NYSE: PHX
Annual Shareholder Meeting
March 3rd, 2011
The Waterford Marriott
Oklahoma City, OK
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 1934. 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, 2011
2
Financial Highlights- Fiscal 2010
Condensed Balance Sheet
Current assets
Property and equipment
Less accumulated DD&A
Net property and equipment
Other
Total assets
Current liabilities
Long-term debt
Deferred income taxes
Asset retirement obligation
Shareholders equity:
Stock and paid in capital
Retained earnings
Deferred directors’ compensation
Treasury stock
Total liabilities and equity
September 30, 2010
$17,358,605
218,201,797
(131,983,249)
86,218,548
1,547,606
$105,124,839
$7,259,824
0
22,552,650
1,730,369
1,956,889
73,599,733
2,222,127
(4,196,753)
$105,124,839
Annual Shareholder Meeting, March 3, 2011
3
Financial Highlights-Fiscal 2010
Year Ended
September 30,
2010
2009
Revenue
$51,938,416
$37,272,614
Net income (loss)
$11,419,690
$(2,405,021)
$1.36
$(.29)
Net cash provided by operating activities
$27,806,475
$37,710,606
Capital expenditures
$11,308,506
$39,915,051
8,916,616
9,878,948
$4.94
$3.79
$0
$10,384,722
Earnings (loss) per share
Mcfe produced
Average Mcfe sales price
Long-term debt
Annual Shareholder Meeting, March 3, 2011
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Financial Highlights- First Quarter 2011
Condensed Balance Sheet
Current assets
Property and equipment
Less accumulated DD&A
Net property and equipment
Other
Total assets
Current liabilities
Long-term debt
Deferred income taxes
Asset retirement obligation
Shareholders equity:
Stock and paid in capital
Retained earnings
Deferred directors’ compensation
Treasury stock
Total liabilities and equity
December 31, 2010
$14,153,555
222,885,115
(135,304,688)
87,580,427
1,587,849
$103,321,831
$5,170,332
0
22,995,650
1,733,805
1,968,917
73,863,253
2,363,440
(4,773,566)
$103,321,831
Annual Shareholder Meeting, March 3, 2011
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Financial Highlights-First Quarter 2011
First Quarter Ended
December 31,
2010
2009
Revenue
$9,901,548
$12,321,352
Net income (loss)
$1,426,849
$1,708,378
$.17
$.20
Net cash provided by operating activities
$8,579,664
$4,822,897
Capital expenditures
$6,570,808
$2,658,662
2,208,218
2,278,133
$4.41
$4.75
$0
$8,522,231
Earnings (loss) per share
Mcfe produced
Average Mcfe sales price
Long-term debt
Annual Shareholder Meeting, March 3, 2011
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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
Contract Period
Volume/Month
Average NYMEX Price
April – October
2011

200,000 mmbtu
$4.69
270,000 mmbtu
190,000 mmbtu
$.29
$.29
Pipeline Basis Swaps
January - December
2011
2012
Annual Shareholder Meeting, March 3, 2011
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12
.31
12
.31
12
.31
12
.31
12
.29
12
.31
12
.31
12
.31
12
.31
12
.31
12
.29
.20
.20
.20
.20
.20
.20
.20
.20
.20
.20
.20
10
09
08
07
06
05
04
03
02
01
00
PHX Stock Price History
40
35
30
25
20
15
10
5
0
Annual Shareholder Meeting, March 3, 2011
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Operating Highlights


Total U.S. mineral ownership of ~255,000 acres
Superior investment economics


Focused development of our high quality asset base in four of
the nation’s premier resource plays





Participation as a working interest owner on our mineral acreage
generates superior economics. We retain our proportionate share
of royalty revenue.
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
Annual Shareholder Meeting, March 3, 2011
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9.3
6.3
3.3
08
09
0.2
01
0
0.2
01
0
1.2
01
0
.20
0.2
00
9
0.2
00
9
1.2
00
9
.20
0.2
00
8
0.2
00
8
12
.31
9.3
6.3
3.3
07
1.2
00
8
.20
0.2
00
7
0.2
00
7
12
.31
9.3
6.3
3.3
06
1.2
00
7
.20
0.2
00
6
0.2
00
6
12
.31
9.3
6.3
3.3
.20
05
1.2
00
6
12
.31
9.3
6.3
3.3
12
.31
Quarterly Production (Mcfe)
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Annual Shareholder Meeting, March 3, 2011
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Reserve Statistics – 2010
Exceptional Reserve Growth
• Record proved reserves at year-end 2010


Fiscal year-end 2010 proved reserves increased to 103.7 Bcfe
A 74% increase over 2009
• Record 3P (proved, probable and possible) reserves at year-end 2010


Fiscal year-end 2010 3P reserves increased to 390.9 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)
Annual Shareholder Meeting, March 3, 2011
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Year End 2010 SEC Proved Reserves
Annual Shareholder Meeting, March 3, 2011
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YE 2010 Proved, Probable and Possible Reserves
13
Annual Shareholder Meeting, March 3, 2011
Proved Reserve Growth
Proved Developed Reserves
Proved Undeveloped Reserves
120.0
Proved Reserves (Bcfe)
100.0
41.2
80.0
60.0
9.2
12.8
40.0
6.4
3.6
5.6
62.5
50.3
20.0
27.7
28.7
2005
2006
35.5
41.3
0.0
2007
2008
2009
2010
Annual Shareholder Meeting, March 3, 2011
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Probable & Possible Undeveloped Reserve Growth
Probable
Possible
400.0
Proved/Possible Reserves, (Bcfe)
350.0
300.0
250.0
200.0
200.1
147.9
150.0
75.0
100.0
50.0
86.1
87.4
87.1
2008
2009
2010
0.0
Annual Shareholder Meeting, March 3, 2011
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Southeastern Oklahoma Woodford Shale
Annual Shareholder Meeting, March 3, 2011
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Southeastern Oklahoma Woodford Shale

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
Annual Shareholder Meeting, March 3, 2011
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Southeastern Oklahoma Woodford Shale
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
Annual Shareholder Meeting, March 3, 2011
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Arkansas Fayetteville Shale
Annual Shareholder Meeting, March 3, 2011
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Arkansas Fayetteville Shale

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
Annual Shareholder Meeting, March 3, 2011
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Arkansas Fayetteville Shale
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

2.2% average NRI in 249 sections

1,735 Undeveloped locations

879 net PHX acres per million shares
outstanding
Annual Shareholder Meeting, March 3, 2011
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Anadarko Basin ‘Cana’ Woodford Shale
Annual Shareholder Meeting, March 3, 2011
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Anadarko Basin ‘Cana’ Woodford Shale

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
Annual Shareholder Meeting, March 3, 2011
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Anadarko Basin Woodford Shale
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
Annual Shareholder Meeting, March 3, 2011
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Western Oklahoma Anadarko Basin
Annual Shareholder Meeting, March 3, 2011
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Anadarko Basin Granite Wash
Reserve Study Area



500 net PHX Acres
2.5% average NRI
in 30 sections
~ 100
Probable/Possible
Undeveloped
locations
Potential
Development Area



10,440 net PHX
acres
3.4% average NRI
in 355 sections
1,256 net PHX
acres per million
shares outstanding
Annual Shareholder Meeting, March 3, 2011
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PHX Western Oklahoma Mineral Holdings
Annual Shareholder Meeting, March 3, 2011
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Marietta Basin Woodford Shale
Annual Shareholder Meeting, March 3, 2011
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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
Annual Shareholder Meeting, March 3, 2011
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