NYSE: PHX

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

2. 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

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7. $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 Annual Shareholder Meeting, March 3, 2011

8. 23% CAGR Annual Shareholder Meeting, March 3, 2011

9. 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 ofthe 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 Annual Shareholder Meeting, March 3, 2011

10. 16.3% CAGR Annual Shareholder Meeting, March 3, 2011

11. 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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14. Proved Reserve Growth 27.1% CAGR Annual Shareholder Meeting, March 3, 2011

15. 33.5% CAGR Annual Shareholder Meeting, March 3, 2011

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17. 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

18. 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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20. 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 well2.1 Bcfe per location with 8 locations per section • Mineral ownership generates superior returns Annual Shareholder Meeting, March 3, 2011

21. 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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23. Diverse mineral ownership across initial playand 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

24. 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 acresper million shares outstanding Annual Shareholder Meeting, March 3, 2011

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26. 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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29. 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 treatmentload water Annual Shareholder Meeting, March 3, 2011