Energy. Energy. Realizing Value Delivering Results QUARTERLY DIALOGUE S EC O ND Q UA RT E R

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1 QUARTERLY DIALOGUE S EC O ND Q UA RT E R For additional Information, please contact NCA s Investment Banking and Restructuring team: Edward R. Casas, MD Senior Managing Director Head of Navigant Capital Advisors 847/ ecasas@ncacf.com Gregory Hagood Managing Director Investment Banking Practice Area Leader 404/ ghagood@ncacf.com Alan J. Mustacchi Managing Director Investment Banking 646/ amustacchi@ncacf.com Kim Brady Managing Director 847/ kbrady@ncacf.com George Koutsonicolis Director 847/ georgek@ncacf.com Raoul Nowitz Director 404/ raoul.nowitz@ncacf.com For additional information regarding Navigant s Consulting Practice, please contact: Bill Dickenson Executive Managing Director Head of Practice 202/ wdickenson@navigant.com Laurie Oppel Managing Director 202/ loppel@navigant.com Rick Smead Director 713/ rsmead@navigant.com The NCA Quarterly Dialogue contains news, metrics, analysis and trends impacting select companies. The NCA Universe is divided into four segments: (i) Assets and Services, (ii) Oil and Gas Refining and Marketing, (iii) Oil and Gas Transportation and Storage and (iv) Independent Power Producers (IPPs)/Merchant Generators. About Navigant Capital Advisors Navigant Capital Advisors is the dedicated corporate finance business unit of Navigant Consulting, Inc. (NYSE: NCI). Navigant Consulting is a specialized independent consulting firm providing financial, operational, dispute and regulatory advisory services to large companies, financial institutions, legal counsel and government agencies. We offer independent and objective advice supported by advanced technical skills, proven competence and in-depth industry knowledge. Select 2Q 2012 News June 8 - Global Infrastructure Partners entered into an agreement to acquire an additional 42.72% stake of Chesapeake Midstream Partners, L.P. (NYSE:CHKM), which owns, operates, develops, and acquires natural gas, natural gas liquids, and oil gathering systems, from Chesapeake Corporation (NYSE:CHK) for $2.5 billion. May 18 - El Paso Pipeline Partners, L.P. (NYSE:EPB) agreed to acquire Cheyenne Plains Investment Company, L.L.C. and a 14% stake in Colorado Interstate Gas Company, L.L.C. from El Paso Corp. (NYSE:EP) for approximately $880 million. April 30 - Transfer Partners LP (NYSE:ETP) signed a definitive merger agreement to acquire Sunoco, Inc. (NYSE:SUN), which refines and markets petroleum products in the United States, for $6.7 billion. April 25 - Kinder Morgan Partners LP (NYSE:KMP) entered into a definitive agreement to acquire a 50% interest in El Paso Midstream Investment Company L.L.C., which owns Uinta Basin in Utah and Eagle Ford Shale in Texas from Kohlberg Kravis Roberts & Co. (NYSE:KKR) for $300 million in stock. April 10 - PVR Marcellus Gas Gathering, LLC, a subsidiary of Penn Virginia Resource Partners LP, entered into a membership interest purchase and sale agreement to acquire Chief Gathering LLC, which constructs and operates pipelines to deliver natural gas, from Chief E&D Holdings LP for $1 billion in cash and units. I N V E STM E NT BA N KI NG R ES T R U CTURI NG V ALUATIO N & F I NA N CI AL RI S K M A NA G EM EN T Realizing Value Delivering Results Atlanta Chicago New York San Francisco Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC.

