SEE DISCLOSURE APPENDIX OF THIS REPORT FOR IMPORTANT

DISCLOSURES AND ANALYST CERTIFICATIONS.

COMMODITIES AND POWER APRIL 16, 2010

Bernstein Commodities & Power: Three Unwritten Rules of Energy Investing
Neil McMahon, Ph.D. (Senior Analyst) • neil.mcmahon@bernstein.com • +44-207-170-5002
Hugh Wynne (Senior Analyst) • hugh.wynne@bernstein.com • +1-212-823-2692
Neil Beveridge, Ph.D. (Senior Analyst) • neil.beveridge@bernstein.com • +852-2918-5741
Oswald Clint, Ph.D., ACA (Senior Analyst) • oswald.clint@bernstein.com • +44-207-170-5089
Scott Gruber, CFA (Analyst) • scott.gruber@bernstein.com • +1-212-756-1935
Ben P. Dell (Senior Analyst) • benjamin.dell@bernstein.com • +1-212-407-5817

does not dilute profitability per barrel; exploration potential which

offers substantial NAV enhancement to the company; and
Three Unwritten Rules of Energy Investing significant leverage to oil and gas prices. And this has led to our
three simple rules for investing in energy companies, for the
by Neil McMahon purpose of share price performance, especially in a rising
commodity environment.
There appear to be a few very basic principles which control much
of the performance of energy stocks in a rising commodity
environment. Basically, we think it all comes down to profitable
Rule # 1: Production growth >5% CAGR that does not
production growth, good exploration potential, and leverage to oil
meaningfully dilute profitability per barrel or returns
and gas prices. Some might see these rules as over simplistic, as
they arguably ignore the yield and defensive characteristics of There appears to be a reasonable correlation between share price
some of the integrateds but, in general, they have tended to be the performance and companies which are growing at >5% CAGR, or
drivers of outperformance within the energy sector. have the potential to grow at that rate in the near term. Many
integrateds may throw their hands up and say that this is
Historically, investors used to like the integrated oil companies
unachievable given their scale, but we would contest that we see
(well, some of them at least), especially in the period before, and
little reason for the integrateds to be as big as they currently are.
just after, the merger wave, up until the last five years, when
Indeed, we are big believers in a shrink to grow strategy, provided
missed targets, and a number of badly thought-through business other criteria are met and, furthermore, few have contemplated
practices, kicked in. In the late 1990s and early 2000s, for
spinning off pure play E&P companies from their upstream
example, the integrated companies still explored, and due to the
portfolios (such as a global gas company), that could help on this
success of many of their exploration programs from the late
metric.
1980s/1990s, these companies had reasonable production growth,
which has since run out of steam. Additionally, although some of the integrateds will see enhanced
production growth if their investments in Iraq go as planned, this is
However, as the IOCs have undertaken less true exploration over growth that will dilute both the returns and profitability (on a net
the last five years, focusing instead on access deals with
income/boe basis) of their existing upstream portfolio, and
governments, or indeed recently buying reserves (at market prices)
investors can see right through this. Indeed the same can be said
that others have discovered, investors have found other ways to
for some acquisitions where a full price has been paid. So, in
build energy portfolios. Although the Integrateds feel it is their
general, we believe investors will reward profitable (or non-
role to manage a portfolio of assets across E&P, Gas and Power
dilutive) growth that has originated from organic projects, or even
and Downstream operations, investors, seeing no real value in inorganic positions which have then been developed by the
integration (with which we tend to agree), can form pseudo
company.
integrated companies through investing in upstream and
downstream pure plays, which offer more alpha potential, more
flexibility from an investing point of view through cycles, but with
Rule # 2: An exploration strategy which offers substantial
less yield than the integrated companies. It is this change in the
NAV enhancement to the company
way investors invest in energy, and the movement away from
exploration by the integrateds, that the management teams of the This is one of the most obvious rules, which can clearly be
Majors are not acknowledging as serious issues. Indeed, we correlated with share price moves, even in some of the larger
believe that the integrateds continue to think that investors like integrateds (such as the effect of BP's Tiber discovery last year).
their current strategies in the same way as they did in the late In general, investors will pay up for a company that has taken risks
1990s and early 2000s. in exploration hot spots, or indeed has created market enthusiasm
around its own hot spots, such as West Africa for Tullow and
Today, and arguably over the last five years, investors in E&Ps,
Anadarko, or even the allure of Greenland in the case of Cairn.
IOCs and NOCs, still seem to be looking for the same things as
We continue to find it strange that the integrateds did not really
they have historically, namely decent production growth which

BERNSTEIN RESEARCH APRIL 16, 2010

 BERNSTEIN COMMODITIES & POWER: THREE UNWRITTEN 2

RULES OF ENERGY INVESTING

embrace exploration over the last five to ten years, as they had
historically, given the close correlation of exploration success to
Increasingly, the integrateds are used by investors for portfolio
share price performance due to the increase in net asset value.
construction purposes to hit benchmark targets, for yield, or as a
Additionally, exploration still remains (in general) the lowest cost
defensive play that historically has worked better during downward
method for adding reserves today. We hope that the newfound
market corrections (although this may not work so well in the
interest in exploration which many of the integrateds seem to be
future), rather than as investments in their own right.
discussing with the market in 2010, will help the companies
become more exciting in the eyes of investors over the next few When the integrateds acknowledge these factors and restructure
years. their companies, as well as their business models, with an
increasing focus on exploration, we would expect their
performance to improve. Indeed, such changes, albeit somewhat
Rule # 3: Significant leverage to oil and gas prices (not just in fanciful, may even be timely, as there will likely be a number of
upstream but also across the entire company) large exploration licensing rounds over the next 18 months in some
of the worlds hot spots (such as Brazil), and many E&Ps are
In a rising commodity price environment, this is a rule which helps
currently cash-strapped, or are struggling to fulfill their recent
the earnings and cashflow outlook of a company, as analysts and
land-grab license commitments. So, despite being simplistic, we
investors have increasingly based EPS expectations on the forward
remain convinced that our rules will likely govern the relative
oil and gas price strips. With the increasing desire of more
performance of the energy sub-sectors, and the stocks within them,
integrateds to divest significant proportions of their downstream
over the next few years.
businesses (apart from Petrobras which continues to increase
capacity), you would think that this rule would start to apply more
widely across the energy space. However, the downstream
positions of many of the integrateds are still large enough to lower
the leverage to oil and gas prices in normal environments, although
admittedly, during high demand periods, the downstream business
can also have a strong leverage to the oil price. Additionally, the
desire to accept PSA contracts and the recent deals in Iraq, do little
to help leverage, as the Technical Service contracts do not give the
IOCs or the NOCs that are participating leverage to rising oil and
gas prices.
Assessing how the energy space stacks up on these rules highlights
why these rules are important (Exhibit 1), and arguably highlights
why investors have favoured certain stocks over the last five years.
Interestingly, the IOC's will typically only tick one, or one and a
half of these rules, whereas some NOCs, and many E&Ps tick all
three.

