D ear Fellow  Shareholders, 
2014 R evie w — 201 4 w as a year of stark econom ic contrasts 
in our industry . D uring the first half as in the past several years, 
historically volatile W est T exas Interm ediate oil prices seem ed 
range bound betw een $ 8 0 and $ 1 1 0 w ith geopolitical events 
driving prices tow ards the ceiling and dem and risks pushing 
prices tow ards the floor of the range. 
In the U S, E & P com panies w ere spending record am ounts of capital, fueled by cheap 
and plentiful debt, on horizontal drilling and com pletions to drive production grow th 
w hile m aking m aterial strategic acquisitions in order to increase their long-term  
exposure to oil prices.  
The easy credit environm ent caused asset prices to increase significantly to the point 
w here, in our view , risk adjusted returns on new  acquisitions w ere threatening cyclical 
low s. In line w ith our strategy , Sundance had m onetized several m ature assets realizing 
~$50  m illion in current period gains w hile freeing up 
~$165 m illion in invested capital.  
W e prim arily reinvested this capital in production grow th 
and cash flow  w ith only about $75 m illion reinvested in 
acquiring oil and gas leases and producing properties. This 
resulted in our production increasing from  5,0 28 B O E PD 
to 9,434 B O E PD  by D ecem ber 20 14 and full year E B ITD A X 
increasing $73.8 m illion to $126.4 m illion in 20 14. H ad 
prices stayed steady , w e likely w ould have generated 
earnings before incom e taxes of over $8 5 m illion and a 
return on capital in excess of 20 %.  
O ur second capital priority for the year w as to conclude the appraisal of the W oodford 
form ation in our Logan C ounty , O klahom a assets. W e view ed this relatively m odest, but 
higher risk, investm ent as having a 25% chance of success w ith a 15x upside. U nfortunately , 
w e m et w ith m ixed success in our appraisal activities proving that in today’s onshore 
U S oil and gas industry that the best absolute returns are generated by drilling in proved 
regions. There are plenty of solid opportunities to efficiently grow  the business w ithout 
exposure to undue geologic risk. 
Like m any prior bubbles driven by new  technologies, the second half of the year saw  the 
pricing environm ent com e crashing dow n around us. The m arket becam e fundam entally 
unbalanced, driving prices dow n alm ost 50 % and rendering m aterial portions of global 
oil and gas developm ent uneconom ic.  
O ur peers w ent from  talking about their grow th prospects to fretting about cash costs 
and liquidity , a stark contrast from  the go-go grow th tim es w hich existed in the first half 
of the year. This shift in industry strategy has now  com e in line w ith our general business 
philosoph y — in the resource space, low -cost, low  debt businesses w ill survive and thrive 
across cycles; and, relative to our U S onshore peer group, Sundance boasts a top 15% 
cost structure and balance sheet. 
O ur position as a cost and balance sheet leader is underpinned by tw o key philosophies: 
1) investm ent in a leading technical team  that is encouraged to take reasonable risks to 
im prove recoveries and/or reduce costs, and 2) a ruthless focus on portfolio returns as 
dem onstrated by our consistent track record of divesting assets that don’t fit our strategic 
objectives or prom ise low er forw ard return profiles.  
O ur high quality E agle F ord acreage produces strong recoveries at reasonable costs and 
thus generates good returns, even in a low  price environm ent. B ecause of these character -
istics, the m ajority of our forw ard capital is expected to be invested generating strong 
grow th and shareholder returns in the E agle F ord.  
W ith m ixed appraisal results in the W oodford, Sundance’s M ississippian/W oodford 
position generally requires higher prices to m eet our hurdle rates. B ecause of the m ixed