HOUSTON. The View from. By: Dan Steffens, President INSIDE THIS ISSUE

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1 The View from HOUSTON Energy Prospectus Newsletter: "The View from Houston May 10, 2016 Issue: 121 By: Dan Steffens, President Dan Steffens is the President of Energy Prospectus Group (EPG), a networking organization based in Houston, Texas. He is a 1976 graduate of Tulsa University with an undergraduate degree in Accounting and a Masters in Taxation. Mr. Steffens began his career in public accounting, becoming licensed as a CPA in After four years in public accounting, he transitioned to the oil & gas industry with the bulk of his time (18 years) spent with Amerada Hess Corporation (HES). He served as the Hess United States E&P Division Controller from 1994 to INSIDE THIS ISSUE 4 Natural Gas 4 Sweet 16 Growth Portfolio 7 Small-Cap Growth Portfolio 8 High Yield Income Portfolio Seek and ye shall find. At EPG we are seeking out the best energy stocks and we bring those companies to the attention of our members. We live in the Hydrocarbon Age and we are extremely lucky to do so. Abundant and affordable energy has raised the standard of living for most humans, especially those of us that live in America. For a moment, visualize a gallon of milk. It is the same amount of gasoline that transports your SUV, with you and your family in it, for more than twenty miles. It is incredible how much energy is packed into that gallon of liquid fuel and how stable it is. You could drop that gallon of gasoline from the roof of a ten story building and it would not explode when it hit the ground. Those flaming car explosions we see on television rarely happen, no matter how violent the accident is. More amazing is that a gallon of milk costs more than a gallon of gasoline. At the turn of the century there was fear that we were approaching Peak Oil, when crude oil production was expected to go on terminal decline around Thanks to our brilliant engineers, most of who work for American based companies, we figured out how to cost effectively recover oil from shale and other tight formations by drilling horizontal wells and facing them with massive amounts of fluids and sand. There have also been significant improvements in seismic processing, allowing geologists to see potential reserves deep underground. The problem is that the markets have not figured out how to stabilize the prices for oil, natural gas and 1

2 natural gas liquids. The wild oil price cycles, like the one we are in now, disrupt the upstream business and eliminate a lot of jobs. They drive away the capital needed to find and develop the new sources of oil & gas we ll need and they keep a lot of smart people from pursuing careers in the industry. Humans should be smart enough to figure this out, but when you trust a bunch of Middle Eastern nations to balance the market, this is what you get. You d think an issue as important as our national energy security would get mentioned by the presidential candidates, but I do not expect Clinton or Trump to bring it up over the next few months. Don t you wish you had the pay-per-view rights to those debates? Oil Market Prices The price of West Texas Intermediate (WTI) finally found the bottom in February for this oil price cycle. It won t be straight up from here, but with global supply & demand heading toward a balance by yearend, we should see higher oil prices. Later this week, the International Energy Agency (IEA) will publish their monthly Oil Market Report. In their April report, IEA forecast an increase in demand for hydrocarbon based liquid fuels (primarily made from crude oil) of 1,800,000 million barrels per day from the first quarter to the third quarter of this year. If that happens, the global oil market will be back in balance. At our luncheon on April 25th, Terry Starling from Raymond James presented his firm s official oil price forecast for 2016 and Like IEA, Raymond James predicts a significant tightening of the oil market this summer. They believe WTI will reach $50/bbl by the end of June and spike to $70/bbl in late 3rd quarter. As I have been saying for over a year, crude oil prices under $60/bbl are unsustainable. We ve seen an 2