2 Q Q Q Q Q Q Q S E C O N D Q U A R T E R 2012 June 30, 2012 To the Clients and Friends of Navigant Capital Advisors, LLC: We are pleased to share with you Navigant Capital Advisors Quarterly Dialogue for the second quarter of 2012, which provides coverage of valuation metrics and news, as well as M&A and capital markets activity in the four primary sectors that compose the NCA universe: (i) Assets and Services, (ii) Oil and Gas Refining and Marketing, (iii) Oil and Gas Transportation and Storage, and (iv) Independent Power Producers (IPPs)/Merchant Generators. The energy sector continues to be burdened by weak global economic activity, continuing declines in commodity prices and domestic regulatory uncertainty. Thus, it is not surprising that global energy M&A slowed somewhat during the quarter to 500 transactions, an 8.6% decline from the average of 547 transactions reported for each of the prior three quarters although still essentially flat when compared to the 497 transactions generated during the same prior year quarter. The decline from a dollar volume perspective was more severe, however, falling 35.2% from an average of $71.6 million for the last three quarters to $46.4 million, the lowest level reported since the third quarter of 2009, the first quarter coming out of the most recent U.S. recession. Quarterly Merger and Acquisitions 2006-present by Value (in $MMs) and # of Deals $120, $100, $80, $60,000 $40, # of Deals Transaction Value $20, $0 0 Source: S&P/Capital IQ The companies composing the NCA Universe have been materially impacted by ongoing disappointing economic trends in developed countries, including recent negative reports on manufacturing in both the U.S. and China and continuing bad news coming out of Europe. From the commodity side, the NYMEX Crude price fell approximately 17.5% during the quarter to $85/barrel, Page 2 of 48

3 S E C O N D Q U A R T E R 2012 while the Henry Hub Natural Gas Spot Price closed out the quarter at a still depressed $2.74/mmBtu after rebounding from a ten and a half year low of $1.84/mmBtu on April 19, As a result, energy stock valuations declined once again during the quarter, with the S&P 500 Sector Index falling by 6.5% as compared to a 3.3% drop in the broader S&P 500. In reality, this disparity was driven principally by declines in the Assets and Services subsector which fell by 12.1% in the related NCA index. This decline was due in large part to a scaling back of domestic natural gas drilling activity as average quarterly rig counts for the second quarter declined by 17.0% in North America vs. 10.6% globally, as compared to the first quarter of In other subsector performance, NCA s Refining and Marketing, Transportation and Storage, and IPPs/Merchant Generators indices declined by 0.2%, 3.2% and 1.8%, respectively. We have written over the past several quarters about the impact of newer extraction technologies on the availability of natural gas and the related impact of natural gas prices on energy stock valuations. While there has been a significant amount of negative press and handwringing about fracking and related concerns about its impact on everything from air and water quality to seismic activity, the disruptive effects of abundant natural gas on energy markets is unquestioned. Despite a pull back in dry gas drilling activity, natural gas inventories at the end of June still stood at 3.1 trillion cubic feet, which is 24.1% above the same prior year week level and 22.7% above the five year average for the same week. For the foreseeable future, we believe that natural gas prices will remain considerably cheaper than oil on an energy equivalent basis, and when combined with unrelenting regulatory pressures will accelerate the shift from coal fired to natural gas fired power generation and ultimately drive growth in natural gas consumption. In fact, recently published data by EIA indicated that in April 2012 for the first time since EIA began measuring such data, electricity generated from natural gas fired power plants (95.9 million megawatthours (MWh)) virtually equaled that produced by coal fired plants (96.0 million MWh). Page 3 of 48

4 S E C O N D Q U A R T E R 2012 We have also written in the past about the intense, often emotional debate regarding the inevitable transformation of the United States from a historical net importer of liquefied natural gas ( LNG ) to a net exporter. There continues to be a clear cost benefit disconnect between those that have environmental, economic and strategic concerns and those favoring increasing production and growth of LNG exports. In his attached article, The Resurgence of the U.S. Petrochemical Sector and the Natural Gas Industry Strange Bed Fellows or a Match Made in Heaven?, Navigant Director Gordon Pickering, a leading Natural Gas industry expert, debunks certain of the economic concerns associated with LNG exports expressed by many in the petrochemical industry, a major consumer of natural gas liquids. Navigant Capital Advisors is the dedicated corporate finance business unit of Navigant Consulting, Inc. (NYSE:NCI). We believe that change such as that experienced by the energy markets in particular creates not only risk, but also great opportunity. By leveraging Navigant s renowned energy industry, investment banking and restructuring expertise, we are uniquely qualified to offer independent and objective advice supported by advanced technical skills and proven execution in the energy space. With more than $65 billion of successful transactions consummated, we are a leading independent provider of investment banking, restructuring and strategic advisory services possessing the collective breadth and depth of experience of our dedicated energy investment banking professionals. We welcome your comments and hope that you find our Quarterly Dialogue informative. Alan J. Mustacchi Laurie Oppel Edward R. Casas Managing Director Managing Director Senior Managing Director Investment Banking Practice Head of Navigant Capital Advisors amustacchi@ncacf.com loppel@navigant.com ecasas@ncacf.com (646) (202) (847) Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC. Page 4 of 48