Exhibit 1
Looking across the energy space on our three simple rules

Rule #1 Rule #2 Rule #3

Profitable / Non-Dilutive Production Growth > Exploration Potential With Significant NAV
Significant Leverage to Oil & Gas Prices
Company 5% CAGR Enhancement
BP 1/2 
Shell 1/2 
ExxonMobil 1/2  1/2 
Chevron 1/2  (low refining exposure & not in Iraq)
ConcoPhillips
Total
Eni
Marathon  1/2 
Hess  
Petrobras 1/2  (see note below)  
CNOOC   
Anadarko   
Tullow   
Note: Petrobras has high absolute production growth. However, the likely capital raising would mean that growth would be below 5% CAGR on a per share basis.

Source: Bernstein analysis and estimates

BERNSTEIN RESEARCH APRIL 16, 2010

 BERNSTEIN COMMODITIES & POWER: THREE UNWRITTEN 3

RULES OF ENERGY INVESTING

should be generated by NBR within the land drillers and RIG and
Changes to Ratings / Target Price PDE among the offshore drillers (all O).
• PBR: downgraded from OP to MP. Price target reduced
from $47 per ADR to $45.
European/Russian Oil& Gas
Euro Oil & Gas: European Shale Gas - So Will It or Won't It
This Week’s Reports (available on FirstCall / bernsteinresearch.com) Work? Learnings Post Our Polish Shale Gas Management
Trip (4/15/2010) Our recent management trip to Poland to visit
Global Integrated Oils companies exploring for natural gas has failed to temper our view
that expectations for a European shale gas revolution are pre-
Global Integrated Oils: Petrobras - Downgrading to Market
mature for three reasons. Firstly, geology, faulting & thermal
Perform on Lower Downstream Returns and Dilution Risks
maturity data indicate to us that Northwestern Poland may be the
(4/12/2010) Despite PBR's strong growth outlook, we have a
only location to find a successful shale. Secondly, even with lower
number of concerns over the company. Firstly, planned refining
taxes the $10M/vertical well implies IRR of only 13% if pure oil-
expansion to meet growing product demand in Brazil & a dramatic
linked prices are achieved. Thirdly, land access, environmental,
increase in downstream capex next year is unlikely to help
water usage and rig availability will be material bottlenecks to
shareholder returns. Secondly, uncertainty remains on the size &
rapid growth. Indeed if all Europe's 67 land rigs were in Poland,
timing of the capital raising. We believe the value of reserves
plateau production of 2.2Bcfd could be achieved by 2020 or only
transferred could vary from $16.5bn to $35bn, and at the top end
4.5% of current demand.
PBR could pay the government partially in cash to limit the size of
the offering. Having revised forecasts for the increased capex and
for the 2009 results, we decrease our target price from $47 to $45
per ADR. With limited upside to the current share price and U.S. Utilities
continued uncertainty over the capital raising, we therefore U.S. Utilities: What Can We Learn from the Similarities
downgrade PBR to Market-Perform. Between the MIR/RRI and FE/AYE Mergers? (4/13/2010)
Neither the Mirant/RRI nor the FirstEnergy/Allegheny merger
seeks to diversify generation by region or by fuel; rather, these
U.S. E&Ps transactions serve to concentrate generation portfolios in particular
regions and fuel types. By significantly increasing the proportion
Bernstein E&Ps: From a Flood to a Trickle; The Moderating
of regional capacity and generation controlled, the proposed
Effect of Local Demand Growth on Middle East LNG Exports.
mergers should increase leverage over coal suppliers, facilitate
(4/14/2010) The bear case for US gas fears growing LNG from the
efficiencies in operation and possibly enhance market power. A
Middle East, but much of the region is actually short on natural
risk to the success of the mergers, therefore, is the possibility that
gas. Regional gas demand, led by increasing electricity
FERC or state regulators will find the transactions to be anti-
consumption and water desalination, is growing more quickly than
competitive, and require the merged entities to divest a significant
production. While Qatar will likely be approaching peak
portion of their combined generation capacity.
liquefaction capacity in early 2011, Kuwait and Dubai already
have plans to take LNG deliveries during periods of high seasonal
demand, and we anticipate Saudi Arabia following suit within the
The Week Ahead
next few years. Therefore we see total net exports from the region
only growing by 1.6 Bcfd between 2008 and 2012. Given demand
growth from South America, Europe, and Asia, net flows of LNG • 4/19: HAL 1Q earnings
from the Middle East to the US should only grow marginally, if at
all. • 4/20: WFT 1Q Earnings
• 4/21: ECA, NBR & NE 1Q earnings
U.S. Oil Services • 4/22: DO, ESV 1Q earnings & STO 1Q operational update
Bernstein Oil Services: Capitalizing on Near-Term Concern • 4/23: SLB 1Q earnings & WPL 1Q operational update
for Long-Term Profit Transcript (4/14/10) Upstream spending
abroad should rise over 2010 to catch up to cash flow at $80/bbl • 4/23: RIL full year 2009/10 results
crude. Domestic capex will drop following the gas price trend, but
the magnitude and duration should be more limited than in 2009.
The Services remain attractive given greater crude/int'l gas
exposure (2/3rds currently), mitigating factors in North America
(deepwater growth and rising service intensity) and below normal
valuations. We prefer HAL and BHI (both O). The Drillers offer
attractive value stocks for long holding periods but near term
challenges make a cycle bet unattractive. Relative outperformance

BERNSTEIN RESEARCH APRIL 16, 2010

 BERNSTEIN COMMODITIES & POWER: THREE UNWRITTEN 4

RULES OF ENERGY INVESTING

Commodity Price Information

15/04/2010 Spot Price Last Week Last Month

Natural Gas 4.16 3.92 4.27
Crude Oil 85.51 85.39 82.93

SCB Estimates 2010 2011 2012

Natural Gas 7.00 8.50 9.18
Crude Oil 80 102.60 110.81

Source: Bloomberg L.P. and Bernstein estimates.