3 incredible decline in drilling activity that is going to result in an acceleration of Non-OPEC oil production declines that began a year ago. The number of rigs operating in North America is now at the lowest level since Baker Hughes (BHI) started tracking it over 70 years ago. Keep in mind that the United States and Canada are not the only two countries where oil production has rolled over. Oil production in Venezuela was down 188,000 barrels per day year-over-year in the first quarter due to natural declines and an economic crisis (caused by low oil prices). Latin America on the whole lost 441,000 barrels per day in the first quarter. We ve seen many deepwater projects cancelled, enough to all but guarantee an oil shortage in The terms glut and awash in oil have been so overused during the last two years by the media that most people now believe low fuel prices are here to say. I m sure the SUV salesmen love it, but I m tired of hearing them. Another thing to keep in mind is that when there is an oversupply of oil the traders ignore supply disruptions like the forest fires last week in Alberta that Reuters estimated shut in 640,000 barrels per day, militants attacking a Chevron platform in Nigeria, or unending conflict in Iraq, Libya and just about every other OPEC nation. As the market tightens, the speculators who set the oil price will pay more attention to the headlines. As Terry Starling pointed out at our April 25 luncheon in Houston, the fact that makes this cycle different is that there is almost no excess production capacity in the world today. Raymond James estimates that OPEC spare capacity is less than a million barrels per day, the lowest point in over 50 years. This fact alone, is why fund managers are moving more money into the energy sector and why our Sweet 16 Growth Portfolio is up close to 24% year-todate. 3

4 Sweet 16. It has a market-cap of over $43 Billion and holds large positions in the Eagle Ford, Bakken and Permian Basin. The company has reduced spending to live within cash flow from operations and I am forecasting a year-over-year decline in production of approximately 5%. The highlights for the quarter were a successful Enhanced Oil Recovery test in the Eagle Ford that could significantly increase the company s recoverable oil and two impressive Austin Chalk horizontal well in South Texas. The Austin Chalk sits directly above the Eagle Ford. Natural Gas The natural gas and natural gas liquids markets are much different than the crude oil market. Currently, the North American market is oversupplied. Natural gas in U.S. storage is 836 billion cubic feet (Bcf) higher than the five-year average. That fact will keep gas and NGL prices depressed through the summer. However, gas production is now declining by approximately 0.5 Bcf per day each month and demand is forecast by Simmons & Company to increase by 3.1 Bcfpd this year. Total U.S. demand for natural gas is approximately 83 Bcfpd this year and heading to 100 Bcfpd by If Mother Nature gives us a normal summer followed by a normal winter, I am expecting natural gas to drift up to $3.00/mcf by year-end. Over the last five years, each time natural gas moved under $2.50/mcf for an extended period, it rallied back to over $3.00 within a year. Sweet 16 Growth Portfolio The rest of this newsletter will be focused on the Sweet 16, which is our flag ship portfolio. They all reported first quarter production at or above my forecast with the exception of PDCE which had some weather related issues. I am going to comment on each company, starting with the large-caps. The Sweet 16 is off to a great start this year, up 23.9% YTD, primarily on the strength of the oil price rebound. Wall Street fund managers are rotating money back into the energy sector and companies like this are more comfortable for them. As the market gains confidence in the oil price rebound, the small-caps will get more attention. The upstream MLPs will be the last group to get some love from investors. EOG Resources (EOG) is by a wide margin the largest company in the New Profiles Pioneer Natural Resources (PXD), with a market-cap of $26 Billion, seems to be Wall Street s favorite Permian Basin company. Production should be up about 12% this year. It does trade at a high multiple, which is deserved because of a strong balance sheet and huge inventory of horizontal drilling locations with stacked pay zones. Devon Energy (DVN), with a marketcap of $16.5 Billion, is the only Sweet 16 stock down slightly year-to-date because Wall Street is concerned about their debt load. They are hoping to raise over $2 Billion in cash by selling several non-core asset packages and their interest in the Access Pipeline in Canada. Devon and Newfield Exploration have the leading positions in the Oklahoma Stack Play. Assuming the asset sales are closed this year and oil prices The following reports were posted to the website since our last newsletter: Updated Net Income and Cash Flow Forecasts for several of our Sweet 16 and other portfolio companies A table of our Fair Value estimates for each Sweet 16 company compared to First Call s 12-month price targets Company Profiles Evolution Petroleum (EPM) Hi-Crush Partners LP (HCLP) Memorial Production Partners (MEMP) MPLX LP (MPLX) Plains All American Pipeline (PAA) 4