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6 S E C O N D Q U A R T E R 2012 TABLE OF CONTENTS Navigant s Perspective 7 The Resurgence of the U.S. Petrochemical Sector and the Natural Gas Industry Strange Bed Fellows or a Match Made in Heaven? NCA Universe 13 Assets and Services 14 Oil and Gas Refining and Marketing 20 Oil and Gas Transportation and Storage 24 Independent Power Producers (IPPs)/Merchant Generators 30 Comparative Segment Returns 35 Mergers and Acquisitions 36 Distressed News 40 General Distressed Market Indicators 43 Market Summary 45 Notes / Subscription Form Navigant Capital Advisors, LLC. All rights reserved. Navigant Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker/dealer of Navigant Consulting, Inc. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See for a complete listing of private investigator licenses. NCA gathers its data from sources it considers reliable. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the authors and are subject to change. NCA makes no warranties, expressed or implied, regarding the accuracy of this information or any opinions expressed by the authors. (Officers, directors and employees of Navigant Consulting, Inc. and its subsidiaries may have positions in the securities of the companies discussed.) This publication does not constitute a recommendation with respect to the securities of any company discussed herein, and it should not be construed as such. NCA or its affiliates may from time to time provide investment banking or related services to these companies. Like all NCA employees, the authors of this publication receive compensation that is affected by overall firm profitability. Page 6 of 48

7 S E C O N D Q U A R T E R 2012 Navigant s Perspective The Resurgence of the U.S. Petrochemical Sector and the Natural Gas Industry Strange Bed Fellows or a Match Made in Heaven? Natural gas has been proven to be abundant in North America. Although resource estimates vary by individual industry and governmental reporting agency, the basic fact is consistently clear natural gas in North America (primarily from the growth of shale gas) is expected to be sufficient for the foreseeable future. The fact that shale gas production has repeatedly exceeded many forecasters estimates illustrates the still limited data and understanding of the vast, low-permeability gas shale reservoirs. With a large and growing natural gas supply, the key challenge becomes managing the resource and turning it into a sustainable industry. Many would agree the industry and regulators have yet to find a solution to guide the industry for the benefit of the country. As seen in the first quarter of 2012, surplus gas production, combined with weak demand (primarily due to unseasonably warm weather), can significantly depress the natural gas market. Natural gas prices across the U.S. now average $2.05/MMBtu (March 15, 2012), 47 percent lower than a year ago, and the lowest level in the last decade. In some parts of the country, including parts of the Rockies and Oklahoma, gas is priced at sub-$2. Across the border in Canada, prices are even more depressed. The latest AECO price in Alberta, Canada registers at $1.83/MMBtu (March 15, 2012). At this price level, many producers will be forced to reduce or possibly abandon natural gas drilling particularly in dry gas plays where liquids do not allow for a significant economic uplift. Over the long term, it appears that the current price levels will not contribute to the long-term health of the natural gas industry. One of several proposed solutions is to take advantage of the excess supply of natural gas by exporting it in the form of LNG. With a somewhat limited anticipation of demand response from domestic natural gas use, one outlet for any surplus is the international LNG market. This topic has attracted significant attention from market participants, and opinions differ among producer and certain consumer group types. One key issue raised by the federal government through the D.O.E. permitting process for new projects is the extent to which LNG exports can impact North American natural gas prices and therefore the cost of natural gas for domestic industries 1. One of the more recent entrants to the LNG export discussions is the petrochemical industry. Seeing North America s booming natural gas supply as a potential driver for the revival of the U.S. chemical industry, petrochemical manufacturers have expressed concern that allowing natural gas to be exported in the form of LNG may increase feedstock prices (for their U.S. made chemicals and plastics) eroding profitability and diminishing a potential renaissance of the North American chemical industry. In March 2012, Forbes magazine quoted Andrew Liveris, chief executive of Dow Chemical, as explaining that exporting natural gas will destroy the benefits of plentiful cheap gas 2. The American Chemistry Council (ACC) was also involved in a recent Wall 1 Navigant has been at the forefront in assessing the impact of LNG export projects upon domestic prices. Beginning in 2010, Navigant has supported Cheniere in filing its non-fta LNG export application to the U.S. Department of. Subsequently, Navigant provided similar support to a number of other U.S. LNG export filings including Lake Charles Exports, Dominion Cove Point LNG, and Jordan Cove Project. 2 Page 7 of 48

