ENERGY PULSE NASDAQ ENERGY TEAM. September Price Performance, YTD Indexed to 100

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1 September 2016 ENERGY PULSE NASDAQ ENERGY TEAM Richard Pontillo Senior Director, Oil & Gas, Utilities, MLPs Advisory Americas Tamar Essner Senior Director, Oil & Gas, Utilities, MLPs Advisory Americas Issue Highlights Sector Trends: The S&P 500 Energy Index (+2.9%) remained an outperformer relative to the broader equity market amid improving sentiment and fundamentals. Oil prices surged after OPEC and non- OPEC members signalled an agreement to curb production, while corporate news flow and deal announcements added a level of activity and drew interest towards to the sector. Buyers & Sellers: Long-only fund managers remained active in the sector. A step-up in growth and GARP interest occurred as investors continued to turn more sanguine on the growth prospects of the sector heading into Index funds also continued to deploy capital across the sector as the shift from active to passive asset management continued to grow at a rapid pace. : Short interest was split across the sector, with overall bearish wagers on the S&P 500 Energy Index rising, while the Alerian MLP Index experienced a decline in overall short interest. Notably, the aggregated short interest of all the S&P 500 Energy Index constituents rose back above 1 billion shares, marking the highest level since April. Conversely, aggregated short interest in the Alerian MLP index reached a 17-month low. Fund Flows: Most equity sectors experienced net inflows in September, led by real estate, technology and energy. Energy Equity & Macro Overview Energy equities closed September with broad-based gains and markedly outperformed the broader markets. Another month of rising oil prices, along with resurgence in corporate news flow as the fall conference season commenced provided strong support to the space. Within the sector, drillers and E&Ps naturally experienced the most outsized gains given their higher beta leverage to underlying commodity prices. The former group s performance was largely attributed to a relief rally in the offshore driller equities, though most sector experts still remain cautious on the near-term outlook of the day rate and backlog environment. Additionally, onshore drillers that have garnered investor interest as an early stage recovery play on pressure pumping continued to experience gains in their share prices. Services, integrateds and MLPs closed with more muted gains, while refiners diverged lower amid soft crack spreads, still oversupplied product inventories, investor rotation into upstream and persistent overhang from RIN inflation. E&Ps Meanwhile, as previously mentioned, E&Ps booked ample gains in September, with the proverbial oilier names finally outpacing their natural gas peers. This marked a mean reversion given that the latter group has mostly outperformed its oil-levered producer peers in The group was dually supported by surging oil prices, along with numerous positively received corporate updates. Most notably, Apache Corp disclosed a significant new resource play in the Southern Delaware Basin, which it estimated held a total resource potential of 75 Tcf of natural gas and 3 billion barrels of oil. Anadarko Petroleum also announced it would acquire $2 billion worth of offshore assets from Freeport McMoran in the deep-water Gulf of Mexico. The company subsequently announced a 35MM share secondary offering to help fund the acquisition. Deals and Acquisitions In deal news, Enbridge announced it agreed to buy Spectra Energy in an all-stock deal valued at about $28 billion in order to create the largest North American energy infrastructure company. Elsewhere, EOG Resources shares rallied after it agreed to buy privately held Yates Petroleum Corp for $2.5 billion in stock and cash in its latest acquisition to gain more exposure to the Permian Basin. Encana also announced a large equity offering to raise +$1 billion to accelerate Permian drilling and reduce debt. Other operators also continued to tap the capital markets in the form of equity issuances and debt offerings. Crude Oil Both WTI crude and Brent crude carried over their gains from August and rose another 7% and 3%, respectively. The majority of the monthly gains occurred in the final days of the month after OPEC and non-opec members surprised the market by announcing an agreement on production limits at their informal meeting in Algeria. The group announced it would cut output to between 32.5 million bpd and 33.0 million bpd from about 33.5 million bpd, but OPEC officials said that the production quotas for each member and other details will be finalized at the group's policy meeting in November. Furthermore, non- OPEC member Russia said it would find a way to freeze production if it manages to reach a deal with OPEC. Meanwhile, inventory data was highly supportive throughout the month, as U.S. crude stockpiles fell approximately 26 million barrels from the end of August through September 30th, with the last weekly reading in September showing inventories fell to 499 million barrels. This marked the first weekly oil inventory reading to come in below 500 million barrels since January of this year. A weaker U.S. Dollar also offered support to oil prices, while a sustained rise in domestic rig counts did little to offset the upward price momentum. Natural Gas Natural gas futures ended September virtually flat at $2.90. Monthly gains were roughly 0.7% as inventory data was mixed and prices took a pause following strong monthly gains in August. Modestly supportive weather and increasingly constructive analyst views that inventory levels would exit the approaching winter season below average levels offered support to the commodity Price Performance, YTD Indexed to 100 S&P 500 S&P 500 Energy WTI Crude Oil Brent Natural Gas Futures Alerian MLP Index MTD YTD WTI Crude Oil 7.9% 30.2% Brent 4.3% 26.9% S&P 500 Energy 2.9% 16.0% Alerian MLP Index 1.8% 8.9% Natural Gas Futures 0.7% 23.0% S&P % 6.1% 1 Advisory Services