Risks
Risks to energy and commodity stocks include economic
conditions and commodity price swings. If the global or US
economy turn down significantly, global demand growth for
oil could decelerate, putting pressure on prices and thus on
the cash flow of oil producers. Economic swings also affect
refiners and utilities. Utility stocks could be further
impacted by swings in demand for electric power. If
demand drops, utilities could suffer.

BERNSTEIN RESEARCH APRIL 16, 2010

Exhibit 5
Company Summaries – Valuation Based on Bernstein Estimates
EPS P/E Stock Change
Price as of Apr Target Last Last Last 12
Ticker Rating Curr. 15, 2010 Price Upside 2009 2010E 2009 2010E Week Month months
Majors and Refiners
BP M USD 60.57 58 -4% 4.42 7.11 13.7 8.5 3% 6% 54%
CVX O USD 81.59 88 8% 5.24 8.33 15.6 9.8 5% 10% 22%
COP M USD 57.06 53 -7% 3.24 6.47 17.6 8.8 6% 9% 44%
ENI O USD 48.33 60 24% 3.54 6.03 13.7 8.0 4% 0% 25%
MRO O USD 32.70 36 10% 1.63 4.26 20.1 7.7 3% 3% 15%
TOT M USD 59.41 59 -1% 5.27 6.65 11.3 8.9 1% 1% 24%
RDS/A O GBP 19.93 23 14% 1.02 2.22 19.5 9.0 3% 2% 41%
XOM M USD 68.26 70 3% 4.01 6.60 17.0 10.3 1% 3% 0%
PBR M BRL 33.60 36 7% 3.06 2.71 11.0 12.4 -6% -9% 12%
HES O USD 64.91 73 12% 2.27 4.45 28.6 14.6 1% 5% 16%
SUN M USD 30.52 27 -12% -2.81 0.01 -10.9 3052.0 1% 1% 10%
TSO M USD 12.98 13 0% -1.01 0.19 -12.9 68.3 -2% -7% -14%
VLO M USD 19.87 21 6% -3.67 0.92 -5.4 21.6 -1% -3% -5%
NES1V.FH O EUR 13.77 15 9% 0.86 0.74 16.0 18.6 3% 6% 39%
PPHN.VX M CHF 21.97 17 -23% -3.20 1.72 -6.9 12.8 6% 13% 20%
FTO O USD 13.46 16 19% -0.81 0.29 -16.6 46.4 -2% -4% -7%
MOH.GA O EUR 10.20 12 18% 0.97 1.02 10.5 10.0 6% -5% 29%
SRS.IM M EUR 2.10 2 -5% 0.08 0.11 26.3 19.1 3% 7% -4%
E&Ps
APA O USD 106.67 142 33% 5.61 10.77 19.0 9.9 0% 2% 58%
APC O USD 74.74 100 34% -0.95 2.83 -78.7 26.4 2% 4% 77%
CHK O USD 24.37 33 35% 2.67 2.76 9.1 8.8 1% -4% 16%
CNQ M USD 78.53 74 -6% 4.07 4.64 19.3 16.9 0% 8% 72%
DVN O USD 66.59 88 32% 3.24 7.22 20.6 9.2 1% -2% 33%
ECA O CAD 31.96 47 47% 2.59 2.53 12.3 12.6 -1% -2% -40%
EOG O USD 110.50 132 19% 3.78 5.76 29.2 19.2 3% 15% 87%
MUR M USD 61.67 78 26% 2.88 4.90 21.4 12.6 3% 13% 31%
NFX O USD 53.73 63 17% 5.20 4.85 10.3 11.1 -3% -1% 97%
OXY U USD 86.47 71 -18% 3.48 5.25 24.8 16.5 0% 5% 48%
TLM O USD 17.08 25 46% 0.31 0.92 55.1 18.6 -3% -7% 39%
XTO O USD 48.01 65 35% 3.55 2.71 13.5 17.7 1% 2% 44%
HK M USD 22.94 25 9% 0.38 1.00 60.4 22.9 3% 7% 5%
RRC O USD 51.04 60 18% 0.63 1.34 81.0 38.1 6% 1% 23%
SWN O USD 41.63 76 83% 1.52 2.67 27.4 15.6 2% -2% 36%
UPL M USD 47.74 57 19% 1.86 3.38 25.7 14.1 0% -1% 19%
CVE O CAD 30.14 32 6% 1.93 1.87 15.6 16.1 6% 15% na
Services
PDE O USD 31.99 39 22% 2.20 1.91 14.5 16.7 4% 6% 45%
SII M USD 45.51 56 23% 0.91 1.36 50.0 33.5 1% 1% 85%
HP O USD 40.74 50 23% 3.25 2.20 12.5 18.5 5% -1% 38%
BHI O USD 49.08 70 43% 1.80 2.29 27.3 21.4 1% -5% 57%
DO U USD 91.54 79 -14% 10.13 9.11 9.0 10.0 1% 5% 28%
ESV M USD 48.92 53 8% 5.36 4.05 9.1 12.1 4% -30% 54%
HAL O USD 32.52 43 32% 1.36 1.43 23.9 22.7 3% 29% 82%
NE M USD 42.03 51 21% 6.37 5.11 6.6 8.2 1% -4% 56%
NBR O USD 20.06 36 79% 1.21 1.30 16.6 15.4 0% -7% 49%
PTEN O USD 14.66 19 30% -0.15 0.28 -97.7 52.4 4% 1% 21%
RDC M USD 31.15 29 -7% 3.01 2.45 10.3 12.7 4% 12% 111%
RIG O USD 88.02 117 33% 11.83 9.86 7.4 8.9 1% 3% 33%
SLB M USD 67.21 80 19% 2.75 2.78 24.4 24.2 1% 1% 48%
WFT M USD 16.98 23 35% 0.56 0.60 30.3 28.3 -14% 15% -56%
European E&Ps
BG/.LN O GBp 1,154.00 1450 26% 67.00 80.00 17.2 14.4 13% 10% -7%
STO M USD 24.81 24 -3% 1.47 2.00 16.9 12.4 -99% -99% 41%
CNE.LN O GBP 4.25 6 29% -0.01 0.19 -303.6 22.4 -99% -99% 93%
GALP.PL M EUR 13.56 11 -21% 0.33 0.57 41.1 23.8 -99% -99% 43%
PMO.LN O GBP 13.32 14 1% 0.38 0.98 35.1 13.6 -99% -99% 19%
TLW.LN O GBP 13.28 14 7% 0.11 0.22 120.7 60.4 -99% -99% 83%
Russian Oil & Gas
LKOD.LI U USD 60.80 52 -14% 9.10 11.40 6.7 5.3 3% 6% 34%
NVTK.LI O USD 77.90 90 16% 4.44 5.93 17.5 13.1 6% 5% 180%
OGZD.LI O USD 25.57 32 26% 3.24 4.25 7.9 6.0 8% 8% 50%
ROSN.LI U USD 8.67 7 -19% 0.59 1.02 14.7 8.5 2% 9% 68%
SGGD.LI U USD 10.19 8 -22% 0.97 1.12 10.5 9.1 3% 15% 46%
Asia-Pacific Oil & Gas
883.HK O HKD 14.06 16 10% 0.80 1.22 17.6 11.5 3% 8% 55%
857.HK O HKD 9.41 13 33% 0.70 0.91 13.4 10.3 1% 3% 35%
386.HK M HKD 6.62 8 19% 0.82 0.83 8.1 8.0 3% 5% 11%
OSH.AU O AUD 5.85 7 21% 0.11 0.14 53.2 41.8 -1% 3% 10%
STO.AU M AUD 14.67 16 11% 0.29 0.40 50.6 36.7 0% 4% -13%
WPL.AU M AUD 47.50 56 18% 1.78 1.53 26.7 31.0 1% 5% 22%
ONGC.IN U INR 1,040.30 1340 29% 109.20 120.41 9.5 8.6 -2% -3% 16%
RIL.IN O INR 1,090.70 1250 15% 117.55 173.57 9.3 6.3 -1% 2% 19%
Utilities
AEP M USD 33.77 39 15% 2.97 3.06 11.4 11.0 -1% -3% 27%
D M USD 41.44 38 -8% 3.27 3.47 12.7 11.9 0% 4% 36%
DUK M USD 16.13 15 -7% 1.22 1.26 13.2 12.8 -1% -3% 15%
EXC M USD 44.41 45 1% 4.12 3.79 10.8 11.7 0% -2% -5%
FE O USD 38.59 49 27% 3.77 3.45 10.2 11.2 -2% -3% -3%
EIX M USD 34.53 37 7% 3.25 3.37 10.6 10.2 1% 0% 23%
PCG O USD 42.80 49 14% 3.21 3.36 13.3 12.7 1% -1% 13%
FPL M USD 48.83 51 4% 4.05 4.27 12.1 11.4 0% 2% -3%
Relevant Indices
SPX 1,211.67 61.70 80.03 19.6 15.1 2% 4% 42%
MSDLE15 1,188.66 71.05 90.32 16.7 13.2 2% 4% 40%
MXAPJ 437.46 23.68 29.12 18.5 15.0 1% 5% 41%
MXEF 44,664.10 60.91 79.61 733.3 561.0 0% 4% 44%

