Perspectives on the Energy Industry 2016 – Looking Forward

March 2016

Robert A. Dye Ph.D. Chief Economist, Comerica Bank

March 2016

The Comerica U.S. Economic Outlook

2016: U.S. Households Versus the World

Increasing confidence Low inflation

3

Reduced domestic energy exploration

ChinaEurope

Global Capacity Overhang

Interest rates

Emerging markets

Strong dollar

BREXIT

Job growth

Low energy prices

Increasing house prices Homeowner equity

Wage gains

Financial market volatility

U.S. Household Spending

Positives and Negatives for U.S. Households

Mostly Global

Mostly U.S.

4

Households Are In a Different Place, Part I

2

3

4

5

6

7

8

9

10

14.5

15.0

15.5

16.0

16.5

17.0

17.5

18.0

18.5

'90 '95 '00 '05 '10 '15

Household Savings and Debt

Personal Savings Rate, percent, (R)

Household Financial Obligations Ratio, percent (L)

Sources: Bureau of Economic Analysis, Federal Reserve

5

Households Are In a Different Place, Part II

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

14,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

'90 '95 '00 '05 '10 '15

Homeowner Equity and Net Worth

Homeowner equity, $ mil, (R)

Household net worth $ mil (L)

Source: Federal Reserve

6

Unemployment Rate Declines, But at a Slower Rate in 2016

4

5

6

7

8

9

10

-800

-600

-400

-200

0

200

400

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16

+242k in February, U. Rate 4.9 Percent ForecastPayroll Employment, avg monthly diff, ths (L)

Unemployment Rate, percent (R)

Sources: Bureau of Labor Statistics, Comerica Bank

7

Interest Rate Outlook Clouded by Fed Uncertainty

0

1

2

3

4

5

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Yield, percent

Fed Funds

10-Year Treasury Bonds

Sources: Federal Reserve, Comerica Bank

8

GDP Forecast, Ongoing Moderate Expansion

(9)(7)(5)(3)(1)135

2008 2009 2010 2011 2012 2013 2014 2015 2016

U.S. Real GDP Growth, annualized rate

History Forecast

Sources: Bureau of Economic Analysis, Comerica Bank

Robert A. Dye

Subscribewww.comerica.com/economics

Follow on Twitter@Comerica_Econ

Disclosures, page

Macro Thoughts….or Why Oil Prices Recover Sooner

11 March 2016

Dave Purselldpursell@tphco.com

Regulatory vs. Legislative – no change□ Congress – Will not pass anything meaningful in the near term □ Executive Branch - Will push initiatives via increased regulation

Oil exports a win – but no significant impact in the near term.

11

Washington Issues - Now

Impossible to forecast!

12

Washington Issues – 2017+

13

Global Demand is Weak?

0

3

6

9

Jan-10 Jan-12 Jan-14 Jan-16 Jan-18

US

Oil

Prod

uctio

n, m

illio

n ba

rrel

s pe

r day

Onshore

65kbopd monthly decline

Global Demand is Weak?

14Source: IEA, TPH Research

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

1987 1990 1993 1996 1999 2002 2005 2008 2011 2014

Nope!

15

Why Is Shale Production So Resilient?

0

3

6

9

Jan-10 Jan-12 Jan-14 Jan-16 Jan-18

US

Oil

Prod

uctio

n, m

illio

n ba

rrel

s pe

r day

Onshore

65kbopd monthly decline

16

Why Is Shale Production So Resilient?

0

3

6

9

Jan-10 Jan-12 Jan-14 Jan-16 Jan-18

US

Oil

Prod

uctio

n, m

illio

n ba

rrel

s pe

r day

Onshore

65kbopd monthly decline

It’s Not!

