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Forward Looking Statements
“This presentation includes forward looking statements. Forward looking statements can be identified by the use of forward
looking terminology such as the words “expect”, “estimate”, “project”, “forecast”, “anticipate”, “believes”, “should”, “could”,
“intend”, “plan”, “probability”, “risk”, “target”, “goal”, “objective”, “may”, “will”, “endeavor”, “outlook”, “optimistic”, “prospects” or by
the use of similar expressions or variations on such expressions, by the discussion of strategy or objectives or by the use of
budgets and projections for periods after the date hereof. Forward looking statements are based on current plans, estimates and
projections and are subject to inherent risks, uncertainties and other factors which could cause actual results to differ materially
from the future results expressed or implied by such forward looking statements. Any forward looking statements made in this
presentation speak only as of the date hereof. Indigo Minerals LLC and Indigo Resources LLC does not intend to update or
revise these forward looking statements to reflect events or circumstances after the date of this presentation and does not
assume any responsibility to do so.”
2
Indigo Overview
3
• Headquartered in Houston, TX
• Private Equity Backed • Formed in 2006
• Second largest producer of Horizontal Cotton Valley
North Louisiana
Central Louisiana Oil
Acres Central Louisiana Oil
Leasehold 58,000
Mineral 325,000
Total Acres 383,000
Acres Horizontal Cotton Valley
Haynesville Shale
Leasehold 272,000 22,000
Mineral 0 0
Total 272,000 22,000
• Three Core Assets, over 934,000 net acres • Active HZ development in North La • Oil exposure in Central LA • Large mineral position in 15 states
Cotton Valley Characteristics
4
• Stacked Pays
• ~1,500’ of hydrocarbon bearing sands
• Multiple targets per surface acre
• Moderate depths
• ~9,000 – 10,500’ TVD
• Liquids Rich
• 50 – 100 bbl/MM NGLs
• 2 – 40 bbl/MM condensate
• Sits above Bossier Shale and Haynesville Shale
• Typically 100% HBP by either existing production or Haynesville
• Pseudo-Conventional Sandstone being developed Unconventionally
• 7,500’ laterals with 36 frac stages
Bodcaw
Mid Vaughn
Roseberry
Top CV
Vaughn
Sexton
Taylor
D Sand
Type Log
B Lime
Cotton Valley Growth Story
5
• Drilled first Horizontal Cotton Valley well in 2010
• Have since increased acreage by ~190,000 net acres
• Hold 272,000 net acres in the Cotton Valley
2012 - 2013 2009 - 2011
CADDO
DESOTO
PANOLA
HARRISON
TEXAS LOUISIANA
CADDO
DESOTO
PANOLA
HARRISON
TEXAS LOUISIANA
CADDO
DESOTO
PANOLA
HARRISON
TEXAS LOUISIANA
CADDO
DESOTO
PANOLA
HARRISON
TEXAS LOUISIANA
CADDO
DESOTO
PANOLA
HARRISON
TEXAS LOUISIANA
CADDO
DESOTO
PANOLA
HARRISON
TEXAS LOUISIANA
CADDO
DESOTO
PANOLA
HARRISON
TEXAS LOUISIANA
CADDO
DESOTO
PANOLA
HARRISON
TEXAS LOUISIANA
2007 - 2008
2015 2014 2016
0
2,000
2009
2010
2011
2012
2013
2014
2015
est 2
016
0
200
2009
2010
2011
2012
2013
2014
2015
YE 2
016
Operated Assets Growth
6
3rd Party Net Proved Reserves (BCFe)
Net Production Growth (Mmcfe/d)
Cotton Valley & Haynesville Map
Cotton Valley
Haynesville
• Acreage in core of both Cotton Valley and Haynesville plays
• Operate over 1,200 wellbores
• Currently running 2 rigs
• Significant reserve growth and resource capture
• ~2 TCFe of proved reserves
• >6 TCFe of 3P Resource
Strong Gulf Coast Demand Growth
7
NE +2.7
Regional Changes in Gas Demand, 2014 – 2020 (BCF/d)
Gulf Coast +10.2
FL +1.1
Mexico +3.2
MW +0.7
NW +1.2
CA -0.7
SW +0.6
MC +1.0
SE +1.0
-0.1
Source: Bloomberg
Rox +0.5
Canada +4.7
($1.32)
($0.06)
Northern Louisiana Hub(1)
Dominion South Marcellus(2)
Indigo
Henry Hub
Discount to Henry Hub $
Proximity to Market and Declining Supply
8 8
0
20
2012
2013
2014
2015
2016
0
20
2012
2013
2014
2015
2016
0
20
2012
2013
2014
2015
2016
Marcellus / Utica: BCF/d
Haynesville: BCF/d
Eagle Ford: BCF/d
1) Northern Louisiana Hub reflects the historical 6 month average basis at Perryville Hub as of 9/15/2015. 2) Dominion South Marcellus reflects the historical 6 month average basis at Dominion South Hub as of 9/15/2015.
NGLs Poised to Run
9
0
80020
12
2013
2014
2015
2016
US Propane & Propylene Exports (1,000 bbl/d)
60% 19%
10%
11%
Ethane Propane Butane Natural Gasolines
• Ethane: Currently oversupplied
• Demand increasing by ~800,000 bbl/d
• Propane: Exporting record amounts
• Demand and export capacity continues to grow
• Butane & Natural Gasoline's: Linked to oil price
• Will benefit with recovery in oil market
U.S. Ethane Supply / Demand Outlook*
* Source: Enterprise May 2016 Investor Slides
Typical Cotton Valley NGL Barrel
Current Over Supply
Supply Range
• Well capitalized, strong balance sheet and supportive sponsors
• Continuing to add to asset base
• Significant resource close to best markets
• Large footprint of liquids rich Cotton Valley acreage
• 272,000 net acres
• 2nd largest producer of horizontal Cotton Valley
• 10th largest private gas producer in the US
• Rapid growth in short amount of time
Indigo Summary
10
Rank Company Year Founded
1 Company A 1994
2 Company B 1989
3 Company C 1971
4 Company D 1989
5 Company E 1965
6 Company F 1977
7 Company G 1983
8 Company H 1924
9 Company I 2013
10 Indigo 2006
Top 10 Private Gas Producers*
* Oil and Gas Financial Journal April 2016