Note: This week's changes to target prices and earnings estimates are shaded.
Source: CapitalIQ and Bernstein analysis.
 BERNSTEIN COMMODITIES & POWER: THREE UNWRITTEN 6

RULES OF ENERGY INVESTING

Valuation Methodology
For the E&Ps our target prices are calculated by taking a 2011 CFPS estimate and a P/CF multiple adjusted for the company's
future growth, ROACE and recycle ratio. These are then multiplied together to calculate our target prices.
Our target price methodology for the oil services is based on P/CF and P/BV multiples using 2011 estimates. We weight our
P/CF multiple by 0.75 and P/BV by 0.25. For our P/CF multiples, we apply the group average multiple but adjust by the
historical company specific spread. For the P/BV multiple, we use the historical industry correlation of P/BV to Roe and then
adjust by the historical company specific spread
Our methodology for the offshore drillers utilizes 2012 forecast CFPS as long duration contracts cause the group to trade on
forecast cash generation further into the future. We apply a normal 10x multiple discounted for two years at 10% to our 2012
forecasts and then adjust the multiple based upon fleet quality. In calculating our target prices for the land drillers, we utilize
our 2011 CFPS estimates. We apply an 8x multiple to next year's cash stream but also adjust the multiple for fleet quality.
Our target price for Frontier of $16 is derived by applying a PE multiple of 10.75x to our 2011 EPS forecast. Our target price
for Motor Oil of €12 is derived by applying a PE multiple of 10x to our 2011 EPS forecast. Our target price for Neste of €15
is derived by applying a PE multiple of 10.50x to our 2011 EPS forecast. Our target price for Petroplus of CHF17 is derived
by applying a PE multiple of 8.0x to our 2011 EPS forecast (using an exchange rate of CHF/USD 1.20 to translate EPS into
CHF). Our target price for Sunoco of $27 is derived by applying a PE multiple of 9.5x to our 2011 EPS forecast. Our target
price for Valero of $21 is derived by applying a PE multiple of 8.5x to our 2011 EPS forecast. Our target price for Tesoro of
$13 is derived by applying a PE multiple of 8.0x to our 2011 EPS forecast.
Our sum-of-the-parts valuation for Saras uses 2011 EPS estimates for the refining, wind and other divisions, and multiplies
these by forward multiples for the non-refining businesses to derive an implied valuation. The R&M divisional earnings are
multiplied by the average multiple assigned to the complex European refiners in our coverage, including, Neste and Motor
Oil. The power generation business is valued using our estimate for 2011 cashflow per share and multiplying this by long-
term average comparable company multiples, less a risk discount for potential changes in legislation that could negatively
impact cash flow and Italian GAAP earnings. Details of the calculation are available in Exhibit 6.

Exhibit 6
Sum-of-the-parts valuation for Saras (SCB valuation)
2011 P/E or
Valuation Implied 2011 EPS/ Implied
Segment Earnings/ P/CF Rationale
Type Equity Shares CFPS Price
OCF (€m) Multiple
Earnings R&M 847 592 65 0.11 10.0x 0.71 Forward multiple for Complex Eur Refiners (NES1V & MOH)
Cash flow Power Gen 416 290 109 0.37 7.1x 0.85 LT-average for PowerGen co's less legislative risk discount
Earnings Wind 28 20 13 0.66 28.6x 0.41 Forward multiple for Wind companies (IBR, EDPR, EEN)
Earnings Other 21 14 1 0.04 17.7x 0.01 Average of other segments
Total 1311 916 € 2.00 Target Price

Source: Capital IQ, Company reports and Bernstein estimates

Our target prices for the Global Integrated Oils are calculated by applying our estimates for 2011 cashflow per share (CFPS)
to a forward price-to-cashflow (P/CF) multiple. This P/CF multiple is generated through the relationship, and historically
strong correlation, between 12 month forward P/CF multiples and Return on Average Capital Employed (ROACE) within the
Global Integrated Oils group. Our calculation utilizes this relationship and an estimated long term, through the cycle,
ROACE to generate the target P/CF multiple. The price calculations are summarized in the Exhibit below. A key assumption
is that investors continue to reward companies with higher returns, as has been the case historically. We use $60/bbl WTI
and $4.15/mcf for US gas in 2009 and $80/bbl WTI and $9.00/mcf for US gas in 2010 and $102.6/bbl WTI and $8.50/mcf for
US gas in 2011.

