NYSE: PHX Annual Shareholder Meeting March 3 rd, 2011 The Waterford Marriott Oklahoma City, OK

Annual Shareholder Meeting, March 3, Forward-Looking Statements and Risk Factors – This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Forward-looking statements include current expectations or forecasts of future events. They may include estimates of oil and gas reserves, expected oil and gas production and future expenses, projections of future oil and gas prices, planned capital expenditures for drilling, leasehold acquisitions and seismic data, statements concerning anticipated cash flow and liquidity and Panhandle’s strategy and other plans and objectives for future operations. Although Panhandle believes the expectations reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to be correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Factors that could cause actual results to differ materially from expected results are described under “Risk Factors” in Part 1, Item 1 of Panhandle’s 2010 Form 10-K filed with the Securities and Exchange Commission. These “Risk Factors” include the volatility of oil and gas prices; Panhandle’s ability to compete effectively against strong independent oil and gas companies and majors; the availability of capital on an economic basis to fund reserve replacement costs; Panhandle’s ability to replace reserves and sustain production; uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production and the amount and timing of development expenditures; uncertainties in evaluating oil and gas reserves; unsuccessful exploration and development drilling; declines in the values of our oil and gas properties resulting in write-downs; the negative impact lower oil and gas prices could have on our ability to borrow; and drilling and operating risks. Do not place undue reliance on these forward-looking statements, which speak only as of the date of this release, and Panhandle undertakes no obligation to update this information. Panhandle urges you to carefully review and consider the disclosures made in this presentation and Panhandle’s filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Panhandle’s business.

Annual Shareholder Meeting, March 3, Financial Highlights- Fiscal 2010 Condensed Balance Sheet September 30, 2010 Current assets $17,358,605 Property and equipment218,201,797 Less accumulated DD&A(131,983,249) Net property and equipment86,218,548 Other 1,547,606 Total assets$105,124,839 Current liabilities $7,259,824 Long-term debt 0 Deferred income taxes 22,552,650 Asset retirement obligation 1,730,369 Shareholders equity: Stock and paid in capital1,956,889 Retained earnings73,599,733 Deferred directors’ compensation2,222,127 Treasury stock (4,196,753) Total liabilities and equity$105,124,839

Financial Highlights-Fiscal 2010 Annual Shareholder Meeting, March 3, Year Ended September 30, Revenue$51,938,416$37,272,614 Net income (loss)$11,419,690$(2,405,021) Earnings (loss) per share$1.36$(.29) Net cash provided by operating activities$27,806,475$37,710,606 Capital expenditures$11,308,506$39,915,051 Mcfe produced8,916,6169,878,948 Average Mcfe sales price$4.94$3.79 Long-term debt$0$10,384,722

Condensed Balance Sheet December 31, 2010 Current assets $14,153,555 Property and equipment222,885,115 Less accumulated DD&A(135,304,688) Net property and equipment87,580,427 Other 1,587,849 Total assets$103,321,831 Current liabilities $5,170,332 Long-term debt 0 Deferred income taxes22,995,650 Asset retirement obligation1,733,805 Shareholders equity: Stock and paid in capital1,968,917 Retained earnings73,863,253 Deferred directors’ compensation2,363,440 Treasury stock (4,773,566) Total liabilities and equity$103,321,831 Annual Shareholder Meeting, March 3, Financial Highlights- First Quarter 2011

Annual Shareholder Meeting, March 3, First Quarter Ended December 31, Revenue$9,901,548$12,321,352 Net income (loss)$1,426,849$1,708,378 Earnings (loss) per share$.17$.20 Net cash provided by operating activities$8,579,664$4,822,897 Capital expenditures$6,570,808$2,658,662 Mcfe produced2,208,2182,278,133 Average Mcfe sales price$4.41$4.75 Long-term debt$0$8,522,231

Annual Shareholder Meeting, March 3, Financing $80 million credit facility with Oklahoma banks, maturity November 30, 2014  Current outstanding balance on credit facility; $0  Paid off debt with cash flow (no equity issuance)  $35 million borrowing base Natural Gas Swaps Pipeline Basis Swaps January - December ,000 mmbtu 190,000 mmbtu $.29 Contract PeriodVolume/MonthAverage NYMEX Price April – October ,000 mmbtu$4.69

PHX Stock Price History Annual Shareholder Meeting, March 3, % CAGR

Operating Highlights Annual Shareholder Meeting, March 3, Total U.S. mineral ownership of ~255,000 acres Superior investment economics  Participation as a working interest owner on our mineral acreage generates superior economics. We retain our proportionate share of royalty revenue. Focused development of our high quality asset base in four of the nation’s premier resource plays  Anadarko Basin ‘Cana’ Woodford Shale  Arkansas Fayetteville Shale  Southeastern Oklahoma Woodford Shale  Anadarko Basin horizontal Granite/Atoka Wash Recent development of western Oklahoma oil and natural gas liquids rich horizontal Cleveland, Hogshooter, Marmaton, Tonkawa and Mississippian

Quarterly Production (Mcfe) Annual Shareholder Meeting, March 3, % CAGR

Reserve Statistics – 2010 Annual Shareholder Meeting, March 3, Exceptional Reserve Growth Record proved reserves at year-end 2010  Fiscal year-end 2010 proved reserves increased to Bcfe  A 74% increase over 2009 Record 3P (proved, probable and possible) reserves at year-end 2010  Fiscal year-end P reserves increased to Bcfe  A 32.6% increase over 2009 Record year-end 2010 inventory of undeveloped locations  Over 4,150 undeveloped locations The YE 2010 proved reserve appraisal was performed by DeGolyer and MacNaughton (PHX initial report under new SEC reserve reporting rules)

