Slide 1: Fourth Quarter and Full Year 2009 Financial Results
1 Fourth Quarter and Full Year 2009 Financial Results February 3, 2010
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. These statements reflect management's current views with respect to future events and are subject to risk and uncertainties. We note that a variety of factors and u
Slide 3: Reserves Disclosure
Reserves Disclosure The process of estimating oil and gas reserves is complex involving decisions and assumptions in evaluating the available geological, geophysical, engineering and economic data. Accordingly, these estimates are imprecise. Actual future production, oil and gas prices, revenues, ta
Slide 4: Full Year 2009 Value Creation Highlights
Full Year 2009 Value Creation Highlights $130+ million positive net cash flow generated in 2009 compared with the use of ($70) million in 2008 Institutional Land Sales 95,000 acres $160 million Retail Land Sales 18,000 acres 47 million Total: 113,000 acres $207 million Reduced investment in developm
Slide 5: Fourth Quarter and Full Year 2009 Results
5 Fourth Quarter and Full Year 2009 Results ($ in Millions, except per share data) 4th Qtr 2009 4th Qtr 2008 Full Year 2009 Full Year 2008 Net Income ($7.4) $1.7 $59.1 $12.0 Diluted EPS ($0.20) $0.05 $1.64 $0.33 Full year 2009 average diluted shares outstanding were 36.1 million 2009 results include
Slide 6: Segment Earnings
6 Segment Earnings Fourth quarter 2009 real estate segment earnings were negatively impacted by impairment charges of $2.7 million primarily associated with condominium project located in Austin, Texas and $3.6 million charge for environmental remediation activities at our San Joaquin River project
Slide 7: Key Performance Indicators and Year End 2009 Pipeline Status
7 Key Performance Indicators and Year End 2009 Pipeline Status
Slide 8: Real Estate Segment KPI's
8 Real Estate Segment KPI's 4th Qtr 2009 4th Qtr 2008 Full Year 2009 Full Year 2008 Residential Lot Sales * Lots Sold 202 259 642 1,060 Average Price / Lot $45,000 $37,600 $55,200 $48,500 Gross Profit / Lot $12,600 $9,200 $17,400 $15,300 Commercial Tract Sales * Acres Sold 0.3 28 6 120 Average Price
Slide 9: Residential Lot Sales Activity
9 Residential Lot Sales Activity Historical residential lot sales activity have been principally located in major markets of Texas, resulting in steadily improving residential lot prices since 2004 * Excludes bulk sale of 117 lots at Parks of Deer Creek project located near Fort Worth, Texas Total R
Slide 10: Real Estate Pipeline - YE 2009
10 Real Estate Pipeline - YE 2009 Real Estate Undeveloped In Entitlement Process Entitled Developed and Under Development Total Acres* Undeveloped Land Owned 196,817 203,580 Ventures 6,763 203,580 Residential Owned 26,868 7,790 636 41,706 Ventures 1,080 4,297 1,035 41,706 Commercial Owned 3,502 1,05
Slide 11: Cibolo Canyons - San Antonio, Texas Mixed-Use Development
Mixed-Use Development Resort Investment* $45 MM $43 MM* + 700 acres Forestar Economics Residential Lot Sales 1,700 lots Commercial Acre Sales 145 commercial acres Public Improvement District Reimbursements $38.0 MM pending as of year-end 2009 9% hotel room revenue through 2034 1.5% of sales generate
Slide 12: Mineral Resources Segment KPI's
12 Mineral Resources Segment KPI's 4th Qtr 2009 4th Qtr 2008 Full Year 2009 Full Year 2008 Minerals* Net Acres Leased 720 5,687 25,803 61,583 Avg. Bonus / Acre $662 $300 $827 $405 Natural Gas Produced (MMCF) 586.5 393.4 1,575.8 1,363.4 Average Price / MCF $3.15 $8.65 $4.09 $8.76 Oil Produced (Barrel
Slide 13: 2009 Texas Leasing and Well Activity
2009 Texas Leasing and Well Activity 19,400 Acres Leased; 26 Completed Wells Barnett Shale assets in a venture Note: Wells owned and drilled by third-party lessees and operators 13 Target Formations Wells Leases Held by Production Natural Gas Well Leased in 2009 Leased Prior to 2009 Available for Le
Slide 14: 2009 Louisiana Leasing and Well Activity
2009 Louisiana Leasing and Well Activity 6,400 Acres Leased; 4 Completed Wells 14 Target Formations Wells Leases Held by Production Natural Gas Well Oil Well Leased in 2009 Leased Prior to 2009 Available for Lease ? ? ? Note: Wells owned and drilled by third-party lessees and operators
Slide 15: Production & Proved Developed Reserve Growth
Production & Proved Developed Reserve Growth 15 ($ in millions) 2009 2008 % Change Production Natural Gas, Bcfe 1.575 1.363 16% Oil, Mbo 107.2 87.9 22% Natural Gas Equivalents, Bcfe* 2.219 1.891 17% Proved Developed Reserves 1 Total Reserves, Bcfe* 12.6 10.4 22% Total PV-10**, $MM $34.7 $32.3 8% Und
Slide 16: Fiber Resources Segment KPI's
16 Fiber Resources Segment KPI's 4th Qtr 2009 4th Qtr 2008 Full Year 2009 Full Year 2008 Fiber Sales Pulpwood Tons Sold 143,300 264,500 810,100 917,000 Average Pulpwood Price / Ton $9.76 $9.35 $8.53 $8.52 Sawtimber Tons Sold 40,900 47,400 331,300 162,900 Average Sawtimber Price / Ton $18.93 $21.50 $
Slide 17: Maximizing Shareholder Value
Maximizing Shareholder Value 17 *Excludes contributions to the JW Marriott resort at Cibolo Canyons, share-based compensation expenses, aircraft impairment, environmental remediation charges, and costs paid to outside advisors regarding an evaluation by our Board of Directors of an unsolicited share
Slide 18: Balance Sheet Leverage and Liquidity
Balance Sheet Leverage and Liquidity 18 ($ in Millions) Year End 2008 2009 Net Activity Year End 2009 Credit Facility Borrowings $235 ($110) $125 Other Consolidated Debt* $103 ($11) $92 Total Debt $338 ($121) $217 Total Debt / Capital 43% 29% Available Liquidity $188 $203 * Consolidated venture debt
Slide 19: 2009 Year End Snapshot
19 2009 Year End Snapshot Real Estate 251,000 acres of low basis land owned directly or through ventures 101 total projects located in 7 states and 12 markets 21 projects, with 31,450 acres currently in entitlement process 3 commercial & income producing assets Radisson Hotel (Austin, TX) Palisades
Slide 20: Forestar Group Investor Conference April 15-16, 2010
Forestar Group Conference 20 Investor Conference April 15-16, 2010 San Antonio, Texas JW Marriott San Antonio Hill Country Resort & Spa at Cibolo Canyons
Slide 21: Forestar
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