5 Sweet 16 Growth Portfolio Company Name Primary Product Stock Symbol Share Price EPG Fair Value Estimate Percent Undervalued 5/6/16 ANTERO RESOURCES GAS AR $25.90 $ % CARRIZO OIL & GAS OIL CRZO $32.49 $ % CONCHO RESOURCES OIL CXO $ $ % CIMAREX ENERGY OIL XEC $ $ % CONTINENTAL RESOURCES OIL CLR $38.79 $ % DEVON ENERGY OIL DVN $31.40 $ % EOG RESOURCES OIL EOG $78.64 $ % DIAMONDBACK ENERGY OIL FANG $85.46 $ % GULFPORT ENERGY CORP GAS GPOR $28.68 $ % NEWFIELD EXPLORATION OIL NFX $37.20 $ % NOBLE ENERGY OIL NBL $35.50 $ % PARSLEY ENERGY OIL PE $23.81 $ % PDC ENERGY OIL PDCE $57.01 $ % PIONEER NATURAL RESOURCES OIL PXD $ $ % RANGE RESOURCES GAS RRC $41.91 $ % SM ENERGY OIL SM $29.04 $ % move higher, DVN has a lot of upside for us. Just be aware that their $18.5 Billion of debt does add more risk. Noble Energy (NBL), with a marketcap of $15.3 Billion, is the newest member of the Sweet 16. First quarter production beat my forecast, coming in above the company s guidance. My valuation is based on the mid-point of their guidance, but I think they will top it quarter-afterquarter. Noble has an industry leading position in the DJ Basin with smaller positions in the Eagle Ford and Delaware Basin. They have big projects underway in the Gulf of Mexico and a significant natural gas development offshore Israel. We will publish a detailed profile on the company later this week. Concho Resources (CXO), with a market-cap of $14.9 Billion, is a pure play on the Permian Basin. First quarter production of 139,482 boepd (64% crude oil) was above guidance, but below 4th quarter production. Like EOG, Concho has significantly reduced their drilling program, opting to wait until oil prices improve. Based on my forecast, cash flow from operations will exceed this year s capital expenditures by approximately $200 million. Concho has an estimate 20,000 horizontal drilling locations in areas with stacked pay zones. Continental Resources (CLR), with a market-cap of $14.4 Billion, is the Sweet 16 Comeback Kid for Harold Hamm, the CEO and largest shareholder, got a lot of heat when he decided to monetize the company s oil price hedges late in In my opinion, the stock became grossly oversold. This Oklahoma City based company, discovered the SCOOP play and they have a large position in STACK. They hold approximately 75% of SCOOP and have the 3rd largest acreage position in STACK (behind DVN and NFX). They are reporting outstanding well results in both areas. Fifteen of the nineteen operated drilling rigs they have working today are in Oklahoma, with the other four in the Bakken. CLR is heavily weighted to oil. Cimarex Energy (XEC), with a market-cap of $10.5 Billion, got my largest increase in valuation since the last newsletter as a result of their first quarter results. First quarter production was well above my forecast despite a reduced drilling program 5

6 EPG Coming Events Our luncheons in Houston and Dallas give EPG members and their guests an opportunity to meet the top management of some of the most promising small and mid-cap energy companies that we track. Members and guests need to register on our website. Our luncheons are free for EPG members and just $40 for non-members that register through our website or $50 at the door. As of this date, we have no luncheons scheduled in Houston or Dallas. We are talking to several companies and hope to have a luncheon scheduled soon. Dan will be speaking at an energy conference in Plano, Texas on June 6 and he is trying to get free admission for EPG members who wish to attend. If he can, an will be sent out with details. They increased production guidance With a very strong balance sheet they are committed to live within cash flow from operations, which they can do because most of their leasehold is held by production. Their position in STACK adds another layer of upside Newfield Exploration (NFX), with a market-cap of $7.3 Billion, is my TOP PICK in the STACK play. Last week they announced the acquisitions of ~42,000 acres of STACK in Kingfisher, Blaine, Canadian and Dewey Counties in Oklahoma from Chesapeake Energy (CHK) for $470 million. The acquired assets include current production of 3,800 Boe/d (55% liquids) which management expects will more than double by year-end as recently drilled wells are completed and turned to sales. The acquisition fills in some blanks in Newfield s already outstanding position in STACK and adds an estimated 1,000 horizontal drilling locations. Stifel raised NFX to a BUY with a $45/share NAV the morning after the deal was announced. Newfield is already funding this year s capital program with cash flow from operations and my valuation will continue to drift higher with oil prices. The economics on STACK wells at $40 oil are good and they are FANTASTIC at $60 oil. Antero Resources (AR), with a market-cap of $7.2 Billion, is one of our three