Year End 2010 SEC Proved Reserves Annual Shareholder Meeting, March 3,

YE 2010 Proved, Probable and Possible Reserves Annual Shareholder Meeting, March 3,

Annual Shareholder Meeting, March 3, Proved Reserve Growth 27.1 % CAGR

Annual Shareholder Meeting, March 3, Probable & Possible Undeveloped Reserve Growth 33.5 % CAGR

Annual Shareholder Meeting, March 3, Southeastern Oklahoma Woodford Shale

Annual Shareholder Meeting, March 3, Diverse mineral ownership across the play Interest (WI or RI) in 21% of all producing wells in the play PHX wells primarily operated by Newfield, Devon and BP Current production 7.6 Mmcfe per day Reserves  Proved – 31.9 Bcfe (30.8% of total)  Probable – 54.9 Bcfe (63.0% of total)  Possible – 52.4 Bcfe (26.2% of total) Average undeveloped reserves per well 3.2 Bcfe per location with 8 locations per section Mineral ownership generates superior returns

Southeastern Oklahoma Woodford Shale Annual Shareholder Meeting, March 3, Current Development Area  6,310 net PHX acres  144 PHX producing working interest wells w/6.1% average NRI  48 PHX producing royalty interest wells  3.6% average NRI in 210 sections  1,214 Undeveloped locations  759 net PHX acres per million shares outstanding Current Development Area  6,310 net PHX acres  144 PHX producing working interest wells w/6.1% average NRI  48 PHX producing royalty interest wells  3.6% average NRI in 210 sections  1,214 Undeveloped locations  759 net PHX acres per million shares outstanding

Arkansas Fayetteville Shale Annual Shareholder Meeting, March 3,

Arkansas Fayetteville Shale Annual Shareholder Meeting, March 3, Diverse mineral ownership across the play Interest (WI or RI) in 16% of all producing wells in the play PHX wells primarily operated by Southwestern Energy and Chesapeake Current production 5.2 Mmcfe per day Reserves  Proved – 24.8 Bcfe (23.9% of total)  Probable – 14.0 Bcfe (16.1% of total)  Possible – 43.7 Bcfe (21.8% of total) Average undeveloped reserves per well 2.1 Bcfe per location with 8 locations per section Mineral ownership generates superior returns

Arkansas Fayetteville Shale Annual Shareholder Meeting, March 3, Current Development Area  2.2% average NRI in 249 sections  1,735 Undeveloped locations  879 net PHX acres per million shares outstanding Current Development Area  2.2% average NRI in 249 sections  1,735 Undeveloped locations  879 net PHX acres per million shares outstanding Current Development Area  7,308 net PHX acres  114 PHX producing working interest wells w/4.3% average NRI  308 PHX producing royalty interest wells Current Development Area  7,308 net PHX acres  114 PHX producing working interest wells w/4.3% average NRI  308 PHX producing royalty interest wells

Anadarko Basin ‘Cana’ Woodford Shale Annual Shareholder Meeting, March 3,

Anadarko Basin ‘Cana’ Woodford Shale Annual Shareholder Meeting, March 3, Diverse mineral ownership across initial play and expansion areas Interest (WI or RI) in 18% of all producing wells in the play PHX wells primarily operated by Devon and Cimarex Current production 1.7 Mmcfe per day Reserves  Proved – 14.9 Bcfe (14.4% of total)  Probable – 16.4 Bcfe (18.8% of total)  Possible – 95.3 Bcfe (47.6% of total) ● Average undeveloped reserves per well 4.3 Bcfe per location with 8 locations per section ● Mineral ownership generates superior returns

Anadarko Basin Woodford Shale Annual Shareholder Meeting, March 3, Current Development Area  3,545 net PHX acres  15 PHX producing working interest wells w/5.2% average NRI  4 PHX producing royalty interest wells  2.8% average NRI in 135 sections  1,063 Undeveloped locations  427 net PHX acres per million shares outstanding Current Development Area  3,545 net PHX acres  15 PHX producing working interest wells w/5.2% average NRI  4 PHX producing royalty interest wells  2.8% average NRI in 135 sections  1,063 Undeveloped locations  427 net PHX acres per million shares outstanding

Western Oklahoma Anadarko Basin Annual Shareholder Meeting, March 3,

Anadarko Basin Granite Wash Annual Shareholder Meeting, March 3, Potential Development Area  10,440 net PHX acres  3.4% average NRI in 355 sections  1,256 net PHX acres per million shares outstanding Potential Development Area  10,440 net PHX acres  3.4% average NRI in 355 sections  1,256 net PHX acres per million shares outstanding Reserve Study Area  500 net PHX Acres  2.5% average NRI in 30 sections  ~ 100 Probable/Possible Undeveloped locations Reserve Study Area  500 net PHX Acres  2.5% average NRI in 30 sections  ~ 100 Probable/Possible Undeveloped locations

Annual Shareholder Meeting, March 3, PHX Western Oklahoma Mineral Holdings

Annual Shareholder Meeting, March 3, Marietta Basin Woodford Shale

Annual Shareholder Meeting, March 3, Marietta Basin Woodford Shale ● Joiner City Prospect ● Generated by PHX in 2007 ● Woodford shale depth of ~ 9,500’ ● 100+ section total prospect area ● 2,700 net PHX leasehold acres ● 7.3% average W.I. in 58 sections ● Initial horizontal well is currently recovering fracture treatment load water