17

OPEC: Wildcard

Sources: IEA, TPH Research

10

12

14

16

18

20

J an-08 J an-10 J an-12 J an-14 J an-16 J an-18

Prod

uctio

n, m

illio

n ba

rrel

s per

day

Saudi ArabiaIranIraqLibya

Rest of OPEC

1.5% annual decline ~200kbpd decline in 2016

Further, OPEC growth will come from Saudi, Iran, Iraq, Libya, as second tier OPEC is in decline

Iran: 1mmbpd of Excess Capacity?

18Source: IEA, TPH Research

1

2

3

4

5

J an-08 J an-10 J an-12 J an-14 J an-16 J an-18

Milli

on ba

rrel

s per

day

500 kbopd Increase

Sanctions

Post-sanctions, Iran should produce 3.3mmbpd…500kbpd higher than current. But expect Iraq production to decline 200kbpd (leakage).

19

$80/bbl Oil – It Is Possible!

Texas A&M uses furious comeback to down Northern Iowa, 92-88

20

Analyst Certification: I, Dave Pursell, do hereby certify that, to the best of my knowledge, the views and opinions in this research report accurately reflect my personal views about the company and its securities. I have not nor will I receive direct or indirect compensation in return for expressing specific recommendations or viewpoints in this report. Important Disclosures: The analysts above (or members of their household) do not own any securities mentioned in this report. John E. Lowe, Senior Executive Advisor at Tudor, Pickering, Holt & Co., serves as a member of the board of directors of Phillips 66, Agrium Inc., and Apache Corp. For detailed rating information, distribution of ratings, price charts and disclosures regarding compensation policy and investment banking revenue, please visit our website at http://www.TPHco.com/disclosure or request a written copy of the disclosures by calling 713-333-2960 (United States).

OTHER DISCLOSURES Trade Name Tudor, Pickering, Holt & Co. is the global brand name for Tudor, Pickering, Holt & Co. Securities, Inc. (TPHCSI) and its non-US affiliates worldwide including Tudor, Pickering, Holt & Co. International, LLP. Legal Entities Disclosures U.S.: TPHCSI is a member of FINRA and SIPC. U.K.: Tudor, Pickering, Holt & Co. International, LLP is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales No. OC349535. Registered Office is 5th Floor, 6 St. Andrew Street, London EC4A 3AE. Canada The information contained herein is not, and under no circumstances is to be construed as, a prospectus, an advertisement, a public offering, an offer to sell securities described herein, or solicitation of an offer to buy securities described herein, in Canada or any province or territory thereof. Any offer or sale of the securities described herein in Canada will be made only under an exemption from the requirements to file a prospectus with the relevant Canadian securities regulators and only in the relevant province or territory of Canada in which such offer or sale is made. The information contained herein is under no circumstances to be construed as investment advice in any province or territory of Canada and is not tailored to the needs of the recipient. To the extent that the information contained herein references securities of an issuer incorporated, formed or created under the laws of Canada or a province or territory of Canada, any trades in such securities must be conducted through a dealer registered in Canada. No securities commission or similar regulatory authority has reviewed or in any way passed judgment upon these materials, the information contained herein or the merits of the securities described herein and any representation to the contrary is an offense. United Kingdom Tudor, Pickering, Holt & Co International LLP does not provide accounting, tax or legal advice. In addition, we mutually agree that, subject to applicable law, you (and your employees, representatives and other agents) may disclose any aspects of any potential transaction or structure described herein that are necessary to support any UK income tax benefits, and all materials of any kind (including tax opinions and other tax analyses) related to those benefits, with no limitations imposed by Tudor, Pickering, Holt & Co International LLP or its affiliates. The information contained herein is confidential (except for information relating to tax issues) and may not be reproduced in whole or in part. Tudor, Pickering, Holt & Co International LLP assumes no responsibility for independent verification of third-party information and has relied on such information being complete and accurate in all material respects. To the extent such information includes estimates and forecasts of future financial performance (including estimates of potential cost savings and synergies) prepared by, reviewed or discussed with the managements of your company and/ or other potential transaction participants or obtained from public sources, we have assumed that such estimates and forecasts have been reasonably prepared on bases reflecting the best currently available estimates and judgments of such managements (or, with respect to estimates and forecasts obtained from public sources, represent reasonable estimates). These materials were designed for use by specific persons familiar with the business and the affairs of your company and Tudor, Pickering, Holt & Co International LLP materials. This information is intended only for the use of professional clients and eligible counterparties or persons who would fall into these categories if they were clients of Tudor, Pickering, Holt & Co International, LLP, or any of its affiliates. Retail clients must not rely on this document and should note that the services of Tudor, Pickering, Holt & Co International, LLP, are not available to them. Under no circumstances is this presentation to be used or considered as an offer to sell or a solicitation of any offer to buy, any security. Prior to making any trade, you should discuss with your professional tax, accounting, or regulatory advisers how such particular trade(s) affect you. This brief statement does not disclose all of the risks and other significant aspects of entering into any particular transaction. Notice to UK Investors: This publication is produced by Tudor, Pickering, Holt & Co. Securities, Inc. which is regulated in the United States by FINRA. It is to be communicated only to persons of a kind described in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. It must not be further transmitted to any other person without our consent. Any other person should not rely on or act upon the content of this publication. Persons falling within Article 19 include authorised or exempt investment firms, UK or overseas governments, UK or overseas local authorities or international organisations. Person falling within Article 49 include companies or unincorporated associations with net assets or called-up share capital of £5 million or subsidiary companies of the same that have net assets or called-up share capital of £500,000. Tudor, Pickering, Holt & Co. International, LLP is a limited liability partnership registered in England and Wales (registered number OC349535). Its registered office is 5th Floor, 6 St. Andrew Street, London EC4A 3AE. Tudor, Pickering, Holt & Co. International, LLP (TPH International) is authorised and regulated by the Financial Conduct Authority, and is a separate but affiliated entity of Tudor, Pickering, Holt & Co. Securities, Inc. (TPH Securities). TPH Securities is a member of FINRA and SIPC. Unless governing law permits otherwise, you must contact the Tudor, Pickering, Holt & Co. entity in your home jurisdiction if you want to use our services in effecting a transaction. See http://www.TPHco.com/disclosure for further information on regulatory disclosures including disclosures relating to potential conflicts of interest.

