RAM Energy Resources, Inc.

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RAM Energy Resources, Inc.
Fourth Quarter 2008 Earnings Conference Call

March 12, 2009
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Disclosure Statement
This document contains forward-looking statements
within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of
historical fact, including, without limitation,
statements that address estimates of RAMs proved
reserves of oil, gas and natural gas liquids, its
derivative positions, the impact of derivatives,
exploration activities, capital spending,
borrowing availability, financial position,
business strategy, managements objectives,
future operations, and industry conditions, are
forward-looking statements. Although RAM
believes that the expectations reflected in such
forward-looking statements are reasonable, RAM
can give no assurance that such expectations will
prove to be correct. Important factors that
could cause actual results to differ materially
from RAMs expectations (Cautionary Statements)
include, without limitation, the actual
quantities of RAMs oil and natural gas reserves,
future production levels, future prices and
demand for oil and natural gas, the results of
RAMs future exploration and development
activities, future operating, development costs
and future acquisitions, the effect of existing
and future laws and governmental regulations
(including those pertaining to the environment),
the continued availability of capital and
financing, and the political and economic climate
of the United States as well as risk factors
listed from time to time in our reports and
documents filed with the SEC. All subsequent
written and oral forward-looking statements
attributable to RAM, or persons acting on RAMs
behalf, are expressly qualified in their entirety
by the Cautionary Statements.
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Company Overview

• Areas of Operation
• Five Key Areas 87
• 38 Mature Oil

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15
15
12
North Texas Gas
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Rig working/planned Area of focus in
preliminary 2009 capital budget
Gas 27
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2008 Highlights

• Production rose 80 to 2.6 million barrel
  equivalents
• (BOE) of oil and natural gas vs. 1.4 million
  BOE in 2007.
• Oil and gas sales rose 123 to 182.7 million
  driven by higher
• production and higher average prices.
• EBITDA rose to 103.6 MM compared to 42.4 MM
  in 2007.
• Free cash flow from operations was 77.1
  million, or 1.09 per
• share, vs. 25.4 million, or 0.62 per share
  in 2007.

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2008 Highlights

• Outstanding debt was reduced by 85.0 million
  during the year to
• 250.7 million at year end compared to 335.7
  million at year-end
• 2007.
• Availability at December 31, 2008 under our
  revolving credit
• facility was 37.9 million.
• Total cash expenses per BOE decreased four
  percent for the
• year.

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Fourth Quarter 2008 Highlights

• Record fourth quarter 2008 production rose 50
  to 653 MBOE.
• Average daily production in fourth quarter 2008
  was 7,097 BOE
• vs. fourth quarter 2007 level of 4,739 BOE.
• EBITDA in fourth quarter rose to 16.2 MM vs.
  14.1 MM in 2007
• quarter
• The average realized price of oil, NGLs and
  natural gas decreased
• in fourth quarter 2008 vs. fourth quarter
  2007.
• Oil down 35 to 57.56/Bbl vs. 88.74/Bbl.
• NGL down 56 to 26.32 vs. 59.37/Mcf
• Natural gas down 20 to 5.05/Mcf vs. 6.35/Mcf

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Fourth Quarter 2008 Highlights

• The increase in production was mitigated by the
  decline in
• hydrocarbon prices resulting in a seven
  percent decrease in oil
• and natural gas sales to 27.4 MM compared to
  29.4 MM in 2007.
• Fourth quarter realized derivative gain of 4.1
  MM added to
• revenue in 2008
• RAM recognized non-cash impairment of 179.6 MM
  after tax to
• reflect impact of lower hydrocarbon prices
  prevailing at year-end
• 2008.
• Blended interest rate on borrowing substantially
  lower at 6.1 vs.
• 10.7 in year ago quarter.
• Total cash expenses per BOE declined 11
  compared to those in
• last years quarter.

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RAM Three Year Production Growth
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Production Volumes by Major Fields
Production by Areas Year Ended December 31,
2008
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Drilling Success Rate Remains High
(1) Gross wells drilled - RAM prior to
Acquisition of Ascent
(2) Excluding wells in progress
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Estimates of Proved Reserves
____________
1) Estimate of RAM proved reserves at 12/31/08
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RAM Preliminary 2009 Capital Expenditure Plan

• Consistent with RAMs historical strategy,
  non-acquisition capital expenditures in 2009
  remain within cash flow
• Aim is to offset production decline while keeping
  flexibility in uncertain and volatile hydrocarbon
  price environment
• Focus spending on lower risk development projects
  with high internal rate of return and quick
  payback
• Mature oil fields of Electra/Burkburnett, N.E.
  Fitts and Allen
• South Texas continue successful development of
  La Copita and West Lissie areas
• Other strategic projects positioning for 2010
• Seismic
• Osage Concession

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RAM Preliminary 2009 Capital Expenditure Plan

• Assumptions (1)
• Year-end 2008 oil, gas and NGL strip prices of
  53/Bbl, 6/Mcf and 34/Bbl respectively
• Implied gains of 16 - 18 MM from derivative
  positions in place at 12/31/08
• Asset sales of 5 - 10 MM
• Interest expense of 17 - 18 MM
• Targets
• Production flat with 2008 level
• EBITDA of 60 - 65 MM
• CAPEX program 40 - 45 MM
• Voluntary debt repayment 8 - 12 MM
• Immediately accretive

