$5 $10 $15 $20 $25 $30 $35 $40 $39.26 $33.41 $34.66 $29.70 $25.20 $19.87 $18.27 $11.03 Q1-13  Q2-13  Q3-13  Q4-13  Q1-14  Q2-14  Q3-14  Q4-14 ■  LOE/BOE ■  PRODUCTION TAXES/BOE ■  CASH G&A/BOE COSTS PER BARREL OF OIL EQUIVALENT INTERNAL RATE OF RETURN AND TRANSACTION VALUES (in millions) 140% 120% 100% 80% 60% 40% 20% •  ASHLAND •  NIOBRARA •  SOUTH ANTELOPE •  PHOENIX •  DJ •  GOLIATH DEC 07 DEC 08  DEC 09  DEC 10  DEC 11  DEC 12  DEC 13  DEC 14 $46.4 $10.5 $172.0 $39.5 $14.0 $113.0 In addition to the significantly improved operating profitability, the Company exited two non-core basins which resulted in a gain on sales of non-current assets of $50.3 million. The DJ and Bakken dispositions that occurred in 2014 are further proving the Company’s track-record of large opportunistic dispositions that result in a high internal rate of  return; allowing the Company to reinvest proceeds in basins with higher risk-adjusted returns. Since 2007, the Company disposed of six prospects or basins with an aggregate transaction value of nearly $400 million. These dispositions had a transaction value weighted return of 83 percent. The 2014 DJ disposition (transaction value of $113 million) yielded the Company’s highest internal rate of return to date of 104 percent. As a result of the increased revenue, cost controlled operating and G&A expenses and gain on sales, offset by the Company’s non-cash impairment of $71.2  million (due to the depressed oil commodity pricing at year-end), the Company reported profits before  income tax for the year of $14.5 million. As mentioned above, the Company’s Adjusted EBITDAX for the period ($126.4 million) approximates its operating cash flow of $128.1 million. This operating cash flow, along with i) net proceeds from the disposition of the DJ and Bakken basins ($118.8 million), ii) net proceeds from issuance of equity ($68.7 million) and iii) net debt draws ($100.0 million) were the Company’s primary sources of cash (collectively $415.6 million), fund- ing $437.2 million of cash uses including, i) development expenditures ($362.0 million), ii) exploration expenditures ($39.6 million) and iii) an acquisition of primarily undevel- oped acreage in the Eagle Ford ($35.6 million). Despite the Company’s robust 2014 drilling and completion program, it continued to preserve liquidity with $69.2 million of cash and equivalents and $15.0 million of  undrawn borrowing capacity at year-end. The Company also maintains a low-leverage model with outstanding principal of $130.0 million at year-end, which represents  1.0x the Company’s 2014 Adjusted EBITDAX. The Company ranks among the lowest  of its peers in this leverage metric, a full 272 absolute basis points below the mean of  its peers (3.8x). 7