Copyright 2015, Tudor, Pickering, Holt & Co. This information is confidential and is intended only for the individual named. This information may not be disclosed, copied or disseminated, in whole or in part, without the prior written permission of Tudor, Pickering, Holt & Co. This communication is based on information which Tudor, Pickering, Holt & Co. believes is reliable. However, Tudor, Pickering, Holt & Co. does not represent or warrant its accuracy. The viewpoints and opinions expressed in this communication represent the views of TPH as of the date of this report. These viewpoints and opinions may be subject to change without notice and TPH will not be responsible for any consequences associated with reliance on any statement or opinion contained in this communication. The viewpoints and opinions herein do not take into consideration individual client circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments or strategies to particular clients. Past performance is not indicative of future results. This message should not be considered as an offer or solicitation to buy or sell any securities. Institutional Communication Only. Under FINRA Rule 2210, this communication is deemed institutional sales material and it is not meant for distribution to retail investors. Recipients should not forward this communication to a retail investor.

**Office of Tudor, Pickering, Holt & Co. International, LLP. Employed by Tudor, Pickering, Holt & Co. International, LLP in the United Kingdom and is not registered/qualified with FINRA and is not an associated person of Tudor, Pickering, Holt & Co. Securities, Inc.Anish Kapadia, Shola Labinjo, and David Gamboa are employed by Tudor, Pickering, Holt & Co. International, LLP in the United Kingdom and are not registered/ qualified as research analysts with FINRA. Mr. Kapadia, Mr. Labinjo, and Mr. Gamboa are not associated persons of Tudor, Pickering, Holt & Co. Securities, Inc. and as such are not subject to NASD Rule 2711 restrictions on communications with subject companies, public appearances and trading securities held by a research analyst account.