1) Assumes existing realizations and derivatives
in force at 12/31/08 remain intact for 2009 year
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Derivative Positions

• For calendar year 2009 RAM has total of 1,048,500
  barrels of oil or 2,873 barrels per day of
  production hedged at an average floor price of
  64.11
• RAM also has a total of 4.6 BCF or 12,570 MCF per
  day of its natural gas production hedged at an
  average floor price of 7.12 per MCF for 2009

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EBITDA Free Cash Flow Per Share
Non-GAAP Financial Measures EBITDA, a
non-GAAP measure, is determined by adding the
following to net income (loss) interest expense,
income taxes, depreciation, amortization,
accretion, share based compensation, impairment
charges and unrealized gains or losses on
derivative or MTM settlement transactions. Free
cash flow is also a non-GAAP measure representing
EBITDA after adjustments for the cash portion of
interest and income taxes. Adjusted net income
is a non-GAAP measure which excludes the income
tax affected impact of unrealized derivative
gains or losses , MTM settlements transactions
and impairment charges on GAAP income. These
non-GAAP measures are presented because
management believes it is a useful adjunct to
cash provided by operating activities under
accounting principles generally accepted in the
United States (GAAP). These non-GAAP measures
are widely accepted as financial indicators of an
oil and gas companys ability to generate cash
which is used to internally fund exploration and
development activities and fund debt service
costs. These non-GAAP measures are not a measure
of financial performance under GAAP and should
not be considered as an alternative to cash
provided (used) by operating, investing, or
financing activities as an indicator of cash
flows, or as a measure of liquidity.
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Total Debt

• Total debt continues to decline compared to year
  ago levels
• RAM borrowing base under existing facilities is
  288 MM
• Revolver 137 MM outstanding (2)
• Term 113 MM outstanding (2)

(1)

• Ascent acquisition closed November 29, 2007
• At 12/31/08

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Interest Expense Moderates

• LIBOR based blended interest rate has continued
  to decline for RAM in concert with recent
  reduction in Fed Funds Rate

(1)

• Ascent acquisition closed November 29, 2007

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Ample Liquidity

• Liquidity remains ample at 37.9 MM at December
  31, 2008
• Revolving facility matures in three years
• Term facility matures in four years

(3)
(2)
(2)
(1)

• Ascent acquisition closed November 29, 2007
• Margin call deposits for derivative obligations
  designated in red
• Litigation escrow restricted cash designated in
  yellow
• RAM borrowing base under existing credit
  facilities is 288 MM 250 MM outstanding at
  12/31/08
• Cash and cash equivalents at 12/31/08 equal 0.2
  MM

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Summary of Investment Considerations

• Target sustain value while focusing on
  opportunity
• Large inventory of low risk opportunities capable
  of rapid returns
• Stable cash flow base supported by substantial
  inventory of projects in mature fields
• High degree of operating control and held by
  production properties absence of significant
  term lease issues
• Proven value creation through both acquisitions
  and drillbit
• Managements substantial ownership of RAM stock
  supports alignment with shareholder interest

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APPENDIX
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Company Overview Reserves / Production(1)
Production by Area / Field(2)
Percent of Total Reserves by Area / Field(1)
1) Using RAM proved reserves at 12/31/08 2)
Production mix as of December 2008
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Company Overview Reserves / Production(1)

• Oil and liquids rich reserve base
• 67 of production is based on price of oil

(1) Using RAM proved reserves at 12/31/08
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Company Overview Proved Reserves (1)

• High ratio of PDP and PDNP component of total
  reserve and PV-10 value contributes to consistent
  cash flow

(1) Estimate of RAM proved reserves as of 12/31/08
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Mature Oil Fields - North Texas Electra /
Burkburnett

• 2009 CAPEX 8 million plus
• 48 wells planned
• PUD Inventory over 100
• locations
• Two year drilling inventory at 2008 planned
  activity level
• Multiple year inventory of non-PUD well locations

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Mature Oil Fields North Texas Electra /
Burkburnett - Type well Economics Wichita /
Wilbarger counties Texas
(1) Assumed flat pricing for life of production
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Mature Oil Fields Oklahoma Pontotoc County

• 8 wells drilled and completed in 2008
• 2009 CAPEX approximately 1 million
• RAM is operator with 97 Working Interest
• Infill and waterflood reconfiguration program
  under review
• Outperformed last years production forecast

Fitts Field
Allen Field
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PUD
Injectors
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PDP
88
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Mature Oil Fields Ok Type well economicsNE
Fitts and Allen FieldsMcAlester and Hunton
Formations
(1) Assumed flat pricing for life of production
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South Texas (1)
Vicksburg
Wilcox

• 6 wells spud during 2008
• Inventory of 27 PUD, 13 Probable, and 31 Possible
  locations
• Six wells completed in La Copita (Vicksburg
  formation), combined average initial daily flow
  rate over 3.0 Mmcf/d (2 5 MM/D range)
• Field revitalization development project (9,800
  Wilcox)
• Wiese 1, testing Gas
• Thomas Trust 1, testing Gas
• Potential for 15 more locations
• RAM is operator with 100 Working Interest in
  most wells

PUD -
27
Probable -
13
_______________ (1) Data as of February 2009
Possible -
31
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La Copita Field, Texas Vicksburgh Formation Type
well Economics
(1) Assumed flat pricing for life of production
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RAM Energy Resources, Inc.
TM