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At Jones Energy, we create value by establishing a leadership position in the regions where we operate. We may not be the largest player, but our goal is to deliver the best returns. We only focus in areas where we can establish best-in- class operations. In our main operating regions, the Cleveland formation in the Anadarko Basin and the Woodford formation in the Arkoma Basin, we think we have accomplished that. We are currently running 8 of our 10 rigs in the Cleveland and are generating very attractive returns, comparing favorably to the best US shale plays. We see signi fi cant opportunity within our existing footprint. 

Our strategy continues to revolve around organic and external growth. In 2013, we grew production by 28% to 17.0 thousand barrels of oil equivalent per day, and increased EBITDAX by over 50%. 

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The pre-tax present value or “PV-10” of our total proved reserves also increased by 30% to over $1 billion. In December 2013, we completed our $193.5 million acquisition of assets from Sabine Oil & Gas, increasing our core Cleveland acreage by over 40%. We spud our fi rst well on the Sabine acreage just a matter of days after closing the acquisition in December, and have integrated these assets into our 2014 development plan. Finally, in 2013, we also entered into a new partnership with Vanguard Natural Resources to drill Woodford wells, and closed on our sixth agreement with BP in the Woodford. 

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