8 S E C O N D Q U A R T E R 2012 Street Journal article controversy, initially being quoted as a strong opponent of gas exports 3. The story was later retracted by the ACC as a misquote by the WSJ reporter 4. More recently, Senators Joe Manchin (WV) and Ron Wyden (OR) joined the debate, worried that exporting shale gas will slow a rejuvenation of the U.S. chemical industries 5. Concern from the chemical industry about the potential impacts of LNG exports on their interests is difficult to understand, however. Allowing natural gas to be exported will eventually benefit both natural gas feedstock availability and the supply costs of feedstock to petrochemical projects. On a fundamental level, the U.S. petrochemical sector and the natural gas industry should be clearly seen as mutual beneficiaries rather than competitors. Thanks to clear cost advantages, interest in gas-based steam crackers in the U.S. has grown dramatically. On a percentage basis, NGLs contributed approximately 85 percent of total U.S. steam cracker feedstock in 2011, compared with about 60 percent in Total demand for ethane from the petrochemical industry reached ~1 million bpd in A Primer of the U.S. Petrochemical Industry The majority of steam crackers in the U.S. petrochemical industry utilize gas feedstock, primarily ethane, which is a by-product of natural gas, typically extracted in the form of natural gas liquids (NGLs). In comparison, steam crackers in other regions, with the exception of the Middle East, use more oil-based feedstock, such as naphtha and gasoil. Because feedstock costs represent more than 80 percent of operating expenses of petrochemical plants, economics and competitiveness of each producer are largely driven by feedstock prices. With the U.S. s rapidly growing NGL supply which comes along with increasing shale gas production gas-based feedstock costs of the U.S. petrochemical industry have been driven down, and the fundamentals of the industry have drawn significant attention from producers and investors around the world. On a global scale, U.S. petrochemical producers that have historically relied upon gas-based steam cracking technology are now more cost competitive than those in Western Europe, Asia, and Latin America. This is a major change from just a decade ago, when the U.S. petrochemical industry was considered a marginal supplier of global petrochemicals Misreports-Position-on-Natural-Gas-Exports.html 5 Platts Gas Daily, March 20, 2012 Page 8 of 48

9 Oil Gas Price Ratio Steam Cracker Feedstock Breakdown S E C O N D Q U A R T E R 2012 The most significant factor for the U.S. Global Steam Cracker Feedstock Breakdown by Region petrochemical industry s recent success which will largely dictate its future competitiveness against international peers 100% is the price ratio between naphtha, the main feedstock for European and Asian steam crackers, and ethane, the feedstock for U.S. 80% steam crackers. Naphtha prices are highly correlated with crude prices, with sporadic 60% deviations resulting from refining margin changes. Ethane prices in North America, on the contrary, are closely linked with natural 40% gas prices. Oil-gas price ratios are good proxy indicators of the comparative prices between 20% oil- and gas-based petrochemical feedstock. In the early 2000s, the oil-gas price ratio, 0% calculated based on West Texas Intermediate US Middle East Europe Asia (WTI) and Henry Hub spot prices, varied between 5 and 10. Since the ramping of U.S. NGLs Naphtha/Gasoil onshore gas production in 2006, however, this Sources:Navigant/Petral/Petrochemical Economics ratio has elevated dramatically due to an increase in oil prices as gas prices declined steadily, resulting in an unprecedented 40:1 oil-gas price ratio according to recent First Quarter 2012 prices. With the ongoing pipeline shortage issue at the delivery point of WTI (Cushing, OK), WTI has recently been heavily discounted against other reference crudes in the international oil market. As a result, the oil market players Oil Gas Price Ratio Curve have started to lean more frequently on Brent crude as the benchmark price for international crude prices. Consequently, the Brent Henry Hub price ratio has been regarded as a better indicator of the relative value between gasbased and oil-based feedstock in the petrochemical industry. In February 2012, this oil-gas price ratio was even higher than the WTI oil-gas ratio, approaching levels as high as OGPR-WTI OGPR-Brent Annual Avg OGPR-Brent Sources: Navigant/EIA As a result, the current level of U.S. natural gas and NGL prices has opened up tremendous investment opportunities for the U.S. chemical industry. A number of companies have announced plans for new U.S.-based chemical facilities (most targeting locations near shale gas plays, particularly the basins very heavily laden with NGLs, such as parts of the Marcellus and Eagle Ford) in order to take Page 9 of 48