companies that is primarily a natural gas producer, thanks in large part to the fact that they have more than 100% of their natural gas production hedged at good prices for 2016 & This is the only Sweet 16 that reported positive GAAP earnings per share for the first quarter. Antero has an outstanding leasehold position in the southwestern core area of the Marcellus Shale and they have close to 150,000 net acres in the core of the Utica Shale. Double digit production growth for 2016 and 2017 is locked in by this well-funded company. Range Resources (RRC), with a market-cap of $7.0 Billion, is our other large-cap gasser. They hold over a million acres in the Marcellus Shale. Range estimates that they have over 80 Trillion Cubic Feet of recoverable natural gas and 3 billion barrels of recoverable liquids. The share price is up 70% year-to-date, so I recommend waiting for a pullback to add this one. RRC is one of my original Sweet 16 companies from Their outstanding management team is based in Fort Worth, Texas. If natural gas rebounds to $4.00/mmbtu, this stock should trade around $80/share. Diamondback Energy (FANG), with a market-cap of $6.1 Billion, is a pure play on the Permian Basin. The share price dipped with the pack in late 2014, but quickly bounced back and has held up better than any company in the space. Wall Street loves this company because it has delivered quarter-after-quarter of production growth. I cannot justify a higher valuation, but I may not be giving it 6

7 enough value for their stake in Viper Energy Partners LP (VNOM), an MLP (royalty pool) they created. First Call s price target for FANG is $ I plan to take a hard look at Viper late this month and may be adding it to our High Yield Income Portfolio. Diamondback is focused on drilling this year on leases were Viper holds a royalty interest, which should increase distributions to VNOM unit holders. Mid-caps Parsley Energy (PE), is a well-funded pure play on the Permian Basin. First quarter production of 29,100 boepd beat my forecast by 1,600 boepd. Production was up 20% quarter-over-quarter and 70% yearover-year. Raymond James raised it to a Strong Buy the morning after they released Q1 results and I agree. Parsley is clicking on all cylinders and doing it on a budget funded almost entirely by cash flow from operations. Parsley is similar to where FANG was a year ago and growing production at a faster pace. During their quarterly conference call, they made a statement which I had to go back and double check. This shows you the stacked pay potential in the Permian Basin and why Wall Street loves these companies. "Just focusing on Lower Spraberry, the Wolfcamp A and the Wolfcamp B on a fully down spaced scenario, we could have 58 wells per section when you incorporate a second Wolfcamp B flow unit. Currently, we count no more than 24 wells per section in these intervals, with nothing counted yet in the upper Wolfcamp B. So clearly, a lot of upside if we can achieve even a fraction of these possibilities. There's a lot of talk these days about completion optimization, and this is an area in which we've really been ahead of the curve. We are one of the first companies to go to slick water in the Wolfcamp and then ramp up to tighter stage spacing and higher proppant loading. There aren't many secrets in this business, so it's no surprise to see convergence on many of these variables. We've been holding pad around 170 feet between stages and 1,700 to 1,800 pounds of sand per foot for several quarters now, but we're gearing up for what we're calling a monster frac in a couple of months." Gulfport Energy (GPOR) has been in the Sweet 16 for over six years and I think it is a great company selling at a discount because gas prices are depressed. After doubling their production for three years in a row, Gulfport s production will only be up 30% this year. 83% of this year s natural gas is hedged at $3.20/ mmbtu. What s hurting their revenues this year are low NGL prices, but I believe NGL prices will improve as supply / demand are now coming back into balance. GPOR is my Top Pick in the Utica Shale play in Eastern Ohio. PDC Energy (PDCE) reported some weather related production issues in the Wattenberg Field when they announced first quarter results on Friday. You may recall the big winter storm in Northern Colorado in March. In my opinion, the market over-reacted to the lower than expected first quarter production. Stuff like this is just a timing difference. The delay probably helped as oil prices were higher when they got the wells completed to sales. It should be noted that the company did not lower their fullyear production guidance. PDCE is a well-funded company with a strong and focused team. I m forecasting 35% production growth this year, on top of 65% production