RESEARCHOil Service / E&CJ eff Tillery713-333-2964jtillery@TPHco.comByron Pope713-333-7690bpope@TPHco.comGeorge O’Leary713-333-2973goleary@TPHco.comTaylor Zurcher713-333-2974tzurcher@TPHco.comShola Labinjo**+44 20 3008 6437slabinjo@TPHco.com

Integrated Oils Dave Pursell713-333-2962dpursell@TPHco.comAnish Kapadia**+44 20 3008 6433akapadia@TPHco.comDavid Gamboa**+44 20 3427 5896davidgamboa@TPHco.com

RefinersChi Chow303-300-1914cchow@TPHco.com

Matthew Blair, CFA303-300-1916mblair@TPHco.com

TRADINGSALESHoustonClay Coneley713-333-2979cconeley@TPHco.comMike Bradley713-333-2968mbradley@TPHco.comRusty D’Anna713-333-2982rdanna@TPHco.comMike Davis713-333-2971mdavis@TPHco.comOliver Doolin713-333-2989odoolin@TPHco.comJ ohn Hurd713-333-2951jhurd@TPHco.comAly McCaffrey713-333-2983amccaffrey@TPHco.com

Houston - (800) 507-2400Scott McGarveysmcgarvey@TPHco.comSeth Williamsswilliams@TPHco.comAlly Wickmanawickman@TPHco.com

New York - (800) 507-2400Todd Woodtwood@TPHco.com

LondonHarry Grist**hgrist@TPHco.com+44 20 3427 5832Richard Heggs**rheggs@TPHco.com+44 20 3427 5833

DenverWin Oberlin303-300-1919woberlin@TPHco.comNew YorkCraig Webster212-610-1652cwebster@TPHco.comJ ames Fitzgerald212-610-1653jfitzgerald@TPHco.com

LondonJ onathan Wright**+44 20 3008 6436jwright@TPHco.com

MacroDave Pursell713-333-2962dpursell@TPHco.comBrandon Blossman713-333-2994bblossman@TPHco.com

MidstreamJ eff Schmidt713-333-3925jschmidt@TPHco.comColton Bean713-333-2966cbean@TPHco.com

CoalBrandon Blossman713-333-2994bblossman@TPHco.com

Utilities / PowerNeel Mitra713-333-3896nmitra@TPHco.comRyan Caylor713-333-7694rcaylor@TPHco.com

E&PMatt Portillo713-333-2995mportillo@TPHco.comMichael Rowe713-333-3983mrowe@TPHco.comJ eoffrey Lambujon713-337-7549jlambujon@TPHco.comJ amaal Dardar713-333-3926jdardar@TPHco.comOliver Huang713-333-3929ohuang@TPHco.comSameer Panjwani713-333-2996spanjwani@TPHco.com

E&P InternationalAnish Kapadia**+44 20 3008 6433akapadia@TPHco.comShola Labinjo**+44 20 3008 6437slabinjo@TPHco.comDavid Gamboa**+44 20 3427 5896davidgamboa@TPHco.com

March 24, 2016

BOYARMILLER BREAKFAST FORUMMATT PILON, MANAGING DIRECTOR

SIMMONS & COMPANY INTERNATIONALENERGY SPECIALISTS OF PIPER JAFFRAY23

U.S. Land Rig Count Back To 80s Levels (1880s!)

¹ Source: Baker Hughes for historical and Simmons Research for projected rig counts. Current data and projections as of March 18, 2016.

² Source: Capital IQ. As of March 22, 2016.