10 Changes (Bcfd) S E C O N D Q U A R T E R 2012 advantage of the growing shale gas supply. Dow Chemical has announced a series of petrochemical projects in the Gulf Coast, and Shell has signed a land option agreement in Pennsylvania for a potential petrochemical complex that would use ethane from natural gas produced from the Marcellus shale. Several other companies, including Chevron, Philips Chemical, Formosa Plastics and Westlake Chemical, have also announced plans to build new plants or expand existing ones. Still others including Braskem and Bayer are reportedly discussing potential opportunities. If all these announced plans materialize, the U.S. annual demand for ethane could grow by 25 percent in the next decade. In the currently booming environment for petrochemical producers, it is not surprising that concerns and doubts are being expressed about whether or not U.S. LNG exports would dampen future prospects for the domestic petrochemical industry. While this may appear to be a legitimate concern, a deeper dive into the matter seems to indicate that allowing LNG exports will benefit the petrochemical industry. The key to resolving this matter is understanding the intricate relationship between the country s petrochemical and natural gas industries. Rather than strange bed fellows, they should be viewed as a match made in heaven. From a supply-demand perspective, an increase in natural gas demand, either through domestic consumption or exports in the form of LNG, will ultimately induce additional supply of NGLs as feedstock for steam crackers in the U.S. Because ethane and other NGLs are extracted from gas processing plants as by-products, their available supply is closely tied to the volume of natural gas being produced out of ground, which in turn is driven in part by market demand from global LNG exports. The concern that gas exports will compete with petrochemical feedstock therefore appears to be unwarranted, if not totally irrelevant. Viewed in this light, LNG exports are an effective way of helping to sustain long term growth of gas-based feedstock for the U.S. petrochemical industry. According to Navigant s latest forecast, total production of dry gas in the U.S. will grow by 9.8 Bcfd between 2011 to 2020, with only 8.1 Bcfd of the incremental gas being consumed domestically. Limited demand response can be expected from end-users (primarily in the power sector) where coal plant retirement and coal-to-gas substitution will help narrow the gap. But U.S. Gas Supply Demand Outlook to 2020 the coal-to-gas substitution may not be fast enough or in the end significant enough to completely consume the incremental gas. 12 In fact, most of the announced coal plant retirements will be completed by 2016, with 10 only marginal amounts of coal retirements 8 thereafter 2016 being the start-year of the first LNG export project. Other sectors of gas 6 demand, including residential, commercial, industrial, and transportation uses, will also 4 not significantly contribute to demand increases, at least not on the mid-term time 2 horizon. Therefore, without the demand provided by LNG exports, upstream 0 producers will be forced eventually to shut in gas production or continue the boom-andbust cycle that was thought to have been broken by the advent of gas shale. This will, in turn, structurally disrupt the supply of Sources:Navigant NGLs as feedstock for the petrochemical Page 10 of 48