BERNSTEIN RESEARCH APRIL 16, 2010

 BERNSTEIN COMMODITIES & POWER: THREE UNWRITTEN 7

RULES OF ENERGY INVESTING

Exhibit 7
Target price methodology summary for Global Integrated Oils

Target Price = P/CF Multiple x 2011 CFPS

Adjusted P/CF
Ticker FX Multiple 2011 CFPS Target Price
BP (US) $ 4.2 13.71 58
BP (UK) GBp 4.2 145.55 614
CVX $ 4.6 19.31 88
COP $ 3.8 13.90 53
ENI (EUR) € 3.6 6.35 23
ENI (US) $ 3.6 17.31 62
MRO $ 3.0 11.61 35
TOT (EUR) € 4.5 10.04 46
TOT (US) $ 4.5 13.69 62
RDSA LN GBp 4.5 498.71 2268
RDSB LN GBp 4.5 498.71 2268
RDSA NA € 4.5 5.74 26
RDSB NA € 4.5 5.74 26
RDS/A US $ 4.5 15.66 71
RDS/B US $ 4.5 15.66 71
XOM $ 5.7 12.19 70
PBR ADR (PREF) $ 6.1 7.36 39
PETR4 SHR (PREF) $R 6.1 6.92 36
PBR ADR (ORD) $ 6.1 7.36 45
PETR3 SHR (ORD) $R 6.1 6.92 42
HES $ 4.3 17.16 73
Source: Bernstein Estimates

For the European Energy Stocks, our price targets are based on 2011 cashflow per share estimates, to which we apply a target
price-cashflow multiple based on historical trading ranges and the expected recycle ratio (cashflow per barrel produced to
F&D per barrel of reserves added). We have found historically a correlation between the recycle ratio and price-cashflow
multiples. Our price objectives are also sanity checked using NAV based valuations, though we prefer the use of the PCF
valuation methodologies as it can be back-tested and builds in fewer assumptions. We use this relationship together with our
estimate of the company's near term recycle ratio to derive target multiples. These we apply to our estimates of the 2011
cashflow per share to derive price targets.
For the Russian energy stocks, we use DCF valuations to determine our price targets, incorporating WACC rates ranging
from 13-14% and terminal growth rates ranging from 1% to 2.5%.
For the Utilities, our target prices reflects the results of three alternative valuation methodologies: (i) a multiple-based
valuation calculated by applying the median valuation multiples of a group of comparable companies to our estimates of a
utility’s future earnings, dividends and EBITDA; (ii) a discounted cash flow model over the forecast period of 2010-2014,
and a terminal value in 2015, discounted back to present value at the weighted average cost of capital; and (iii) a discounted
dividend model over the forecast period of 2010-2014, and a terminal value in 2015, discounted back to present value at the
cost of equity.
Our valuation methodology for Asia-Pacific large cap integrated oil and gas companies (PetroChina, Sinopec, ONGC and
RIL) is based on the historically strong correlation between price to book ratio and return on equity (Exhibit 8). This
relationship is based on average values for the past 5 years. Using this relationship we derive a regression co-efficient of 0.8.
Target prices are calculated by applying our 2011E ROE estimates to derive our target P/B multiples which we multiply by
our forecast book value per share for 2011E to derive targets (Exhibit 9).

BERNSTEIN RESEARCH APRIL 16, 2010

 BERNSTEIN COMMODITIES & POWER: THREE UNWRITTEN 8

RULES OF ENERGY INVESTING

Exhibit 8 Exhibit 9
ROE% drives P/B multiples Summary of Valuation for Integrated majors

Summary of Price Targets

4.0 PTR SNP ONGC RIL
Cur. HKD HKD INR INR
3.5 XOM
2011E ROE 20.5% 14.3% 21.5% 15.6%
5Yr Avg P/B - 2004-08

3.0 Target P/BV* 2.0 1.3 2.2 2.2

ONGC
TOT STL
2011E BVPS 6.2 6.1 611 567
BP
2.5 PTR PBR
CVX Price Taget 12.5 7.9 1340 1250
ENI * For RIL, P/BV has been lifted by 10% due to strong gas growth.
2.0
RDS For SNP we apply a 20% discount to P/BV due to regulated refining margins
GAZP
SNP

COP
1.5
y = 805%x + 45%
R2 = 80%

1.0
10% 20% 30% 40%
5Yr Avg ROE% - 2004-08

Source: Bernstein estimates Source: Bernstein estimates

Within our E&P coverage, we value CNOOC based on the correlation of recycle ratio and P/CF multiples. Our valuation
framework uses the recycle ratio which is the ratio of operating cash flow per barrel of production (revenue per barrel – cash
costs and production taxes) to the finding and development costs required to replace one barrel of reserves. Overall we find a
strong correlation between the recycle ratio and forward P/CF multiples for international E&P companies (Exhibit 10). We
use this relationship, together with our estimate of the near term recycle ratio (average 2009E to 2011E) to derive target
multiples. We then use our target multiples, applied to our 2011E cash flow per share estimates to generate our price targets.
For Santos, Oil Search and Woodside, we believe an NAV approach is appropriate given a significant portion of theirs values
are attached to future LNG projects (Pluto expansion, Browse and Sunrise for Woodside, PNG LNG for OSH, GLNG and
PNG LNG for Santos). We calculate the NPV of the base business and future projects separately using discount cash flow.
The combined value of the NPV for the base business and future projects yields our price targets (Exhibit 11). On this basis,
we set our price targets for Santos, Oil Search and Woodside respectively at AUD56.00, AUD16.30 and AUD7.10.