(Average Number Of Rigs) (Dollars/Barrel)

08 – 09 Peak-To-Trough: (54%)

08 – 09 Year-Over-Year: (43%)

14 – 16P Peak-To-Trough: (77%)

14 – 16P Year-Over-Year: (72%)

Historical And Projected Quarterly Onshore U.S. Rig Count¹

876 833 728 517 422 441 490

- -- -

-

- --

--

- - --

- - - - - - - - - - - - - -

54 59 235 564 775 840 856

1,7121,7971,9101,816

1,244

876 9441,079

1,3081,474

1,6081,6671,6951,803

1,9151,9721,9471,9241,8551,7591,7061,7101,7091,6971,7241,7961,8421,856

1,352

930 892 9631,081

1,1971,2801,345

-$10

$10

$30

$50

$70

$90

$110

$130

0

500

1,000

1,500

2,000

2,500

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

Q116P

Q216P

Q316P

Q416P

Historical Projections As Of March 2016 WTI Crude Oil Price²Projections As Of March 2015

24SIMMONS & COMPANY INTERNATIONALENERGY SPECIALISTS OF PIPER JAFFRAY

0%

25%

50%

75%

100%

0100200300400500600700800900

1000

Newbuild Delivery

Massive Excess Capacity Across OFS Sectors

¹ Picture source: Houston Chronicle.² Source: PumpingIQ. As of November 20, 2015.³ Source: ODS Petrodata for historical data and newbuild statistics. Simmons Research for projected

active rig count. Projected supply based on current supply plus expected newbuild delivery.

U.S. Pressure Pumping² Global Offshore Drilling³(Number Of Rigs) (Utilization)

0%

25%

50%

75%

100%

0

5

10

15

20

25(Millions HHP) (Utilization)

U.S. Onshore Drilling¹ Current onshore U.S. pad drilling rig utilization is < 50% (total ~1,000 drilling rigs).

> 80% of ~180 total newbuild offshore rigs through 2020 are currently uncontracted.

Hydraulic fracturing demand has declined by ~47% from end of 2014.

Supply

Active Utilization

Supply

Active Utilization

Additions

25SIMMONS & COMPANY INTERNATIONALENERGY SPECIALISTS OF PIPER JAFFRAY

Energy Services And Equipment M&A Activity

¹ Source: Simmons & Company. As of March 15, 2016.

(Number Of Transactions)

Global Quarterly Energy Services And Equipment M&A Transactions: 2009 – QTD 2016¹

2940 45 43

31 35 3648 53

69

88

63 6256

64

91

59

87

72

90102

8492

7765

59 57

37 33

0

20

40

60

80

100

120

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

QTD16

26SIMMONS & COMPANY INTERNATIONALENERGY SPECIALISTS OF PIPER JAFFRAY

Recent Energy Services And Equipment Transactions

By Target GeographyBy Target Sector

¹ Source: Simmons.

Consulting/ Engineering/

Data/Software69

Drilling & Production Well

Services46

Equipment Manufacturing

43

Environmental Services

16

Pipeline Related16

Other13

21%

34%

23%

8%

8%6%

Total Transactions: 203

2015 Through March 15, 2016 Global M&A Transactions¹

U.S.123

Europe44

Canada14

Asia (Excluding China)

14

Other8

61%

22%

7%7% 4%

27SIMMONS & COMPANY INTERNATIONALENERGY SPECIALISTS OF PIPER JAFFRAY

Recent U.S. Energy Services And Equipment Transactions

¹ Source: Simmons.

Total Transactions: 123

2015 Through March 15, 2016 U.S. M&A Transactions By Target Sector¹

~64% commoditized services

~70% of commoditized are above-ground services

Niche services primarily downhole-oriented

~70% upstream equipment

Upstream focus on production and intervention

Downstream primarily highly-engineered products

Consulting/ Engineering/

Data/Software39

Drilling & Production Well

Services25

Equipment Manufacturing

26

Environmental Services

12

Pipeline Related11

Other10

21%

32%

20%

10%

9%8%

28SIMMONS & COMPANY INTERNATIONALENERGY SPECIALISTS OF PIPER JAFFRAY

Characteristics Of Recent Transactions

All-stock merger enables Archer to retain upside potential and Quintana to conserve cash.

Quintana gains scale and operating synergies.

Enables focus on core operations for Archer.

Cimation provides consulting services for automation.

Fits with Accenture’s expansion into asset management.

