©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. DISPUTES & INVESTIGATIONS ECONOMICS FINANCIAL ADVISORY MANAGEMENT CONSULTING November 2012 Navigant Qualifications for Unconventional Oil and Gas
1 ©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. The Navigant Advantage Navigant Advantage Industry Expertise Transactional Experience Operational Expertise Litigation and Disputes Navigant is uniquely qualified to provide comprehensive business solutions for our energy focused clients Extensive Strategic and Business Capabilities »Thought leadership and innovative thinking to situations facing significant risk of uncertainty and change in order to realize value-added outcomes Seasoned Expert Witnesses - Litigation/Regulation »Accounting, economics, construction, corporate finance, energy markets »Testimony before U.S. courts, regulatory agencies and many international arbitrations Deep Energy Industry Domain Expertise »Depth and breadth of operational, technical, economic, finance, and construction expertise in crude oil & natural gas markets, oilfield services, power generation, power markets, renewable and emerging energy technologies, and energy efficiency Demonstrated Transactional Capabilities »Successfully executed more than $60 billion of mergers and acquisitions, divestitures, recapitalizations and restructurings
2 ©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. Navigant’s Industry Expertise Navigant’s industry expertise and credentials Energy Product Expertise Infrastructure Expert Credentials Expert Credentials »Crude oil (heavy sour and light sweet) »Refined products (gasoline, diesel fuel, heating oil, etc.) »Natural gas, natural gas liquids (ethane, propane and butanes) »Electricity (all technologies) »End-use gas consumption »Motor vehicles »Crude oil (heavy sour and light sweet) »Refined products (gasoline, diesel fuel, heating oil, etc.) »Natural gas, natural gas liquids (ethane, propane and butanes) »Electricity (all technologies) »End-use gas consumption »Motor vehicles »Refineries »Petrochemical plants »Pipelines (crude oil, natural gas, refined products) »Natural gas processing plants, natural gas to liquids plants »Upstream, midstream and downstream operations »Oil Platforms /Floating vessel (FPSO) »Water born transportation (ports, barges) »LNG Facilities »Railroads »Power generation market technologies »Renewable energy technologies »Emerging technologies (distributed generation and energy efficiency) »Refineries »Petrochemical plants »Pipelines (crude oil, natural gas, refined products) »Natural gas processing plants, natural gas to liquids plants »Upstream, midstream and downstream operations »Oil Platforms /Floating vessel (FPSO) »Water born transportation (ports, barges) »LNG Facilities »Railroads »Power generation market technologies »Renewable energy technologies »Emerging technologies (distributed generation and energy efficiency) »PhD Economists, MBAs, CPAs »Certified Fraud Examiners »Chartered Financial Analysts »Certified Business Appraisers »Certified Insolvency & Restructuring Advisor »FINRA Series 7, 63 & 24 licensed »Professional and Cost Engineers »CPM Scheduling Experts »PhD Economists, MBAs, CPAs »Certified Fraud Examiners »Chartered Financial Analysts »Certified Business Appraisers »Certified Insolvency & Restructuring Advisor »FINRA Series 7, 63 & 24 licensed »Professional and Cost Engineers »CPM Scheduling Experts
3 ©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. Litigation Advisory Services Disputes & Investigations Construction Energy Economics »Expert witness testimony »Construction Claims Delay/acceleration Labor productivity Contract termination Construction defects Change orders »Forensic scheduling »Quantification of damages »Forensic accounting »False claims »Surety bond claims »Litigation support »Prudence investigations »Expert witness testimony »Construction Claims Delay/acceleration Labor productivity Contract termination Construction defects Change orders »Forensic scheduling »Quantification of damages »Forensic accounting »False claims »Surety bond claims »Litigation support »Prudence investigations »Expert witness testimony »Quantifying damages »Forensic accounting »Government contract disputes »Investigations: Financial Corporate Fraud Money laundering »Supplier interruption »Employee discrimination and personal injury »Discovery assistance »Expert witness testimony »Quantifying damages »Forensic accounting »Government contract disputes »Investigations: Financial Corporate Fraud Money laundering »Supplier interruption »Employee discrimination and personal injury »Discovery assistance »Industry practices »Operational expertise »Management expertise »Regulatory expertise »Industry practices »Operational expertise »Management expertise »Regulatory expertise »Expert witness testimony »Quantify economic »Competition analyses for mergers and acquisitions »Antitrust lawsuits Class action »Intellectual property patents, reasonable royalties Market manipulations Monopolization Price fixing »Market Design »Expert witness testimony »Quantify economic »Competition analyses for mergers and acquisitions »Antitrust lawsuits Class action »Intellectual property patents, reasonable royalties Market manipulations Monopolization Price fixing »Market Design Litigation, forensic accounting, investigative & discovery services Construction project disputes and expert testimony Hands on industry expertise Economic and financial analysis for expert testimony and strategic planning
