6 5 - RR DONNELLEY FINANCIAL - External Home Login

Natural Gas and Oil Reserves
The tables below set forth information as of December 31, 2010 with respect to our estimated proved
reserves, the associated estimated future net revenue and present value (discounted at an annual rate of 10%)
of estimated future net revenue before and after future income taxes (standardized measure) at such date.
Neither the pre-tax present value of estimated future net revenue nor the after-tax standardized measure is
intended to represent the current market value of the estimated natural gas and oil reserves we own. All of our
estimated natural gas and oil reserves are located within the United States.
Natural Gas
(bcf)
December 31, 2010
Oil
(mmbbl) (a) Total (bcfe) (b)
Proved developed .................................. 8,246 149.3 9,143
Proved undeveloped ................................ 7,209 124.1 7,953
Total proved ................................... 15,455 273.4 17,096
Proved
Developed
Proved
Undeveloped Total Proved
($ in millions)
Estimated future net revenue (c) ........................ $ 23,322 $ 14,308 $ 37,630
Present value of estimated future net revenue (c) .......... $ 11,423 $ 3,723 $ 15,146
Standardized measure (c)(d) ........................................................ $ 13,183
Natural
Gas (bcf)
Oil
(mmbbl) (a)
Natural
Gas
Equivalent
(bcfe) (b)
Percent of
Proved
Reserves
Present
Value
($ in
millions)
Mid-Continent .................. 3,704 193.7 4,867 28% $ 6,588
Haynesville/Bossier Shale ........ 3,583 — 3,583 21 2,408
Barnett Shale .................. 2,995 11.2 3,063 18 1,299
Fayetteville Shale ............... 2,396 — 2,396 14 1,457
Permian and Delaware Basins .... 515 43.1 774 4 1,058
Marcellus Shale ................ 801 10.0 860 5 1,497
Eagle Ford Shale ............... 58 8.2 108 1 245
Rockies/Williston Basin .......... 3 0.8 7 — 15
Other ......................... 1,400 6.4 1,438 9 579
Total ........................ 15,455 273.4 17,096 100% $ 15,146 (c)
(a) Includes NGLs.
(b) Natural gas equivalent based on six mcf of natural gas to one barrel of oil.
(c) Estimated future net revenue represents the estimated future gross revenue to be generated from the
production of proved reserves, net of estimated production and future development costs, using prices and
costs under existing economic conditions at December 31, 2010. For the purpose of determining “prices”,
we used the unweighted arithmetic average of the prices on the first day of each month within the
12-month period ended December 31, 2010. The prices used in our reserve reports were $4.38 per mcf of
natural gas and $79.42 per barrel of oil, before price differential adjustments. These prices should not be
interpreted as a prediction of future prices, nor do they reflect the value of our commodity hedges in place
at December 31, 2010. The amounts shown do not give effect to non-property related expenses, such as
corporate general and administrative expenses and debt service, or to depreciation, depletion and
amortization. The present value of estimated future net revenue differs from the standardized measure
only because the former does not include the effects of estimated future income tax expenses ($2.0 billion
as of December 31, 2010).
Management uses future net revenue, which is calculated without deducting estimated future income tax
expenses, and the present value thereof as one measure of the value of the company’s current proved
reserves and to compare relative values among peer companies. We also understand that securities
analysts and rating agencies use this measure in similar ways. While future net revenue and present value
10