Strategic acquisition rationale bridges potential gap in value expectations.

PDi provides oilfield engineering and project management services.

Enables Tattva’s strategic entry into upstream oil and gas.

Provides liquidity to CEONA, which is under administration.

has acquired theNorth American wellService entities of

December 2015

an affiliate of

has been acquired by

December 2015

has sold its subsidiary

to

January 2016

29SIMMONS & COMPANY INTERNATIONALENERGY SPECIALISTS OF PIPER JAFFRAY

(Dollar amounts in billions)

Energy Services And Equipment Capital Markets Activity

U.S. Quarterly OFS Corporate Bond And Equity Issuances: 2009 – QTD 2016

$3.1

$1.4$2.0

$0.7

$4.2

$1.1$1.5

$0.5$0.9

$4.0

$1.5$2.0 $2.1

$4.5

$0.8$0.4

$4.6

$2.2

$1.4$1.9

$1.2$1.7

$0.4 $0.5$0.9

$0.3

$0.7

$0.4

$0.9

$0.2

$0.1

$0.2

$0.3

$0.7

$1.3

$0.9

$1.3

$0.6

$1.1

$0.3

$0.8

$1.4

$0.2

$0.6

$1.0$0.8

$0.3$0.8

$3.3

$2.1$2.4

$1.6

$0.1 $0.2

$4.4

$1.1

$1.7

$0.8

$1.5

$5.2

$2.4

$3.3

$2.1

$5.0

$1.9

$0.7

$5.4

$3.6

$1.6

$2.4$2.2

$2.4

$0.4

$0.8 $0.9

$0.3

$0.8

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q112

Q212

Q312

Q412

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

QTD16

Corporate Bond ProceedsEquity Proceeds

30SIMMONS & COMPANY INTERNATIONALENERGY SPECIALISTS OF PIPER JAFFRAY

First OFS equity issuance in 2016.

Significant dilution to existing shareholders.

Driven by fear; seen as insurance against potential further decline in OFS activity.

Positive market response.

Case Study – Weatherford Equity Offering

¹ Source: Bloomberg.

0

20

40

60

80

100

80

85

90

95

100

105

110

115

120 WFT VolumeWFTSLBHALOSX

Offering of 100 million

ordinary shares

announced

(Price Indexed To 100) (Volume (Millions))

Weatherford Share Price Performance¹

DubaiAl Fattan Currency House, Tower 2,

Level 7Dubai International Financial Centre

(DIFC)PO Box 506785

Dubai, United Arab EmiratesPhone: +97-1431-999-44

Fax: +97-1431-999-45

London6 Arlington StreetLondon SW1A 1REUnited Kingdom

Phone: +44 (0) 207-053-1000

Fax: +44 (0) 207-053-025

AberdeenSimmons House

22 Waverley PlaceAberdeen AB10 1XP Scotland

Phone: +44 (0) 1224-202-300Fax: +44 (0) 1224-202-303

Houston700 Louisiana, Suite 1900

Houston, Texas 77002Corporate Finance: (713)

236-9999 Securities: (713) 223-7840

Fax: (713) 223-7800

Piper Jaffray Companies (NYSE: PJC) is a leading investment bank and asset management firm. Securities brokerage and investment banking services are offered in the United States through Piper Jaffray & Co., member SIPC and FINRA; in Europe through two separate U.K.-based broker/dealers - Piper Jaffray Ltd., authorized and regulated by the Financial Conduct Authority and Simmons & Company International Limited, authorized and regulated by the Financial Conduct Authority and the Dubai Financial Services Authority as a representative office; and in Hong Kong through Piper Jaffray Hong Kong, registered with the Securities and Futures Commission. Asset management products and services are offered through four separate investment advisory affiliates―three registered with the U.S. Securities and Exchange Commission (Advisory Research, Inc.; Piper Jaffray Investment Management LLC; and PJC Capital Partners LLC), and one international asset management firm registered with the Guernsey Financial Services Commission (Parallel General Partner Limited).