2 Buyers & Sellers Research conducted by the Nasdaq Energy Team identified the following investors as top sector movers during the month of September. Investor Energy Assets ($MN) Location Contacts Wellington Management Company, LLP 37,133 Boston, Massachusetts Greg LeBlanc BUYERS Schroder Investment Management Ltd. (SIM) 8,858 London, Greater London Thornburg Investment Management, Inc. 1,574 Santa Fe, New Mexico Elias Erickson Jennison Associates LLC 5,836 New York, New York Neil Brown SELLERS NFJ Investment Group LLC 1,597 Dallas, Texas Boston Partners 7,136 Boston, Massachusetts Brian Rohman Fidelity Management & Research Company 45,910 Boston, Massachusetts Ashley Fernandes ROTATORS T. Rowe Price Associates, Inc. 23,008 Baltimore/Washington D.C., Maryland Shinwoo Kim ClearBridge Investments, LLC 11,655 New York, New York Tatiana Thibodeau Advisory Services

3 S&P 500 Energy (in millions) S&P Energy Price Alerian MLP (in millions) AMZ Price 1, , The S&P 500 Energy's short interest as of September 30, 2016 was 1,003,445,750 shares, up by 48,728,682 shares, or 5.10%, from the August 31, 2016 short interest of 954,717,068 shares. The sum of the companies' average daily volumes over the same period was 286,863,448 shares, up from 264,348,035 shares. The level of negative sentiment measured by the S&P 500 Energy's short interest ratio -- sometimes considered a contrarian indicator, as short interest shares eventually must be repurchased -- was 3.50 days, down from 3.61 days in the previous trading period. The Alerian MLP's short interest as of September 30, 2016 was 114,772,516 units, down by 33,521,458 units, or %, from the August 31, 2016 short interest of 148,293,974 units. The sum of the companies' average daily volumes over the same period was 31,978,089 units, down from 32,843,535 units. The level of negative sentiment measured by the AMZ's short interest ratio -- sometimes considered a contrarian indicator, as short interest units eventually must be repurchased -- was 3.59 days, down from 4.52 days in the previous trading period. S&P 500 Energy Change Top 5 Company 8/31/2016 9/30/2016 % of S/O Shares % Marathon Oil Corp MRO 34,842,300 56,929,972 7% 22,087,672 63% Alerian MLP Change Top 5 Company 8/31/2016 9/30/2016 % of S/O Units % Ferrellgas Partners LP FGP 1,869,709 2,514,866 3% 645,157 35% Transocean Ltd RIG 94,365, ,211,561 29% 9,845,921 10% Sunoco LP SUN 6,498,616 7,031,645 6% 533,029 8% Apache Corp APA 15,759,879 23,025,883 6% 7,266,004 46% Valero Energy Partners LP VLP 1,055,074 1,153,885 3% 98,811 9% Exxon Mobil Corp XOM 51,070,422 58,280,353 1% 7,209,931 14% Capital Product Partners LP CPLP 385, ,348 0% 83,274 22% Noble Corporation PLC NE 37,003,395 42,842,877 18% 5,839,482 16% EnLink Midstream Partners LP ENLK 6,587,437 6,649,676 2% 62,239 1% Range Resources Corp RRC 23,158,670 12,725,180 7% -10,433,490-45% Energy Transfer Partners LP ETP 9,261,740 6,182,969 1% -3,078,771-33% Spectra Energy Corp SE 23,434,724 15,837,897 2% -7,596,827-32% ONEOK Partners LP OKS 4,105,219 1,306,525 1% -2,798,694-68% Chesapeake Energy Corp CHK 110,171, ,998,724 14% -5,172,493-5% Sunoco Logistics Partners LP SXL 4,256,763 1,679,626 1% -2,577,137-61% Kinder Morgan Inc KMI 33,789,819 30,512,423 1% -3,277,396-10% Williams Partners LP WPZ 10,397,464 8,068,310 1% -2,329,154-22% CONSOL Energy Inc CNX 35,901,133 32,644,211 14% -3,256,922-9% Enbridge Energy Partners LP EEP 10,245,540 7,931,075 3% -2,314,465-23% 3 Advisory Services

4 Lipper Fund Flows All Equity Fund Flows vs. Market Returns (Trailing 2 Months) $1,350,000 $900,000 $450,000 $0 -$450,000 -$900,000 -$1,350, % 4.00% 2.00% 0.00% -2.00% -4.00% -6.00% Flow Change $M S&P 500 Index S&P 500 Energy Index 50.0% 25.0% 0.0% -25.0% Capital Flows: September MTD, 2016 YTD & 2015 (% Change of Sector Assets) 11.7% 7.8% 2.8% 2.5% 2.4% 2.3% 0.4% -1.6% -4.2% -9.5% 30.7% -17.8% -4.4% 28.8% 21.4% -24.0% -50.0% -75.0% -48.9% -57.6% Real Estate Technology Energy Healthcare Biotech Utilities Financial/Banking MTD % Change 2016 YTD % Change 2015 % Change 4 Advisory Services

5 For any further questions, you may contact contributing Nasdaq Energy Team members: Roopak Chakravarty, Associate Director Oil & Gas, Utilities, MLPs Advisory Americas Matthew Locker, Senior Associate Oil & Gas, Utilities, MLPs Advisory Americas Advisory Services