Zanesville Area Chamber of Commerce May 16, 2012

1. Attracting and Keeping Talent Serving the Marcellus and Utica Shale Plays Zanesville Area Chamber of Commerce May 16, 2012

2. Agenda • Introductions • General US and PA Employment Trends • O&G Job Growth • Difficulties You May Face in Finding and Keeping Your Key Talent • Some Good News • Where You Can Find Help • Q & A

3. Six member firms made up of over 50 seasoned professionals, with offices located throughout the Appalachian Basin Akron, Columbus, Medina, Steubenville and Warren in Ohio Cranberry, Johnstown, Pittsburgh, Southpointe and State College in PA Bridgeport, Charleston, Morgantown, Parkersburg and Wheeling in WV Raleigh, NC — Sewell, NJ — Elmira, NY — Dallas and Houston, TX

4. Deep Experience In Serving the Entire Oil & Gas Supply Chain

5. The Single Complete Source for Talent and Organization Solutions Acquiring Optimizing Managing Do you have the talent you need to grow and succeed?

6. The Single Complete Source for Talent and Organization Solutions • Getting Your Talent • Finding Them • Attracting Them • Screening Them • Training Interviewers • Reference Checks • Pre-hire Tests & Assessments • Orientation & On-boarding • Employment Contracts • Managing Your Talent • Wage & Salary • Incentive Plans • Policy Manuals • Employee Handbooks • Performance Reviews • Performance Coaching • Exit Management • Severance Packages & Agreements • HR/Legal Compliance • Back Office Admin • Optimizing Your Talent • Employee Engagement • Key Talent Retention • Talent & Capability Reviews • Management Training • Employee Training • Succession Plans • Organization Plans • Growth Plans • Culture & Change Management

7. Hiring and Retention Are Mission-Critical For Them! The Industry’s Talent Barbell 70’s – 80’s Steady Hiring 1985 – 1995 Minimal Hiring Late 90’s Rebound Hiring 20 Year Experience Gap These Hires Are Now In Their 50’s These Hires Are Now In Their 30’s

8. And That Makes Hiring and Retention Mission-Critical For You! Recently Announced Investments $ 2 B Assumed Minimum Payroll 25 % $ 500 M Projected Payroll Investment Minimum Average Wage $ 40,000 Assumed Benefits Factor 30 % $ 52,000 Average Compensation Per Employee Projected Payroll Investment Average Compensation Per Employee ~ 9,600 Employees Needed to Staff the Investment

9. What Happened When O&GCame To Town(from a PA perspective)

10. U.S. Unemployment Rate November 2010 9.3% December 2011 8.2%

11. Pennsylvania Unemployment Rates

12. Job Growth In the Shale Gas Industry

13. Direct Oil & Gas Jobs In Demand

14. Top Ten Jobs in the U.S. • Skilled Trades • Sales Representatives • Engineers • Drivers • Accounting & Finance • IT Staff • Management/Executives • Teachers • Secretaries, PAs, Admins • Machinist/Machine Operator

15. Facts of Life The U.S. is still wrestling with high unemployment, but… 52% of employers report difficulty filling open positions.

16. Facts Behind the U.S. Unemployment Rate • 17% - No High School Diploma • 14% - With a High School Diploma • 5% - With Some College • U.S. High School Drop Out Rate 30% • Metro Area Drop Out Rate 50%

17. Why Are Employers Having Difficulty? • Applicants looking for more pay than offered • Lack of "hard" job skills or technical skills • Lack of industry or related work experience • Lack of sufficient applicants / no applicants • Applicants don't have the right values and/or mindset • Lack of business knowledge or academic disciplines • Lack of "soft" skills or interpersonal / communication skills

18. What It Boiled Down To In The PA Shale Play….. • Drug Testing • Work Ethic/Culture • Unfamiliarity with the business • (Dad didn’t do it!) • Lack of safety training and other • related certifications • Lack of skills training

19. At first, it was a mad scramble with everyone trying to get on board to find out what O&G companies were here, where they were, what they needed….no one had the answers or knew where to find them!