growth in This year s capital program is totally funded by operating cash flows. SM Energy (SM) is up 47% YTD, but it is still trading at less than 3.2 X operating cash flow per share. SM has a large leasehold position in the Eagle Ford and a growing position in the Permian Basin where they are reporting very good well results. Current production is approximately 145,000 boepd (45% natural gas, 31% crude oil and 24% NGLs). SM has good hedges in place for this year, over $1 Billion of liquidity and this year s capital program is almost entirely covered by cash flow from operations. I believe SM has a lot more upside for us. Carrizo Oil & Gas (CRZO) is the smallest company in the Sweet 16 and I may drop it down to the Small- Cap Growth Portfolio in the next newsletter. I have my eye on a few larger companies. Carrizo has solid positions in the Eagle Ford and the Permian Basin. I have been following it for many years and I have a high level of confidence in my forecast model. It is trading at more than 50% below by valuation, probably just because of its size. Disclosure: I have long positions in BBEP, CLR, DDRI, GST, HCLP, LINE, MEMP, MTDR, MPLX, NFX, RRC, and SN. I do not intend on buying or selling any securities mentioned in this newsletter within 72 hours of the publication date on page one. I am not receiving compensation from any of the companies mentioned in this newsletter. See the DISCLAIMER on the last page of this newsletter for more details. Small-Cap Portfolio Small-caps have more risk than the larger companies in our Sweet 16, but they also have more potential. Companies with lower production have more exposure to a prolonged period of low commodity prices. I believe by staying focused on the fundamentals we can increase our chances of making profitable investments in this space because it has less analysts coverage. Let me repeat that again: Small- Caps have more RISK. This is not where you invest your retirement savings. Over the next two weeks I m going to spend more time on the Small- Caps and they will be highlighted in updated profiles we will be sending out late this month. I will be updating my forecast models for all of them this week. Gastar Exploration (GST) disappointed the market last week by pulling the sale of their South 7

8 Small-Cap Growth Portfolio Company Name Primary Product Stack acreage (~26,000 acres). On the conference call, Russ Porter explained that they were not getting much interest and with drilling activity moving toward that acreage, the board though it was best to wait until they had more offset well results and hopefully higher oil prices. I think it sounds like the right move for the company because the last thing shareholders should want is a sale to a low-ball bidder. Stock Symbol CALLON PETROLEUM OIL CPE Share Price 5/6/16 $10.38 EPG Fair Value Estimate Percent Undervalued $ % EARTHSTONE ENERGY OIL ESTE $12.20 $ % GASTAR EXPLORATION OIL GST $1.28 $ % LONESTAR RESOURCES OIL LNREF $4.15 $ % MATADOR RESOURCES OIL MTDR $20.08 $ % RSP PERMIAN OIL RSPP $30.60 $ % SANCHEZ ENERGY OIL SN $8.72 $ % SYNERGY RESOURCES OIL SYRG $5.75 $ % High Yield Income Portfolio Gastar also did not have much to say about their second Meramec horizontal well, the Holiday Road. The well is still flowing (at close to 3,000 barrels per day) frac fluid, so there is not much oil & gas production to report. When that much frac fluid and sand is pumped in during completion, it pushes the oil back into the formation. Wells clean up on their own schedule and there is not anything Gastar can do to speed up the process. We should have a better idea of how this well will produce oil & gas by the end of the 2nd quarter. Gastar does have a near-term liquidity issue, which is a valid concern. They can sell some leasehold in the North Stack area, but I am hoping it does not come down to that. My take, based on several recent leasehold trades in STACK, is that Gastar s North Stack leasehold block is a valuable piece of real estate. It has over 1,000 net undrilled horizontal drilling locations. High Yield Income Portfolio Our Income Portfolio is focused on finding energy sector stocks and MLP units that offer high yield with a reasonable level of risk. I will be spending several days looking at this group over the next 2-3 weeks and posting my comments to the EPG Forum. Check it daily. In my opinion, the market has been overly negative on the energy sector MLPs, especially the upstream MLPs. If oil & gas prices do rebound as I predicted in the opening for this newsletter, the MLPs could come Primary Stock Share Estimated Annual Company Name Product Symbol Price Annual Yield Dividend 5/6/16 CALLON PETROLEUM COMPANY OIL CPE-PA $ % $5.00 EVOLUTION PETROLEUM - Pfd Series A OIL EPM-PA $ % $ MEMORIAL PRODUCTION PARTNERS MLP MEMP $ % $0.12 MAGELLAN MIDSTREAM PARTNERS LP MLP MMP $ % $3.21 MPLX LP MLP MPLX $ % $2.02 ONEOK PARTNERS LP MLP OKS $ % $3.16 PLAINS ALL AMERICAN PIPELINE MLP PAA $ % $2.80 PLAINS GP HOLDING MLP PAGP $ % $