11 S E C O N D Q U A R T E R 2012 plants. On the other hand, allowing LNG exports improves the economics of gas drilling and production, and serves to support the continued growth of NGL supply over the long term. Another concern expressed by some chemical producers including Mr. Liveris of Dow are the implications of LNG exports on feedstock costs of the U.S. petrochemical industry. This issue also should also be looked at from various angles. First, the increase of domestic natural gas prices as a result of LNG exports will be limited. Shale gas development in foreign countries, and growing international competition from LNG suppliers in the Middle East and Australia, are likely to constrain the magnitude of future U.S. LNG exports 6. Navigant projects that total U.S. LNG exports will be on the order of 2-4 Bcfd by 2020, which will lead to a 1.4 to 8.6 percent increase in Henry Hub prices by 2020 (see Table 1 for Navigant s assessments of the impact for various potential LNG export projects on Henry Hub and local gas prices). Such price increases are apt to generate very limited impact on the U.S. petrochemical sector. Table 1. Navigant s Assessments of the Impact for Potential LNG Export Projects on U.S. Domestic Prices 7,8 Project Export Volume by 2020 (Bcfd) Incremental Henry Hub Prices in 2020 Incremental Local Hub Prices in 2020 Sabine Pass % 6.5% (Henry Hub) Lake Charles % 8.6% (Henry Hub) Cove Point % 6.2% (Dominion SP) Jordan Cove % 3.4% (Malin) Second, the price impact of LNG exports on ethane prices should actually inure to the benefit of the petrochemical industry. Should LNG exports take place, these exports will serve to apply downward pressure on the physical ethane prices due to elevated NGL supply being available a situation that is obviously advantageous to the petrochemical industry. Finally, U.S. gas prices will need to rise dramatically before the relative advantage of the U.S. petrochemical industry disappears. As a general rule of thumb in the chemical industry, gas-based steam crackers will be economically favorable (as compared to oil-based crackers) when the oil-gas price ratio is higher than 7 9. Today s Brent price level of $120 per barrel, then, implies that Henry Hub prices will need to rise beyond $17/MMBtu before the U.S. petrochemical players lose their cost advantage. The possibility of this looks inconceivable for the Detailed project filing applications for which Navigant has participated and provided support are available from the U.S. Department of website: Cheniere Sabine Pass Liquefaction ( Lake Charles Exports ( Dominion Cove Point LNG ( Jordan Cove ( 8 Caution should be taken in reviewing the published results from multiple projects. (1) Due to the differences in the underlying assumptions, forecasted price responses from different projects should not be directly compared. (2) Most listed LNG export projects are currently under regulatory review. It is unlikely that all projects will be approved. Navigant projects that the total U.S. LNG exports by 2020 will be in the range of 2-4 Bcfd. (3) Price increments from multiple LNG export projects should not be considered as additive. 9 American Chemistry Council Page 11 of 48

12 S E C O N D Q U A R T E R 2012 foreseeable future. Therefore, even at long-term sustainable prices in the range of $5-7/MMBtu (unless there is a drastic crash of the oil prices), the U.S. chemical industry will remain comfortably competitive against foreign competitors. In this unique time in the history of the U.S. petrochemical industry, opportunities exist for domestic chemical producers to take advantage of plentiful feedstock at low costs. LNG exports will help ensure a healthy, smooth and sustained growth profile for the natural gas sector, and will assure an abundant and competitively priced NGL feedstock for the U.S. petrochemical industry. The key to the long term success of both industries is, according to the American Chemistry Council, to put our confidence in the free market to determine natural gas supply and demand, and oppose legislation that attempts to restrict exports of natural gas 10. Gordon Pickering Gordon Pickering is a Director in Navigant s Practice Misreports-Position-on-Natural-Gas-Exports.html Page 12 of 48

13 S E C O N D Q U A R T E R 2012 NCA Universe The NCA Universe is divided into four segments: Assets and Services, Oil and Gas Refining and Marketing, Oil and Gas Transportation and Storage, and Independent Power Producers (IPPs)/Merchant Generators. Assets and Services Oil and Gas - Refining and Marketing BAS Basic Services, Inc. CLMT Calumet Specialty Products Partners LP BHI Baker Hughes Incorporated CVI CVR, Inc. CAM Cameron International Corporation HFC HollyFrontier Corporation CRR CARBO Ceramics Inc. SUN Sunoco, Inc. DRC Dresser-Rand Group Inc. TSO Tesoro Corporation DRQ Dril-Quip, Inc. VLO Valero Corporation DVR Cal Dive International Inc WNR Western Refining, Inc. DWSN Dawson Geophysical Co. INT World Fuel Services Corp. EXH Exterran Holdings, Inc. FTI FMC Technologies, Inc. Oil and Gas - Transportation and Storage GIFI Gulf Island Fabrication Inc. ATLS Atlas, L.P GLF Gulfmark Offshore, Inc. BKEP Blueknight Partners, L.P. GOK Geokinetics Inc. BPL Buckeye Partners LP HAL Halliburton Company LNG Cheniere, Inc. HLX Helix Solutions Group, Inc. CPNO Copano LLC HOS Hornbeck Offshore Services, Inc. XTXI Crosstex Inc. IO ION Geophysical Corporation DPM DCP Midstream Partners LP KEG Key Services Inc. EEP Enbridge Partners LP LUFK Lufkin Industries Inc. ETE Transfer Equity, L.P. MTRX Matrix Service Co. EPD Enterprise Products Partners LP NBR Nabors Industries Ltd. GEL Genesis LP NGS Natural Gas Services Group Inc. GLP Global Partners LP NOF Northern Offshore Ltd NRGY Inergy, L.P. NOV National Oilwell Varco, Inc. KMP Kinder Morgan Partners LP NR Newpark Resources Inc. MMP Magellan Midstream Partners LP OIS Oil States International Inc. MWE MarkWest Partners, L.P. RES RPC Inc. MMLP Martin Midstream Partners LP SLB Schlumberger Limited NS NuStar L.P. SPN Superior Services, Inc. OKS ONEOK Partners, L.P. TESO Tesco Corporation PAA Plains All American Pipeline, L.P. TTI TETRA Technologies Inc. RGP Regency Partners LP WG Willbros Group Inc. SE Spectra Corp. SXL Sunoco Logistics Partners L.P. IPPs and Merchant Generators TCP TC Pipelines LP ADGE American DG, Inc. TLP Transmontaigne Partners L.P. ATP Atlantic Power Corporation WMB Williams Companies, Inc. CPN Calpine Corp. WPZ Williams Partners L.P. DYNI.Q Dynegy Inc. GEN GenOn, Inc. NRG NRG, Inc. AES The AES Corporation Page 13 of 48