4 ©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. Business and Risk Advisory Services Energy Financial Advisory Construction »Investment banking Sell side Buy side Private Placement »Valuation Services Enterprise valuation Purchase price allocation Fairness Opinion »Restructuring »Capital »Operating »Investment banking Sell side Buy side Private Placement »Valuation Services Enterprise valuation Purchase price allocation Fairness Opinion »Restructuring »Capital »Operating »Strategic advisory »Regulatory compliance »Rate cases »Operations and process improvement »DOE applications »Interconnection agreements »Market and pricing analyses »Feasibility and cash flow analyses »Fuel services »Resource procurement »Strategic advisory »Regulatory compliance »Rate cases »Operations and process improvement »DOE applications »Interconnection agreements »Market and pricing analyses »Feasibility and cash flow analyses »Fuel services »Resource procurement »Project risk management practices and protocols »Program / project cost controls »Program / project scheduling »Change order preparation and analysis »Project status monitoring »Contract costs and audits »Project management procedures development »Claims management »Real estate consolidation »Building information »Project risk management practices and protocols »Program / project cost controls »Program / project scheduling »Change order preparation and analysis »Project status monitoring »Contract costs and audits »Project management procedures development »Claims management »Real estate consolidation »Building information Business advisory services Full spectrum of financial advisory services Business advisory services
5 ©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. »Navigant experts provide our clients with a full suite of advisory services focused on strategic market analyses, mitigating infrastructure project risks as well as addressing wide ranging disputes and investigations. Our global perspective uniquely positions us to provide both domestic and international expertise. »Navigant’s advisory and expert services include: Natural gas market modeling, long term commodity price forecasting and scenario analysis Market analysis, pricing, economic impact, feasibility, competition, antitrust economics, market manipulation, and other analyses Strategic advice on planning construction projects, operations, financing, trading, marketing, transactions, and policy issues Natural gas fired generation services including fuel procurement, transportation, and storage Construction risk management and claims Rate case support and prudence investigations Transaction advisory, restructuring, and due diligence services Debt and equity private placement Valuation and purchase price allocation analyses Natural Gas and Crude Oil Markets, Pipelines and Related Capabilities
6 ©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. LNG Facilities Capabilities »Navigant’s natural gas and liquefied natural gas (LNG) experts provide clients with insight into energy business strategies, project transactions, financing, operations, trading, and marketing. Our global perspective uniquely positions us to provide both domestic and international expertise in: strategy and planning, market analysis and planning, regulatory advisory, commercial negotiation, and independent due diligence. »Navigant’s Natural Gas and LNG advisory services include: Long term price forecasting and scenario analysis LNG sector market support and analysis including regulatory permitting for both imports and exports Construction project risk analysis Economic impact, econometric, and statistical analysis Expert testimony for commercial disputes and regulatory proceedings Transaction advisory, restructuring, and due diligence services Debt and equity private placement Valuation and purchase price allocation analyses
7 ©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. Mergers, Acquisitions, Restructuring and Bankruptcy Navigant’s Capabilities »Navigant experts provide our clients with advisory services for many energy industry mergers of: oil and gas producing assets, refineries, major integrated oil companies, refined product wholesale and retail marketing activities, and the power and electricity industry. »Economic analyses of mergers and acquisitions include: Antitrust risk analysis - Determine relevant antitrust markets and competitors, employing current analytic, and statistical techniques Evaluate the effects on competition of a merger or acquisition to identify potential issue areas in advance of initiating the merger/acquisition Assist in the preparation of Hart-Scott-Rodino filings Prepare white papers to the Federal Trade Commission (FTC) to support merger/acquisition and/or respond to the FTC’s second data requests; participate in making presentations to the FTC Due diligence regarding potential transactions » Financial advisory services including: Transaction advisory (buy-side, sell-side, and private placement) Restructuring and due diligence services Valuation services
Key C O N T A C T S ©2010 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. Key C O N T A C T S ©2010 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. Key C O N T A C T S ©2010 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. Key C O N T A C T S ©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 8 ENERGY Rick Smead Director, Energy Practice Julie Carey Director, Navigant Economics Raoul Nowitz Director, Navigant Capital Advisors Jim Zack Director, Construction Practice Rob Wentland Managing Director, Disputes & Investigations Practice