9 back into favor. You may have noticed that all four of the midstream MLPs (MMP, MPLX, OKS and PAA) have moved higher since our last newsletter. On May 2nd we published a profile on MPLX. Final Thoughts Even though we live in a world that consumes 95 million barrels of liquid fuels per day (forecast to be 97 million barrels per day by year-end) and annual demand growth is quite predictable, the producers cannot seem to keep supply and demand in balance for more than a few years at a time. When supply exceeds demand by just 1% it doesn t take long before prices plunge. The reverse is also true; when demand exceeds supply the price of oil rises. Take a look at the 70-year chart of oil prices (adjusted for inflation) and it is clear that since the Arab Oil Embargo in the early 70 s the oil markets have not been steady. Since OPEC was given the job of balancing the oil markets, they ve done a terrible job. Note that when the Texas Railroad Commission was handling the job, prior to 1973, they did a good job. They did it by assigning allowables to each field. America could take back the job and tell OPEC to take a hike, but the gang we have running Washington does not have a clue when it comes to the energy markets. Washington thought biofuels were the answer a few years ago and then they realized that humans need to eat. If 100% of the world s farmland was used to grow biofuel feedstock it would still not be enough to replace a third of the oil we consume today. Plus, burning biofuels is just as polluting as burning oil. We need higher oil & gas prices to attract the capital necessary to find and develop the new supplies we re very soon going to need. $45/bbl is nowhere close. I predict we see $50/bbl by the end of June and $60/bbl in Q4 Raymond James says $65/bbl in Q4 and $75/bbl in 2017 David Purcell at Tudor Pickering is forecasting $80/bbl late this year Michael Rothman at Cornerstone Analytics, a group that tracks global inventories closely, believes global demand is much higher than what IEA is telling us and that supply & demand are already tight. Mike is forecasting $85/bbl by year-end One thing I know for sure is that oil price cycles do end and they end by over-shooting the mark. When supply & demand get back to balance, and it looks like that will happen in less than six months, the producers will not immediately ramp up drilling and completions. All of the oil in storage will cushion the blow, but shortly after demand exceeds supply the price of oil will march higher. Don t forget that we use a lot more oil & gas than we did a few years ago, so higher storage levels are required. The same goes for natural gas. Hang tough out there. The party is just getting started. Our goal is not to tell you what to invest in, but to give you a lot of good choices. Not all of the stocks we discuss in this newsletter or on the website are going to go up, but the majority of them have since 2001 when I launched EPG. If you stay focused on owning companies that have strong fundamentals and growth locked in, I believe you will have an edge in the market. Thank you for your support. Keep an eye on the macroenvironment, but look closely at the details before you invest in anything and good luck! Dan Steffens, President Energy Prospectus Group 9

10 EPG Disclaimer The analysis and information in this newsletter and the reports & financial models on our website are for informational purposes only. No part of the material presented in this NEWSLETTER and/or reports on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed herein constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the PUBLISHER (Energy Prospectus Group, a division of DMS Publishing, LLC) and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Investors should always consult an investment professional before making any investment. Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results. Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the PUBLISHERS, editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided. The analysis provided is based on both technical and fundamental research and is provided ''as is'' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed. The information contained in the NEWSLETTERS is provided by Energy Prospectus Group, a division of DMS Publishing, LLC. Employees and affiliates of Energy Prospectus Group may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. PUBLISHER will indicate whether he has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice. Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill Energy Prospectus Group 10