The Focus List comprises Elliott's favorite energy stocks in the current market environment, based on valuation and/or upside catalysts. We expect these stocks to outperform over the next six to 12 months. Investors should weigh their risk tolerance when they consider stocks from the Focus List. Names in the Lower Risk category involve the least exposure to volatility in the stock and commodity markets and often generate much of their returns from dividend accumulation, though some price appreciation will also occur. In contrast, stocks in the Medium Risk segment entail additional volatility and tend to generate the bulk their returns from price appreciation, though this category also includes a handful of income-oriented names that have moderate exposure to commodity prices. Holdings in the Higher Risk category can be subject to significant price gyrations, largely because of their sensitivity to fluctuations in energy prices or their smaller market capitalizations. This segment may include some shorter-term trades.