BERNSTEIN RESEARCH APRIL 16, 2010

 BERNSTEIN COMMODITIES & POWER: THREE UNWRITTEN 9

RULES OF ENERGY INVESTING

Exhibit 10 Exhibit 11
P/CF multiples have historically correlated to recycle Summary of Price Targets
ratio

Summary of Price Targets

14.0 CNOOC WPL STO OSH
WPL Cur. HKD AUD AUD AUD
12.0
09-11E RR 190% 250% 947% 3120%
OSH
10.0
Target P/CF 6.7 n/a n/a n/a
P/CF, 2006-08 Avg

CEO

8.0 2011E CFPS 2.3 n/a n/a n/a

OXY
APC EOG
XTO Price Target 15.5 56.0 16.3 7.1
CNQ
6.0 ECA
STO APA
DVN

4.0 TLM

2.0 y = 222%x + 254%

R2 = 49%
-
0% 100% 200% 300% 400%
Recycle Ratio, 2006-08

Source: Bernstein estimates Source: Bernstein estimates

BERNSTEIN RESEARCH APRIL 16, 2010

 SRO REQUIRED DISCLOSURES
• References to "Bernstein" relate to Sanford C. Bernstein & Co., LLC, Sanford C. Bernstein Limited, and Sanford C. Bernstein, a unit of
AllianceBernstein Hong Kong Limited, collectively.
• Bernstein analysts are compensated based on aggregate contributions to the research franchise as measured by account penetration,
productivity and proactivity of investment ideas. No analysts are compensated based on performance in, or contributions to, generating
investment banking revenues.
• Bernstein rates stocks based on forecasts of relative performance for the next 6-12 months versus the S&P 500 for stocks listed on the
U.S. and Canadian exchanges, versus the MSCI Pan Europe Index for stocks listed on the European exchanges (except for Russian
companies), versus the MSCI Emerging Markets Index for Russian companies and stocks listed on emerging markets exchanges outside
of the Asia Pacific region, and versus the MSCI Asia Pacific ex-Japan Index for stocks listed on the Asian (ex-Japan) exchanges - unless
otherwise specified. We have three categories of ratings:
Outperform: Stock will outpace the market index by more than 15 pp in the year ahead.
Market-Perform: Stock will perform in line with the market index to within +/-15 pp in the year ahead.
Underperform: Stock will trail the performance of the market index by more than 15 pp in the year ahead.
Not Rated: The stock Rating, Target Price and estimates (if any) have been suspended temporarily.
• As of 04/12/2010, Bernstein's ratings were distributed as follows: Outperform - 47.5% (0.9% banking clients) ; Market-Perform - 46.0%
(1.0% banking clients); Underperform - 6.5% (0.0% banking clients); Not Rated - 0.0% (0.0% banking clients). The numbers in parentheses
represent the percentage of companies in each category to whom Bernstein provided investment banking services within the last twelve
(12) months.
• Neil Beveridge maintains a long position in BP PLC (BP).
• Benjamin Dell maintains a long position in BP PLC (BP).
• A member of Neil McMahon's household maintains a long position in BP PLC (BP).
• Mr. Wynne maintains a long position in Duke Energy Corp. (DUK).
• Accounts over which Bernstein and/or their affiliates exercise investment discretion own more than 1% of the outstanding common stock of
the following companies BP / BP PLC, BP/.LN / BP PLC, CVX / ChevronTexaco Corp, COP / ConocoPhillips, MRO / Marathon Oil Corp,
RDS/A / Royal Dutch Shell PLC, RDS/B / Royal Dutch Shell PLC, RDSA.LN / Royal Dutch Shell PLC, RDSA.NA / Royal Dutch Shell PLC,
RDSB.LN / Royal Dutch Shell PLC, RDSB.NA / Royal Dutch Shell PLC, VLO / Valero Energy Corp, ESV / ENSCO International Inc, NBR /
Nabors Industries Ltd, NE / Noble Corp, PTEN / Patterson-UTI Energy Inc, RDC / Rowan Cos Inc, SLB / Schlumberger Ltd, RIG /
Transocean Inc, DVN / Devon Energy Corp, NFX / Newfield Exploration Co, TLW.LN / Tullow Oil PLC, STO.AU / Santos Ltd, WPL.AU /
Woodside Petroleum Ltd.
• Bernstein currently makes a market in the following companies PTEN / Patterson-UTI Energy Inc.
• The following companies are or during the past twelve (12) months were clients of Bernstein, which provided non-investment banking-
securities related services and received compensation for such services BG/.LN / BG Group PLC, BP / BP PLC, BP/.LN / BP PLC, CVX /
ChevronTexaco Corp, XOM / Exxon Mobil Corp, TOT / Total SA, FP.FP / TotalFinaElf SA, VLO / Valero Energy Corp, AEP / American
Electric Power Co Inc, D / Dominion Resources Inc, DUK / Duke Energy Corp, EXC / Exelon Corp, FE / FirstEnergy Corp, PCG / PG&E
Corp, BHI / Baker Hughes Inc, HAL / Halliburton Co, SLB / Schlumberger Ltd, RIG / Transocean Inc, APC / Anadarko Petroleum Corp, DVN
/ Devon Energy Corp, MUR / Murphy Oil Corp.
• An affiliate of Bernstein received compensation for non-investment banking-securities related services from the following companies CVX /
ChevronTexaco Corp, COP / ConocoPhillips, XOM / Exxon Mobil Corp, AEP / American Electric Power Co Inc, D / Dominion Resources
Inc, DUK / Duke Energy Corp, EIX / Edison International, FE / FirstEnergy Corp, PCG / PG&E Corp, HAL / Halliburton Co, SLB /
Schlumberger Ltd, DVN / Devon Energy Corp, OXY / Occidental Petroleum Corp.
• In the next three (3) months, Bernstein or an affiliate expects to receive or intends to seek compensation for investment banking services
