At Jones Energy, we create value by establishing  a leadership position in the regions where we  operate. We may not be the largest player, but  our goal is to deliver the best returns. We only  focus in areas where we can establish best-in- class operations. In our main operating regions,  the Cleveland formation in the Anadarko Basin  and the Woodford formation in the Arkoma Basin,  we think we have accomplished that. We are  currently running 8 of our 10 rigs in the Cleveland  and are generating very attractive returns,  comparing favorably to the best US shale plays.  We see signi fi cant opportunity within our existing footprint. Our strategy continues to revolve around organic  and external growth. In 2013, we grew production  by 28% to 17.0 thousand barrels of oil equivalent  per day, and increased EBITDAX by over 50%.  The pre-tax present value or “PV-10” of our total  proved reserves also increased by 30% to over  $1 billion. In December 2013, we completed our  $193.5 million acquisition of assets from Sabine  Oil & Gas, increasing our core Cleveland acreage  by over 40%. We spud our  fi rst well on the Sabine  acreage just a matter of days after closing the  acquisition in December, and have integrated  these assets into our 2014 development plan.  Finally, in 2013, we also entered into a new  partnership with Vanguard Natural Resources  to drill Woodford wells, and closed on our sixth  agreement with BP in the Woodford. 4 A letter from Jonny Jones AVERAGE DAILY PRODUCTION (MBOE/D) 18 16 14 12 10 8 6 4 2 0 2012 2013 13.3 17.0 28% GROWTH EBITDAX ($ IN MILLIONS) 250 200 150 100 50 0 135.7 205.0 2012 2013 51% GROWTH PV-10 OF PROVED RESERVES  ($ IN MILLIONS) 1200 1000 600 800 400 200 0 782.0 2012 2013 1,017.0 30% GROWTH