Slide 1: First Quarter 2010 Financial Results
1 May 6, 2010 First Quarter 2010 Financial Results May 7, 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: First Quarter 2010 Results
First Quarter 2010 Results 3 ($ in Millions, except per share data) 1st Qtr 2010 1st Qtr 2009 4th Qtr 2009 Net Income ($3.0) ($3.9) ($7.4) Earnings Per Share - Basic ($0.08) ($0.11) ($0.21) 1st Qtr 2010 weighted average basic shares outstanding were 36.1 million 1st Qtr. 2010 results negatively impa
Slide 4: Segment Earnings
Segment Earnings 4 ($ in Millions) 1st Qtr 2010 1st Qtr 2009 4th Qtr 2009 Real Estate $0.3 $0.5 ($2.5) Mineral Resources 6.2 4.8 3.3 Fiber Resources 1.4 2.9 1.4 Total $ 7.9 $8.2 $2.2 1st Qtr. 2010 mineral resources segment earnings include approximately $3.2 million in lease bonus payments associate
Slide 5: Results and Key Performance Indicators
5 May 6, 2010 1st Qtr 2010 Results and Key Performance Indicators 5 Strategy and Initiative Execution Have Forestar Well Positioned
Slide 6: Real Estate Market Conditions
6 Housing Starts* Normal Real Estate Cycle** Forestar is well positioned to capitalize on growth in housing starts ** Source: CEL & Associates, Inc. Real Estate Market Conditions Forestar Market Fundamentals: Affordability - good Consumer confidence - improving Mortgage rates - good Economic activit
Slide 7: Real Estate Segment KPI's
7 Real Estate Segment KPI's 1st Qtr 2010 1st Qtr 2009 4th Qtr 2009 Residential Lot Sales * Lots Sold 195 107 202 Average Price / Lot $49,500 $72,400 $45,000 Gross Profit / Lot $14,300 $27,000 $12,600 Commercial Tract Sales * Acres Sold 1.6 4.1 0.3 Average Price / Acre $172,800 $215,600 $87,000 Land
Slide 8: Residential Lot Sales
Residential Lot Sales 8 Note: Includes ventures $49,500 Residential Lot Sales Average Annual Lot Price 2006 Average Price Per Lot * Excludes bulk sale of 117 lots at project located near Fort Worth, Texas
Slide 9: Forestar Residential Lot Inventory
Forestar Residential Lot Inventory 9 Note: Includes ventures 2007 2008
Slide 10: Real Estate Pipeline - Q1 2010
Real Estate Pipeline - Q1 2010 * In addition, Forestar owns a 58% interest in a venture which controls over 16,000 acres of undeveloped land in Georgia with minimal investment 10
Slide 11: Entitlement Activity - Q1 2010
11 Entitlement Activity - Q1 2010 Entitlements 153 Single-family acres 3 Commercial acres 156 Total acres 821 residential lots Location near Austin, TX Austin, TX MSA Solid market fundamentals: < 7.9 New Home MOS 5.1 Existing Home MOS < 2% Foreclosure Inventory Lower Unemployment Increased Housing A
Slide 12: Oil & Gas Market Conditions
12 Forestar is well positioned to take advantage of improving oil and gas markets Oil & Gas Market Conditions Near-Term Fundamentals: Oil prices supported by reduced supply and anticipation of economic growth Natural gas prices pressured by elevated inventories and supply E&P companies drilling to h
Slide 13: Mineral Resources Segment KPI's
13 Mineral Resources Segment KPI's 1st Qtr 2010 1st Qtr 2009 4th Qtr 2009 Minerals Net Acres Leased 2,130 6,116 720 Average Bonus / Acre $1,495 $347 $662 Natural Gas Production (MMCF) 373.2 394.7 586.5 Average Price / MCF $4.30 $6.16 $3.15 Oil Production (Barrels) 29,400 27,300 30,800 Average Price
Slide 14: Q1 2010 Texas Minerals Activity
Q1 2010 Texas Minerals Activity 14 *Tarrant County wells are in a venture Note: Wells owned by third-party lessee / operator Leasing: 2,130 acres leased $1,495 / acre Drilling: 2 wells drilled & completed Sabine County Cherokee County Production: 9 Wells on-line in Tarrant County* Q1 2010 Activity P
Slide 15: Fiber Resources Segment KPI's
15 Fiber Resources Segment KPI's 1st Qtr 2010 1st Qtr 2009 4th Qtr 2009 Fiber Sales Pulpwood Tons Sold 83,100 206,600 143,300 Average Pulpwood Price / Ton $10.92 $8.15 $9.76 Sawtimber Tons Sold 29,600 90,700 40,900 Average Sawtimber Price / Ton $20.14 $22.84 $18.93 Total Tons Sold 112,700 297,300 18
Slide 16: Strategy and Initiative Execution Have Forestar Well Positioned
16 Right Strategy Experienced Management Team Strong Balance Sheet, Assets & Projects Strategy and Initiative Execution Have Forestar Well Positioned
Slide 17: May 6, 2010
17 May 6, 2010