from BG/.LN / BG Group PLC, BP / BP PLC, BP/.LN / BP PLC, CVX / ChevronTexaco Corp, COP / ConocoPhillips, E / ENI SpA, ENI.IM /
ENI SpA, XOM / Exxon Mobil Corp, MRO / Marathon Oil Corp, RDS/A / Royal Dutch Shell PLC, RDS/B / Royal Dutch Shell PLC, RDSA.LN
/ Royal Dutch Shell PLC, RDSA.NA / Royal Dutch Shell PLC, RDSB.LN / Royal Dutch Shell PLC, RDSB.NA / Royal Dutch Shell PLC, STO
/ Statoil ASA, STL.NO / Statoil ASA, SUN / Sunoco Inc, TSO / Tesoro Corp, TOT / Total SA, FP.FP / TotalFinaElf SA, VLO / Valero Energy
Corp, AEP / American Electric Power Co Inc, D / Dominion Resources Inc, DUK / Duke Energy Corp, EIX / Edison International, EXC /
Exelon Corp, FE / FirstEnergy Corp, PCG / PG&E Corp, BHI / Baker Hughes Inc, DO / Diamond Offshore Drilling Inc, ESV / ENSCO
International Inc, HAL / Halliburton Co, NBR / Nabors Industries Ltd, NE / Noble Corp, PTEN / Patterson-UTI Energy Inc, RDC / Rowan Cos
Inc, SLB / Schlumberger Ltd, RIG / Transocean Inc, WFT / Weatherford International Ltd, APC / Anadarko Petroleum Corp, APA / Apache
Corp, CNQ / Canadian Natural Resources Ltd, CNQ.CN / Canadian Natural Resources Ltd, CHK / Chesapeake Energy Corp, DVN / Devon
Energy Corp, ECA / EnCana Corp, ECA.CN / EnCana Corp, EOG / EOG Resources Inc, MUR / Murphy Oil Corp, NFX / Newfield
Exploration Co, OXY / Occidental Petroleum Corp, TLM / Talisman Energy Inc, TLM.CN / Talisman Energy Inc, XTO / XTO Energy Inc,
CNE.LN / Cairn Energy PLC, TLW.LN / Tullow Oil PLC, PMO.LN / Premier Oil PLC, GALP.PL / Galp Energia SGPS SA, NVTK.LI /
NovaTek OAO, OGZD.LI / Gazprom OAO, LKOD.LI / LUKOIL, ROSN.LI / Rosneft Oil Co, SGGD.LI / Surgutneftegaz, HK / PetroHawk
Energy Corp, RRC / Range Resources Corp, SWN / Southwestern Energy Co, UPL / Ultra Petroleum Corp, 386.HK / China Petroleum &
Chemical Corp, 857.HK / PetroChina Co Ltd, 883.HK / CNOOC Ltd, CEO / CNOOC Ltd, SNP / China Petroleum & Chemical Corp, PTR /
 PetroChina Co Ltd, ONGC.IN / Oil & Natural Gas Corp Ltd, RIL.IN / Reliance Industries Ltd, OSH.AU / Oil Search Ltd, STO.AU / Santos
Ltd, WPL.AU / Woodside Petroleum Ltd, FTO / Frontier Oil Corp, MOH.GA / Motor Oil Hellas Corinth Refineries SA, SRS.IM / Saras SpA.
• This research publication covers six or more companies. For price chart disclosures, please visit www.bernsteinresearch.com, you can also
write to either: Sanford C. Bernstein & Co. LLC, Director of Compliance, 1345 Avenue of the Americas, New York, N.Y. 10105 or Sanford
C. Bernstein Limited, Director of Compliance, Devonshire House, One Mayfair Place, London W1J 8SB, United Kingdom; or Sanford C.
Bernstein, a unit of AllianceBernstein Hong Kong Limited, Director of Compliance, Suite 3401, 34th Floor, One IFC, One Harbour View
Street, Central, Hong Kong.
12-Month Rating History as of 04/15/2010
Ticker Rating Changes
386.HK M (IC) 06/29/09
857.HK O (IC) 06/29/09
883.HK O (IC) 06/29/09
AEP M (IC) 01/15/03
APA O (RC) 03/26/08
APC O (RC) 05/07/08
BG/.LN O (IC) 01/22/09
BHI O (RC) 10/01/09 M (RC) 12/16/08
BP M (RC) 03/03/09
BP/.LN M (RC) 03/03/09
CEO O (IC) 06/29/09
CHK O (RC) 02/19/09
CNE.LN O (IC) 01/22/09
CNQ M (RC) 10/06/05
CNQ.CN M (RC) 10/06/05
COP M (RC) 02/16/10 O (RC) 06/23/09 M (RC) 09/05/07
CVX O (RC) 02/16/10 M (RC) 05/23/07
D M (RC) 09/04/07
DO U (IC) 05/16/06
DUK M (RC) 08/05/04
DVN O (RC) 10/13/08
E O (RC) 11/21/08
ECA O (RC) 10/13/08
ECA.CN O (RC) 10/13/08
EIX M (RC) 10/08/09 O (IC) 11/11/04
ENI.IM O (RC) 11/21/08
EOG O (RC) 08/26/08
ESV M (RC) 02/19/09
EXC M (RC) 02/05/10 O (RC) 01/12/05
FE O (RC) 08/05/09 M (RC) 12/23/08
FP.FP M (RC) 02/16/10 O (IC) 05/30/03
FTO O (IC) 03/22/10
GALP.PL M (IC) 01/22/09
HAL O (RC) 11/12/07
HK M (RC) 02/08/10 O (IC) 05/21/09
LKOD.LI U (IC) 01/15/09
MOH.GA O (IC) 03/22/10
MRO O (RC) 02/16/10 M (RC) 05/13/09 O (RC) 01/29/08
MUR M (RC) 05/02/08
NBR O (RC) 09/07/07
NE M (RC) 02/19/09
NFX O (RC) 05/15/07
NVTK.LI O (IC) 01/15/09
OGZD.LI O (RC) 07/16/09 M (IC) 01/15/09
ONGC.IN M (RC) 11/17/09 U (IC) 06/29/09
OSH.AU O (IC) 06/29/09
OXY U (RC) 02/19/09
PCG O (RC) 03/22/07
PMO.LN O (RC) 02/19/10 M (IC) 01/22/09
PTEN O (RC) 09/07/07
PTR O (IC) 06/29/09
RDC M (RC) 02/19/09
RDS/A O (RC) 02/16/10 M (RC) 03/16/09
RDS/B O (RC) 02/16/10 M (RC) 03/16/09
RDSA.LN O (RC) 02/16/10 M (RC) 03/16/09
RDSA.NA O (RC) 02/16/10 M (RC) 03/16/09
RDSB.LN O (RC) 02/16/10 M (RC) 03/16/09
RDSB.NA O (RC) 02/16/10 M (RC) 03/16/09
RIG O (RC) 02/19/09
RIL.IN O (IC) 06/29/09
ROSN.LI U (IC) 01/15/09
RRC O (IC) 05/21/09
SGGD.LI U (IC) 01/15/09
SLB M (IC) 09/19/07
SNP M (IC) 06/29/09
SRS.IM M (IC) 03/22/10
STL.NO M (IC) 01/22/09
STO M (IC) 01/22/09
STO.AU M (RC) 04/09/10 O (IC) 06/29/09
SUN M (RC) 07/18/08
SWN O (IC) 05/21/09
TLM O (RC) 02/19/09
TLM.CN O (RC) 02/19/09
TLW.LN O (IC) 01/22/09
TOT M (RC) 02/16/10 O (IC) 05/30/03
TSO M (RC) 07/18/08
UPL M (IC) 05/21/09
VLO M (RC) 03/22/10 O (RC) 01/29/08
WFT M (RC) 12/16/08
WPL.AU O (RC) 11/17/09 M (IC) 06/29/09
XOM M (RC) 02/19/09
XTO O (RC) 03/26/08