20. The Good News from PA….. • It’s all started to come together • The O&G companies are better at letting people know where they are and what their needs are • The local education/training infrastructure has been gearing up to address industry-specific needs • Local suppliers are learning how to serve O&G

21. Solutions – Short Term • Know what differentiates you in applicants’ eyes • Be clear about what you expect of them • And what they can expect of you • Determine which skills you should build vs. buy • Realize that recruiting is not a one-size-fits-all process • Ensure your selection process is “effective” • Recruit for talent, not for vacancies • Use every action as a way to build your brand

22. Solutions – Longer Term • Use an effective on-boarding process • Ensure you are paying for performance • Identify and retain your high performers • Train your managers to manage effectively • Effectively manage your marginal performers • Don’t organize your staff – staff your organization • Communicate, communicate, communicate

23. Local Support Resources • Your Local Chambers of Commerce • Online resources (e.g., ShaleDirectories.com, Ohio Shale Coalition, etc.) • OOGA, IOGAWV, PIOGA, etc. • Marcellus Resource Group and other providers

24. Local Support Resources Zane State College Natural Gas Engineering Technology Program The oil and gas industry is experiencing tremendous growth in the Appalachian region. New geological targets like the Marcellus and Utica Shales present new, major career opportunities. The Natural Gas Engineering Technology (NGT) program includes classroom, laboratory, and field experiences in natural gas exploration, drilling, well completion, production, processing, and distribution. The NGT program prepares you for careers with: • Major and independent oil and gas companies • Field equipment companies • Well service companies • Consulting firms • State and federal agencies

25. Local Support Resources They will also be scaling up the following programs: • Natural Gas Distribution and Compression • Petroleum Geology • Oil and Gas Reservoirs • Formation Evaluation • Industrial Mechanics • Drilling Methods/Operations • Field Services • Natural Gas Production • Mineral Rights and Leases • World Regional Geography • Physics • Introduction to Mechanical Modeling • General Chemistry

26. Local Support Resources Additional programs: Alternative Energy Technology (AET) • Explore a field that gives you the flexibility to enter a variety of alternative energy careers. Electrical/Electronics Engineering Technology (EET) • Explore a field that positions you as a high-demand, well-paid employee in the energy industry. Environmental, Science, Safety and Health (ENV) • Explore a field that positions you for success in the environmental industry. Natural Gas Engineering Technology (NGT) • Explore a field that puts you on track to enter an energy sector that has abundant job prospects.

27. Local Support Resources SafelandTrainingThis one-day course is the accepted standard for safety orientation for the U.S. upstream oil and gas industry. EPIC Oil & Gas Exploration Certification TrainingThis three-week Oil & Gas Exploration Certification training program prepares you to succeed in a career in the petroleum industry. The course provides students with an overall foundation and understanding of oil and gas field work, proper safety procedures, and the practical understanding of drilling operations. Maintenance Technician Energy Efficiency Certificate ProgramThe five month Industrial Maintenance Technician Energy Efficiency Certificate program results in 18 credit hours for students that complete the course. It prepares you to use the “best practices” skills as required for industrial energy efficiency according to the U.S. Department of Energy, and includes training in such areas as basic electrical, motor controls, PLCs, Hydraulics & Pneumatics, and Mechanical Systems.

28. Local Support Resources Mid-East Career and Technology Centers Level 1 – Shale Core Training • Safeland USA or OSHA 10• NCCER Core Certification• Natural Gas Industry Terminology and Fundamentals• CPR & First Aid Certification• Rigging• Hydrogen Sulfide Awareness• Employability SkillsLevel 2 – CDL – Commercial Drivers License Level 3 – Specialty Training (Welding, etc.)

29. Local Support Resources Mid-East Career and Technology Centers Safeland USA Rig Pass To Go ST01 Course NumberAll classes 8 am - 5 pmEnroll TODAY in one of these classes:May 3, 2012                    May 19, 2012                 May 24, 2012                 June 28, 2012                 July 12, 2012July 26, 2012

30. Q & A

31. To further discuss how we can help your company grow and succeed – just contact: Bill Thomas at 866.302.9099 bill@marcellusresourcegroup.com Jeff Dressler at 724.562.3197 jdressler@marcellusresourcegroup.com