 428 35.0% 658 Quicksilver Resources Inc. - 167 2,010 (1,075) 215.1% 934 Pine Cliff Energy Ltd. - 9 0 134 0.0% 134 Sunshine OilSands Ltd. - 13 17 915 1.9% 932 Antrim Energy Inc. - 1 1 20 6.6% 22 Southern Pacifc Resources Corp. CCC 59 661 378 63.6% 1,039 HKN, Inc. - 12 1 58 1.9% 59 Anderson Energy Ltd. - 12 92 29 76.2% 121 Niko Resources Ltd. - 82 375 264 58.7% 639 1. 2014 fgures refect YE December 31, 2013 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 49 Q1 2014 CASH FLOWS Q1 2014 Summary The majority of issuers included in the study generated negative free cash fow in Q1 2014. This was primarily due to high capex levels intended to ramp up production and high dividend payouts. However, the size of the free cash fow defcits declined modestly as cash fows from operations increased and capex and dividends decreased slightly. A number of companies are focusing on a free-cash fow neutral target for their capital expenditure programs. 2014 Outlook DBRS expects the current trends in the sector to continue through 2014, albeit with slightly lower capex levels. As a result, DBRS expects the negative free cash fow trend to continue in the sector. Key Cash Flow Items ($ Millions) Company Name Rating Cash Flow from Operations Total Dividends Paid Capital Expenditure Gross Free Cash Flow DBRS Adjusted Total Capital Exxon Mobil Corporation - 50,374 (11,303) 33,503 5,568 218,604 Imperial Oil Limited AA (high) 4,473 (415) 6,158 (2,100) 27,708 Chevron Corporation AA 34,986 (7,634) 38,337 (10,985) 179,652 Royal Dutch Shell plc - 39,036 (7,048) 39,680 (7,692) 228,859 Total S.A. and Subsidiaries - 25,372 (7,203) 28,707 (10,538) 162,248 Statoil ASA - 22,200 (3,556) 16,340 2,304 115,597 CNOOC Limited 1 - 22,769 (3,290) 14,105 5,374 81,649 PetroChina Company Ltd. - 51,516 (10,176) 50,839 (9,499) 309,931 Sinopec Corp. - 23,605 (4,040) 21,137 (1,572) 1,061,608 BP p.l.c. A 22,712 (5,246) 24,682 (7,216) 183,449 Eni S.p.A. - 34,974 (5,636) 16,665 12,673 120,787 Occidental Petroleum Corporation A 12,719 (2,067) 9,236 1,416 51,092 ConocoPhillips A 17,373 (3,374) 16,041 (2,042) 78,439 Inpex Corporation - 8,040 (392) 4,258 3,484 34,745 Suncor Energy Inc. A (low) 10,006 (1,236) 6,782 1,988 55,332 Apache Corporation - 9,699 (353) 11,161 (1,815) 46,266 Husky Energy Inc. A (low) 5,327 (1,185) 5,145 (1,003) 26,533 Marathon Oil Corporation - 5,282 (521) 4,496 265 26,535 OMV Aktiengesellschaft - 4,557 (805) 3,674 78 28,412 Cenovus Energy Inc. A (low) 3,414 (750) 3,180 (516) 16,388 EOG Resources, Inc. - 7,670 (205) 7,267 198 22,663 Canadian Natural Resources Limited BBB (high) 7,648 (625) 7,192 (169) 37,783 BG Group plc - 7,895 (923) 10,164 (3,192) 54,820 Devon Energy Corporation BBB (high) 5,943 (357) 6,415 (829) 40,804 Hess Corporation - 5,814 (279) 5,768 (233) 34,648 Talisman Energy Inc. BBB (high) 1,544 (285) 2,341 (1,082) 14,217 OAO Gazprom 1 - 59,534 (4,308) 43,858 11,368 347,789 OAO Lukoil - 16,778 (2,500) 14,761 (483) 93,471 Rosneft - 29,127 (2,671) 17,448 9,008 160,645 Petrobras - 29,146 (2,656) 44,683 (18,193) 381,479 Murphy Oil Corporation BBB 3,024 (232) 3,629 (836) 13,310 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 50 Key Cash Flow Items ($ Millions) Company Name Rating Cash Flow from Operations Total Dividends Paid Capital Expenditure Gross Free Cash Flow DBRS Adjusted Total Capital Canadian Oil Sands Limited BBB 1,431 (678) 1,291 (538) 6,424 Anadarko Petroleum Corporation BBB 7,889 (320) 8,512 (943) 40,270 Noble Energy Inc. - 3,271 (204) 4,299 (1,232) 14,642 Encana Corporation BBB 3,000 (305) 2,508 187 11,844 PGNiG S.A. - 1,986 (243) 1,030 713 11,810 Energen Corporation - 895 (42) 1,180 (328) 4,906 Repsol, S.A. - 5,978 (1,288) 4,572 118 55,636 Ecopetrol S.A. - 11,677 (3,191) 8,513 (27) 40,304 Southwestern Energy Co. - 2,174 0 2,303 (129) 5,628 Continental Resources, Inc. - 2,729 0 3,921 (1,192) 9,269 Pioneer Natural Resources Company - 2,213 (11) 2,835 (633) 9,582 Newfeld Exploration Co. - 1,417 0 2,181 (764) 6,962 Crescent Point Energy Corporation - 2,031 (422) 1,747 (139) 10,554 MOL Group - 2,185 (169) 1,708 308 14,403 Concho Resources Inc. - 1,598 0 2,016 (418) 7,653 Pacifc Rubiales Energy Corp. - 1,881 (212) 2,194 (526) 11,436 Cimarex Energy Co. - 1,505 (48) 1,654 (197) 5,223 Denbury Resources Inc. - 1,245 (22) 1,163 60 8,767 The Delek Group Ltd. - 114 (89) 336 (311) 9,808 Chesapeake Energy Corporation - 5,292 (615) 6,001 (1,324) 32,004 JSOC Bashneft - 2,469 (590) 1,087 792 10,993 Whiting Petroleum Corporation - 1,724 (0) 2,891 (1,168) 6,633 ARC Resources Ltd. - 915 (240) 890 (215) 4,450 Vermilion Energy Inc. BB (low) 696 (247) 559 (109) 2,890 Cabot Oil & Gas Corp. - 1,072 (25) 1,195 (148) 3,526 Unit Corporation - 654 0 708 (55) 2,925 QEP Resources Inc. - 1,332 (24) 1,562 (253) 7,878 Baytex Energy Corp. - 699 (241) 558 (100) 2,049 Penn West Petroleum Ltd. - 1,005 (313) 594 98 10,173 SM Energy Company - 1,367 (7) 1,524 (164) 4,350 Range Resources Corporation - 844 (26) 1,308 (490) 5,804 Bonavista Energy Corporation - 537 (97) 511 (71) 3,254 Galp Energia SGPS, SA 1 - 1,026 (295) 1,006 (275) 12,885 MEG Energy Corporation - 362 0 1,273 (911) 8,943 Tourmaline Oil Corp. - 656 0 1,366 (710) 4,298 Enerplus Corporation - 785 (169) 732 (116) 3,095 Energy XXI (Bermuda) Limited - 635 (47) 827 (239) 3,380 Oasis Petroleum Inc. - 405 0 1,116 (712) 3,797 Pengrowth Energy Corporation - 557 (249) 770 (463) 5,234 SandRidge Energy, Inc. - 767 (262) 1,406 (901) 6,212 LightStream Resources Ltd. - 661 (125) 651 (115) 4,014 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 51 Key Cash Flow Items ($ Millions) Company Name Rating Cash Flow from Operations Total Dividends Paid Capital Expenditure Gross Free Cash Flow DBRS Adjusted Total Capital Stone Energy Corp. - 522 0 797 (276) 2,021 Rosetta Resources Inc. - 565 0 964 (399) 3,060 PEYTO Exploration & Development Corp. - 472 (137) 588 (253) 2,117 Legacy Oil & Gas Inc. - 296 0 354 (58) 2,325 Northern Oil & Gas Inc. - 235 0 403 (168) 1,262 Gran Tierra Energy Inc. - 306 0 264 42 1,494 Bankers Petroleum Ltd. - 292 0 247 46 704 Whitecap Resources Inc. - 315 (107) 246 (39) 2,058 TransGlobe Energy Corporation - 128 0 66 62 660 Parex Resources Inc. - 251 0 273 (22) 576 Trilogy Energy Corp. B 281 (51) 400 (170) 1,233 Gulfport Energy Corporation - 276 0 911 (635) 2,467 Advantage Oil & Gas Ltd. - 170 (15) 176 (22) 1,247 Crew Energy Inc. B 188 0 221 (33) 1,447 Grupa LOTOS S.A. - 284 0 400 (116) 5,228 Birchcliff Energy Ltd. - 213 (7) 294 (88) 1,432 Bonanza Creek Energy, Inc. - 302 0 484 (182) 1,195 Long Run Exploration Ltd. - 244 (8) 275 (39) 1,073 EPL Oil & Gas, Inc. - 356 0 2 354 1,368 Kosmos Energy Ltd. - 405 0 330 75 1,906 PDC Energy, Inc. - 225 0 469 (244) 1,635 Ultra Petroleum Corp. - 587 0 395 192 2,324 Kodiak Oil & Gas Corp. - 635 0 960 (325) 3,489 PT Medco Energi Internasional Tbk - 269 (31) 240 (1) 2,105 Laredo Petroleum Holdings, Inc. - 360 0 756 (395) 2,815 Carrizo Oil & Gas, Inc. - 385 0 772 (386) 1,761 Athabasca Oil Corporation B 6 0 721 (715) 3,912 Resolute Energy Corporation - 134 0 271 (88) 1,260 W&T Offshore - 545 (60) 511 (26) 1,749 YPF S.A. - 5,007 (67) 4,739 201 12,789 Pakistan Petroleum Limited - 957 (180) 244 533 1,711 Raging River Exploration Inc. - 143 0 203 (59) 471 Freehold Royalties Ltd. - 126 (82) 25 19 342 Mari Petroleum Company Limited - 39 (6) 34 (1) 186 BlackPearl Resources Inc. - 98 0 123 (26) 636 Bonterra Energy Corp. - 193 (106) 127 (40) 881 Oil & Gas Development Company Limited - 1,027 (330) 402 295 3,796 Surge Energy Inc. - 142 (42) 144 (44) 1,295 Bellatrix Exploration Ltd. - 164 0 368 (204) 1,282 Longview Oil Corp. - 64 (27) 45 (7) 365 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 52 Key Cash Flow Items ($ Millions) Company Name Rating Cash Flow from Operations Total Dividends Paid Capital Expenditure Gross Free Cash Flow DBRS Adjusted Total Capital Twin Butte Energy LTD. - 152 (49) 121 (18) 823 Vaalco Energy, Inc. - 78 0 73 5 245 Approach Resources Inc. - 129 0 331 (202) 970 Painted Pony Petroleum Ltd. - 44 0 112 (68) 598 Cequence Energy Ltd. - 63 0 133 (70) 528 Chinook Energy Inc. - 90 0 106 (16) 426 Renegade Petroleum Ltd. - 124 (66) 64 (6) 727 LINN Energy, LLC - 1,316 (751) 1,314 (749) 15,057 Exco Resources, Inc. - 343 (46) 349 (52) 1,953 Bill Barrett Corporation - 272 0 461 (189) 2,070 Halcn Resources Corporation - 593 0 2,552 (1,959) 4,967 Penn Virginia Corporation - 242 (7) 578 (343) 2,085 NuVista Energy Ltd. - 285 0 282 3 814 Comstock Resources Inc. - 261 (24) 646 (408) 1,907 WPX Energy, Inc. - 758 0 1,235 (477) 6,620 RMP Energy Inc. - 94 0 191 (98) 459 Warren Resources, Inc. - 82 0 79 3 352 Eagle Energy Trust - 43 (33) 38 (28) 334 Zargon Oil & Gas Ltd. - 61 (21) 74 (35) 292 Rock Energy Inc. - 42 0 54 (12) 118 Gastar Exploration Ltd. - 51 (12) 88 (48) 525 Parallel Energy Trust - 43 (28) 9 5 529 Delphi Energy Corp. - 50 0 84 (34) 372 Arcan Resources Ltd. - 40 0 38 2 521 Forest Oil Corporation - 338 0 679 (341) 971 Atlantic Petroleum P/F - 72 0 (4) 76 189 Connacher Oil and Gas Limited - 86 0 92 (6) 1,216 TORC Oil & Gas Ltd. - 120 (17) 151 (48) 1,028 Hellenic Petroleum S.A. - (131) (62) 160 (352) 5,635 Pinecrest Energy Inc. - 41 0 32 8 284 Goodrich Petroleum Corporation - 87 (25) 257 (194) 837 Questerre Energy Corporation - 12 0 29 (17) 246 Pan Orient Energy Corp. - 24 (43) 55 (73) 252 Paramount Resources Ltd. - 63 0 737 (673) 2,184 ShaMaran Petroleum Corp. - (3) 0 51 (54) 475 Africa Oil Corp. - (12) 0 283 (295) 932 Strategic Oil & Gas Ltd. - 16 0 51 (35) 251 Perpetual Energy Inc. - 61 0 88 (27) 471 Noreco SA - 148 0 38 110 871 Magnum Hunter Resources Corporation - 36 (42) 526 (532) 1,549 Canacol Energy Ltd. - 63 0 95 (32) 443 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 53 Key Cash Flow Items ($ Millions) Company Name Rating Cash Flow from Operations Total Dividends Paid Capital Expenditure Gross Free Cash Flow DBRS Adjusted Total Capital Isramco, Inc. - 34 0 23 11 130 Argent Energy Trust - 53 (16) 114 (76) 658 Quicksilver Resources Inc. - (42) 0 113 (154) 934 Pine Cliff Energy Ltd. - 21 0 11 11 134 Sunshine OilSands Ltd. - (20) 0 230 (249) 932 Antrim Energy Inc. - (8) 0 1 (9) 22 Southern Pacifc Resources Corp. CCC (13) 0 40 (54) 1,039 HKN, Inc. - (1) 0 8 (9) 59 Anderson Energy Ltd. - 9 0 25 (15) 121 Niko Resources Ltd. - (84) (13) 25 (121) 639 1. 2014 fgures refect YE December 31, 2013 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 54 Aggregate Totals and Averages Ratio/Calculation ($ millions) 2014* 2013 2012 2011 2010 Aggregate Totals 1 Adjusted Total Debt 1,254,451 1,271,535 1,099,725 925,412 863,222 DBRS Adjusted Net Debt 1,254,451 1,271,535 1,099,725 973,033 908,557 Net Revenue 4,084,565 4,143,486 4,084,968 3,785,855 3,005,933 EBITDA 797,252 772,674 792,464 822,165 682,860 Depreciation & Amortization 313,416 310,558 282,737 236,875 218,442 EBIT 495,668 482,968 526,623 598,559 471,311 Net Income Before Non-recurring items 319,912 316,327 320,534 355,137 282,431 Cash Flow from Ops 679,529 659,627 643,028 672,652 562,332 Total Dividends Paid (104,911) (107,675) (105,604) (98,783) (87,934) Capital Expenditure 626,194 629,382 587,465 533,617 445,146 Free Cash Flow (Before Working Capital Changes) (54,476) (76,312) (54,141) 41,001 29,181 Cash and Cash Equivalents 270,715 240,729 246,894 210,921 212,420 Gross Interest Expense 53,484 51,122 39,565 35,396 31,490 DBRS Total Adjusted Equity 2,649,244 2,636,749 2,560,516 2,361,207 2,147,007 Capital Structure 3,903,695 3,908,285 3,660,241 3,286,619 3,010,230 Aggregate Averages Adjusted Gross Debt in Capital Structure 32.1% 32.5% 30.0% 28.2% 28.7% EBITDA Gross Interest Coverage 14.91 15.11 20.03 23.23 21.68 EBIT Gross Interest Coverage 9.27 9.45 13.31 16.91 14.97 Adjusted Total Debt-to-Cash Flow 1.85 1.93 1.71 1.38 1.54 Adjusted Total Debt-to-EBITDA 1.57 1.65 1.39 1.13 1.26 Cash Flow Minus Dividends Over CapEx 0.92 0.88 0.91 1.08 1.07 Return on Equity 0.12 0.12 0.13 0.15 0.13 *Last twelve months ending March 31, 2014. 1. Due to consolidation with Exxon Mobil Corp. results, Imperial Oil Limited is excluded from the aggregate table. The signifcant growth capex in aggregate over the past few years have led to an increase in debt levels since 2010. However, the fnancial profles for most operators remained relatively strong in Q1 2014, due to continued favourable crude oil and oil-linked natural gas/liquids prices. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 55 FISCAL YEAR ENDS Company Fiscal Year End Currency Exchange Rate Advantage Oil & Gas Ltd. December 31 $CAD 1.0000 Africa Oil Corp. December 31 $US 1.0000 Anadarko Petroleum Corporation December 31 $US 1.0000 Anderson Energy Ltd. December 31 $CAD 1.0000 Antrim Energy Inc. December 31 $US 1.0000 Apache Corporation December 31 $US 1.0000 Approach Resources Inc. December 31 $US 1.0000 ARC Resources Ltd. December 31 $CAD 1.0000 Arcan Resources Ltd. December 31 $CAD 1.0000 Argent Energy Trust December 31 $CAD 1.0000 Athabasca Oil Corporation December 31 $CAD 1.0000 Atlantic Petroleum P/F December 31 DKK 0.1845 Bankers Petroleum Ltd. December 31 $US 1.0000 Baytex Energy Corp. December 31 $CAD 1.0000 Bellatrix Exploration Ltd. December 31 $CAD 1.0000 BG Group plc December 31 $US 1.0000 Bill Barrett Corporation December 31 $US 1.0000 Birchcliff Energy Ltd. December 31 $CAD 1.0000 BlackPearl Resources Inc. December 31 $CAD 1.0000 Bonanza Creek Energy, Inc. December 31 $US 1.0000 Bonavista Energy Corporation December 31 $CAD 1.0000 Bonterra Energy Corp. December 31 $CAD 1.0000 BP p.l.c. December 31 $US 1.0000 Cabot Oil & Gas Corp. December 31 $US 1.0000 Canacol Energy Ltd. June 30 $US 1.0000 Canadian Natural Resources Limited December 31 $CAD 1.0000 Canadian Oil Sands Limited December 31 $CAD 1.0000 Carrizo Oil & Gas, Inc. December 31 $US 1.0000 Cenovus Energy Inc. December 31 $CAD 1.0000 Cequence Energy Ltd. December 31 $CAD 1.0000 Chesapeake Energy Corporation December 31 $US 1.0000 Chevron Corporation December 31 $US 1.0000 Chinook Energy Inc. December 31 $CAD 1.0000 Cimarex Energy Co. December 31 $US 1.0000 CNOOC Limited December 31 CN 0.1634 Comstock Resources Inc. December 31 $US 1.0000 Concho Resources Inc. December 31 $US 1.0000 Connacher Oil and Gas Limited December 31 $CAD 1.0000 ConocoPhillips December 31 $US 1.0000 Continental Resources, Inc. December 31 $US 1.0000 Crescent Point Energy Corporation December 31 $CAD 1.0000 Crew Energy Inc. December 31 $CAD 1.0000 Delphi Energy Corp. December 31 $CAD 1.0000 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 56 Company Fiscal Year End Currency Exchange Rate Denbury Resources Inc. December 31 $US 1.0000 Devon Energy Corporation December 31 $US 1.0000 Eagle Energy Trust December 31 $CAD 1.0000 Ecopetrol S.A. December 31 COP 0.0005 Encana Corporation December 31 $US 1.0000 Energen Corporation December 31 $US 1.0000 Energy XXI (Bermuda) Limited June 30 $US 1.0000 Enerplus Corporation December 31 $CAD 1.0000 Eni S.p.A. December 31 EUR 1.3774 EOG Resources, Inc. December 31 $US 1.0000 EPL Oil & Gas, Inc. December 31 $US 1.0000 Exco Resources, Inc. December 31 $US 1.0000 Exxon Mobil Corporation December 31 $US 1.0000 Forest Oil Corporation December 31 $US 1.0000 Freehold Royalties Ltd. December 31 $CAD 1.0000 Galp Energia SGPS, SA December 31 EUR 1.3774 Gastar Exploration Ltd. December 31 $US 1.0000 Goodrich Petroleum Corporation December 31 $US 1.0000 Gran Tierra Energy Inc. December 31 $US 1.0000 Grupa LOTOS S.A. December 31 PLN 0.3304 Gulfport Energy Corporation December 31 $US 1.0000 Halcn Resources Corporation December 31 $US 1.0000 Hellenic Petroleum S.A. December 31 EUR 1.3774 Hess Corporation December 31 $US 1.0000 HKN, Inc. December 31 $US 1.0000 Husky Energy Inc. December 31 $CAD 1.0000 Imperial Oil Limited December 31 $CAD 1.0000 Inpex Corporation March 31 JPY 0.0095 Isramco, Inc. December 31 $US 1.0000 JSOC Bashneft December 31 RUB 0.0286 Kodiak Oil & Gas Corp. December 31 $US 1.0000 Kosmos Energy Ltd. December 31 $US 1.0000 Laredo Petroleum, Inc. December 31 $US 1.0000 Legacy Oil & Gas Inc. December 31 $CAD 1.0000 LightStream Resources Ltd. December 31 $CAD 1.0000 LINN Energy, LLC December 31 $US 1.0000 Long Run Exploration Ltd. December 31 $CAD 1.0000 Longview Oil Corp. December 31 $CAD 1.0000 Magnum Hunter Resources Corporation December 31 $US 1.0000 Marathon Oil Corporation December 31 $US 1.0000 Mari Petroleum Company Limited June 30 INR 0.0102 MEG Energy Corporation December 31 $CAD 1.0000 MOL Group December 31 HUF 0.0045 Murphy Oil Corporation December 31 $US 1.0000 Newfeld Exploration Co. December 31 $US 1.0000 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 57 Company Fiscal Year End Currency Exchange Rate Niko Resources Ltd. December 31 $US 1.0000 Noble Energy Inc. December 31 $US 1.0000 Noreco SA December 31 NOK 0.1669 Northern Oil & Gas Inc. December 31 $US 1.0000 NuVista Energy Ltd. December 31 $CAD 1.0000 OAO Gazprom December 31 RUB 0.0286 OAO Lukoil December 31 $US 1.0000 Oasis Petroleum Inc. December 31 $US 1.0000 Occidental Petroleum Corporation December 31 $US 1.0000 Oil & Gas Development Company Limited June 30 PKR 0.0102 OMV Aktiengesellschaft December 31 EUR 1.3774 Pacifc Rubiales Energy Corp. December 31 $US 1.0000 Painted Pony Petroleum Ltd. December 31 $CAD 1.0000 Pakistan Petroleum Limited June 30 PKR 0.0102 Pan Orient Energy Corp. December 31 $CAD 1.0000 Parallel Energy Trust December 31 $CAD 1.0000 Paramount Resources Ltd. December 31 $CAD 1.0000 Parex Resources Inc. December 31 $US 1.0000 PDC Energy, Inc. December 31 $US 1.0000 Pengrowth Energy Corporation December 31 $CAD 1.0000 Penn Virginia Corporation December 31 $US 1.0000 Penn West Petroleum Ltd. December 31 $CAD 1.0000 Perpetual Energy Inc. December 31 $CAD 1.0000 Petrobras December 31 $US 1.0000 PetroChina Company Ltd. December 31 CN 0.1634 PEYTO Exploration & Development Corp. December 31 $CAD 1.0000 PGNiG S.A. December 31 PLN 0.3304 Pine Cliff Energy Ltd. December 31 $CAD 1.0000 Pinecrest Energy Inc. December 31 $CAD 1.0000 Pioneer Natural Resources Company December 31 $US 1.0000 PT Medco Energi Internasional Tbk December 31 $US 1.0000 QEP Resources Inc. December 31 $US 1.0000 Questerre Energy Corporation December 31 $CAD 1.0000 Quicksilver Resources Inc. December 31 $US 1.0000 Raging River Exploration Inc. December 31 $CAD 1.0000 Range Resources Corporation December 31 $US 1.0000 Renegade Petroleum Ltd. December 31 $CAD 1.0000 Repsol S.A. December 31 EUR 1.3774 Resolute Energy Corporation December 31 $US 1.0000 RMP Energy Inc. December 31 $CAD 1.0000 Rock Energy Inc. December 31 $US 1.0000 Rosetta Resources Inc. December 31 $US 1.0000 Rosneft December 31 RUB 0.0286 Royal Dutch Shell plc December 31 $US 1.0000 SandRidge Energy, Inc. December 31 $US 1.0000 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 58 Company Fiscal Year End Currency Exchange Rate ShaMaran Petroleum Corp. December 31 $US 1.0000 Sinopec Corp. December 31 CN 0.1634 SM Energy Company December 31 $US 1.0000 Southern Pacifc Resources Corp. June 30 $CAD 1.0000 Southwestern Energy Co. December 31 $US 1.0000 Statoil ASA December 31 NOK 0.1669 Stone Energy Corp. December 31 $US 1.0000 Strategic Oil & Gas Ltd. December 31 $CAD 1.0000 Suncor Energy Inc. December 31 $CAD 1.0000 Sunshine OilSands Ltd. December 31 $CAD 1.0000 Surge Energy Inc. December 31 $CAD 1.0000 Talisman Energy Inc. December 31 $US 1.0000 The Delek Group Ltd. December 31 ILS 0.2867 TORC Oil & Gas Ltd. December 31 $CAD 1.0000 Total S.A. and Subsidiaries December 31 EUR 1.3774 Tourmaline Oil Corp. December 31 $US 1.0000 TransGlobe Energy Corporation December 31 $US 1.0000 Trilogy Energy Corp. December 31 $CAD 1.0000 Twin Butte Energy LTD. December 31 $CAD 1.0000 Ultra Petroleum Corp. December 31 $US 1.0000 Unit Corporation December 31 $US 1.0000 Vaalco Energy, Inc. December 31 $US 1.0000 Vermilion Energy Inc. December 31 $CAD 1.0000 W&T Offshore December 31 $US 1.0000 Warren Resources, Inc. December 31 $US 1.0000 Whitecap Resources Inc. December 31 $CAD 1.0000 Whiting Petroleum Corporation December 31 $US 1.0000 WPX Energy, Inc. December 31 $US 1.0000 YPF S.A. December 31 ARS 0.1248 Zargon Oil & Gas Ltd. December 31 $CAD 1.0000 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 59 2014* 2013 2012 2014* 2013 2012 271,322 242,139 244,194 679,529 659,627 643,028 1,254,451 1,271,535 1,099,725 (104,911) (107,675) (105,604) 2,649,244 2,636,749 2,560,516 (626,194) (629,382) (587,465) (54,476) (76,312) (54,141) 2014* EBITDA 797,252 EBIT 494,623 319,912 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 32% 33% 30% 28% 29% 9.27 9.45 13.31 16.91 14.97 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.85 1.93 1.71 1.38 1.54 1.57 1.65 1.39 1.13 1.26 1. Due to consolidation with Exxon Mobil Corp. results, Imperial Oil Limited is excluded from the aggregate table. Aggregate Totals and Averages 2013 772,674 482,968 316,327 2012 792,464 526,623 320,534 Net Income Before Non-Recurring Items Total Dividends Paid Capital Expenditure Gross Free Cash Flow Cash & Cash Equivalents Cash Flow from Ops KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt (USD, Millions) DBRS Adjusted Total Equity INCOME STATEMENT 1 KEY METRICS BALANCE SHEET 1 OPERATING CASH FLOW 1 (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 60 Company List Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 61 Advantage Oil & Gas Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 170 161 122 256 351 364 (15) 0 0 991 1,287 1,288 (176) (186) (202) 0 0 0 (22) (25) (80) 2014* 2012 EBITDA 190 117 EBIT 75 (15) 2 (51) Adjusted Debt in Capital Structure EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 21% 27% 27% 25% 29% 6.03 3.82 -1.21 1.97 1.07 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.51 3.07 4.32 2.11 2.96 1.35 2.73 3.85 2.34 3.62 Cash & Cash Equivalents Cash Flow from Ops Advantage Oil & Gas Ltd. (the Company) is a Canadian oil and gas company based in Calgary, Alberta. The Company owns and operates properties located in Alberta, British Columbia and Saskatchewan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Net Income Before Non-Recurring Items 2013 162 51 14 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 (2.0) 0.0 2.0 4.0 6.0 8.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 62 Africa Oil Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 434 493 272 (12) (11) (8) 2 2 3 0 0 0 930 930 520 (283) (230) (134) 0 0 0 (295) (241) (142) 2014* 2013 2012 EBITDA (9) (9) (10) EBIT (9) (9) (10) (43) (32) (18) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0% 0% 1% 0% 33% 9.33 N/A N/A N/A -38.46 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 -0.21 -0.22 -0.37 -0.20 -11.12 -0.29 -0.29 -0.28 -0.21 -11.96 Cash & Cash Equivalents Cash Flow from Ops Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia as well as Puntland (Somalia). KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 (50.0) (40.0) (30.0) (20.0) (10.0) 0.0 10.0 20.0 2014* 2013 2012 2011 2010 (12.0) (10.0) (8.0) (6.0) (4.0) (2.0) 0.0 2014* 2013 2012 2011 2010 (14.0) (12.0) (10.0) (8.0) (6.0) (4.0) (2.0) 0.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 63 Anadarko Petroleum Corporation RATING: BBB DESCRIPTION 2014* 2013 2012 2014* 2013 2012 5,924 3,698 2,471 7889 7,906 7,127 19,353 19,349 18,171 (320) (274) (181) 20,917 23,650 21,882 (8,512) (7,721) (7,242) 0 0 0 (943) (89) (296) 2014* 2013 EBITDA 10,498 8,837 EBIT 6,469 4,910 3,592 2,615 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 48% 45% 45% 51% 45% 6.76 5.17 4.25 4.52 3.25 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.45 2.45 2.55 2.71 3.24 1.84 2.19 2.26 2.34 2.65 Cash & Cash Equivalents Cash Flow from Ops Anadarko Petroleum Corporation (Anadarko) is a large, diversified oil and gas producer. The majority of Anadarkos assets are located in the U.S., representing about 90% of total proved reserves. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 2012 8,054 4,090 2,118 Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 64 Anderson Energy Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 12 25 0 9 10 29 92 92 140 0 0 0 29 28 133 (25) (16) (35) 0 0 0 (15) (6) (6) 2014* 2013 EBITDA 23 24 EBIT (2) (4) (35) (63) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 76% 77% 51% 53% 37% -0.16 -0.39 -0.79 1.13 -2.04 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 9.93 9.31 4.82 3.50 3.07 3.96 3.80 3.99 2.94 2.75 Cash & Cash Equivalents Cash Flow from Ops Anderson Energy Ltd. is an oil and gas development company. Its principal property is in central Alberta around the Sylvan Lake and Pembina fields. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 2012 35 (9) (8) Net Income Before Non-Recurring Items 0% 20% 40% 60% 80% 100% 2014* 2013 2012 2011 2010 (2.5) (2.0) (1.5) (1.0) (0.5) 0.0 0.5 1.0 1.5 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 65 Antrim Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1 1 2 (8) (10) (15) 1 1 2 0 0 0 20 29 67 (1) (1) (9) 0 0 0 (9) (11) (24) 2014* 2013 2012 EBITDA (6) (8) (13) EBIT (6) (8) (14) (3) (8) (6) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 7% 5% 3% 1% 1% -23.60 -8.34 N/A -31.79 -27.49 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 -0.18 -0.14 -0.14 -0.35 -0.31 -0.23 -0.18 -0.16 -0.25 -0.34 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Antrim Energy Inc. is a Canadian-based international oil and gas exploration and production company with assets offshore in the United Kingdom North Sea and Ireland. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 1% 2% 3% 4% 5% 6% 7% 2014* 2013 2012 2011 2010 (35.0) (30.0) (25.0) (20.0) (15.0) (10.0) (5.0) 0.0 2014* 2013 2012 2011 2010 (0.4) (0.4) (0.3) (0.3) (0.2) (0.2) (0.1) (0.1) 0.0 2014* 2013 2012 2011 2010 (0.4) (0.4) (0.3) (0.3) (0.2) (0.2) (0.1) (0.1) 0.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 66 Apache Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,643 1,906 160 9,699 9,754 10,245 11,089 11,141 13,893 (353) (360) (332) 35,177 35,393 31,331 (11,161) (11,220) (9,531) 0 0 1,227 (1,815) (1,826) 382 2014* 2013 2012 EBITDA 11,509 11,471 12,051 EBIT 6,015 6,281 6,870 2,877 2,912 3,449 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 24% 24% 31% 23% 27% 10.96 10.71 13.95 19.53 16.87 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.14 1.14 1.36 0.84 1.20 0.96 0.95 1.13 0.69 0.99 Cash & Cash Equivalents Cash Flow from Ops Apache Corporation is a Texas-based independent oil and gas company with exploration and production interests in the Gulf of Mexico, Gulf Coast Onshore in the United States, Western Canada and the United Kingdom. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 67 Approach Resources Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 4 59 1 129 114 78 254 254 110 0 0 0 716 710 633 (331) (297) (297) 0 0 0 (202) (183) (219) 2014* 2013 EBITDA 140 121 EBIT 56 44 (9) (14) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 26% 26% 15% 9% 1% 3.11 3.10 2.28 8.62 4.48 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.97 2.22 1.40 0.62 0.08 1.82 2.11 1.54 0.76 0.10 Cash & Cash Equivalents Cash Flow from Ops Approach Resources Inc. (the Company) is an independent energy company headquartered in Fort Worth, Texas. The Company focuses on exploring for and developing oil and gas reserves in the West Texas Permian Basin. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 2012 71 11 3 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 68 ARC Resources Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 10 4 196 915 835 709 1,081 993 876 (240) (243) (239) 3,369 3,396 3,397 (890) (874) (608) 0 0 0 (215) (283) (138) 2014* 2013 2012 EBITDA 1,037 891 718 EBIT 469 340 200 295 229 170 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 24% 23% 20% 21% 22% 10.61 8.28 4.69 9.51 6.09 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.18 1.19 1.23 1.02 1.27 1.04 1.10 1.20 1.03 1.35 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops ARC Resources Limited is a Canadian conventional oil and gas company. It currently operates in Western Canada, holding interests in petroleum and natural gas properties and assets. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 18% 19% 20% 21% 22% 23% 24% 25% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 69 Arcan Resources Ltd. RATING: NR DESCRIPTION OPERATING CASH FLOW 2014* 2013 2012 2014* 2013 2012 0 9 8 40 56 55 302 309 307 0 0 0 219 226 248 (38) (43) (182) 0 0 0 2 14 (127) 2014* 2013 2012 EBITDA 63 56 55 EBIT 27 19 11 (4) (7) (6) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 58% 58% 55% 34% 11% 1.50 1.15 0.70 1.77 1.39 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 7.51 8.14 7.83 3.29 1.11 4.80 5.37 5.60 3.79 1.31 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Arcan Resources Ltd. (the Company) is engaged in the exploration, development and production of petroleum and natural gas in Western Canada. The Company's primary interest is in the light oil assets located in the Swan Hills area of Alberta. KEY METRICS BALANCE SHEET (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 70 Argent Energy Trust RATING: NR DESCRIPTION OPERATING CASH FLOW 2014* 2013 2012 2014* 2013 2012 1 1 2 53 65 7 230 228 36 (16) (20) (10) 428 405 422 (114) (106) (53) 0 0 0 (76) (62) (57) (CAD, Millions) 2014* 2013 2012 EBITDA 48 47 8 EBIT (23) (14) (1) Net Income Before Non-Recurring Items (113) (107) (5) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 35% 36% 8% N/A N/A -2.797837 -2.5033 -5.055 N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 4.330338 4.322635 5.3156 0 0 4.772683 4.88616 4.7179 N/A N/A KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Argent Energy Trust owns, operates and manages oil and gas properties located primarily in South Texas and Oklahoma, with drilling prospects focused in the Eagle Ford, Austin Chalk and Wilcox. KEY METRICS BALANCE SHEET (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 (6.0) (5.0) (4.0) (3.0) (2.0) (1.0) 0.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 71 Athabasca Oil Corporation RATING: B; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 150 323 963 6 (5) (28) 559 558 554 0 0 0 3,353 3,374 3,460 (721) (744) (1,080) 0 0 0 (715) (749) (1,109) 2014* 2013 2012 EBITDA 17 8 (36) EBIT (124) (128) (61) (116) (126) (112) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 N/A -33% -338% -98% -45% Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 Cash & Cash Equivalents Cash Flow from Ops Athabasca Oil Corporation is an Alberta-based company focused on the development of oil sands in the Athabasca region in northeastern Alberta and light oil resources in northwestern Alberta. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) (400%) (350%) (300%) (250%) (200%) (150%) (100%) (50%) (0 ) 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 72 Atlantic Petroleum P/F RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 32 34 43 72 46 63 79 76 61 0 0 0 110 110 95 (4) (73) (37) 0 0 0 76 (27) 26 2014* 2013 EBITDA 62 19 EBIT 43 13 21 6 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 42% 41% 39% 45% 53% 52.995473 10.23307 9.4067 7.3517 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.095307 1.6477258 0.9576 1.2882 1.6494 1.2790624 1.9052766 0.8466 1.2471 1.5467 Cash & Cash Equivalents Cash Flow from Ops Atlantic Petroleum P/F (the Company) is a full cycle exploration and production company. The Company's main focus is offshore North West Europe. It has a total of 40 oil and gas licences in the UK, Faroe Islands, Ireland, Norway & the Netherlands, and produces oil & gas from three fields in the United Kingdom North Sea. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 2012 72 47 16 Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 60.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 73 Bankers Petroleum Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 51 25 34 292 279 174 109 109 106 0 0 0 596 565 483 (247) (234) (223) 0 0 0 46 45 (49) 2014* 2013 2012 EBITDA 314 284 191 EBIT 211 184 125 67 63 34 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 15% 16% 18% 14% 9% 28.116786 27.059612 26.063 43.491 18.614 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.371068 0.391956 0.6133 0.4477 0.473 0.34513 0.367865 0.5249 0.4248 0.4738 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Bankers Petroleum Ltd. (the Company) is a Canadian-based oil and gas exploration and production company focused on developing oil and gas reserves in Albania. The Company operates and has the rights to develop the Patos-Marinza heavy oilfield and has a 100% interest in the Kuova oilfield. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 74 Baytex Energy Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2 18 2 656 630 524 798 714 594 (241) (238) (215) 1,290 1,282 1,299 (558) (555) (425) 0 0 0 (144) (163) (116) 2014* 2013 2012 EBITDA 661 586 485 EBIT 322 257 187 202 171 103 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 37% 36% 31% 35% 31% 7.539397 6.255427 4.7201 8.3536 3.9125 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.0853 1.134527 1.2148 1.1252 1.1028 1.148954 1.219175 1.2236 1.1834 1.6318 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Baytex Energy Corporation (the Company) is a conventional Canadian oil and gas company operating mainly in the Western Canadian Sedimentary Basin. The Company has a presence in the United States, offering heavy oil, light oil and natural gas liquids. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 1.0 1.1 1.1 1.2 1.2 1.3 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 75 Bellatrix Exploration Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 157 121 107 369 322 206 0 0 0 934 904 381 (368) (304) (185) 0 0 0 (211) (182) (78) 2014* 2013 2012 EBITDA 219 153 108 EBIT 114 67 32 59 41 8 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 27% 26% 35% 25% 25% 10.183345 5.981862 3.9246 6.4432 -0.737 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.125821 2.653405 1.9194 1.2642 2.0882 1.589016 2.106304 1.9088 1.1875 2.2298 Cash & Cash Equivalents Cash Flow from Ops Bellatrix Exploration Ltd. (Bellatrix) is a Canada-based oil and gas company. Bellatrix is engaged in the exploration, acquisition, development and production, of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 (2.0) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 76 BG Group plc RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 6,344 6,208 4,434 7,895 8,230 8,171 21,166 22,737 19,113 (923) (923) (859) 33,654 31,960 32,948 (10,164) (10,605) (9,974) 0 0 0 (3,192) (3,298) (2,662) 2014* 2013 2012 EBITDA 10,692 10,836 10,675 EBIT 7,733 7,882 8,165 4,787 4,982 4,702 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 39% 42% 37% 37% 30% 13.196245 13.660312 17.046 39.917 38.79 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.680937 2.762697448 2.3391 2.336 1.6306 1.9796109 2.0982835 1.7904 1.7971 1.388 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops BG Group plc (the Company) is an international company engaged in the exploration and production of natural gas products. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 77 Bill Barrett Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 58 55 79 272 281 394 1,075 1,012 1,192 0 0 0 995 1,006 1,183 (461) (448) (966) 0 0 0 (189) (167) (572) 2014* 2013 2012 EBITDA 338 336 418 EBIT 71 56 92 106 88 40 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 52% 50% 50% 42% 27% 0.876418 0.631396 0.953 3.9032 4.6758 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.94762 3.6001 3.0242 1.8971 0.9185 3.180139 3.01379 2.8485 1.7194 0.8618 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Bill Barrett Corporation (the Company) is an oil and natural gas exploration and development company headquartered in Denver, Colorado. The Companys assets are located in the Rocky Mountain region with active exploration and development properties located throughout the area. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 78 Birchcliff Energy Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 213 166 119 471 416 453 (7) (4) (2) 961 914 834 (294) (270) (299) 41 0 0 (88) (109) (182) 2014* 2013 2012 EBITDA 243 188 135 EBIT 130 79 40 74 41 11 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 33% 31% 35% 38% 37% 6.404612 4.018975 2.4088 4.3756 3.4626 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.215144 2.532049 3.8384 3.1878 3.9128 1.934331 2.132578 3.1351 2.7476 3.2395 Cash & Cash Equivalents Cash Flow from Ops Birchcliff Energy Ltd. (the Company) is a Calgary-based intermediate oil and gas company that explores, develops and produces natural gas, light oil and natural gas liquids. The Companys operations are concentrated in the Peace River Arch area of Alberta. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 79 BlackPearl Resources Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 69 8 17 98 84 81 9 12 9 0 0 0 628 559 545 (123) (93) (139) 0 0 0 (26) (9) (58) 2014* 2013 2012 EBITDA 102 88 83 EBIT 28 16 13 16 7 4 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1% 2% 2% 1% 1% 26.726833 14.900841 16.25 114.85 23.608 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.088945 0.137028 0.1114 0.0959 0.1117 0.085381 0.131436 0.1092 0.095 0.1175 Cash & Cash Equivalents Cash Flow from Ops BlackPearl Resources Inc. (the Company) is a publicly held Canadian oil and gas company. The Company's focus is heavy oil and oil sands assets located in western Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2014* 2013 2012 2011 2010 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 2014* 2013 2012 2011 2010 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 2014* 2013 2012 2011 2010 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 80 Bonanza Creek Energy, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 131 181 4 302 281 156 523 523 166 0 0 0 672 656 579 (484) (428) (300) 0 0 0 (182) (147) (144) 2014* 2013 2012 EBITDA 313 287 145 EBIT 155 147 79 66 70 42 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 44% 44% 22% 2% 15% 5.294252 6.689966 18.997 8.7245 6.5134 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.729445 1.859413 1.0643 0.1548 1.6681587 1.8210198 1.1488 0.1587 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Bonanza Creek Energy, Inc. (the Company) is an exploration and production company focused on the extraction of oil and associated liquids-rich natural gas in the United States. The Company's operations are focused in the Wattenberg Field in the DJ Basin of Colorado and the Cotton Valley sands of southern Arkansas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 81 Bonavista Energy Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2 3 3 537 475 381 1,044 1,082 953 (97) (102) (138) 2,209 2,270 2,257 (511) (450) (405) 299 307 405 (71) (77) (163) 2014* 2013 2012 EBITDA 607 533 413 EBIT 253 184 82 82 38 17 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 32% 32% 55% 45% 49% 5.620894 4.210616 1.919 6.515 9.4854 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.944809 2.275864 2.5046 2.4839 2.5427 1.720598 2.028676 2.3077 2.4082 2.5404 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Bonavista Energy Corporation is a conventional oil and gas company with properties located in Alberta, British Columbia and Saskatchewan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 82 Bonterra Energy Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 193 180 76 203 201 197 (106) (100) (62) 678 668 163 (127) (122) (85) 0 0 0 (40) (42) (71) 2014* 2013 2012 EBITDA 107 189 82 EBIT 93 98 48 71 61 34 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 23% 23% 55% 40% 39% 15.856867 13.700687 9.58 19.651 17.403 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.047078 1.119602 2.604 1.2619 1.8805 0.998915 1.062845 2.4174 1.2046 1.7317 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Bonterra Energy Corp. is an oil and gas company headquartered in Calgary, Alberta, with an asset base of properties across Western Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 83 BP p.l.c. RATING: A; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 27,358 22,520 19,635 22,712 23,467 25,974 53,249 79,320 75,998 (5,246) (5,441) (5,294) 130,200 130,407 119,752 (24,682) (24,520) (23,222) 0 0 0 (7,216) (6,494) (2,542) 2014* 2013 2012 EBITDA 28,410 30,130 31,756 EBIT 14,507 16,620 19,069 15,562 16,159 17,773 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 29% 38% 39% 38% 41% 13.345906 15.3604 15.453 25.604 20.6637 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.344543 3.380111 2.92598 2.11189 2.04408 1.874304 2.63259 2.39319 1.6974 1.704241 Cash & Cash Equivalents Cash Flow from Ops BP p.l.c. (BP) is a multinational company with headquarters in London, England. BP is vertically integrated and engages in all areas of the oil and gas industry, including exploration and production, refining, distribution, power generation, etc. KEY METRICS BALANCE SHEET (USD, Millions) (USD, Millions) OPERATING CASH FLOW Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 84 Cabot Oil & Gas Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 25 23 31 1,157 1,072 662 1,257 1,182 1,118 (29) (25) (17) 2,269 2,205 2,131 (1,273) (1,195) (928) 0 0 0 (146) (148) (282) 2014* 2013 2012 EBITDA 1,274 1,167 698 EBIT 625 516 247 331 266 99 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 36% 35% 34% 32% 35% 9.573953 7.945258 3.6099 3.3111 2.8843 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.086678 1.103051 1.6874 1.8671 2.3174 0.986524 1.013069 1.6002 1.6952 1.9262 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Cabot Oil & Gas Corporation (the Company) is an independent oil and gas company headquartered in Houston, Texas. The Company is engaged in the development, exploitation and exploration of oil and gas properties exclusively in the continental United States. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 85 Canacol Energy Ltd. RATING: NR DESCRIPTION 2014* 2013* 2012 2014* 2013* 2012 36 56 31 63 71 72 166 167 61 0 0 0 277 234 291 (95) (81) (175) 0 0 0 (32) (11) (103) 2014* 2013* 2012 EBITDA 58 43 87 EBIT 21 3 23 7 (13) 9 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 37% 40% 17% 15% 10% -2.756417 -4.67997 8.6324 11.7112 -3.197 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.645320225 4.6597861 0.8772 0.8002 -0.4655 2.83951 3.88372 0.6955 0.55722 0.3575 Cash & Cash Equivalents Cash Flow from Ops Canacol Energy Ltd. (Canacol) and its subsidiaries are primarily engaged in petroleum and natural gas exploration and development activities in Colombia, Brazil, Ecuador and Guyana. Canacols primary producing property is the Rancho Hermoso field in Colombia. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 (10.0) (5.0) 0.0 5.0 10.0 15.0 2014* 2013 2012 2011 2010 (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 86 Canadian Natural Resources Limited RATING: BBB (high) DESCRIPTION 2014* 2013 2012 2014* 2013 2012 19 16 37 7,648 7,112 5,762 11,446 10,753 9,870 (625) (523) (444) 26,337 25,772 24,283 (7,192) (7,067) (6,104) 0 0 0 (169) (478) (786) 2014* 2013 2012 EBITDA 8,717 8,142 7,167 EBIT 4,004 3,298 2,839 2,782 2,320 1,984 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 30% 29% 29% 29% 32% 8.7807018 7.264317 6.145 8.85417 8.0924 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.496641318 1.5119961 1.7129 1.5065 1.5446 1.3130664 1.320683 1.3771 1.27325 1.2942 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Canadian Natural Resources Limited is an oil and gas exploration, development and production company located in Calgary, Alberta, with operations focused in Canada and smaller interests internationally. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 27% 28% 29% 30% 31% 32% 33% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 1.35 1.40 1.45 1.50 1.55 1.60 1.65 1.70 1.75 2014* 2013 2012 2011 2010 1.2 1.2 1.3 1.3 1.3 1.3 1.3 1.4 1.4 1.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 87 Canadian Oil Sands Limited RATING: BBB; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 292 806 1,553 1,431 1,349 1,581 1,665 1,602 1,794 (678) (678) (654) 4,759 4,732 4,515 (1,291) (1,342) (1,086) 0 0 0 (538) (671) (159) 2014* 2013 2012 EBITDA 1,759 1,723 1,722 EBIT 1,274 1,245 1,319 970 949 953 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 26% 25% 28% 21% 25% 10.442622 10.121951 11.274 18.379 10.132 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.163522013 1.187546 1.1347 0.5967 1.0154 0.94656 0.929773 1.0418 0.5717 0.926 Cash & Cash Equivalents Cash Flow from Ops Canadian Oil Sands Limited has a working interest in Syncrude Canada Limited, which operates an oil sands mine, as well as bitumen extraction and upgrading facilities in Alberta. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 88 Carrizo Oil & Gas, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 62 157 52 385 360 276 908 911 975 0 0 0 853 842 585 (772) (788) (740) 0 0 0 (386) (428) (464) 2014* 2013 2012 EBITDA 397 367 264 EBIT 164 153 99 59 51 61 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 52% 52% 63% 58% 55% 1.98 1.81 1.35 0.75 0.55 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.36 2.53 3.53 4.85 5.35 2.29 2.48 3.69 5.80 7.98 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Carrizo Oil & Gas, Inc. (the Company) is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas. The Company's current operations are principally focused in producing oil and gas shales primarily in the Eagle Ford Shale in South Texas, the Niobrara Formation in Colorado, the Marcellus Shale in Pennsylvania, and the Utica Shale in Ohio. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 89 Cenovus Energy Inc. RATING: A (low); Stable DESCRIPTION 2014* 2013 2012 (CAD, Millions) 2014* 2013 2012 815 2,452 1,160 Cash Flow from Ops 3,414 3,489 3,530 6,289 5,651 5,333 Total Dividends Paid (750) (732) (665) 10,099 9,946 9,782 Capital Expenditure (3,180) (3,269) (3,449) 0 0 0 Gross Free Cash Flow (516) (512) (584) 2014* 2013 2012 EBITDA 3,820 3,892 4,053 EBIT 1,988 2,059 2,468 788 712 1,329 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 38% 36% 35% 30% 30% 7.20 7.60 10.73 10.57 5.66 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.84 1.62 1.51 1.24 1.54 1.65 1.45 1.32 1.13 1.41 Cash & Cash Equivalents Cenovus Energy Inc. is an integrated oil company with enhanced oil recovery and oil sands properties in Western Canada, along with interests in two refineries in the United States through a joint venture. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) DBRS Adjusted Total Equity INCOME STATEMENT 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 90 Cequence Energy Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 63 50 28 90 86 30 0 0 0 437 436 416 (133) (118) (92) 0 0 0 (70) (67) (64) 2014* 2013 EBITDA 73 54 EBIT 27 11 13 0 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 17% 16% 7% 5% 18% 5.39 3.23 -16.83 -8.49 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.44 1.71 1.08 0.47 3.36 1.23 1.59 0.91 0.44 3.56 2012 33 (34) (34) Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Cequence Energy Ltd. is a natural gas and oil resource company based in Calgary, Alberta. Its properties are located in the Deep Basin, with Simonette as its primary focus area. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 (20.0) (15.0) (10.0) (5.0) 0.0 5.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 91 Chesapeake Energy Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,004 837 287 5,292 4,956 4,030 13,527 13,640 13,273 (615) (404) (398) 18,477 18,094 17,801 (6,001) (6,576) (11,581) 0 3,062 3,062 (1,324) (2,024) (7,949) 2014* 2013 2012 EBITDA 6,094 5,173 3,604 EBIT 3,211 2,270 793 3,211 1,040 1,935 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 42% 43% 43% 40% 49% 3.52 3.15 1.16 4.59 4.30 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.56 2.75 3.64 2.28 2.77 2.22 2.39 3.37 2.27 2.88 Cash & Cash Equivalents Cash Flow from Ops Chesapeake Energy Corporation, based in Oklahoma, engages in the acquisition, exploration, development and production of natural gas and oil properties in the United States. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 92 Chevron Corporation RATING: AA; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 16,183 16,516 21,913 34,986 36,109 37,018 27,842 25,219 16,350 (7,634) (7,474) (6,844) 151,810 150,427 137,832 (38,337) (37,985) (30,938) 0 0 0 (10,985) (9,350) (764) 2014* 2013 2012 EBITDA 39,928 41,399 48,426 EBIT 25,093 27,213 35,013 19,184 21,008 23,521 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 15% 14% 11% 10% 12% 98.74 118.18 176.31 156.57 96.99 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.80 0.70 0.44 0.37 0.48 0.70 0.61 0.34 0.27 0.38 Cash & Cash Equivalents Cash Flow from Ops Chevron Corporation has a large portfolio of upstream assets and global downstream operations, consisting of refining and marketing operations alongside a world-scale petrochemicals business. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 50.0 100.0 150.0 200.