Rating Guide: O - Outperform, M - Market-Perform, U - Underperform, N - Not Rated

Rating Actions: IC - Initiated Coverage, DC - Dropped Coverage, RC - Rating Change

OTHER DISCLOSURES
A price movement of a security which may be temporary will not necessarily trigger a recommendation change. Bernstein will advise as and
when coverage of securities commences and ceases. Bernstein has no policy or standard as to the frequency of any updates or changes to its
coverage policies. Although the definition and application of these methods are based on generally accepted industry practices and models,
please note that there is a range of reasonable variations within these models. The application of models typically depends on forecasts of a
range of economic variables, which may include, but not limited to, interest rates, exchange rates, earnings, cash flows and risk factors that are
subject to uncertainty and also may change over time. Any valuation is dependent upon the subjective opinion of the analysts carrying out this
valuation.
This document may not be passed on to any person in the United Kingdom (i) who is a retail client (ii) unless that person or entity qualifies as an
authorised person or exempt person within the meaning of section 19 of the UK Financial Services and Markets Act 2000 (the "Act"), or qualifies
as a person to whom the financial promotion restriction imposed by the Act does not apply by virtue of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2005, or is a person classified as an "professional client" for the purposes of the Conduct of Business Rules of
the Financial Services Authority.

To our readers in the United States: Sanford C. Bernstein & Co., LLC is distributing this publication in the United States and accepts
responsibility for its contents. Any U.S. person receiving this publication and wishing to effect securities transactions in any security discussed
herein should do so only through Sanford C. Bernstein & Co., LLC.
To our readers in the United Kingdom: This publication has been issued or approved for issue in the United Kingdom by Sanford C. Bernstein
Limited, authorised and regulated by the Financial Services Authority and located at Devonshire House, 1 Mayfair Place, London W1J 8SB, +44
(0)20-7170-5000.
To our readers in member states of the EEA: This publication is being distributed in the EEA by Sanford C. Bernstein Limited, which is
authorised and regulated in the United Kingdom by the Financial Services Authority and holds a passport under the Investment Services
Directive.
To our readers in Hong Kong: This publication is being issued in Hong Kong by Sanford C. Bernstein, a unit of AllianceBernstein Hong Kong
Limited. AllianceBernstein Hong Kong Limited is regulated by the Hong Kong Securities and Futures Commission.
To our readers in Australia: Sanford C. Bernstein & Co., LLC and Sanford C. Bernstein Limited are exempt from the requirement to hold an
Australian financial services licence under the Corporations Act 2001 in respect of the provision of the following financial services to wholesale
clients:
 • providing financial product advice;
• dealing in a financial product;
• making a market for a financial product; and
• providing a custodial or depository service.

Sanford C. Bernstein & Co., LLC, Sanford C. Bernstein Limited and AllianceBernstein Hong Kong Limited are regulated by, respectively, the
Securities and Exchange Commission under U.S. laws, by the Financial Services Authority under U.K. laws, and by the Hong Kong Securities
and Futures Commission under Hong Kong laws, all of which differ from Australian laws.
One or more of the officers, directors, or employees of Sanford C. Bernstein & Co., LLC, Sanford C. Bernstein Limited, Sanford C. Bernstein, a
unit of AllianceBernstein Hong Kong Limited, and/or their affiliates may at any time hold, increase or decrease positions in securities of any
company mentioned herein.
Bernstein or its affiliates may provide investment management or other services to the pension or profit sharing plans, or employees of any
company mentioned herein, and may give advice to others as to investments in such companies. These entities may effect transactions that are
similar to or different from those recommended herein.
Bernstein Research Publications are disseminated to our customers through posting on the firm's password protected website,
www.bernsteinresearch.com. Additionally, Bernstein Research Publications are available through email, postal mail and commercial research
portals. If you wish to alter your current distribution method, please contact your salesperson for details.
Bernstein and/or its affiliates do and seek to do business with companies covered in its research publications. As a result, investors should be
aware that Bernstein and/or its affiliates may have a conflict of interest that could affect the objectivity of this publication. Investors should
consider this publication as only a single factor in making their investment decisions.
This publication has been published and distributed in accordance with Bernstein's policy for management of conflicts of interest in investment
research, a copy of which is available from Sanford C. Bernstein & Co., LLC, Director of Compliance, 1345 Avenue of the Americas, New York,
N.Y. 10105, Sanford C. Bernstein Limited, Director of Compliance, Devonshire House, One Mayfair Place, LondonW1J 8SB, United Kingdom, or
Sanford C. Bernstein, a unit of AllianceBernstein Hong Kong Limited, Director of Compliance, Suite 3401, 34th Floor, One IFC, One Harbour
View Street, Central, Hong Kong.

CERTIFICATIONS
• I/(we), Neil Beveridge, Ph.D., Oswald Clint, Ph.D., ACA, Ben P. Dell, Scott Gruber, CFA, Neil McMahon, Ph.D., Hugh Wynne, Senior
Analyst(s), certify that all of the views expressed in this publication accurately reflect my/(our) personal views about any and all of the
subject securities or issuers and that no part of my/(our) compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or views in this publication.

Approved By: CDK

Copyright 2010, Sanford C. Bernstein & Co., LLC, Sanford C. Bernstein Limited, and AllianceBernstein Hong Kong Limited, subsidiaries of AllianceBernstein L.P. ~ 1345 Avenue of the
Americas ~ NY, NY 10105 ~ 212/756-4400. All rights reserved.

This publication is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of, or located in any locality, state, country or other jurisdiction where such distribution, publication,
availability or use would be contrary to law or regulation or which would subject Bernstein or any of their subsidiaries or affiliates to any registration or licensing requirement within such jurisdiction. This publication is based upon
public sources we believe to be reliable, but no representation is made by us that the publication is accurate or complete. We do not undertake to advise you of any change in the reported information or in the opinions herein.
This publication was prepared and issued by Bernstein for distribution to eligible counterparties or professional clients. This publication is not an offer to buy or sell any security, and it does not constitute investment, legal or tax
advice. The investments referred to herein may not be suitable for you. Investors must make their own investment decisions in consultation with their professional advisors in light of their specific circumstances. The value of
investments may fluctuate, and investments that are denominated in foreign currencies may fluctuate in value as a result of exposure to exchange rate movements. Information about past performance of an investment is not
necessarily a guide to, indicator of, or assurance of, future performance.