RAM Energy Resources, Inc.

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RAM Energy Resources, Inc.
TM
Bank of America Energy Conference

November 14, 2008
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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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Third Quarter 2008 Highlights

• Third quarter 2008 production volume grew 92 to
  645 MBOE vs. 336 MBOE in third quarter 2007.
• Due to Ascent Acquisition in late 2007 and 12
  wells drilled and completed during third quarter
  2008
• The average realized price of oil, NGLs and
  natural gas were all
• substantially higher in the third quarter
  2008 vs. third quarter
• 2007.
• Oil was 116.81 up 60.5
• NGL was 66.16 up 40.6
• Natural gas was 8.85 up 39.6
• Total/BOE was 83.92 up 44.6
• Higher production combined with increased product
  prices drove oil and gas sales to 54.2 million,
  177 above last years oil and gas sales

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Third Quarter 2008 Highlights

• Exclusive of the impact of unrealized derivative
  losses, adjusted
• net income (non-GAAP) for the third quarter
  2008 was 11.4
• million, or 0.15 per share vs. 5.3 million,
  or 0.13 per share in
• third quarter 2007
• Free Cash flow from operations (a non-GAAP
  measure) in the
• quarter was 26.7 million, or 0.35 per share,
  compared to 3.1
• million, or 0.08 per share, in the third
  quarter 2007.
• RAMs EBITDA for the quarter was 31.5 million
  representing an
• increase of 200 above the same period last
  year.
• Total non-acquisition capital spending for the
  quarter was 18.8
• million, fully funded by free cash flow.

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Company Overview
- Areas of Operation
Rig under contract
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RAM Production Growth

• From the post-Ascent acquisition base at December
  2007, RAM has increased production 9 year to
  date

(2)
(1)

• Weather related power outage, N. Texas and
  Oklahoma
• Temporary shut-in of production associated with
  Hurricanes Ike and Gustav. Production restored
  early October 2008

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Total Debt

• Total debt continues to decline
• RAM borrowing base under existing facilities is
  288 MM
• Revolver 133 MM outstanding (2)
• Term 113 MM outstanding (2)

(1)

• Ascent acquisition closed November 29, 2007
• At 9/30/08

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Debt Reduction

• Net debt ratio continues to improve
• Targeted net debt ratio less than 50

(1)
(2)

• Net debt is long-term debt less cash and cash
  equivalent at end of period
• Ascent acquisition closed November 29, 2007

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Interest Expense Moderates

• LIBOR based blended interest rate has remained
  flat for RAM despite widening credit spreads
  generally in corporate debt securities

(1)

• Ascent acquisition closed November 29, 2007

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Ample Liquidity

• Liquidity remains ample at 48MM at September 30,
  2008
• Revolving facility matures in three years
• Term facility matures in four years

(2)
(2)
(1)

• Ascent acquisition closed November 29, 2007
• Margin call deposits for derivative obligations
• RAM borrowing base under existing credit
  facilities is 288 MM 246 MM outstanding at
  9/30/08
• Cash and cash equivalents at 9/30/08 equal 6.2
  MM

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Attractive Valuation vs. Peers
Price / NAV (1) (2)

1. Reserves for Peers and RAM at 12/31/07
2. Share prices as of close 11/03/08

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Summary of Investment Considerations

• Significant increase in drilling activity in
  developing fields and mature oil fields
  positively impacts third quarter
• Large inventory of growth opportunities
• Stable cash flow base
• Oil and NGL rich reserve and production base
• High degree of operating control
• Proven value creation through both acquisitions
  and drillbit
• Compelling valuation vs. peers
• Managements substantial ownership of RAM stock
  supports alignment with shareholder interest

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RAM Energy Resources, Inc.
TM

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APPENDIX
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Attractive Valuation vs. Peers
EV / Proved Reserves (BOE)(1) (2) (3)

1. Reserves for Peers and RAM as of 12/31/07. RAMs
   proved reserves as of 12/31/07 were 39.4 MMBOE.
2. RAMs proved reserves at 6/30/08 were 41.8 MMBOE.
   
3. Share prices as of close 11/03/08.

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Production Volumes by Major Fields
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Drilling Success Rate Remains High
Total Wells Drilled
Wells Drilled YTD 2008
1987- 2008
(1)
(1)
656
62
Producers
1
49
Dry Holes
10
10
Drilling or Completing
73
715
Total
Success Ratio
98
(2)
93
(1) Gross wells drilled as of September 30, 2008
(2) Excluding wells in progress
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Strong EBITDA Free Cash Flow Per Share
EBITDA, a non-GAAP measure, represents
cash provided by operating activities before the
impact of interest expense, income taxes, DDA,
accretion, share based compensation 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
or unrealized MTM settlement gains or losses or
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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Production Volumes by Major Fields
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Derivative Positions
(1)

• At September 30, 2008 company had derivative
  contracts in place covering approximately 2.4
  MMBOE for next six quarters
• 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 3.8 BCF or 10,397 MCF per
  day of its natural gas production hedged at an
  average floor price of 7.14 per MCF for 2009

(1)
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South Texas Growth Driver (1)
Vicksburg
Wilcox

• 7 wells spud year to date
• Inventory of 18 PUD, 12 Probable, and 44 Possible
  locations
• Five wells completed in La Copita (Vicksburg
  formation), combined average initial daily flow
  rate over 3.0 Mmcf/d
• Field revitalization development project
  targeting Wilcox formation at 9,800 depth
• Wiese 1, drilling
• Thomas Trust 1, drilling
• If successful these wells could expand inventory
  of projects
• 10 additional identified drilling locations
• RAM is operator with 100 Working Interest in
  most wells

PUD -
18
Probable -
12
_______________ (1) Data as of November 2008
Possible -
44
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Unconventional Resource - Barnett Shale Growth
Driver

• 27,700 gross (6,800 net) acres located in
• Core area and all held by production (1)
• 85 square miles of existing seismic (2)
• Additional 50 square miles 3-D seismic recently
  shot, awaiting processing
• Current Activity
• - 20 producing wells
• 1 well completing-Brown 2H
• - 30 future locations
• 2008 CAPEX 10 million

Core

• 45 square miles of 3-D seismic acquired
• covering Tier 1 acreage and 40 square
  miles of 3-D seismic covering Tier 2 acreage
• (2) RAM also holds 26,267 gross (20,802 net)
  leasehold acres located in Tier 2

Tier 1
Tier 2
RAMs Barnett Shale operating area
Recently acquired acreage
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West Virginia Growth Driver Devonian Shale Play

• RAM is operator with 100 Working Interest
• Approximately 53,000 gross (51,000 net) leasehold
  acres
• 2008 CAPEX
• 5 wells drilled and testing
• 1 well completing- Mayes Stover 1-H
• 1 well drilling- R.L. Powel 1
• drilling time 18 days measured depth 6,400
  including lateral of 2,500
• RAM recently created area of mutual interest with
  offset operator to evaluate acreage in RAMs Bug
  Run area

Bug Run
Green Park
Columbia Gas Transmission Line
Cornstalk
RAM Existing Wells
RAM New Wells
Gas Gathering Pipeline and Newly Purchased Acreage
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RAM Energy Resources, Inc.
TM