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 93 Chinook Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 16 26 31 90 78 70 88 88 102 0 0 0 338 327 344 (106) (93) (80) 0 0 0 (16) (15) (10) 2014* 2013 2012 EBITDA 99 83 78 EBIT 25 9 (20) 10 1 (29) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 21% 21% 23% 26% 27% 6.314532 1.97 -4.53 -4.20 -5.11 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.98 1.13 1.46 2.06 4.00 0.89 1.06 1.31 1.95 4.39 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Chinook Energy Inc. is a balanced mid-sized producer based in Calgary, Alberta. Its international oil and gas exploration and production operations are focused in Tunisia and Western Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 8.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 94 Cimarex Energy Co. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 5 5 70 1,505 1,388 1,135 1,075 974 831 (48) (47) (40) 4,148 4,022 3,475 (1,654) (1,624) (1,728) 0 0 0 (197) (283) (633) 2014* 2013 2012 EBITDA 1,527 1,402 1,145 EBIT 874 918 606 634 565 364 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 21% 19% 19% 12% 13% 15.65 14.29 12.79 24.39 23.84 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.71 0.70 0.73 0.33 0.32 0.70 0.69 0.73 0.35 0.32 Cash & Cash Equivalents Cash Flow from Ops Cimarex Energy Co. is a Denver-based independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 5% 10% 15% 20% 25% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 95 CNOOC Limited RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2,365 2,365 8,754 17,458 17,458 15,596 25,213 25,213 10,093 (3,290) (3,290) (2,485) 56,436 56,436 49,285 (14,105) (14,105) (10,018) 0 0 0 63 63 3,093 2014* 2013 2012 EBITDA 21,829 21,829 18,946 EBIT 12,646 12,646 13,717 9,750 9,750 10,240 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.107369676 1.1073697 0.5151 0.3625 0.3708 21.584398 21.584398 47.144 56.844 103.52 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.107369676 1.1073697 0.5151 0.3625 0.3708 1.1550466 1.1550466 0.5327 0.3633 0.3788 Cash & Cash Equivalents Cash Flow from Ops CNOOC Limited (CNOOC) is a Chinese producer of offshore crude oil and natural gas and an independent oil and gas exploration and production company. CNOOC mainly engages in exploration, development, production and sales of oil and natural gas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0 0.2 0.4 0.6 0.8 1 1.2 2014* 2013 2012 2011 2010 0.0 20.0 40.0 60.0 80.0 100.0 120.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 96 Comstock Resources, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2 3 4 261 242 278 961 810 1,336 (24) (18) 0 946 952 934 (646) (523) (588) 0 0 0 (408) (300) (310) 2014* 2013 2012 EBITDA 312 267 262 EBIT (29) (70) (82) (63) (92) (87) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 50% 46% 59% 54% 33% -0.39 -0.89 -1.82 0.36 0.35 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.68 3.33 5.29 4.22 2.40 3.08 3.03 6.67 3.89 2.29 Cash & Cash Equivalents Cash Flow from Ops Comstock Resources, Inc. (the Company) is an independent energy company engaged in the acquisition, development, production and exploration of oil and natural gas properties. The Company's operations are primarily focused in Texas and Louisiana. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 (2.0) (1.5) (1.0) (0.5) 0.0 0.5 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 97 Concho Resources Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 3 1,598 1,434 1,214 3,791 3,703 3,152 0 0 0 3,861 3,758 3,466 (2,016) (1,880) (2,774) 0 0 0 (418) (446) (1,560) 2014* 2013 2012 EBITDA 1,736 1,585 1,302 EBIT 911 813 727 397 323 305 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 50% 50% 48% 42% 42% 4.09 3.72 3.98 7.01 6.97 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.37 2.58 2.60 1.96 2.73 2.18 2.34 2.42 1.74 2.69 Cash & Cash Equivalents Cash Flow from Ops Concho Resources Inc. (the Company) is an independent oil and natural gas company based in Midland, Texas. The Company is engaged in the acquisition, development and exploration of oil and natural gas properties, and has operations primarily in the Permian Basin of Southeast New Mexico and West Texas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 98 Connacher Oil and Gas Limited RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 20 56 127 86 86 37 1,056 1,023 986 0 0 0 160 222 343 (92) (94) (37) 0 0 0 (6) (8) (0) 2014* 2013 2012 EBITDA 101 96 48 EBIT 18 13 (13) (94) (83) (102) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 87% 82% 74% 70% 62% 0.21 0.16 -0.15 0.45 0.19 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 12.32 11.96 26.61 8.36 9.47 10.48 10.65 20.70 7.17 9.26 Cash & Cash Equivalents Cash Flow from Ops Connacher Oil and Gas Limited (Connacher or the Company) is a Calgary-based exploration, development and production company active in the production and sale of bitumen. Connacher's principal asset is a 100 percent interest in approximately 500 million barrels of bitumen reserves located on the Company's Great Divide oil sands leases near Fort McMurray, Alberta. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 20% 40% 60% 80% 100% 2014* 2013 2012 2011 2010 (0.2) (0.1) 0.0 0.1 0.2 0.3 0.4 0.5 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 99 ConocoPhillips RATING: A; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 7,730 6,518 3,618 17,373 15,318 14,117 24,818 25,274 24,587 (3,374) (3,334) (3,278) 53,621 52,492 48,427 (16,041) (15,537) (14,172) 0 0 0 (2,042) (3,553) (3,333) 2014* 2013 2012 EBITDA 19,259 19,303 20,115 EBIT 11,740 11,869 13,535 8,013 7,875 7,733 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 32% 33% 34% 29% 29% 9.31 9.28 10.22 10.38 8.45 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.43 1.65 1.74 1.87 2.79 1.29 1.31 1.22 1.25 1.38 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops ConocoPhillips, headquartered in Houston, Texas, is an independent exploration and production company. Its principal operating regions include the U.S., Europe and Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 26% 27% 28% 29% 30% 31% 32% 33% 34% 35% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 1.1 1.2 1.2 1.3 1.3 1.4 1.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 100 Continental Resources, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 52 28 36 2,729 2,574 1,528 5,082 4,728 3,552 0 0 0 4,188 3,953 3,164 (3,921) (3,739) (4,118) 0 0 0 (1,192) (1,165) (2,591) 2014* 2013 2012 EBITDA 3,016 2,824 1,817 EBIT 1,991 1,858 1,125 1,179 1,069 643 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 55% 54% 53% 35% 43% 7.94 7.90 8.00 11.45 8.96 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.86 1.84 2.32 1.08 1.32 1.69 1.67 1.95 1.00 1.29 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Continental Resources, Inc. is a petroleum liquids producer based in Oklahoma City. It is the largest leaseholder in the nations premier oil play, the Bakken Play of North Dakota and Montana, and also has a presence in the Anadarko Woodford Play of Oklahoma and the Red River Units Play of North Dakota, South Dakota and Montana. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 101 Crescent Point Energy Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 15 16 0 2,149 2,031 1,566 2,132 1,844 1,564 (532) (422) (349) 8,422 8,500 8,595 (1,790) (1,747) (1,509) 0 0 0 (173) (139) (292) 2014* 2013 2012 EBITDA 2,396 2,214 1,676 EBIT 819 655 232 534 329 67 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 20% 18% 15% 17% 16% 10.16 8.43 3.25 8.04 4.09 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.99 0.91 1.00 0.91 1.25 0.89 0.83 0.93 0.82 1.16 Cash & Cash Equivalents Cash Flow from Ops Crescent Point Energy Corp. engages in acquiring, exploiting, developing and holding interests in light and medium oil and gas properties mainly in Saskatchewan and Alberta. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 5% 10% 15% 20% 25% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 102 Crew Energy Inc. RATING: B; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 188 168 184 461 357 256 0 0 0 986 1,113 1,184 (221) (220) (259) 0 0 0 (33) (52) (75) 2014* 2013 2012 EBITDA 208 187 200 EBIT 17 (3) (3) 51 (1) (22) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 32% 24% 18% 18% 19% 0.96 -0.22 -0.19 3.27 4.37 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.46 2.12 1.39 1.46 1.55 2.22 1.91 1.28 1.37 1.43 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Crew Energy Inc. (the Company) is an oil and natural gas producer based in Calgary, Alberta. Its activities are concentrated in Alberta, northeast British Columbia and Saskatchewan. The Company's focus is on the development and expansion of its core natural gas and light oil producing areas and exploration of its large, undeveloped land base. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 103 Delphi Energy Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 3 2 0 50 37 32 137 127 98 0 0 0 235 232 242 (84) (72) (84) 0 0 0 (34) (35) (52) 2014* 2013 2012 EBITDA 61 45 34 EBIT 23 9 (9) 11 4 4 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 37% 35% 29% 25% 34% 3.86 1.65 -1.91 4.25 3.47 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.77 3.48 3.07 1.33 1.90 2.24 2.85 2.89 1.28 1.84 Cash & Cash Equivalents Cash Flow from Ops Delphi Energy Corp. (the Company) is an oil and gas company operating in Alberta, Canada. It is engaged in the exploration for, development and production of crude oil and natural gas from properties and assets located in Western Canada. The Companys operations are primarily concentrated in the Deep Basin of North West Alberta, with the Deep Basin located at Bigstone, Hythe and Wapiti as its three core areas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 (3.0) (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 104 Denbury Resources Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 8 12 99 1,245 1,272 1,365 3,619 3,367 3,363 (22) 0 0 5,148 5,301 5,115 (1,163) (1,244) (1,610) 0 0 0 60 28 (244) (USD, Millions) 2014* 2013 2012 EBITDA 1,382 1,376 1,532 EBIT 844 866 1,025 Net Income Before Non-Recurring Items 391 431 539 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 41% 39% 40% 38% 37% 3.89 3.94 4.44 4.70 2.53 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.91 2.65 2.46 2.16 3.49 2.62 2.45 2.19 1.97 2.51 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Denbury Resources Inc. (the Company) is an independent oil and gas company headquartered in Dallas, Texas. The Company is a large oil and natural gas producer in both Mississippi and Montana and holds an operating acreage in the Rocky Mountain and Gulf Coast regions. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 105 Devon Energy Corporation RATING: BBB (high); Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2,027 1 4 5,943 44 35 15,758 82 44 (357) (32) (26) 25,046 235 225 (6,415) (30) (43) 0 0 0 (829) (18) (34) INCOME STATEMENT (USD, Millions) 2014* 2013 2012 EBITDA 6,157 5,689 5,253 EBIT 3,342 2,909 2,441 Net Income Before Non-Recurring Items 1,113 1,559 1,393 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 39% 37% 36% 32% 24% 6.59 5.90 5.38 9.79 9.54 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.65 2.21 2.43 1.56 1.13 2.56 2.16 2.27 1.59 1.01 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow Cash & Cash Equivalents Cash Flow from Ops Devon Energy Corporation has a portfolio of reserves in North America. It is a producer in the Canadian oil sands and the Texas Barnett Shale formation. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 106 Eagle Energy Trust RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 1 4 43 44 35 90 82 44 (33) (32) (26) 243 235 225 (38) (30) (43) 0 0 0 (28) (18) (34) 2014* 2013 2012 EBITDA 48 48 37 EBIT 15 17 12 (0) 1 15 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 27% 26% 16% 1% 0% 6.07 7.92 10.42 101.69 -18.27 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.11 1.85 1.24 0.06 -1.00 1.88 1.69 1.18 0.06 -1.01 Cash & Cash Equivalents Cash Flow from Ops Eagle Energy Trust (the Trust) is an unincorporated open-ended limited purpose trust. The Trust is engaged in the acquisition, development, and production of petroleum reserves in the United States. The Trust is based in Calgary, Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 (40.0) (20.0) 0.0 20.0 40.0 60.0 80.0 100.0 120.0 2014* 2013 2012 2011 2010 (1.5) (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 (1.5) (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 107 Ecopetrol S.A. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2,475 4,580 4,494 11,677 11,211 12,042 6,523 11,499 7,757 (3,191) (7,804) (4,668) 33,782 39,209 38,116 (8,513) (7,619) (8,610) 0 0 0 (27) (4,211) (1,236) (USD, Millions) 2014* 2013 2012 EBITDA 13,059 11,898 16,484 EBIT 12,024 11,695 13,474 Net Income Before Non-Recurring Items 7,980 7,626 8,190 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 16% 23% 17% 13% 18% 24.56 36.84 41.62 62.31 88.27 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.61 1.06 0.64 0.37 0.70 0.41 0.97 0.47 0.27 0.52 Cash & Cash Equivalents Cash Flow from Ops Ecopetrol S.A. is a Colombian energy company that focuses on oil and gas exploration, production, transportation and marketing. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0% 5% 10% 15% 20% 25% 2014* 2013 2012 2011 2010 0.0 20.0 40.0 60.0 80.0 100.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 108 Encana Corporation RATING: BBB; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2,162 2,566 3,179 3,000 2,468 3,430 6,610 7,406 7,981 (305) (401) (588) 5,234 5,147 5,295 (2,508) (2,712) (3,476) 0 0 0 187 (645) (634) (USD, Millions) 2014* 2013 2012 EBITDA 3,191 2,900 3,695 EBIT 1,603 1,335 1,739 Net Income Before Non-Recurring Items 1,603 993 1,314 KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 34% 36% 38% 34% 33% 2.81 2.21 3.33 1.72 2.58 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.20 3.00 2.33 2.06 1.86 2.07 2.63 2.16 1.98 1.76 Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Encana Corporation is a North American energy producer focused on its portfolio of natural gas, oil and natural gas liquids. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 109 Energen Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 35 6 10 895 872 799 1,995 1,974 1,827 (42) (42) (40) 2,911 2,858 2,677 (1,180) (1,195) (1,184) 0 0 0 (328) (366) (426) (USD, Millions) 2014* 2013 2012 EBITDA 894 846 774 EBIT 367 348 388 Net Income Before Non-Recurring Items 367 219 200 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 41% 41% 41% 33% 26% 5.23 5.03 5.93 8.87 8.79 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.23 2.27 2.29 1.73 1.12 2.23 2.33 2.36 1.84 1.26 Cash & Cash Equivalents Cash Flow from Ops Energen Corporation (the Company) is an independent producer of domestic oil, natural gas and natural gas liquids, and is headquartered in Birmingham, Alabama. More than 90% of the Companys proved reserves are located in the Permian basin in West Texas and in the San Juan basin in New Mexico and Colorado. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 110 Energy XXI (Bermuda) Limited RATING: NR DESCRIPTION 2014* 2013* 2012 2014* 2013* 2012 304 358 117 635 658 815 2,048 2,041 1,055 (47) (44) (19) 1,333 1,366 1,406 (827) (825) (571) 0 0 0 (239) (211) 226 (USD, Millions) 2014* 2013* 2012 EBITDA 770 764 844 EBIT 369 375 476 Net Income Before Non-Recurring Items 122 156 338 EBIT Gross Interest Coverage (Times) 2014* 2013* 2012 2011 2010 2014* 2013* 2012 2011 2010 61% 50% 43% 55% 64% 2.67 3.63 4.82 3.78 2.33 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013* 2012 2011 2010 2014* 2013* 2012 2011 2010 3.22 2.23 1.29 2.96 3.97 2.66 1.83 1.20 2.16 2.59 *2013 figures refer to LTM as of Dec 31, 2013. KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Energy XXI (Bermuda) Limited is an oil-focused company with assets in South Louisiana and on the Gulf of Mexico Shelf. It operates five oilfields on the Gulf of Mexico Shelf. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013* 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013* 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013* 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013* 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 111 Enerplus Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 6 3 5 785 738 625 1,108 1,107 1,149 (169) (171) (278) 1,987 1,932 1,951 (732) (688) (865) 0 0 0 (116) (121) (519) (CAD, Millions) 2014* 2013 2012 EBITDA 866 788 657 EBIT 287 195 97 Net Income Before Non-Recurring Items 70 42 499 KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 36% 36% 37% 23% 19% 4.99 3.44 1.83 4.53 5.44 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.41 1.50 1.91 1.78 1.27 1.28 1.40 1.75 1.36 1.16 Cash & Cash Equivalents Cash Flow from Ops Enerplus Corporation (the Company) features a diversified asset base through the development and exploration of crude oil and natural gas in Canada and the United States. The Company is headquartered in Calgary, Alberta. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 112 Eni S.p.A. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 6,724 14,702 10,776 18,793 12,366 19,661 29,946 41,056 37,608 (4,205) (5,577) (5,627) 62,399 84,119 82,295 (12,223) (17,001) (17,369) 0 0 0 12,673 2,449 11,944 (USD, Millions) 2014* 2013 2012 EBITDA 17,087 22,821 36,489 EBIT 7,801 10,604 24,233 Net Income Before Non-Recurring Items 5,272 7,231 10,496 KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 32% 33% 31% 36% 38% 8.45 8.65 19.24 17.94 20.53 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.59 1.58 1.05 1.40 1.41 1.75 1.73 1.00 1.43 1.41 Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Eni S.p.A., based in Italy, is an integrated energy company involved in the exploration, production, transportation, refining and sale of oil and natural gas with operations worldwide. It also produces and sells electricity, petrochemical and petroleum products, hydrocarbons and engages in offshore and onshore hydrocarbon fields. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 113 EOG Resources, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,667 1,318 876 7,670 7,166 5,456 6,629 6,633 7,224 (205) (199) (181) 16,033 15,418 13,285 (7,267) (7,061) (7,355) 0 0 0 198 (94) (2,081) 2014* 2013 2012 EBITDA 8,090 7,475 5,293 EBIT 4,389 3,874 2,123 3,029 2,653 2,040 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 29% 30% 35% 32% 36% 16.09 13.61 8.06 7.43 4.65 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.86 0.93 1.32 1.42 2.12 0.82 0.89 1.36 1.34 2.02 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops EOG Resources, Inc. and its subsidiaries engage in crude oil and natural gas exploration, development, production and marketing with operations located primarily in the United States, Canada, U.K., China, Trinidad and Tobago and Argentina. It is headquartered in Houston, Texas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 114 EPL Oil & Gas, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 4 9 2 356 394 250 724 634 695 0 0 0 644 629 546 (2) (2) (2) 0 0 0 354 392 248 (USD, Millions) 2014* 2013 2012 EBITDA 399 429 258 EBIT 200 229 144 Net Income Before Non-Recurring Items 20 49 77 EBIT Gross Interest Coverage (Times) 2013 2013 2012 2011 2010 2014* 2013 2012 2011 2010 53% 50% 56% 30% 1% 3.80 4.37 5.04 6.23 3.49 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.04 1.61 2.78 1.01 0.03 7.86 5.61 1.82 1.48 2.70 Cash & Cash Equivalents Cash Flow from Ops EPL Oil & Gas, Inc. (the Company) is an independent oil and natural gas exploration and production company. The Company's current operations are concentrated in the U.S. GOM shelf & Gulf Coast, focusing on the state and federal waters offshore LA. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0% 10% 20% 30% 40% 50% 60% 2013 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 115 EXCO Resources, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 95 50 46 343 265 388 1,548 1,939 1,945 (46) (43) (34) 405 148 149 (349) (321) (534) 0 0 0 (52) (99) (181) (USD, Millions) 2014* 2013 2012 EBITDA 412 359 255 EBIT 138 113 (48) Net Income Before Non-Recurring Items (41) 10 108 KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 79% 93% 93% 56% 51% 1.14 0.93 -0.49 1.00 0.75 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 4.51 7.31 5.02 3.01 6.96 3.76 5.41 7.62 4.35 6.61 Cash & Cash Equivalents Cash Flow from Ops EXCO Resources, Inc. (the Company) is a natural gas and oil company headquartered in Dallas, Texas. The Company is engaged in the exploration, exploitation, development and production of onshore natural gas and oil properties. Its operations are focused in the Permian Basin, the Appalachian basin and the East Texas/North Louisiana area. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0% 20% 40% 60% 80% 100% 2014* 2013 2012 2011 2010 (1.0) (0.5) 0.0 0.5 1.0 1.5 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 116 Exxon Mobil Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 5,601 4,644 9,582 50,374 48,841 48,541 35,713 37,045 25,105 (11,303) (10,875) (10,092) 182,891 180,495 171,660 (33,503) (33,669) (34,271) 0 0 0 5,568 4,297 4,178 2014* 2013 2012 EBITDA 56,480 55,218 52,264 EBIT 39,216 38,036 36,376 30,710 31,108 31,877 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 16% 17% 13% 16% 15% 108.93 125.85 59.49 64.06 50.32 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.71 0.76 0.49 0.54 0.63 0.63 0.65 0.38 0.43 0.51 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Exxon Mobil Corporation (the Company) is a multinational company engaged in crude oil and natural gas production. Headquartered in Irving, Texas, the Company is involved in exploration, the manufacture of petroleum products, transportation, as well as the manufacture and sales of commodity petrochemicals. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 117 Forest Oil Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 48 66 1 338 140 376 936 936 2,043 0 0 0 35 54 (43) (679) (365) (731) 0 0 0 (341) (225) (354) 2014* 2013 2012 EBITDA 355 283 389 EBIT 101 112 109 (136) 63 (154) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 96% 95% 102% 61% 60% 0.79 0.92 0.73 1.66 1.90 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.77 6.68 5.43 5.02 4.19 2.64 3.30 5.24 3.85 4.15 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Forest Oil Corporation (Forest or the Company) is an independent oil and gas exploration and production company. The Company is engaged in the exploration, acquisition, development, production and marketing of natural gas and crude oil in the United States and has principal reserves and producing properties in Arkansas, Louisiana, Oklahoma and Texas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 20% 40% 60% 80% 100% 120% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 118 Freehold Royalties Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 126 119 104 49 49 18 (82) (84) (81) 293 294 316 (25) (29) (37) 0 0 0 19 6 (14) 2014* 2013 2012 EBITDA 152 144 135 EBIT 92 82 70 65 58 46 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 14% 14% 5% 15% 19% 34.64 32.26 31.29 27.95 18.20 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.39 0.41 0.17 0.38 0.63 0.32 0.34 0.13 0.37 0.58 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Freehold Royalties Ltd. (the Company) is an oil and gas company based in Calgary, Alberta. The Company's assets generate income from crude oil, natural gas, natural gas liquids, and potash. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 119 Galp Energia SGPS, SA RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2,072 2,072 2,488 1,026 1,064 389 5,067 5,067 4,724 (295) (295) (347) 8,840 8,840 8,842 (1,006) (1,006) (1,094) 0 0 0 (237) (237) (1,052) (USD, Millions) 2014* 2013 2012 EBITDA 1,297 1,323 1,265 EBIT 607 668 798 Net Income Before Non-Recurring Items 402 440 571 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 36.4% 36.4% 34.8% 56.4% 53.4% 2.9980817 2.9980817 3.9185 4.0684 6.4204 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 4.534759358 4.5884162 11.844 3.6794 4.2131 3.8284411 3.8284411 3.6745 3.5584 3.2748 Cash & Cash Equivalents Cash Flow from Ops Galp Energia SGPS, SA (the Company) is a Portuguese oil and natural gas integrated operator. The Company focuses on the exploration and production of oil and natural gas to refining and marketing oil products, natural gas marketing and sales and power generation. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 120 Gastar Exploration Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 27 32 9 51 45 30 318 317 101 (12) (9) (7) 207 210 127 (88) (96) (137) 0 0 0 (48) (60) (114) (USD, Millions) 2014* 2013 2012 EBITDA 73 57 17 EBIT 34 25 (9) Net Income Before Non-Recurring Items 45 41 3 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 61% 60% 44% 12% 1% 1.61 1.74 -4.47 -18.82 -8.98 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 6.19 6.98 3.38 2.42 -0.33 4.33 5.57 6.13 13.95 0.45 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Gastar Exploration Ltd. is engaged in the exploration, development and production of natural gas, natural gas liquids, oil and condensate in the United States. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 (20.0) (15.0) (10.0) (5.0) 0.0 5.0 2014* 2013 2012 2011 2010 (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 121 Goodrich Petroleum Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1 49 1 87 84 126 508 496 578 (25) (19) (6) 328 357 60 (257) (251) (252) 2 2 2 (194) (186) (133) 2014* 2013 2012 EBITDA 104 99 81 EBIT (25) (37) (60) (84) (94) (24) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 61% 58% 91% 80% 66% -0.51 -0.71 -1.15 -0.18 -1.03 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 5.83 5.90 4.59 4.30 4.31 4.88 5.02 7.15 4.67 5.27 Cash & Cash Equivalents Cash Flow from Ops Goodrich Petroleum Corporation is an independent exploration and production company that drills for, acquires, develops and produces natural gas and crude oil primarily in the Haynesville Shale and Cotton Valley Trend in East Texas and North Louisiana, the Eagle Ford Shale oil window of South Texas, and in the Tuscaloosa Marine Shale of South Mississippi and Louisiana. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 20% 40% 60% 80% 100% 2014* 2013 2012 2011 2010 (1.4) (1.2) (1.0) (0.8) (0.6) (0.4) (0.2) 0.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 122 Gran Tierra Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 391 429 213 306 353 324 16 16 12 0 0 0 1,478 1,430 1,291 (264) (367) (276) 0 0 0 42 (14) 48 INCOME STATEMENT (USD, Millions) 2014* 2013 2012 EBITDA 372 518 399 EBIT 215 284 237 Net Income Before Non-Recurring Items 115 145 128 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1% 1% 1% 2% 2% N.M. N.M. N.M. N.M. N.M. Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.05 0.05 0.04 0.09 0.07 0.04 0.03 0.03 0.06 0.05 Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow KEY RATIOS Cash & Cash Equivalents Cash Flow from Ops Gran Tierra Energy Inc. (the Company) is an international oil and gas exploration and production company headquartered in Calgary, Alberta. The Company currently holds interests in producing and has prospective properties in Colombia, Argentina, Peru and Brazil. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 0.00 0.02 0.04 0.06 0.08 0.10 2014* 2013 2012 2011 2010 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 123 Grupa LOTOS S.A. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 111 167 87 284 251 576 2,209 2,128 2,117 0 0 0 3,019 3,045 2,925 (400) (309) (233) 0 0 0 (116) (58) 343 2014* 2013 2012 EBITDA 280 253 594 EBIT 56 45 389 17 (18) 547 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 42% 41% 43% 49% 46% 1.23 0.71 5.51 6.05 6.20 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 7.78 8.33 3.74 3.47 4.11 8.89 8.56 11.66 3.50 3.53 Cash & Cash Equivalents Cash Flow from Ops Grupa LOTOS S.A. (the Company) is an oil company engaged in the business of production and processing of crude oil, as well as wholesale and retail sale of high quality petroleum products. The Company is a producer and supplier of a number of products, including unleaded gasoline, diesel oil, diesel oil for heating purposes (light fuel oil), aviation fuel and heavy fuel oil. It also specialises in the production and sale of lubricating oils and bitumens. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 124 Gulfport Energy Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 170 459 167 276 171 176 302 302 300 0 0 0 2,165 2,050 1,126 (911) (811) (758) 0 0 0 (635) (640) (582) (USD, Millions) 2014* 2013 2012 EBITDA 219 175 181 EBIT 66 56 90 Net Income Before Non-Recurring Items 213 172 68 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 12% 13% 21% 0% 28% 2.63 2.28 12.11 79.52 18.50 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.09 1.77 1.70 0.01 1.71 1.38 1.73 1.66 0.01 1.68 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Gulfport Energy Corporation (the Company) is an oil and gas exploration and production company headquartered in Oklahoma City. The Companys principal producing properties are located along the Louisiana Gulf Coast and in the Permian Basin in West Texas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 0.0 20.0 40.0 60.0 80.0 100.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 125 Halcn Resources Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 3 3 593 558 55 3,586 3,236 2,158 0 0 0 1,381 1,448 2,093 (2,552) (2,520) (1,256) 0 0 0 (1,959) (1,962) (1,201) (USD, Millions) 2014* 2013 2012 EBITDA 680 621 63 EBIT 179 158 (27) Net Income Before Non-Recurring Items 248 244 (26) KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 72% 69% 51% 97% 98% 0.64 0.61 -0.32 1.17 1.10 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 6.05 5.80 39.31 6.35 5.39 5.27 5.21 34.26 4.78 3.83 Cash & Cash Equivalents Cash Flow from Ops Halcn Resources Corporation is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich assets in the United States. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT 0% 20% 40% 60% 80% 100% 120% 2014* 2013 2012 2011 2010 (0.5) 0.0 0.5 1.0 1.5 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 126 Hellenic Petroleum S.A. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 65 760 924 (131) 10 766 3,484 3,812 3,797 (62) (58) (178) 2,151 3,051 3,290 (160) (140) (666) 0 0 0 (352) (184) (78) 2014* 2013 2012 EBITDA 144 104 389 EBIT (140) (193) 160 (270) (312) 78 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 62% 56% 54% 53% 49% -0.46 -0.66 0.84 1.14 3.28 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 -26.69 -20.73 15.48 3.18 3.05 24.25 36.50 9.70 7.72 5.27 Cash & Cash Equivalents Cash Flow from Ops Hellenic Petroleum S.A. is an energy group in south-east Europe and an industrial and commercial company in Greece. Its activities consist of refining & marketing, petrochemicals, hydrocarbon exploration and production, and natural gas and power. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 (1.0) 0.0 1.0 2.0 3.0 4.0 2014* 2013 2012 2011 2010 (30.0) (20.0) (10.0) 0.0 10.0 20.0 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 127 Hess Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,288 1,814 642 5,814 5,562 4,778 10,406 10,628 12,311 (279) (235) (171) 24,242 24,784 21,203 (5,768) (5,840) (7,743) 0 0 0 (233) (513) (3,136) 2014* 2013 2012 EBITDA 5,844 6,066 6,867 EBIT 3,011 3,296 3,945 2,461 2,817 2,016 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 30% 30% 37% 33% 32% 7.90 8.12 9.42 10.12 10.74 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.79 1.91 2.58 1.87 2.01 1.78 1.75 1.79 1.48 1.29 Cash & Cash Equivalents Cash Flow from Ops Hess Corporation is a global energy company engaged in the exploration and production of crude oil and natural gas, as well as in refining and marketing refined petroleum products, natural gas and electricity. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 128 HKN, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 12 14 19 (1) (1) (3) 1 1 1 0 0 0 58 64 72 (8) (7) (3) 0 0 0 (9) (8) (6) 2014* 2013 2012 EBITDA (3) (3) (4) EBIT (4) (3) (5) (2) (1) (3) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2% 2% 2% 2% 1% -102.41667 -93.86 -2288.50 N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 -0.918962 -1.05 -0.33 5.38 0.44 -0.3753724 -0.43 -0.27 -0.30 -0.22 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops HKN, Inc. (the Company) is a publicly traded company incorporated in 1973 in the State of California and reincorporated in 1979 in the State of Delaware. Main operations of the Company are oil and gas exploration, development and production. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2014* 2013 2012 2011 2010 (2500.0) (2000.0) (1500.0) (1000.0) (500.0) 0.0 2014* 2013 2012 2011 2010 (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 (0.5) (0.5) (0.4) (0.4) (0.3) (0.3) (0.2) (0.2) (0.1) (0.1) 0.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 129 Husky Energy Inc. RATING: A (low); Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,518 1,097 2,025 5,327 5,080 4,887 5,998 5,049 4,698 (1,185) (1,184) (1,181) 20,535 20,078 19,161 (5,145) (5,028) (4,701) 291 291 291 (1,003) (1,132) (995) 2014* 2013 2012 EBITDA 5,857 5,646 5,387 EBIT 2,828 2,641 2,807 1,928 1,802 1,979 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.226058116 20% 20% 20% 25% 9.0063694 8.52 8.88 10.19 4.69 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.12596208 0.99 0.96 0.90 1.61 1.0240738 0.89 0.87 0.80 1.39 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Husky Energy Inc.s upstream and midstream operations, primarily located in Canada, include infrastructure and commodity marketing. Its downstream operations include upgrading, refining and marketing. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0 0.05 0.1 0.15 0.2 0.25 0.3 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 130 Imperial Oil Limited RATING: AA (high); Stable DESCRIPTION OPERATING CASH FLOW 2014* 2013 2012 2014* 2013 2012 102 272 482 4,473 4,270 5,052 7,347 7,349 2,727 (415) (407) (398) 20,361 19,524 16,377 (6,158) (6,297) (5,478) 0 0 0 (2,100) (2,434) (824) 2014* 2013 2012 EBITDA 4,900 4,627 5,573 EBIT 3,695 3,517 4,812 2,816 2,684 3,649 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.265158 27% 14% 15% 9% 39.731182 43.96 253.26 218.72 212.53 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.642521797 1.72 0.54 0.58 0.37 1.499387 1.59 0.49 0.47 0.32 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Imperial Oil Limited, 69.6% owned by ExxonMobil, is a refiner and marketer of petroleum products and a major producer of petrochemical products in Canada. KEY METRICS BALANCE SHEET (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 0.0 50.0 100.0 150.0 200.0 250.0 300.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 131 Inpex Corporation RATING: NR DESCRIPTION 2014* 2013* 2012 2014* 2013* 2012 6,311 6,103 4,050 8,270 906 3,011 5,665 5,751 4,131 (309) (301) (341) 29,080 27,692 28,071 (4,330) (3,310) (1,255) 0 0 0 3,631 (2,705) 1,414 (USD, Millions) 2014* 2013 2012 EBITDA 7,321 7,769 9,266 EBIT 7,321 7,492 8,989 Net Income Before Non-Recurring Items 1,766 1,185 1,890 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 16% 16% 13% 12% 15% 314.18 456.82 577.65 493.24 362.09 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.70 0.58 0.40 0.50 0.47 0.80 0.69 0.47 0.53 0.53 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Inpex Corporation (Inpex) is a Japanese company headquartered in Akasaka district, Tokyo. Inpex's main business includes: research, exploration, development, production and sales of oil, natural gas and other mineral resources, other related businesses and investment and lending to the companies engaged in these activities. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 132 Isramco, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 3 4 1 34 27 16 113 113 104 0 0 0 17 12 19 (23) (20) (17) 0 0 0 11 6 (1) 2014* 2013 2012 EBITDA 40 32 19 EBIT 28 20 8 13 9 6 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.86755 90% 85% 85% 87% 4.22956 3.21 1.33 1.23 0.66 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.348378 4.24 6.59 14.85 9.59 2.8135576 3.40 5.26 5.46 7.21 Cash & Cash Equivalents Cash Flow from Ops Isramco, Inc. (the Company), together with its subsidiaries, engages in the acquisition, development, production, and exploration of oil and natural gas properties in the United States and Israel. The Company was founded in 1982 and is based in Houston, Texas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 20% 40% 60% 80% 100% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 133 JSOC Bashneft RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 899 499 657 2,469 2,534 2,392 4,350 2,933 3,873 (590) (1,335) (591) 6,643 7,189 8,107 (1,087) (979) (1,017) 0 0 0 792 219 784 2014* 2013 2012 EBITDA 3,268 3,267 3,224 EBIT 2,814 2,645 2,774 1,854 2,010 1,846 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.395679 29% 32% 34% 34% 11.124113 9.73 7.87 6.49 5.47 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.778011 1.16 1.62 1.43 2.13 1.3307814 0.90 1.20 1.09 1.74 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops JSOC Bashneft (Bashneft) is a vertically integrated oil company based on the fuel and energy producers of the Republic of Bashkortostan. Bashneft sells its products in Russia and exports them to Eastern and Western Europe and Kazakhstan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0 0.1 0.2 0.3 0.4 0.5 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.4 0.8 1.2 1.6 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 134 Kodiak Oil & Gas Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 16 0 24 635 599 297 2,261 2,270 1,106 0 0 0 1,228 1,193 1,036 (960) (1,028) (764) 0 0 0 (325) (429) (467) 2014* 2013 2012 EBITDA 734 667 289 EBIT 385 350 133 169 170 101 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.64794 66% 52% 47% 12% 3.220596 3.21 1.93 1.52 7.42 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.562771 3.82 3.73 10.61 2.62 3.078943 3.40 3.83 10.24 3.51 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Kodiak Oil & Gas Corp. is an independent exploration and production company. It is focused on exploring, developing and producing oil and natural gas in the U.S. Rocky Mountain region, and has core operations in the Williston Basin in Montana and North Dakota, and the Vermillion Basin of the Great Green River basin. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 135 Kosmos Energy Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 528 598 515 405 396 326 821 926 1,017 0 0 0 1,085 992 1,029 (330) (317) (369) 0 0 0 75 79 (43) 2014* 2013 2012 EBITDA 372 349 284 EBIT 162 126 98 (50) (91) (64) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.430833 48% 50% 52% 109% 3.643649 2.53 1.57 2.90 -2.52 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.025931 2.34 3.12 2.76 -10.67 2.206258 2.66 3.59 3.24 -8.92 Cash & Cash Equivalents Cash Flow from Ops Kosmos Energy Ltd. is a pathfinding oil and gas exploration and production company headquartered in Bermuda. Its primary areas of operation are underexplored regions of Africa and South America. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0 0.2 0.4 0.6 0.8 1 1.2 2014* 2013 2012 2011 2010 (3.0) (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 2014* 2013 2012 2011 2010 (12.0) (10.0) (8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 2014* 2013 2012 2011 2010 (10.0) (8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 136 Laredo Petroleum, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 548 198 33 360 377 365 1,513 1,064 1,227 0 0 0 1,276 1,272 832 (756) (743) (920) 0 0 0 (395) (366) (555) 2014* 2013 2012 EBITDA 450 450 414 EBIT 231 216 173 132 119 78 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.537553 46% 60% 46% 54% 2.220132 2.15 2.01 4.02 4.04 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 4.199843 2.82 3.36 1.91 2.92 3.36001 2.36 2.96 1.71 2.86 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Laredo Petroleum, Inc. (the Company) is an independent energy company with headquarters in Tulsa, Oklahoma. The Company is focused on the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions of the United States. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 137 Legacy Oil & Gas Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 13 10 4 296 276 220 788 757 548 0 0 0 1,536 1,531 1,464 (354) (321) (315) 0 0 0 (58) (45) (95) 2014* 2013 2012 EBITDA 353 321 237 EBIT 124 99 29 43 30 (5) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.339148 33% 27% 22% 17% 3.250608 2.68 1.48 4.55 3.00 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.661709 2.744399 2.488 2.2238 2.3108 2.233444 2.36 2.31 2.07 1.97 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Legacy Oil & Gas Inc. (the Company) is an intermediate oil and natural gas company based in Calgary, Alberta. The Companys assets are focused in southeast Saskatchewan and southwest Alberta. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 138 LightStream Resources Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 661 671 580 2,080 2,137 1,809 (125) (134) (78) 1,934 1,933 3,433 (651) (760) (956) 0 0 0 (115) (223) (454) (CAD, Millions) 2014* 2013 2012 EBITDA 804 799 705 EBIT 296 278 260 Net Income Before Non-Recurring Items 100 87 129 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.518113 53% 35% 34% 30% 2.125273 2.06 2.04 3.96 3.99 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.144123 3.19 3.12 3.14 2.35 2.586933 2.67 2.57 2.49 2.11 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops LightStream Resources Ltd. is a light oil-focused exploration and production company. Principal operating areas include southeastern Saskatchewan, targeting the Bakken formation and conventional Mississippian reservoirs, central Alberta, focusing on the Cardium formation, and north-central Alberta, engaging in exploring for light oil resource plays. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 139 LINN Energy, LLC RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 68 52 1 1,316 1,142 379 9,466 9,256 6,077 (751) (682) (597) 5,591 5,891 4,427 (1,314) (1,170) (1,045) 0 0 0 (749) (711) (1,263) 2014* 2013 2012 EBITDA 1,522 1,208 905 EBIT 623 379 299 229 149 314 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.628681 61% 58% 54% 50% 1.363283 0.90 0.78 1.36 0.64 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 7.195131 8.11 16.01 7.20 10.66 6.218604 7.66 6.71 5.84 7.61 Cash & Cash Equivalents Cash Flow from Ops LINN Energy, LLC (the Company) is an independent oil and natural gas company headquartered in Houston, Texas. The Companys core focus areas are the Mid-Continent, Permian basin, Hugoton basin, Rockies, Michigan and California. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 140 Long Run Exploration Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 4 244 223 106 457 440 279 (8) 0 0 616 617 586 (275) (277) (196) 0 0 0 (39) (53) (90) 2014* 2013 2012 EBITDA 272 242 128 EBIT 89 71 6 56 41 31 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.425667 42% 32% 22% 4% 5.414851 4.79 0.65 9.97 3.68 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.871089 1.97 2.63 1.87 0.43 1.67875 1.82 2.18 1.69 0.45 Cash & Cash Equivalents Cash Flow from Ops Long Run Exploration, Ltd. (the Company) is an intermediate oil company focused on light-oil development and exploration in western Canada. The Company is focused in three areas in Alberta, namely Triassic oil, Duvernay, and Carbonate oil. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 141 Longview Oil Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 64 69 65 124 119 113 (27) (28) (28) 241 241 255 (45) (40) (54) 0 0 0 (7) 1 (17) 2014* 2013 2012 EBITDA 79 74 63 EBIT 40 35 21 20 19 22 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.340118 33% 30% 24% N/A 7.361639 6.40 4.35 8.84 N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.932637 1.86 1.86 1.93 0.00 1.576413 1.58 1.79 1.59 0.00 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Longview Oil Corp. (the Company) is a Canada-based oil and natural gas production, exploitation and acquisition company in the Western Canadian sedimentary basin. It aims to acquire and operate primarily producing crude oil properties. The Company was a wholly owned subsidiary of Advantage Oil & Gas Ltd. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 142 Magnum Hunter Resources Corporation RATING: NR DESCRIPTION OPERATING CASH FLOW 2014* 2013 2012 2014* 2013 2012 64 42 58 36 52 107 901 883 895 (42) (41) (27) 648 687 913 (526) (632) (569) 559 0 0 (532) (620) (488) 2014* 2013 2012 EBITDA 90 (31) 119 EBIT (21) (130) (17) (42) (147) (28) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 58% 56% 50% 33% 18% -0.29 -0.51 -0.34 -4.85 -8.26 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 25.04 16.96 8.35 10.71 42.14 9.98 13.58 7.51 35.69 -3.45 Cash & Cash Equivalents Cash Flow from Ops Magnum Hunter Resources Corporation is an independent oil and gas company engaged in the exploration for and the exploitation, acquisition, development and production of crude oil, natural gas and natural gas liquids resources in the United States and Canada. KEY METRICS BALANCE SHEET (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 (10.0) (8.0) (6.0) (4.0) (2.0) 0.0 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2014* 2013 2012 2011 2010 (10.0) (5.0) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 143 Marathon Oil Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,964 264 684 5,282 5,446 4,410 6,730 6,867 7,148 (521) (508) (480) 19,805 19,344 18,283 (4,496) (4,766) (4,940) 0 0 0 265 172 (1,010) 2014* 2013 2012 EBITDA 8,486 9,273 9,590 EBIT 5,719 6,483 7,112 2,169 2,558 2,275 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 25% 26% 28% 23% 27% 22.52 22.86 22.94 18.02 10.95 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.27 1.26 1.62 1.03 1.79 0.79 0.76 0.76 0.69 1.03 Cash & Cash Equivalents Cash Flow from Ops Marathon Oil Corporation (the Company) is an energy company with worldwide operations in the exploration and production of liquid hydrocarbons and natural gas, oil sands mining and the production of integrated gas products. Headquartered in Houston, Texas, the Company was formerly known as USX Corp. prior to July 2001. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 144 Mari Petroleum Company Limited RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 70 72 53 39 66 25 22 24 25 (6) (3) (6) 164 145 206 (34) (46) (3) 0 0 0 (1) 16 16 2014* EBITDA 84 EBIT 69 66 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 12% 16% 11% 14% 19% 15.45 37.40 16.03 13.73 12.07 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.57 0.44 1.27 0.93 0.99 0.27 0.36 0.29 0.42 0.68 *2013 figures refer to LTM as of Dec 31, 2013 2013 55 54 53 2012 58 55 54 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Mari Petroleum Company Limited (the Company) is an exploration and production company located in Pakistan. It operates the countrys second largest gas reservoir at Mari Field, District Ghotki, Sindh. The Company is primarily engaged in exploration, development and production of hydrocarbon potentials in the country. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 145 MEG Energy Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 890 1,179 1,475 362 253 212 4,237 4,078 2,555 0 0 0 4,706 4,788 4,871 (1,273) (2,188) (1,599) 0 0 0 (911) (1,935) (1,387) 2014* EBITDA 394 EBIT 212.498 (5) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 47% 46% 34% 31% 20% 1.42 0.47 0.75 2.13 1.04 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 11.72 16.12 12.06 6.09 7.97 10.75 14.72 10.79 5.76 5.86 25 92 237 2012 Cash & Cash Equivalents Cash Flow from Ops Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items 2013 277 88 0 MEG Energy Corporation (the Company) is a Canadian oil sands company focused on sustainable development and production in Albertas Athabasca region. The Company owns a 50% interest in a dual pipeline system with Devon Energy Corporation. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 146 MOL Group RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,058 1,014 1,434 2,185 2,194 2,281 4,439 4,759 5,054 (169) (173) (169) 9,965 10,015 10,112 (1,708) (1,007) (1,181) 0 0 0 308 1,014 932 2014* EBITDA 3,720 EBIT 2,495 698 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 31% 32% 33% 35% 39% N/A 5.79180176 9.9438 12.0878 13.213 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.99 2.23 2.22 1.87 2.68 1.19322055 1.29452451 1.3039 1.05077 1.4455 2013 3,574 2,238 721 2012 3,876 2,610 752 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops MOL Group (the Company) is an international, integrated oil and gas company from Hungary. In addition to the Companys refinery and commercial position in the CEE region, increasing focus is now being given to its exploration and production assets. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 147 Murphy Oil Corporation RATING: BBB; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,021 1,125 1,063 3,024 2,944 3,396 5,006 4,522 3,600 (232) (235) (714) 8,304 8,596 8,942 (3,629) (3,598) (3,553) 0 0 0 (836) (889) (1,006) 2014* EBITDA 3,047 EBIT 1,461 896 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 38% 34% 29% 15% 19% 11.21 11.97 29.05 32.98 27.00 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.66 1.54 1.17 0.56 0.83 1.64 1.49 1.27 0.54 0.77 Cash & Cash Equivalents Cash Flow from Ops Murphy Oil Corporation is engaged mainly in worldwide offshore oil and gas exploration and production. It also owns a U.K. refinery and marketing operations in both the U.K. and the United States. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 2013 3,042 1,489 888 2012 3,265 1,889 1,204 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 148 Newfield Exploration Company RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 107 95 88 1,417 1,395 1,329 3,712 3,796 3,621 0 0 0 3,250 2,956 2,780 (2,181) (2,023) (1,780) 0 0 0 (764) (628) (451) 2014* EBITDA 1,223 EBIT 514 326 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 53% 56% 57% 47% 45% 2.51 2.04 2.54 4.21 3.98 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.62 2.72 2.72 2.27 1.71 3.04 3.49 2.45 2.34 2.15 Cash & Cash Equivalents Cash Flow from Ops Newfield Exploration Company is an independent crude oil and natural gas exploration and production company headquartered in The Woodlands, Texas. Its operations include the Mid-Continent, the Rocky Mountains, onshore Texas and the Gulf of Mexico. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 2013 1,087 419 265 2012 1,476 521 319 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 149 Niko Resources Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 82 80 64 (41) (142) (84) 375 1,225 800 0 0 (13) 901 266 901 (154) (70) (25) 0 0 0 (194) (212) (121) 2014* EBITDA (21) (43) EBIT (130) (160) (7) (110) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 59% 55% 47% 24% 20% -3.64 -3.13 -1.53 5.67 8.59 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 -9.25 -9.26 -9.57 2.37 2.56 13.76 7.17 1.41 1.04 *2013 figures refer to LTM as of Dec 31, 2013. Cash & Cash Equivalents Cash Flow from Ops Niko Resources Ltd. (the Company) is focused on sustained growth through successful exploration. The Company is currently a non-government landowner in both Indonesia and Trinidad and is involved in the field of international oil and natural gas exploration and production. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 2013 76 (69) (90) 2012 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 (12.0) (10.0) (8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 150 Noble Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,354 1,117 1,387 (1,362) 3,144 2,683 5,281 5,076 4,390 (170) (198) (164) 9,361 9,184 8,258 (4,002) (3,947) (3,650) 0 0 0 (1,362) (1,001) (1,131) 2014* 2013 2012 EBITDA 3,215 3,111 2,571 EBIT 1,246 1,543 1,201 930 1,101 860 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 36% 35% 35% 39% 28% 4.18 5.53 4.35 5.72 4.85 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.61 1.61 1.64 2.08 1.62 1.97 1.63 1.71 2.36 1.80 Cash & Cash Equivalents Cash Flow from Ops Noble Energy Inc. is an energy company with core operations onshore in the United States, in the deepwater Gulf of Mexico, offshore in the eastern Mediterranean, and offshore in West Africa. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 151 Noreco SA RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 83 66 105 148 198 97 579 565 798 0 0 0 292 288 364 (38) (79) (195) 0 0 0 110 120 (99) 2014* 2013 2012 EBITDA (0) (56) (126) EBIT (67) (110) (173) 5 (12) (27) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 67% 66% 69% 62% 60% -0.89 -1.36 -2.19 -0.75 -1.45 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.92 4.44 29.87 4.03 9.37 -10.09 -6.41 -19.47 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Noreco SA (Noreco) is an independent Norwegian oil and gas company with focus on exploration, development and production in the North Sea region. Noreco operates in Norway, Denmark and the United Kingdom, and employs around 70 oil and gas professionals. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 54% 56% 58% 60% 62% 64% 66% 68% 70% 2014* 2013 2012 2011 2010 (2.5) (2.0) (1.5) (1.0) (0.5) 0.0 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2014* 2013 2012 2011 2010 (25.0) (20.0) (15.0) (10.0) (5.0) 0.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 152 Northern Oil & Gas Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 8 6 13 235 237 213 649 586 426 0 0 0 613 620 586 (403) (360) (532) 0 0 0 (168) (123) (319) 2014* EBITDA 284 276 EBIT 151 151 44 53 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 51% 49% 42% 12% 0% 3.56 3.91 5.77 77.98 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.76 2.47 2.00 0.63 0.03 2.28 2.13 2.00 0.60 0.03 2013 213 114 57 2012 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Northern Oil and Gas Inc. is an oil and gas exploration and production company, and it is a Williston Basin Bakken and Three Forks pure play in western North Dakota and eastern Montana. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 20.0 40.0 60.0 80.0 100.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 153 NuVista Energy Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 2 0 285 66 59 109 22 42 0 0 0 705 708 656 (282) (224) (116) 0 0 0 3 (158) (57) 2014* 2013 2012 EBITDA 106 86 81 EBIT 20 3 (38) (211) (20) (1) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 13% 3% 6% 29% 36% 2.52 0.32 -3.21 0.50 0.91 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.38 0.08 0.71 2.08 2.80 1.03 0.26 0.51 1.83 2.55 Cash & Cash Equivalents Cash Flow from Ops NuVista Energy Ltd. is a company engaged in exploration, development and production activities on properties located in three operating regions of the Western Canadian Sedimentary Basin. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 (4.0) (3.0) (2.0) (1.0) 0.0 1.0 2.0 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 154 OAO Gazprom RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 20,957 20,957 14,253 59,534 59,534 43,541 54,798 54,798 49,265 (4,308) (4,308) (7,326) 292,991 292,991 342,712 (43,858) (43,858) (43,858) 0 0 0 11,368 11,368 (91) 2014* 2012 EBITDA 64,650 62,876 EBIT 51,498 43,743 37,639 24,676 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 16% 16% 13% 13% 14% 48.156659 48.1567 22.027733 26.3076 18.025 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.920461351 0.9204614 1.13147 0.99886 0.95369 0.8476211 0.84762 0.7835318 0.6672 0.8165 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) OAO Gazprom is a global energy company headquartered in Russia Federation. Its major business lines are geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel as well as generation and marketing of heat and electric power. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 2013 64,650 51,498 37,639 Cash & Cash Equivalents Cash Flow from Ops Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 60.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 155 OAO Lukoil RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2,326 1,712 2,914 16,778 17,512 16,698 12,904 11,745 7,335 (2,500) (2,383) (2,800) 80,567 78,855 74,188 (14,761) (14,957) (11,647) 0 0 0 (483) 172 2,251 2014* 2013 2012 EBITDA 18,800 18,878 19,020 EBIT 12,901 13,122 14,188 9,767 9,988 11,421 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 14% 13% 9% 13% 17% 24.30 26.89 26.37 21.94 17.02 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.77 0.67 0.44 0.58 0.87 0.69 0.62 0.39 0.51 0.77 Cash & Cash Equivalents Cash Flow from Ops OAO Lukoil is an international vertically-integrated oil & gas company, accounting for 2.1% of global output of crude oil. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 156 Oasis Petroleum Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 56 92 239 405 722 12,099 2,277 2,553 8,571 0 0 0 1,520 1,349 40,048 (1,116) (894) (1,053) 0 0 0 (712) (171) (618) 2014* EBITDA 540 813 487 EBIT 309 506 9,210 129 229 129 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 60% 65% 60% 56% 1% 3.31 4.52 3.82 4.78 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 5.63 3.53 2.80 3.89 0.07 4.21 3.14 2.50 3.51 0.07 2013 2012 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Oasis Petroleum Inc. (the Company) is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources. The Company has its operations in the Bakken Shale, located in Montana and North Dakota. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 157 Occidental Petroleum Corporation RATING: A; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2,332 3,393 1,592 12,719 12,722 12,099 7,723 7,785 8,571 (2,067) (1,553) (2,128) 43,369 43,372 40,048 (9,236) (9,037) (10,226) 0 0 0 1,416 2,132 (255) 2014* 2013 2012 EBITDA 14,232 14,087 13,721 EBIT 8,878 8,740 9,210 5,630 5,602 5,770 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 15% 15% 18% 15% 16% 33.76 32.49 36.26 48.15 37.63 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.61 0.61 0.71 0.55 0.70 0.54 0.55 0.62 0.47 0.56 Cash & Cash Equivalents Cash Flow from Ops Occidental Petroleum Corporation is a U.S.-concentrated oil and gas producer. It is also involved in manufacturing operations, midstream marketing and commodities trading. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 60.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 158 Oil & Gas Development Company Limited RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 131 27 40 1,027 992 1,208 0 0 0 (330) (349) (341) 3,796 3,237 2,818 (402) (310) (234) 0 0 0 295 334 633 2014* 2012 EBITDA 1,649 1,633 EBIT 1,500 1,473 1,022 1,080 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A Adjusted Debt-to-Cash Flow Adjusted Debt-to-EBITDA 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 *2013 figures refer to LTM as of Dec 31, 2013. 2013 1,590 1,441 934 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Oil & Gas Development Company Limited (the Company), headquartered in Islamabad Pakistan, explores, develops, produces, and sells oil and gas resources. The Company primarily produces crude oil, gas, liquefied petroleum gas, and sulphur. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0.00% 0.01% 0.01% 0.02% 0.02% 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 0.000% 0.005% 0.010% 0.015% 0.020% 0.025% 0.030% 0.035% 2014* 2013 2012 2011 2010 0.00% 0.01% 0.01% 0.02% 0.02% 0.03% 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 159 OMV Aktiengesellschaft RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,153 1,153 1,618 4,557 4,565 4,535 7,687 7,271 7,141 (805) (833) (805) 20,363 20,042 19,158 (3,674) (6,316) (3,195) 0 0 0 78 (2,583) 535 2014* 2012 EBITDA 6,228 6,325 EBIT 4,073 4,260 1,467 2,115 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 27% 28% 28% 29% 37% 13.66 15.98 17.51 10.54 13.09 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.63 1.64 1.56 1.81 2.23 1.21 1.29 1.15 1.29 1.82 2013 6,019 3,887 2,718 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops OMV Aktiengesellschaft is active in two core countries, Romania and Austria, in terms of exploration and production, and holds a balanced international portfolio. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 160 Pacific Rubiales Energy Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 306 633 244 1,881 1,913 1,388 7,295 4,476 1,327 (212) (196) (130) 4,141 4,227 3,974 (2,194) (2,151) (1,512) 0 0 0 (526) (434) (254) INCOME STATEMENT (USD, Millions) 2014* 2013 2012 EBITDA 2,599 2,564 2,002 EBIT 1,177 1,184 1,150 Net Income Before Non-Recurring Items 458 477 573 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 64% 41% 25% 28% 29% 8.60 9.64 24.95 25.35 11.55 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.88 1.80 0.96 0.84 1.27 2.81 1.75 0.66 0.60 0.94 Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow KEY RATIOS Cash & Cash Equivalents Cash Flow from Ops Pacific Rubiales Energy Corp. (the Company) is a conventional oil and gas company that engages in the exploration, development and production of oil and natural gas in Colombia, Peru and Guatemala. It also operates oil pipelines in Colombia. The Company is headquartered in Toronto. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 161 Painted Pony Petroleum Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 78 44 51 39 39 37 4 0 0 0 559 556 550 (112) (143) (119) 0 0 0 (68) (92) (80) (CAD, Millions) 2014* 2013 2012 EBITDA 37 46 31 EBIT (2) 3 (9) Net Income Before Non-Recurring Items 1 (6) (6) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 7% 6% 1% 1% 2% -5.58 3.41 -25.52 50.71 48.23 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.89 0.72 0.10 0.10 0.11 1.06 0.80 0.12 0.09 0.10 Cash & Cash Equivalents Cash Flow from Ops Painted Pony Petroleum Ltd. is a Canadian public resource company based in Calgary, Alberta, with operations in Saskatchewan, Alberta and British Columbia. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0% 1% 2% 3% 4% 5% 6% 7% 2014* 2013 2012 2011 2010 (40.0) (20.0) 0.0 20.0 40.0 60.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 162 Pakistan Petroleum Limited RATING: NR DESCRIPTION BALANCE SHEET 2014* 2013 2012 2014 2013 2012 33 81 18 957 1,119 786 3 3 3 (180) (173) (100) 1,707 1,507 1,316 (244) (223) (102) 0 0 0 533 722 584 2014* 2012 EBITDA 684 720 EBIT 601 644 413 418 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.19% 0.21% 0.21% 0.25% 1.74% 147.43 150.51 322.72 231.96 223.55 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.00 0.04 Cash & Cash Equivalents Cash Flow from Ops Pakistan Petroleum Limited is a supplier of natural gas in addition to producing crude oil, natural gas liquids and liquefied petroleum gas. KEY METRICS OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 2013 692 614 429 0.0% 0.5% 1.0% 1.5% 2.0% 2014* 2013 2012 2011 2010 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 2014* 2013 2012 2011 2010 0.00 0.01 0.02 0.03 2014* 2013 2012 2011 2010 0.00 0.01 0.02 0.03 0.04 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 163 Pan Orient Energy Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 (23) 42 134 23 9 11 4 4 3 0 0 (43) 248 242 326 (78) (101) (78) 0 0 0 (55) (92) (110) 2014* 2013 2012 EBITDA 20 21 39 EBIT 5 7 26 (203) (203) 16 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.76% 1.80% 1.03% 1.10% 1.20% N/A N/A N/A N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.20 0.48 0.31 0.08 0.05 0.23 0.21 0.09 0.06 0.03 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Net Income Before Non-Recurring Items Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Pan Orient Energy Corp. (the Company) is a Canadian junior oil and natural gas company based in Calgary, Alberta. The Company owns on-shore properties in Thailand and Indonesia, as well as Canadian oil sand properties. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0.0% 0.5% 1.0% 1.5% 2.0% 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 2014* 2013 2012 2011 2010 0.00 0.05 0.10 0.15 0.20 0.25 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 164 Parallel Energy Trust RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 43 40 33 234 223 208 (28) (29) (44) 294 286 281 (9) (9) (25) 0 0 0 5 2 (36) 2014* EBITDA 53 50 EBIT 19 15 8 5 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 44% 44% 43% 16% N/A 1.70 1.45 0.63 6.16 N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 5.51 5.61 6.35 2.81 0.00 4.41 4.44 5.85 2.95 N/A 2013 35 4 6 2012 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Parallel Energy Trust (the Trust) is an unincorporated open-ended limited purpose trust. The Trusts objective is to create returns for investors through the acquisition and development of conventional oil and natural gas reserves and production with unexploited potential, located in certain regions of the United States. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 165 Paramount Resources Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 16 11 147 63 21 34 1,119 973 718 0 0 0 1,065 1,032 851 (737) (736) (624) 0 0 0 (673) (715) (590) 2014 EBITDA 96 72 EBIT (51) (74) (83) (101) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 51% 49% 46% 37% 33% -0.75 -1.13 -3.13 -2.02 -4.83 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 17.66 46.59 21.33 6.72 4.13 11.64 13.42 22.31 5.69 9.16 2013 32 (111) 19 2012 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Paramount Resources Ltd. (the Company) is engaged in the exploration, development, production, processing, transportation and marketing of natural gas, crude oil and natural gas liquids in Western Canada, as well as Montana and North Dakota, United States. The Company is headquartered in Calgary. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 (6.0) (5.0) (4.0) (3.0) (2.0) (1.0) 0.0 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 166 Parex Resources Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 40 56 32 251 271 243 76 85 82 0 0 0 500 485 465 (273) (221) (268) 0 0 0 (22) 50 (25) 2014* 2013 2012 EBITDA 318 326 292 EBIT 131 111 111 62 51 65 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 13% 13% 15% 14% 3% 27.95 8.87 24.04 17.45 N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.30 0.27 0.34 0.67 -0.73 0.24 0.23 0.28 0.64 -0.55 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Parex Resources Inc. (Parex) is an oil and gas exploration company with a portfolio of high impact prospects in the prolific Llanos Basin and Middle Magdalena Basin of Colombia and onshore Trinidad and Tobago. Headquartered in Calgary, Alberta, Parex holds interests in 17 onshore exploration blocks. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 2% 4% 6% 8% 10% 12% 14% 16% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2014* 2013 2012 2011 2010 (1.0) (0.8) (0.6) (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 2014* 2013 2012 2011 2010 (0.8) (0.6) (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 167 PDC Energy, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 147 193 2 225 208 164 667 672 692 0 0 0 666 968 703 (469) (395) (348) 0 0 0 (244) (187) (184) (USD, Millions) 2014* 2013 2012 EBITDA 254 216 120 EBIT 108 89 (27) Net Income Before Non-Recurring Items 58 65 57 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 41% 41% 50% 45% 32% 2.03 1.65 -0.54 0.52 -0.39 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.96 3.23 4.22 3.27 2.32 2.63 3.11 5.76 3.68 3.25 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops PDC Energy (the Company) is a 40-year old independent natural gas and oil company. The Company operates in Colorado, Ohio, and West Virginia. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 168 Pengrowth Energy Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 315 449 3 557 561 494 1,276 1,651 1,860 (249) (248) (289) 3,528 3,688 4,190 (770) (703) (472) 0 0 0 (463) (390) (267) 2014* 2013 2012 EBITDA 745 704 641 EBIT 195 129 73 10 (21) (13) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 33% 31% 31% 25% 26% 2.18 1.37 0.85 3.36 3.55 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.06 2.94 3.77 1.83 1.89 2.29 2.35 2.90 1.59 1.65 Cash & Cash Equivalents Cash Flow from Ops Pengrowth Energy Corporation (the Company) is an oil and gas producer headquartered in Calgary, Alberta. The Company explores for crude oil, natural gas and liquids in Alberta, British Columbia, Saskatchewan and Nova Scotia. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 169 Penn Virginia Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 10 23 18 242 235 191 1,276 1,292 661 (7) (7) (5) 808 789 895 (578) (504) (371) 1 1 1 (343) (276) (185) (USD, Millions) 2014* 2013 2012 EBITDA 324 286 177 EBIT 58 40 (30) Net Income Before Non-Recurring Items (140) (144) 4 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 61% 62% 42% 47% 38% 0.62 0.48 -0.49 -0.93 -0.97 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 5.27 5.49 3.45 4.91 3.59 3.94 4.52 3.74 7.07 7.33 Cash & Cash Equivalents Cash Flow from Ops Penn Virginia Corporation (the Company) is an independent oil and gas company engaged primarily in the exploration, development and production of oil, natural gas liquids and natural gas in various domestic onshore regions of the United States, with a primary focus in Texas, and to a lesser extent, the Mid-Continent, Mississippi and the Marcellus Shale in Appalachia. The Company is headquartered in Radnor, PA. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 (1.5) (1.0) (0.5) 0.0 0.5 1.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 170 Penn West Petroleum Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 1,005 988 1,056 2,611 2,806 3,062 (313) (360) (395) 7,562 7,710 8,874 (594) (816) (1,752) 0 0 0 98 (188) (1,091) 2014* 2013 2012 EBITDA 1,234 1,159 1,359 EBIT 268 109 111 199 163 (3) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 26% 28% 26% 29% 25% 1.49 0.77 0.53 3.21 1.65 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.60 3.44 2.90 2.57 4.12 2.12 2.36 2.27 2.09 2.18 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Penn West Petroleum Ltd. is a petroleum and natural gas exploration and production company with reserves located in Western Canada and the United States. The Company was formerly known as Penn West Energy Trust. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 171 Perpetual Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2 0 2 36 39 35 379 383 389 0 0 0 58 98 36 (92) (95) (80) 0 0 0 (56) (56) (44) 2014* 2013 2012 EBITDA 68 70 69 EBIT 30 (28) (12) 36 (43) (49) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 83% 80% 92% 87% N/A -0.41 -0.87 -0.34 -0.33 -4.14 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 6.34 9.72 11.05 8.22 1.94 4.54 5.49 9.98 6.56 4.49 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Perpetual Energy Inc. (the Company) is an independent energy company that is involved in the acquisition, exploration and development of oil and gas properties in Alberta. The Company was formerly known as Paramount Energy Trust prior to June 2010. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 20% 40% 60% 80% 100% 2014* 2013 2012 2011 2010 (5.0) (4.0) (3.0) (2.0) (1.0) 0.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 172 Petrobras RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2012 2011 34,685 19,753 23,951 29,146 30,901 34,434 224,265 201,194 195,387 (2,656) (2,656) (3,272) 157,214 149,123 169,039 (44,683) (45,309) (40,671) 0 0 0 (18,193) (17,064) (9,509) 2014* 2013 2012 EBITDA 31,249 32,419 32,590 EBIT 18,246 19,231 21,471 14,574 15,563 16,694 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 59% 57% 54% 47% 42% 3.32 3.50 4.17 6.49 7.54 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 7.69 6.51 5.67 3.93 3.98 7.18 6.21 6.00 3.79 3.42 Cash & Cash Equivalents Cash Flow from Ops Petrobras (the Company) is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil and was founded in 1953. The Company owns oil refineries and oil tankers and is engaged in development of advanced technology from deep- water and ultra-deep water oil production. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 173 PetroChina Company Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 8,544 8,492 6,965 51,516 52,198 51,764 96,491 77,346 56,690 (10,176) (9,576) (10,382) 213,440 209,793 189,510 (50,839) (49,464) (49,380) 0 0 0 (9,499) (6,842) (7,997) 2014* 2013 2012 EBITDA 51,590 52,780 51,399 EBIT 27,380 26,835 27,554 20,900 21,223 21,410 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 31% 30% 29% 25% 20% 9.43 7.15 9.58 17.39 31.04 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.85 1.66 1.47 1.11 0.84 1.87 1.67 1.50 1.15 0.87 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops PetroChina Company Ltd. (the Company) is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation (CNPC), headquartered in Beijing. The Company is mainly engaged in the production and sale of oil and gas related products. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 174 PEYTO Exploration & Development Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 472 419 296 773 889 590 (137) (128) (101) 1,345 1,201 1,210 (588) (578) (430) 0 0 0 (253) (287) (235) (CAD, Millions) 2014* 2013 2012 EBITDA 529 469 334 EBIT 287 244 162 Net Income Before Non-Recurring Items 168 143 91 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 36% 43% 33% 32% 30% 8.58 7.87 6.37 9.63 8.64 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.64 2.12 1.99 1.63 1.77 1.46 1.90 1.77 1.40 1.41 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Peyto Exploration & Development Corp. (the Company) is engaged in the exploration and development of gas properties. The Company has operations located halfway between the Northwest Territories and the U.S. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 175 PGNiG S.A. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,216 937 629 1,986 1,860 1,294 2,064 2,558 3,317 (243) (243) (0) 9,746 9,434 8,795 (1,030) (1,040) (1,165) 0 0 0 713 578 128 (USD, Millions) 2014* 2013 2012 EBITDA 2,127 1,986 1,629 EBIT 1,319 1,207 993 Net Income Before Non-Recurring Items 916 718 752 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 17% 21% 27% 17% 9% 15.34 14.04 10.24 46.14 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.04 1.38 2.56 1.30 0.60 1.28 0.88 0.85 0.82 0.62 Cash & Cash Equivalents Cash Flow from Ops PGNiG S.A. is a Polish oil and gas exploration and production company engaged in the trade, distribution, oil and gas exploration and production as well as gas storage and processing in Poland. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 176 Pine Cliff Energy Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 9 1 1 21 10 2 0 0 3 0 0 0 134 129 71 (11) (12) (2) 0 0 0 11 (2) (1) (CAD, Millions) 2014* 2013 2012 EBITDA 22 14 1 EBIT (0) (2) (1) Net Income Before Non-Recurring Items 3 2 (1) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0% 0% 15% 0% 0% 7.52 -6.86 -2.30 N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.00 0.02 1.78 0.00 0.00 0.00 0.01 2.10 0.00 0.00 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Pine Cliff Energy Ltd. (the Company) engages in the exploration, development, and production of natural gas, crude oil, and natural gas liquids primarily in Canada. The Company primarily holds interest in the Carrot Creek assets in the Western Canadian Sedimentary Basin, and the Southern Alberta assets. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 (8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 177 Pinecrest Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 41 55 72 119 123 61 0 0 0 165 165 333 (32) (85) (202) 0 0 0 8 (30) (130) (CAD, Millions) 2014* 2013 2012 EBITDA 34 41 68 EBIT (3) (3) 35 Net Income Before Non-Recurring Items (1) 5 34 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 42% 43% 15% 1% 1% -0.48 0.92 26.04 45.78 -4.00 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.92 2.24 0.85 0.04 -6.45 3.47 2.57 0.92 0.06 -1.70 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Pinecrest Energy Inc. is a Calgary, Alberta based petroleum and natural gas exploration, production and development company, with operations in the Canadian provinces of Alberta and Saskatchewan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 (10.0) 0.0 10.0 20.0 30.0 40.0 50.0 2014* 2013 2012 2011 2010 (8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 2014* 2013 2012 2011 2010 (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 178 Pioneer Natural Resources Company RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 257 393 229 2,213 2,052 1,738 2,858 2,805 3,866 (11) (11) (10) 6,724 6,615 5,867 (2,835) (2,876) (3,352) 0 0 0 (633) (835) (1,624) 2014* 2013 2012 EBITDA 1,652 1,934 1,524 EBIT 1,161 1,027 714 1,383 1,197 697 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 30% 30% 40% 32% 51% 4.38 5.96 4.08 4.66 2.31 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.29 1.37 2.16 1.81 4.11 1.73 1.44 2.58 2.11 4.87 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Pioneer Natural Resources Company (the Company) is an independent company involved in the exploration and production of oil and gas, and natural gas liquids in the United States and South Africa. The Company is headquartered in Irving, Texas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 179 PT Medco Energi Internasional Tbk RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 374 264 524 269 302 249 1,191 1,084 1,350 (31) (3) (31) 914 898 843 240 223 191 0 0 0 (1) 75 27 INCOME STATEMENT (USD, Millions) 2014* 2013 2012 EBITDA 342 347 343 EBIT 262 246 260 Net Income Before Non-Recurring Items 39 67 49 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 57% 53% 62% 60% 55% 2.83 3.19 2.73 2.88 1.32 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 4.43 3.42 5.43 7.38 8.79 3.48 2.97 3.94 3.99 4.30 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow Cash & Cash Equivalents Cash Flow from Ops PT Medco Energi Internasional Tbk (Medco Energi) is an Indonesian company operating in the oil & gas exploration and production business listed on the Jakarta Stock Exchange since 1994. Currently, Medco Energi is focused on oil & gas exploration, development and production, and power generation. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 180 QEP Resources, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 4 12 0 1,358 1,326 1,170 3,962 3,041 3,247 (24) (24) (21) 3,916 3,877 3,314 (1,531) (1,562) (1,399) 0 0 0 (196) (259) (250) 2014* 2013 2012 EBITDA 1,498 1,392 911 EBIT 496 376 6 367 281 203 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 50% 44% 49% 34% 34% 2.95 2.27 -0.01 7.77 6.77 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.92 2.28 2.78 1.30 1.46 2.64 2.19 3.59 1.15 1.26 Cash & Cash Equivalents Cash Flow from Ops QEP Resources, Inc. engages in the domestic oil and natural gas exploration and production industry, with operations focused in the Rocky Mountain and Midcontinent regions of the U.S. Its activities include drilling, completing and equipping oil and natural gas wells for itself and its partners. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 (2.0) 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 181 Questerre Energy Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 42 47 43 12 13 10 2 2 2 0 0 0 244 241 217 (29) (52) (43) 0 0 0 (17) (39) (32) (CAD, Millions) 2014* 2013 2012 EBITDA 11 13 9 EBIT 1 4 (1) Net Income Before Non-Recurring Items 8 5 6 KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1% 1% 1% 1% 0% N/A N/A N/A N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.16 0.14 0.19 0.19 0.13 0.18 0.15 0.22 0.20 0.19 Cash & Cash Equivalents Cash Flow from Ops Questerre Energy Corporation (the Company) is an independent energy company focused on unconventional oil and gas projects. The Company has base production and reserves in the tight oil bakken and Torquay of southeast Saskatchewan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 0.00 0.05 0.10 0.15 0.20 0.25 2014* 2013 2012 2011 2010 0.00 0.05 0.10 0.15 0.20 0.25 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 182 Quicksilver Resources Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 167 89 5 (42) (17) 209 2,010 2,012 2,092 0 0 0 (1,075) (1,006) (1,133) (113) (101) (485) 0 0 0 (154) (118) (276) 2014* 2013 2012 EBITDA 156 157 267 EBIT 97 94 103 135 155 285 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 61% 64% 0.38 0.36 0.57 0.94 1.83 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 -48.30 -119.62 9.99 9.16 13.89 12.90 12.85 7.83 4.75 3.41 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Quicksilver Resources Inc. focuses on development of unconventional natural gas and oil reservoirs found in fractured shale gas and coal seams in North America. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 58% 59% 60% 61% 62% 63% 64% 65% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 (140.0) (120.0) (100.0) (80.0) (60.0) (40.0) (20.0) 0.0 20.0 40.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 183 Raging River Exploration Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 9 143 117 34 66 51 7 0 0 0 405 379 257 (203) (168) (86) 0 0 0 (59) (51) (52) (CAD, Millions) 2014* 2013 2012 EBITDA 162 126 34 EBIT 99 71 15 Net Income Before Non-Recurring Items 63 45 11 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 14% 12% 3% N/A N/A 52.64 64.67 28.27 N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.46 0.43 0.20 0.00 0.00 0.41 0.40 0.20 N/A N/A Cash & Cash Equivalents Cash Flow from Ops Raging River Exploration Inc. (Raging River) engages in the exploration, development, and production of oil and gas properties in western Canada. It primarily focuses its operations on the Dodsland light oil play in southwestern Saskatchewan. Raging River is headquartered in Calgary, Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT 0% 2% 4% 6% 8% 10% 12% 14% 16% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 2014* 2013 2012 2011 2010 0.0 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.4 0.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 184 Range Resources Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 844 759 654 277 3,260 2,959 (26) (26) (26) 450 2,414 2,357 (1,308) (1,297) (1,694) 0 0 0 (490) (564) (1,066) (USD, Millions) 2014* 2013 2012 EBITDA 149 873 777 EBIT 39 380 332 Net Income Before Non-Recurring Items 275 118 145 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 58% 57% 56% 46% 48% 3.12 2.15 1.97 3.01 2.33 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.97 4.30 4.52 3.15 4.85 3.14 3.74 3.81 2.86 4.15 Cash & Cash Equivalents Cash Flow from Ops Range Resources Corporation (Range) is an independent oil and gas exploration and production company based in Fort Worth, Texas. Range produces shale gas from the Devonian-aged Marcellus Shale in Pennsylvania. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 185 Renegade Petroleum Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 124 93 46 277 273 283 (66) (36) 0 450 363 487 (64) (86) (120) 0 0 0 (6) (29) (74) (CAD, Millions) 2014* 2013 2012 EBITDA 149 104 52 EBIT 39 22 5 Net Income Before Non-Recurring Items 4 4 (6) KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 38% 43% 37% 24% 18% 1.93 1.73 1.30 4.34 -3.76 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.23 2.94 6.14 1.83 4.25 1.86 2.63 5.47 1.76 2.74 Cash & Cash Equivalents Cash Flow from Ops Renegade Petroleum Ltd. (Renegade) is an exploitation and exploration focused light oil producer. Renegade's primary focus areas are located in southeast Saskatchewan in various pools, such as Bakken, Souris Valley, Frobisher, Midale and Kisby, as well as the Dodsland area of the Viking play in west-central Saskatchewan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 186 Repsol, S.A. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 6,113 10,243 7,783 5,978 5,943 5,892 16,821 26,093 23,242 (1,288) (701) (1,217) 38,815 38,614 40,416 (4,572) (4,566) (4,381) 0 143 4,195 118 675 294 2014* 2013 2012 EBITDA 15,424 14,984 15,710 EBIT 12,214 11,585 12,499 1,989 1,757 2,007 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 30% 45% 37% 44% 42% 8.82 9.06 9.97 17.26 17.71 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.71 4.75 3.84 3.70 3.32 1.11 1.68 1.44 1.38 1.19 Cash & Cash Equivalents Cash Flow from Ops Repsol S.A. is a Spanish multinational oil and gas company based in Madrid, Spain. It operates in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 187 Resolute Energy Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1 0 1 134 123 91 728 743 584 0 0 0 531 534 532 (271) (522) (500) 0 0 0 (88) (399) (409) (USD, Millions) 2014* 2013 2012 EBITDA 179 170 119 EBIT 55 54 40 Net Income Before Non-Recurring Items 75 74 (10) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 58% 58% 52% 27% 27% 1.13 1.20 1.99 11.17 5.82 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 5.45 6.05 6.40 1.92 1.95 4.08 4.36 4.93 1.66 1.89 Cash & Cash Equivalents Cash Flow from Ops Resolute Energy Corporation (Resolute) is a private company engaged in the acquisition, development and production of domestic oil and gas. Resolute's primary producing assets are its properties in Aneth Field, located in the Paradox Basin in southeast Utah and Hilight Field, a conventional gas field in the Powder River Basin of northeastern Wyoming. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 188 RMP Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 94 78 50 141 93 75 0 0 0 318 304 222 (191) (174) (111) 0 0 0 (98) (96) (61) (CAD, Millions) 2014* 2013 2012 EBITDA 100 82 50 EBIT 41 27 4 Net Income Before Non-Recurring Items 24 15 3 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 31% 23% 25% 16% 4% 12.27 8.59 1.67 -23.43 -2.53 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.50 1.19 1.49 2.47 0.55 1.41 1.14 1.49 2.08 0.39 Cash & Cash Equivalents Cash Flow from Ops RMP Energy Inc. is an oil and gas company with assets concentrated in West Central Alberta and southeastern Saskatchewan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 (30.0) (25.0) (20.0) (15.0) (10.0) (5.0) 0.0 5.0 10.0 15.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 189 Rock Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 3 42 30 12 22 12 4 0 0 0 100 117 118 (54) (47) (31) 0 0 0 (12) (17) (19) (CAD, Millions) 2014* 2013 2012 EBITDA 42 29 6 EBIT 9 1 (14) Net Income Before Non-Recurring Items 2 1 (7) KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 15% 9% 3% 21% 21% 26.21 2.52 -65.52 -4.72 5.19 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.42 0.41 0.32 1.87 1.08 0.52 0.41 0.57 1.71 1.11 Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Rock Energy Inc. is an exploration and production company. Its current assets are primarily heavy oil properties in the Plains area and Southwest Saskatchewan. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 2014* 2013 2012 2011 2010 (80.0) (60.0) (40.0) (20.0) 0.0 20.0 40.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 190 Rosetta Resources Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 55 194 37 565 558 408 1,675 1,615 451 0 0 0 1,385 1,348 804 (964) (871) (622) 0 0 0 (399) (313) (214) 2014* 2013 2012 EBITDA 597 572 393 EBIT 349 353 239 199 216 147 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 55% 54% 36% 31% 41% 5.40 6.33 9.46 7.22 2.65 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.96 2.89 1.10 0.94 2.07 2.80 2.82 1.15 0.95 1.97 Cash & Cash Equivalents Cash Flow from Ops Rosetta Resources Inc. is an independent oil and gas company based in Houston, and is engaged in the exploration, development and exploitation of onshore energy resources in the U.S. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 191 Rosneft RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 6,254 8,366 9,795 29,127 26,551 15,671 68,511 75,077 33,481 (2,671) (2,671) (2,289) 92,134 96,279 76,069 (17,448) (17,596) (15,026) 0 0 0 9,008 6,284 (1,644) 2014* 2013 2012 EBITDA 33,262 29,379 18,637 EBIT 19,783 17,062 11,318 16,218 17,728 9,061 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 43% 44% 31% 28% 30% 8.18 7.05 11.44 20.59 17.67 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.35 3.06 2.22 1.37 1.60 2.06 2.56 1.77 1.16 1.30 Cash & Cash Equivalents Cash Flow from Ops Rosneft (the Company) is a publicly traded oil and gas company based in Russia. The Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 192 Royal Dutch Shell plc RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 11,924 9,696 18,550 39,036 37,452 42,749 45,729 79,446 67,298 (7,048) (7,450) (7,682) 183,130 181,148 176,182 (39,680) (40,145) (32,576) 0 0 0 (7,692) (10,143) 2,491 2014* 2013 2012 EBITDA 47,207 48,427 52,388 EBIT 27,909 32,328 38,870 18,215 21,768 26,260 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 20% 30% 28% 27% 31% 20.21 24.31 31.07 34.26 23.53 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.17 2.12 1.57 1.40 2.05 0.97 1.64 1.28 1.08 1.64 Cash & Cash Equivalents Cash Flow from Ops Royal Dutch Shell plc (the Company) is a diversified and integrated oil and gas company, based in The Hague, Netherlands. The Company engages in the exploration and production of crude oil and natural gas, conversion of crude oil to a wide range of refined products, as well as the production and sale of petrochemicals for industrial use. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.4 0.8 1.2 1.6 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 193 SandRidge Energy, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,180 815 310 767 805 908 3,214 3,214 4,317 (262) (262) (237) 2,998 3,176 3,862 (1,406) (1,497) (2,146) 0 0 0 (901) (954) (1,475) 2014* 2013 2012 EBITDA 1,100 1,093 1,061 EBIT 512 463 432 58 (215) 164 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 52% 50% 53% 53% 65% 1.93 1.61 1.36 1.64 0.22 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 4.19 3.99 4.75 5.26 7.11 2.92 2.94 4.07 3.68 7.83 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops SandRidge Energy Inc. (SandRidge) focuses on drilling conventional oil wells in shallow carbonate reservoirs. Based in Oklahoma City, SandRidge is a developer of the Mississippian Oil Play, with assets in the Permian Basin and the Gulf of Mexico. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 194 ShaMaran Petroleum Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 122 143 41 (3) (1) (29) 148 148 1 0 0 0 327 329 331 (51) (40) (9) 0 0 0 (54) (41) (38) 2014* 2013 2012 EBITDA (2) (2) (3) EBIT (3) (2) (3) (6) (4) 119 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2013 2012 2011 2010 2009 31% 31% 0% 1% 0% -0.39 -1.09 -4.22 N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2013 2012 2011 2010 2009 2013 2012 2011 2010 2009 -57.17 -59.53 -0.02 -0.20 0.00 -59.14 -61.70 -0.22 -0.69 0.00 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops ShaMaran Petroleum Corp. (the Company) engages in the acquisition, exploration, and development of oil and gas properties in the Kurdistan region of Iraq. The Company is based in Vancouver, Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 (5.0) (4.0) (3.0) (2.0) (1.0) 0.0 2013 2012 2011 2010 2009 (70.0) (60.0) (50.0) (40.0) (30.0) (20.0) (10.0) 0.0 2013 2012 2011 2010 2009 (70.0) (60.0) (50.0) (40.0) (30.0) (20.0) (10.0) 0.0 2013 2012 2011 2010 2009 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 195 Sinopec Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 3,054 2,486 1,678 23,605 26,733 25,839 67,911 64,511 59,893 (4,040) (4,603) (4,040) 102,866 102,693 87,960 (21,137) (23,581) (23,088) 0 0 0 (1,572) (1,450) (1,288) 2014* 2013 2012 EBITDA 26,757 29,266 26,610 EBIT 15,088 16,048 15,443 9,971 11,034 10,249 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 40% 39% 41% 37% 38% 8.06 8.63 8.07 11.34 13.69 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.799115 2.475417 2.43219 2.05544 1.6882 2.5380295 2.2043 2.250723 1.79233 1.57765
Cash & Cash Equivalents Cash Flow from Ops Sinopec Corp. is an integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading of crude oil and natural gas; producing, storing, transporting and distributing and marketing of petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 196 SM Energy Company RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 236 282 6 1,367 1,314 911 2,675 2,675 1,888 (7) (7) (7) 1,675 1,607 1,414 (1,524) (1,554) (1,508) 0 0 0 (164) (246) (603) (USD, Millions) 2014* 2013 2012 EBITDA 1,544 1,437 929 EBIT 742 614 201 Net Income Before Non-Recurring Items 444 346 177 KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 61% 62% 57% 55% 44% 7.017807 6.099035 2.6475 7.2076 8.0055 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.956317 2.035708 2.0709 2.4461 2.1488 1.732478 1.861168 2.0327 1.9264 1.7085 Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops SM Energy Company is an independent energy company engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids in onshore North America. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 197 Southern Pacific Resources Corp. RATING: CCC DESCRIPTION OPERATING CASH FLOW 2014* 2013 2012 2014* 2013 2012 59 1 1 (13) 17 47 661 546 459 0 0 0 378 417 346 (40) (130) (331) 0 0 0 (54) (112) (284) 2014* 2013 2012 EBITDA 17 23 44 EBIT (13) 1 19 (39) (25) 3 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 64% 57% 57% 56% 1% -0.200501 0.0385 0.4737 0.8948 8.639916 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 -49.595454 31.273802 9.7823 8.0662 0.0717 39.903253 24.258 10.388 8.008 0.069701 Cash & Cash Equivalents Cash Flow from Ops Southern Pacific Resource Corp. is a publicly traded oil and gas company engaged in the development, exploration and production of in-situ oil sands and heavy oil assets in Western Canada. KEY METRICS BALANCE SHEET (CAD, millions) (CAD, millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 60% 70% 2014* 2013 2012 2011 2010 (2.0) 0.0 2.0 4.0 6.0 8.0 10.0 2014* 2013 2012 2011 2010 (60.0) (50.0) (40.0) (30.0) (20.0) (10.0) 0.0 10.0 20.0 30.0 40.0 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 198 Southwestern Energy Company RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 19 23 54 2,174 1,984 1,599 1,827 2,341 2,121 0 0 0 3,800 3,622 3,036 (2,303) (2,253) (2,108) 0 0 0 (129) (269) (509) 2014* 2013 2012 EBITDA 2,303 2,070 1,718 EBIT 1,470 1,283 907 770 704 (707) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 32% 39% 41% 31% 33% 13.938269 12.289466 9.2756 16.331 18.1 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.840493 1.180234 1.3267 0.9969 0.9367 0.793646 1.131247 1.235 0.9551 0.891 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Southwestern Energy Company is an independent energy company primarily engaged in natural gas and crude oil exploration, development and production within North America. Currently, its operations are principally focused on the development of unconventional oil and natural gas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 199 Statoil ASA RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 21,978 14,057 11,303 22,200 15,911 21,389 52,934 49,720 42,158 (3,556) (3,663) (3,556) 62,663 58,652 57,487 (16,340) (19,302) (16,493) 0 0 0 2,304 (7,053) 1,340 (USD, Millions) 2014* 2013 2012 EBITDA 43,486 35,997 42,160 EBIT 33,326 24,855 31,989 Net Income Before Non-Recurring Items 11,985 6,908 10,911 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 46% 47% 42% 46% 47% 43.246783 59.64 50.32432 40.4622 50.228571 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2 2.9739579 1.9886 1.9408 2.2001 1.2172673 1.4378 0.999971 0.96506 1.1283409 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Statoil ASA (the Company) engages in the exploration and production of crude oil and natural gas, as well as transportation, refining, and marketing of petroleum and petroleum-derived products in Norway and internationally. The Company is also involved in the retail sale of stationary energy, and building and operating offshore wind farms in the U.K. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 200 Stone Energy Corporation RATING: NR DESCRIPTION OPERATING CASH FLOW 2014* 2013 2012 2014* 2013 2012 203 331 280 522 537 563 1,035 1,032 918 0 0 0 986 970 872 (797) (670) (569) 0 0 0 (276) (133) (6) 2014* 2013 2012 EBITDA 632 648 643 EBIT 274 298 299 78 94 150 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 51% 52% 51% 48% 57% 3.373176 3.73815 4.3911 6.82714 4.69643 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.983247 1.920932 1.631 1.0901 1.4354 1.638116 1.59061 1.4272 0.99073 1.28422 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Stone Energy Corporation is an independent oil and natural gas exploration and production company headquartered in Lafayette, Louisiana, with additional offices in New Orleans, Louisiana, Houston, Texas and Morgantown, West Virginia. KEY METRICS BALANCE SHEET (USD, Millions) (USD, Millions) 42% 44% 46% 48% 50% 52% 54% 56% 58% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 201 Strategic Oil & Gas Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 38 0 3 16 16 20 75 66 38 0 0 0 176 136 82 (51) (119) (63) 0 0 0 (35) (103) (43) 2014* 2013 2012 EBITDA 20 21 20 EBIT (4) (7) (1) (5) (13) (1) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 30% 33% 32% 2% 7% -7.126923 -2.540655 -11.15 -42.471 -48.7 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 4.64743044 4.016112 1.9038 -1.129 -1.0953 3.803438 3.069169 1.9163 -2.4215 -1.841 Cash & Cash Equivalents Cash Flow from Ops Strategic Oil & Gas Ltd. (the Company) engages in the exploration and development of petroleum and natural gas reserves in Western Canada. The Company holds interests in various oil and natural gas properties located in Amber, Conrad, Steen River, Larne, and Taber areas of Alberta, Canada, and in Northeast British Columbia. It also has properties located in Wyoming, United States. Strategic Oil & Gas Ltd. was incorporated in 1987 and is headquartered in Calgary, Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 (60.0) (50.0) (40.0) (30.0) (20.0) (10.0) 0.0 2014* 2013 2012 2011 2010 (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 (3.0) (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 202 Suncor Energy Inc. RATING: A (low); Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 4,846 5,202 4,385 10,006 9,412 9,733 13,074 12,724 13,328 (1,236) (1,095) (756) 42,258 41,180 39,215 (6,782) (6,777) (6,957) 0 0 0 1,988 1,540 2,020 2014* 2013 2012 EBITDA 12,327 11,781 11,179 EBIT 7,915 7,510 6,857 5,372 4,971 4,553 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 24% 24% 25% 25% 29% 11.163611 10.682788 10.726562 12.091 6.7865 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.3065679 1.351891 1.3694 1.3424 2.1502 1.0605987 1.0800441 1.19223544 1.1536 1.7603 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Suncor Energy Inc. is an integrated oil and gas company. Its upstream operations are mainly oil sands based in North America, with the balance in the North Sea and North Africa. Its downstream operations include refineries, a lubricants plant and a national network of retail stations. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 203 Sunshine Oilsands Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 13 16 282 (20) (20) (17) 17 17 24 0 0 0 915 881 871 (230) (283) (230) 0 0 0 (249) (303) (247) 2014* 2013 2012 EBITDA (12) (13) (19) EBIT (13) (14) (19) (33) (33) (31) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2% 2% 3% 12% 0% -8.42891 -8.102941 N/A N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 -0.87368 -0.965937 -1.403 -1.74 -0.0049 -1.389844 -1.301384 -1.26 -2.1167 -0.007 Cash & Cash Equivalents Cash Flow from Ops Sunshine Oilsands Ltd. (the Company) is a Canada-based oil sand accumulations exploration and development company. Its business area focuses on the oil sands leases in the Athabasca oil sands area of Alberta. The Company is engaged in the exploration, development and production of oil sands leases. Its principal operating regions in the Athabasca area are at West Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer and Portage. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Net Income Before Non-Recurring Items 0% 2% 4% 6% 8% 10% 12% 14% 2014* 2013 2012 2011 2010 (10.0) (8.0) (6.0) (4.0) (2.0) 0.0 2014* 2013 2012 2011 2010 (2.0) (1.5) (1.0) (0.5) 0.0 2014* 2013 2012 2011 2010 (2.5) (2.0) (1.5) (1.0) (0.5) 0.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 204 Surge Energy Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 142 116 92 373 294 210 (42) (19) 0 922 854 351 (144) (126) (181) 0 0 0 (44) (29) (89) 2014* 2013 2012 EBITDA 170 144 102 EBIT 69 61 33 52 46 40 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 29% 26% 37% 21% 13% 6.238216 5.439262 4.7061 4.2314 6.6533 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.634816 2.580841 2.2807 1.4886 2.1101 2.200407 2.18244 2.069 1.3844 1.5447 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Surge Energy Inc. is an oil-focused oil and gas company with operations in Alberta, Manitoba and North Dakota. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 205 Talisman Energy Inc. RATING: BBB (high); UR-Neg. DESCRIPTION 2014* 2013 2012 2014* 2013 2012 532 364 553 1,544 1,468 2,366 5,228 6,098 5,486 (285) (285) (286) 8,989 8,555 9,910 (2,341) (2,363) (3,509) 191 191 191 (1,082) (1,180) 286 2014* 2013 2012 EBITDA 2,408 2,241 3,091 EBIT 438 319 720 (218) (584) 100 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 37% 42% 36% 40% 39% 1.440789 1.049342 3.0897 9.547 7.6187 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.386628 4.15361 2.0694 2.2876 2.4412 2.171096 2.720883 1.599 1.4342 1.5284 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Talisman Energy Inc. is an internationally diversified oil and gas exploration and production company, with production located in North America, the North Sea, Southeast Asia and other international areas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 32% 34% 36% 38% 40% 42% 44% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 206 The Delek Group Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1,610 1,431 2,119 1,751 2,828 1,191 6,717 7,399 8,420 (167) (147) (69) 3,091 3,147 3,382 330 327 333 0 0 0 1,254 2,354 789 2014* 2013 2012 EBITDA 960 944 1,025 EBIT 553 540 304 (100) (55) (128) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 68% 70% 71% 72% 83% 1.32 1.305835 0.783 0.8455 1.0147 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.834888852 2.6163796 7.071 3.336 11.279 11.303629 7.8418303 14.562 12.655 11.332 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops The Delek Group Ltd., an integrated energy company in Israel, is engaged in natural gas exploration and production activities. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 20% 40% 60% 80% 100% 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 207 TORC Oil & Gas Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 14 80 120 88 13 101 93 6 (17) (8) 0 927 921 541 (151) (163) (135) 0 0 0 (48) (83) (121) 2014* 2013 2012 EBITDA 94 60 3 EBIT 18 (0) (15) (2) (14) (18) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 10% 9% 1% 2% 0% 5.848271 -0.13987 27.985 N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.841138 1.051506 0.49 14.476 0 1.071911 1.549935 1.9871 -26.188 0 Cash & Cash Equivalents Cash Flow from Ops TORC Oil and Gas Ltd. (the Company) is a Canada-based company engaged in the acquisition, exploration, development and production of crude oil and natural gas assets. The Company produces crude oil, natural gas liquids and natural gas within Canada and the United States. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Net Income Before Non-Recurring Items 0% 2% 4% 6% 8% 10% 12% 2014* 2013 2012 2011 2010 (5.0) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2014* 2013 2012 2011 2010 (30.0) (25.0) (20.0) (15.0) (10.0) (5.0) 0.0 5.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 208 Total S.A. and Subsidiaries RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 23,659 20,921 22,481 25,372 25,957 27,466 55,864 52,397 50,128 (7,203) (7,128) (6,660) 106,384 103,218 95,654 (28,707) (29,752) (25,574) 0 0 0 (10,538) (10,923) (4,768) (USD, Millions) 2014* 2013 2012 EBITDA 36,175 37,887 41,753 EBIT 25,332 26,944 31,410 Net Income Before Non-Recurring Items 14,334 14,201 15,881 KEY RATIOS EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 34% 34% 34% 35% 36% 24.9004323 23.7121 28.85978 29.2206 36 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.20 2.0182059 1.8245292 1.73 1.79 1.54427353 1.39715 1.346517 1.20454 1 Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Total S.A. and Subsidiaries is an integrated non-government-owned petroleum company. It has global upstream activities, downstream operations and a chemicals business. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 209 Tourmaline Oil Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 656 507 278 595 615 383 0 0 0 3,703 3,368 2,735 (1,366) (1,167) (666) 0 0 0 (710) (659) (387) 2014* 2013 2012 EBITDA 670 506 280 EBIT 279 150 37 195 101 7 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 14% 15% 12% 5% 2% 21.1725 12.263747 3.5691 16.286 19.85 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.90663 1.212597 1.3758 0.448 0.2162 0.888543 1.215721 1.3681 0.4887 0.2426 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Tourmaline Oil Corporation (the Company) is engaged in the acquisition, exploration, development, and production of crude oil and natural gas properties in the Western Canadian Sedimentary Basin. The Company is based in Calgary, Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 210 TransGlobe Energy Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 108 122 83 128 139 153 142 141 204 0 0 0 518 500 436 (66) (129) (52) 0 0 0 62 10 102 2014* 2013 2012 EBITDA 216 222 237 EBIT 164 172 190 82 78 88 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 21% 22% 32% 24% 34% 21.324671 21.494327 23.705 41.001 34.841 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.10819 1.072921 1.39 0.9547 1.3054 0.657345 0.637701 0.8617 0.5656 0.8314 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops TransGlobe Energy Corporation is an international exploration and production company based in Calgary, with oil interests in Egypt and Yemen. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 0.0 10.0 20.0 30.0 40.0 50.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 211 Trilogy Energy Corp. RATING: B; Stable DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 281 280 242 598 567 608 (51) (50) (49) 670 666 486 (400) (400) (353) 0 0 0 (170) (170) (160) 2014* 2013 2012 EBITDA 327 323 263 EBIT 115 107 39 36 32 (7) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 47% 46% 56% 45% 35% 2.9315497 2.681303 1.645 4.3258 1.7933 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.130679962 2.026043 2.5167 1.9702 1.9188 1.8318634 1.756667 2.3148 1.8916 2.0941 Cash & Cash Equivalents Cash Flow from Ops Trilogy Energy Corporation is a Canadian energy company, engaged in the development, production and sale of natural gas, crude oil and and natural gas liquids. Its operations are based in Alberta. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 60% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 212 Twin Butte Energy Ltd. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 152 133 135 349 342 191 (49) (45) (32) 473 502 472 121 (107) (148) 0 0 0 (18) (18) (46) 2014* 2013 2012 EBITDA 232 171 141 EBIT 82 36 41 29 4 16 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 42% 41% 29% 32% 36% 9.895951 4.384169 7.2976 7.3549 1.9008 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.291137 2.56623 1.4137 1.4328 2.6187 1.503622 1.999935 1.353 1.3987 2.7631 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Twin Butte Energy Limited (the Company) is an oil and gas company based in Calgary. The Company focuses on heavy oil in the greater Lloydminster area along the Alberta and Saskatchewan border. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 213 Ultra Petroleum Corp. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 8 11 13 587 509 721 2,552 2,597 1,962 0 0 0 (228) (331) (578) (395) (377) (839) 0 0 0 192 132 (118) 2014* 2013 2012 EBITDA 703 616 516 EBIT 458 372 127 350 264 (4) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 110% 115% 142% 54% 58% 4.1574 3.597259 1.2327 4.8986 6.497 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 4.345639 5.105772 2.7208 1.9892 2.0925 3.628536 4.217634 3.8016 2.3678 2.2413 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Ultra Petroleum Corporation is an independent energy company engaged in the exploration and production of oil and natural gas. Its primary asset is the sand river play in the Green River basin of Wyoming. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 20% 40% 60% 80% 100% 120% 140% 160% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 214 Unit Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 1 19 1 654 632 665 690 697 792 0 0 0 2,235 2,173 1,974 (708) (704) (762) 0 0 0 (55) (72) (98) 2014* 2013 2012 EBITDA 681 645 656 EBIT 338 315 339 202 180 308 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.235913 0.24755 0.2863 0.1477 0.0919 22.202374 20.509956 23.91 77.489 N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.055728 1.103099 1.1916 0.5452 0.3838 1.013796 1.090376 1.2097 0.5603 0.4117 Cash & Cash Equivalents Cash Flow from Ops Unit Corporation is a diversified energy company engaged through its subsidiaries in the exploration for and production of oil and natural gas, the acquisition of producing oil and natural gas properties, the contract drilling of onshore oil and natural gas wells, and the gathering and processing of natural gas. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 2014* 2013 2012 2011 2010 0.0 20.0 40.0 60.0 80.0 100.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 215 Vaalco Energy, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 81 131 131 78 87 74 0 60 57 0 0 0 245 251 213 (73) (67) (72) 0 0 0 5 20 2 2014* 2013 2012 EBITDA 73 94 151 EBIT 55 77 132 23 43 45 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0% 19% 21% 17% 21% N/A N/A N/A N/A N/A Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0 0.685715 0.7765 0.6246 0.767 0 0.634195 0.3792 0.2982 0.5183 Cash & Cash Equivalents Cash Flow from Ops Vaalco Energy, Inc. (the Company) is a Houston, Texas based independent energy company engaged in the acquisition, exploration, development and production of crude oil and natural gas. The Companys properties and exploration activities are located in Gabon and Angola. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 5% 10% 15% 20% 25% 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 2014* 2013 2012 2011 2010 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 216 Vermilion Energy Inc. RATING: BB (low); Positive DESCRIPTION 2014* 2013 2012 2014* 2013 2012 151 390 102 696 656 544 1,058 1,104 735 (247) (169) (187) 1,832 1,716 1,419 (559) (551) (453) 0 0 0 (109) (64) (96) 2014* 2013 2012 EBITDA 960 907 762 EBIT 620 585 466 245 225 256 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 37% 39% 34% 24% 24% 15.140499 15.322813 16.882 19.475 20.058 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.520435298 1.6843277 1.3803 0.9415 0.9631 1.101913 1.216864 0.9654 0.5877 0.7476 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Vermilion Energy Inc. is engaged in oil and gas exploration and production. Its operations are internationally diversified, with production located in Canada, France, Australia and the Netherlands. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 5.0 10.0 15.0 20.0 25.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 217 W&T Offshore, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 20 16 12 545 547 538 1,202 1,213 1,095 (60) (59) (83) 547 541 541 (511) (552) (479) 0 0 0 (26) (64) (25) 2014* 2013 2012 EBITDA 581 586 519 EBIT 136 155 183 40 51 78 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 69% 69% 67% 57% 52% 1.586548 1.81227 2.8966 6.2521 3.9685 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.20461 2.218157 2.0365 1.2264 1.1099 2.067264 2.071007 2.1077 1.1472 1.0499 Cash & Cash Equivalents Cash Flow from Ops W&T Offshore, Inc. is an independent oil and natural gas acquisition, exploitation and exploration company, with a focus primarily in the Gulf of Mexico. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 60% 70% 80% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 218 Warren Resources, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 2 12 8 82 80 66 117 131 134 0 0 0 235 226 193 (79) (72) (64) 0 0 0 3 8 2 2014* 2013 2012 EBITDA 73 70 66 EBIT 30 25 19 33 28 16 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 33% 37% 41% 40% 38% 9.907969 8.36828 5.717 4.7622 7.0926 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 0.356697 1.6331487 2.0461 2.5382 2.0541 1.5978801 1.8698851 2.0338 2.4929 1.9473 Cash & Cash Equivalents Cash Flow from Ops Warren Resources, Inc. (the Company) is an independent energy company engaged in the acquisition, exploration, development and production of domestic onshore crude oil and gas reserves. The Company focuses primarily on the exploration and development of waterflood oil recovery properties in the Wilmington Field within the Los Angeles Basin of California. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Net Income Before Non-Recurring Items 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 219 Whitecap Resources Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 0 0 0 315 279 188 457 397 317 (107) (93) 0 1,601 1,282 910 (246) (190) (246) 0 0 0 (39) (4) (58) 2014* 2013 2012 EBITDA 359 304 185 EBIT 186 152 69 99 90 42 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 22% 24% 26% 26% 14% 11.065538 9.76286 5.807 8.332 0.4516 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.449628 1.424587 1.6841 1.5955 2.4095 1.272105 1.307808 1.7138 1.5806 2.1993 Cash & Cash Equivalents Cash Flow from Ops Whitecap Resources Inc. (the Company) is engaged in the acquisition, development, and production of crude oil and natural gas in western Canada. The Company is based in Calgary, Canada. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Net Income Before Non-Recurring Items 0% 5% 10% 15% 20% 25% 30% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 220 Whiting Petroleum Corporation RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 406 699 45 1,724 1,649 1,347 2,691 2,691 1,832 (0) (1) (1) 3,941 3,837 3,453 (2,891) (2,818) (2,171) 0 0 0 (1,168) (1,170) (826) 2014* 2013 2012 EBITDA 1,862 1,778 1,422 EBIT 936 887 737 600 593 375 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 41% 41% 35% 32% 25% 6.909636 7.74707 9.4569 12.353 9.8652 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.561132 1.632459 1.3607 1.1701 0.8771 1.445356 1.513532 1.2886 1.0927 0.8171 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Whiting Petroleum Corporation (the Company) is an independent exploration and production company that acquires, explores, develops, and produces crude oil, natural gas liquids, and natural gas in the United States. The Company is headquartered in Denver, Colorado. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 221 WPX Energy, Inc. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 58 99 153 758 578 839 2,387 2,264 1,886 0 0 0 4,233 4,210 5,371 (1,235) (1,154) (1,521) 0 0 0 (477) (576) (682) 2014* 2013 2012 EBITDA 773 664 1,058 EBIT (143) (276) 92 198 43 (15) EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 36% 35% 26% 25% 34% -1.288288 -2.555555 0.902 3.3333 3.3065 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 3.147415 4.0042448 2.2471 1.5866 1.9742 3.087968 3.409638 1.7826 1.4227 1.7595 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops WPX Energy, Inc. is an independent natural gas and oil exploration and production company engaged in the development of unconventional properties. It is based in Tulsa, Oklahoma, with operations and interests in Colorado, New Mexico, North Dakota, Pennsylvania, Wyoming, Argentina and Colombia. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014* 2013 2012 2011 2010 (3.0) (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 222 YPF S.A. RATING: NR DESCRIPTION 2014* 2013 2012 2014* 2013 2012 388 1,643 966 6,080 4,894 3,821 5,015 5,122 5,046 (60) (60) (67) 7,775 7,400 6,358 (6,203) (5,077) (3,613) 0 0 0 (183) (243) 141 2014* 2013 2012 EBITDA 4,056 4,150 3,565 EBIT 1,988 2,050 1,741 1,112 941 860 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 39% 41% 44% 45% 41% 3.394469 2.911557 5.0758 6.8785 10.18 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 1.174939 1.253378 1.3205 1.174 0.836 1.2362468 1.2340969 1.4153 1.3371 0.9 Net Income Before Non-Recurring Items KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (USD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops YPF S.A. (the Company) is a vertically integrated Argentine energy company. The Company engages in the exploration and production of oil and gas, as well as in transportation, refining, and marketing of gas and petroleum products. KEY METRICS BALANCE SHEET OPERATING CASH FLOW (USD, Millions) (USD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2014* 2013 2012 2011 2010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 223 Zargon Oil & Gas Ltd. RATING: NR DESCRIPTION BALANCE SHEET 2014* 2013 2012 2014* 2013 2012 0 0 0 132 58 51 123 112 98 (21) (20) (27) 170 174 197 (74) (77) (67) 0 0 0 (35) (39) (43) 2014* 2013 2012 EBITDA 69 64 57 EBIT 24 18 9 Net Income Before Non-Recurring Items (61) 9 7 EBIT Gross Interest Coverage (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 42% 39% 33% 32% 38% 4.032882 3.152091 1.5841 5.295 6.0544 Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times) 2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010 2.023762 1.91084 1.911 1.8654 1.74381 1.779707 1.757182 1.7312 1.3166 1.593 KEY RATIOS Adjusted Debt in Capital Structure DBRS Adjusted Total Debt Preferred Shares (CAD, Millions) Total Dividends Paid DBRS Adjusted Total Equity Capital Expenditure Gross Free Cash Flow INCOME STATEMENT Cash & Cash Equivalents Cash Flow from Ops Zargon Oil & Gas Ltd. (the Company) is engaged in exploring, developing, and producing oil and natural gas in Canada and the United States. The Company is based in Calgary, Canada. KEY METRICS OPERATING CASH FLOW (CAD, Millions) (CAD, Millions) 0% 10% 20% 30% 40% 50% 2014* 2013 2012 2011 2010 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2014* 2013 2012 2011 2010 1.6 1.7 1.8 1.9 2.0 2.1 2014* 2013 2012 2011 2010 0.0 0.5 1.0 1.5 2.0 2014* 2013 2012 2011 2010 Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 224 DBRS Rating Defnitions Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 225 RATING SCALES Easily recognizable and widely accepted, the DBRS rating scales provide an accurate, impartial refer- ence and representation of an issuers credit standing. With the current trend toward globalization, it is becoming increasingly necessary to maintain consistency and impartiality when evaluating creditworthi- ness. The familiar letter-grade symbols DBRS utilizes allow borrowers and investors to communicate in a common language, using a common set of principles. The DBRS rating symbols assist in the task of analyzing, evaluating and tracking large numbers of bor- rowers for individual and institutional investors alike. Because of its impartiality, DBRS has earned the confdence of many leading institutions that regularly use our research and analysis in their daily opera- tions. DBRS rating symbols are frequently used under fduciary guidelines, and some institutions have incorporated these symbols into their own analysis and decision-making processes. DBRS credit ratings are not recommendations to buy, sell or hold a particular security, but are forward-looking measures that assess an entitys ability to make timely payments of interest and principal. DBRS ratings do not take factors such as pricing and market risk of securities into consideration, as investors are expected to use the ratings as one part of their investment process. The following is a snapshot of DBRS policies related to ratings, rating appendages and rating actions. For more details, please refer to our website or contact DBRS directly. DBRS Long-Term Debt Rating Scale Symbol Credit Quality AAA Highest AA Superior A Satisfactory BBB Adequate BB Speculative B Highly Speculative CCC Very Highly Speculative CC Very Highly Speculative C Very Highly Speculative D Default LONG-TERM DEBT RATING SCALE The DBRS long-term rating scale provides an opinion on the risk of default. That is, the risk that an issuer will fail to satisfy its fnancial obligations in accordance with the terms under which an obligations has been issued. Ratings are based on quantitative and qualitative considerations relevant to the issuer, and the relative ranking of claims. All rating categories other than AAA and D also contain subcategories (high) and (low). The absence of either a (high) or (low) designation indicates the rating is in the middle of the category. AAA Highest credit quality. The capacity for the payment of fnancial obligations is exceptionally high and unlikely to be adversely affected by future events. AA Superior credit quality. The capacity for the payment of fnancial obligations is considered high. Credit quality differs from AAA only to a small degree. Unlikely to be signifcantly vulnerable to future events. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 226 A Good credit quality. The capacity for the payment of fnancial obligations is substantial, but of lesser credit quality than AA. May be vulnerable to future events, but qualifying negative factors are considered manageable. BBB Adequate credit quality. The capacity for the payment of fnancial obligations is considered acceptable. May be vulnerable to future events. BB Speculative, non-investment-grade credit quality. The capacity for the payment of fnancial obligations is uncertain. Vulnerable to future events. B Highly speculative credit quality. There is a high level of uncertainty as to the capacity to meet fnancial obligations. CCC, CC and C Very highly speculative credit quality. In danger of defaulting on fnancial obligations. There is little difference between these three categories, although CC and C ratings are normally applied to obligations that are seen as highly likely to default, or subordinated to obligations rated in the CCC to B range. Obligations in respect of which default has not technically taken place but is considered inevitable may be rated in the C category. D A fnancial obligation has not been met or it is clear that a fnancial obligation will not be met in the near future or a debt instrument has been subject to a distressed exchange. A downgrade to D may not immediately follow insolvency or restructuring fling as grace periods or extenuating circumstances may exist. DBRS Short-Term Debt Rating Scale Symbol Credit Quality R-1 (high) Highest R-1 (middle) Superior R-1 (low) Satisfactory R-2 (high) Upper End of Adequate R-2 (middle) Adequate R-2 (low) Lower End of Adequate R-3 Lowest End of Adequate R-4 Speculative R-5 Highly Speculative D Default Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 227 COMMERCIAL PAPER AND SHORT-TERM DEBT RATING SCALE The DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term fnancial obligations in a timely manner. Ratings are based on quantitative and qualitative considerations relevant to the issuer and the relative ranking of claims. The R-1 and R-2 rating categories are further denoted by the subcategories (high), (middle), and (low). R-1 (high) Highest credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is exceptionally high. Unlikely to be adversely affected by future events. R-1 (middle) Superior credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is very high. Differs from R-1 (high) by a relatively modest degree. Unlikely to be signifcantly vulnerable to future events. R-1 (low) Good credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is substantial. Overall strength is not as favourable as higher rating categories. May be vulnerable to future events, but qualifying negative factors are considered manageable. R-2 (high) Upper end of adequate credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is acceptable. May be vulnerable to future events. R-2 (middle) Adequate credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is acceptable. May be vulnerable to future events or may be exposed to other factors that could reduce credit quality. R-2 (low) Lower end of adequate credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is acceptable. May be vulnerable to future events. A number of challenges are present that could affect the issuers ability to meet such obligations. R-3 Lowest end of adequate credit quality. There is a capacity for the payment of short-term fnancial obliga- tions as they fall due. May be vulnerable to future events and the certainty of meeting such obligations could be impacted by a variety of developments. R-4 Speculative credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is uncertain. R-5 Highly speculative credit quality. There is a high level of uncertainty as to the capacity to meet short-term fnancial obligations as they fall due. D A fnancial obligation has not been met or it is clear that a fnancial obligation will not be met in the near future, or a debt instrument has been subject to a distressed exchange. A downgrade to D may not immediately follow insolvency or restructuring fling as grace periods, other procedural considerations, or extenuating circumstance may exist. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 228 Glossary of Terms Cash Flow from Operations (CFO): Cash fow before change in non-cash working capital. Similar to net income before non-recurring items, CFO excludes all non-recurring cash fow, including cash from discontinued operations. Under International Financial Reporting Standards (IFRS), fnance expenses may be excluded from CFO; however, DBRS believes that from a credit perspective, CFO should be net of fnance expenses as it was calculated under Canadian Generally Accepted Accounting Principles (GAAP) and U.S. GAAP. DBRS also looks at the stability of CFO throughout a business cycle to assess its quality. Cash Flow-to-Dividends and Capital Expenditures: Cash fow from operations divided by the sum of capital expenditures and dividends paid. DBRS uses this ratio to analyze a companys ability to use inter- nally generated cash fow to fnance its growth after paying dividends. A ratio greater than 1.0x indicates that the company generates free cash fow. Cash Flow-to-Dividends and Capital Expenditures = Cash Flow from Operations (Dividends + Capital Expenditures) Cash Flow-to-Total Debt: Cash fow from operations divided by gross debt, as defned. DBRS uses this ratio to measure a companys ability to meet debt levels using cash generated through its core operations. The higher the ratio, the less time it takes the company to pay off its debt. Cash Flow-to-Total Debt = Cash Flow from Operations Gross Debt Debt-to-EBITDA: Gross debt, as defned, divided by EBITDA. DBRS uses this ratio to measure a com- panys ability to repay borrowings with its income before depreciation, interest and tax. Lower ratios indicate a higher capacity to repay or lower earnings-to-debt leverage. DBRS looks at the maximum of this ratio in the covenants to assess the ability of the company to borrow additional debt given the current level of EBITDA. Debt-to-EBITDA = Gross Debt EBITDA EBIT Interest Coverage: EBIT divided by gross interest expense; this ratio is similar to EBITDA interest coverage, but after depreciation and amortization. If a company has high EBITDA but low EBIT, indi- cating high fxed costs and risk, it may require more capital spending to sustain the current level of operations. EBIT Interest Coverage = EBIT Gross Interest EBIT Margin: This ratio is calculated by dividing EBIT by net sales. This ratio is similar to EBITDA margin but is measured after depreciation and amortization. EBIT Margin = EBIT Net Sales EBIT: Earnings before interest and taxes. It is defned as EBITDA less depreciation and amortization. The approach used by DBRS to assess EBIT is similar to that of EBITDA, which measures the quality, stability and diversifcation of EBIT. Furthermore, in the oil and gas sector, EBIT is of particular importance in that companies often have to spend suffcient amount of capital expenditures to replace depreciated assets to sustain their operations. EBIT = EBITDA Depreciation and Amortization Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 229 EBITDA Interest Coverage: EBITDA divided by gross interest expense. DBRS uses this ratio to analyze a companys ability to cover its interest payments with earnings before fnancing charges, depreciation and amortization. This ratio ignores principal payments, assuming refnancing. DBRS looks for stability in EBITDA interest coverage through business cycles to determine if a company will be able to meet commitments in a downturn. DBRS also compares this ratio with the leverage ratio covenants in the indenture or a credit agreement to determine how much room a particular company has. EBITDA Interest Coverage = EBITDA Gross Interest EBITDA Margin: This ratio is calculated by dividing EBITDA by net sales. It is used to measure a com- panys operating effciency. DBRS looks at the margin consistency through the business cycle. Since the oil and gas industry has high fxed costs and is capital intensive, critical mass is important as it reduces unit costs. Companies with economies of scale tend to achieve a higher EBITDA margin. EBITDA Margin = EBITDA Net Sales EBITDA: Earnings before interest, taxes, depreciation and amortization. It is defned as revenue less cost of goods sold and operating expenses. EBITDA measures core earnings to the exclusion of items that are non-recurring and/or one-time in nature, including earnings from discontinued operations. This number is indicative of a companys ability to generate income before fnance expenses, depreciation and amortization charges and taxes. As such, it can often be used as a proxy for cash fow from core operations before taxes and interest. Furthermore, to determine the quality of EBITDA, DBRS looks at (1) the size of a companys EBITDA relative to its peers, (2) the stability of EBITDA throughout business cycles and (3) the components of EBITDA to determine the degree of diversifcation in operations. EBITDA = Revenue Cost of Goods Sold Operating Expenses (general administrative costs, exploration expenses, research and development expenses and other operating expenses) Gross Debt (or Adjusted Total Debt): The sum of short-term debt, long-term debt and capitalized operating leases plus the debt portion of hybrid securities and preferred shares, where applicable at period end. Net Debt: Gross debt, as defned, less cash and cash equivalents at the end of the period. Net Debt = Gross Debt Cash and Cash Equivalents Net Income before Non-Recurring Items: Earnings after income taxes, adjusted to exclude extraordinary and non-recurring items (including equity earnings but net of minority interest). This number is used to measure a companys proftability without being distorted by one-time items. As such, DBRS looks for consistency through business cycles, as well as diversifcation through different operations and geographic locations. Net Income before Non-Recurring Items = EBIT Interest Income Taxes Extraordinary Items Percent Debt in Capital Structure: Gross debt at the end of the period divided by total capital of the period, as defned. This ratio indicates the debt-leverage level; the higher the ratio, the more the debt leverage and the higher the fnancial risk. In an industry as volatile as oil and gas, low-leverage companies can better withstand an economic downturn. DBRS looks at the debt covenants in a credit agreement or an indenture to determine the level of fnancial fexibility. Percent Debt in Capital Structure = Gross Debt Total Capital Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 230 Percent Net Debt in Capital Structure: Net debt divided by total capital, as defned. This is similar to total debt-to-total capital. However, this ratio takes a closer look at the percent debt in the capital structure to see if there might be cash on hand that offsets debt levels. If the ratios are similar, the cash on hand adds little comfort, but if they differ, the cash on hand provides some comfort that the debt burden could easily be mitigated, but with the caveat that the excessive cash on the balance sheet may be used by the company for other purposes such as capital expenditures, share buybacks or potential acquisitions. Percent Net Debt in Capital Structure = Net Debt Total Capital Return on Capital (ROC): This ratio is calculated by dividing net income after tax but before non- recurring items by the average of the beginning and ending total capital (debt and equity). This ratio measures proftability levels as percentage of total capital. This presents the returns of investments by both shareholders and debt creditors. A low ROC but a signifcantly high ROE could mean that the company is highly leveraged, imposing more risk to the debt holders in favour of the shareholders. Return on Capital = Net Income before Non-Recurring Items / [(Year-end X Total Capital + Year-end X-1 Total Capital) /2] Return on Common Equity (ROE): This ratio is calculated by dividing net income after tax but before non-recurring items by the average of the beginning of the year and ending of the years common equity. This ratio measures a companys proftability level as a percentage of equity or shareholder investment. DBRS looks for high ROE as well as year-over-year consistency in the ratio. Return on Equity = Net Income before Non-Recurring Items [(Year-end X Common Equity + Year-end x-1 Common Equity) /2] Total Capital: Gross debt plus total equity, as defned. Total Capital = Gross Debt + Total Equity Total Equity or Adjusted Total Equity (for the purpose of calculating capital structure): The sum of common equity and minority interest, plus the equity portion of hybrid securities and preferred shares, where applicable. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 231 Company-Specifc Business Risk Factors PRIMARY BRR FACTORS The BRR (business risk ratings) grid below shows the primary factors used by DBRS in determining the BRR. While these primary factors are shown in general order of importance, depending on a specifc issuers business activities, this ranking can vary by issuer. Company-Specifc Business Risks Primary BRR Factors AA A BBB BB B Size and Business Mix Exceptional size (i.e., well in excess of 1.5 million bar- rels of oil equiva- lent production per day). Fully integrated. Well-balanced prod- uct mix between liquids and dry gas. Signifcant presence in many key global basins. Superior size. Well integrated. Balanced prod- uct mix (liquids vs. dry gas). Strong geo- graphical diver- sifcation. Adequate size (i.e., in the area of 100,000 barrels of oil equivalent production per day). Some integra- tion. Average prod- uct mix (liquids vs. dry gas). Good geo- graphical diver- sifcation. Small size. Low integra- tion. Some product diversifcation (liquids vs. dry gas). Limited geographical diversifcation. Very small size (i.e., less than 25,000 barrels of oil equivalent production per day). No integra- tion. Concentrated product range in either liquids or dry gas. Very limited geographical diversifcation. Reserves of Core Operations Exceptional reserve quality. Industry-leading reserve life (i.e., proven reserves divided by recent annual production volume). Exceptional ability to grow reserves and production. Superior re- serve quality. Long reserve life (generally more than ten years). Superior abil- ity to grow reserves and production. Adequate re- serve quality. Average reserve life (about ten years). Adequate ability to grow reserves and production. Weak reserve quality. Below-average reserve life. Weak ability to grow reserves and produc- tion. Poor reserve quality. Short reserve life (generally less than fve years). Poor ability to grow reserves and produc- tion. Cost Competitive- ness Very low cost base. Industry-leading operating effciency. Exceptional infra- structure. Low cost base. High operating effciency. Superior infra- structure. Average cost base. Average oper- ating effciency. Adequate infra- structure. High cost base. Below-average operating ef- fciency. Weak infra- structure. Very high cost base. Low operating effciency. Poor infra- structure. Sensitivity to Price/Market Volatility Exceptional ability to withstand mar- ket volatility. Superior ability to withstand market volatil- ity. Adequate abil- ity to withstand market volatil- ity. Weak ability to withstand mar- ket volatility. Poor ability to withstand market volatil- ity. Capital Flex- ibility Exceptional capital fexibility. Superior capital fexibility. Adequate capi- tal fexibility. Weak capital fexibility. Poor capital fexibility. The following BRR risk factors are relevant to issuers in all industries (although the relevance of sovereign risk can vary considerably): Sovereign Risk The issuer rating may, in some cases, be constrained by the credit risk of the sovereign; in other words, the rating of the country in which the issuer operates generally sets a maximum rating for the issuer. If the issuer operates in multiple countries and a material amount of its business is conducted in a lower-rated country, DBRS may refect this risk by downwardly adjusting its issuer rating. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 232 Corporate Governance Please refer to DBRS Criteria: Evaluating Corporate Governance for further information on how DBRS evaluates corporate governance and management. ADDITIONAL BRR FACTORS The additional BRR factors discussed below may be very important for certain issuers, depending upon their activities, but they do not necessarily apply to all issuers in the industry. Political Risks Companies in the oil and gas industry are often confronted with signifcant political risks, including unilateral changes in royalties, production-sharing contracts and more local issues, particularly in politically sensitive countries. While international frms in any industry can be subject to political risks, oil and gas reserves located in politically unstable countries are particularly vulnerable to risk. Diversifcation between countries is important to ensure the security of reserves. DBRS reviews political risk indicators, such as the percentage of production from Organisation for Economic Cooperation and Development (OECD) countries, credit ratings of host countries and the concentration of production and reserves by country, where appropriate. Regulatory/Environmental Risks All production activities are subject to regulatory oversight, particularly with respect to safety and environmental issues. Certain activities, such as offshore drilling or tar sand production, for example, are subject to additional regulations as well as public attention. While environmental costs remain a relatively small portion of total operating costs, these are likely to increase over time and could result in a lengthier permit process, which will likely have a negative impact on proftability. Exploration Exploration, while essential to fnding new reserves, is an expensive and risky undertaking. To the extent a frm is overweighted in exploration activities relative to its size or capital resources, DBRS may view this as a negative factor on the rating. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 233 Company-Specifc Financial Risk Factors PRIMARY FRR METRICS The FRR grid below shows the primary FRR metrics used by DBRS to determine the FRR. While these primary FRR metrics are shown in general order of importance, depending upon an issuers activities, the ranking can vary by issuer. DBRS ratings are based heavily on future performance expectations, so while past metrics are important, any fnal rating will incorporate DBRSs opinion on future metrics, a subjective but critical consideration. It is not unusual for a companys metrics to move in and out of the ranges noted in the grid below, particularly for cyclical industries. In the application of this matrix, DBRS looks beyond the point-in- time ratio. Financial metrics depend on accounting data whose governing principles vary by jurisdiction and, in some cases, industry. DBRS may adjust fnancial statements to permit comparisons with issuers using different accounting principles. Please refer to DBRS Criteria: Financial Ratios and Accounting Treatments Non Financial Companies for defnitions of, and common adjustments to, these ratios in the FRR grid below. Liquidity can be a material risk factor, especially for lower-rated non-investment grade issuers. DBRS will consider available sources of liquidity including cash on hand, cash fow, access to bank lines, etc., as well as uses of liquidity such as operations, capital expenditures, share buybacks and dividends for every issuer. While market pricing information (such as market capitalization or credit spreads) may on occasion be of interest to DBRS, particularly where it suggests that an issuer may have diffculty in raising capital, this information does not usually play a material role in DBRSs more fundamental approach to assessing credit risk. Oil and Gas - Primary FRR Metrics Key Ratio AA A BBB BB B Debt-to-cash fow < 1.0x 1.0x to 1.5x 1.50x to 2.0x 2.0x to 3.0x > 3.0x Debt-to-capital < 25% 25% to 35% 35% to 45% 45% to 55% > 55% EBIT interest coverage > 20.0x 10x to 20x 5x to 10x 3.0x to 5.0x < 3.0x ADDITIONAL FRR METRICS While the primary FRR metrics above will be the most important metrics that DBRS will use in determining the FRR of an issuer, other metrics may be used, depending upon an issuers activities, capital structure, pension liabilities and off-balance sheet obligations. Proftability, particularly in the medium term, can be an important differentiator of credit risk. DBRS may assess proftability through a variety of metrics, including return on capital. Operating metrics, such as netback analysis (a measure of operating proftability on a per barrel basis or reserve recycle ratio (a measure of operating proftability per dollar invested in reserve development), can be useful metrics for credit differentiation. For issuers that have downstream operations, DBRS may evaluate these activities with operating statistics, such as refned throughput or refned capacity utilization (an effciency measure that indicates the percentage of a companys licensed capacity that is used). Because of the high cyclicality of the industry, fnancial ratios vary widely through the cycle. As a result, fnancial metrics (in comparison with BRR factors) will be of even lower relative importance than they are for most industries, particularly for investment-grade credits. Oil & Gas Study Criteria For the Non-Investment Grade World July 2014 234 INDUSTRY BUSINESS RISK RATING DEFINITIONS DBRS specifes the BRR for an industry in terms of our Long-Term Obligations rating scale. When discussing industry BRRs for an industry, DBRS typically provides either one specifc rating or a limited range (such as BBB (high)/BBB). Using a range recognizes the fact that, by their nature, industry BRRs are less precise than a specifc corporate or security rating, as they represent an overall industry. In addition to relating to the industry level, these defnitions also apply to the business risk of individual companies, which will fall more often in the very high and low categories (AA/AAA and B) than would be the case for an entire industry. Industry BRRs Rating Business Strength Comment AA/AAA Exceptional An industry BRR of AA/AAA is considered unusually strong, with no meaningful weakness in any individual area. It may include pure monopolies that are deemed essential (the primary case being regulated utilities, where the risk of deregulation is believed to be very low). Common attributes include product differentiation, high barriers to entry and meaningful cost advantages over other industries or entities. These and other strengths provide exceptional stability and high proftability. It would be quite rare for an industry to have a BRR in this category. A Superior Industry BRRs at the A level are considered well above average in terms of stability and proftability and typically have some barriers to entry related to capital, technology or scale. Industries that have, by their nature, inherent challenges in terms of cyclicality, a high degree of competition and technology risks would be unlikely to attain this rating category. BBB Adequate Industry BRRs at the BBB level include many cyclical industries where other positive considerations are somewhat offset by challenges related to areas such as commodity products, labour issues, low barriers to entry, high fxed costs and exposure to energy costs. This rating category is considered average and many industries fall within it, with key considerations such as overall proftability and stability typically considered as neither above or below average. BB Weak An industry at the BB level has some meaningful challenges. In addition to high cyclicality, challenges could include the existence of high technology or other risks. Long-standing industries that may have lost their key strengths through factors such as new competition, obsolescence or the inability to meet changing purchaser demands may ft here. The culmination of such factors results in an industry that does not generally score well in terms of stability and proftability. For an entire industry, this is typically the lowest BRR level. B Poor While not common, there are cases where an industry can have a BRR of B. Such industries would typically be characterized by below-average strength in all or virtually all major areas. Copyright 2014, DBRS Limited, DBRS, Inc. and DBRS Ratings Limited (collectively, DBRS). All rights reserved. The information upon which DBRS ratings and reports are based is obtained by DBRS from sources DBRS believes to be accurate and reliable. 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