14 S E C O N D Q U A R T E R 2012 Assets and Services Valuation Overview Stock 52 - Week % Change Market Enterprise Enterprise Value to: Price to Price High Low YTD Cap Value Revenue 1 EBITDA 1 EBIT 1 Earnings 1 Assets and Services BAS Basic Services, Inc. $10.32 $37.79 $8.52 (49.7%) $423.3 $1, x 3.1x 5.6x 5.1x BHI Baker Hughes Incorporated $41.10 $81.00 $37.08 (19.4%) $18,021.5 $21, x 5.1x 7.6x 10.4x CAM Cameron International Corporation $42.71 $58.50 $38.38 (15.6%) $10,519.1 $11, x 9.6x 11.9x 19.4x CRR CARBO Ceramics Inc. $76.73 $ $71.56 (37.8%) $1,771.3 $1, x 7.4x 8.8x 13.6x DRC Dresser-Rand Group Inc. $44.54 $56.53 $34.68 (12.9%) $3,368.9 $4, x 10.9x 13.9x 24.1x DRQ Dril-Quip, Inc. $65.59 $77.12 $47.40 (3.1%) $2,636.1 $2, x 14.1x 16.3x 25.9x DVR Cal Dive International Inc $2.90 $6.21 $ % $278.7 $ x 43.7x NM NM DWSN Dawson Geophysical Co. $23.82 $42.23 $20.29 (39.9%) $186.5 $ x 3.3x 7.8x 15.5x EXH Exterran Holdings, Inc. $12.75 $20.21 $ % $798.1 $2, x 6.6x 51.5x NM FTI FMC Technologies, Inc. $39.23 $55.19 $34.46 (25.0%) $9,380.2 $9, x 14.0x 16.7x 23.1x GIFI Gulf Island Fabrication Inc. $28.21 $36.00 $19.55 (8.3%) $405.8 $ x 9.3x 20.3x 34.2x GLF Gulfmark Offshore, Inc. $34.04 $56.41 $30.03 (22.0%) $903.1 $1, x 8.0x 14.0x 18.5x GOK Geokinetics Inc. $0.27 $8.03 $0.24 (88.5%) $5.1 $ x 5.4x NM NM HAL Halliburton Company $28.39 $57.77 $26.28 (16.9%) $26,204.1 $28, x 4.4x 5.7x 8.4x HLX Helix Solutions Group, Inc. $16.41 $21.65 $11.57 (1.7%) $1,733.6 $2, x 3.1x 7.1x 10.3x HOS Hornbeck Offshore Services, Inc. $38.78 $43.83 $ % $1,369.2 $1, x 11.1x 22.1x 91.0x IO ION Geophysical Corporation $6.59 $11.16 $4.20 (0.6%) $1,032.2 $1, x 7.4x 19.4x 33.1x KEG Key Services Inc. $7.60 $20.77 $6.68 (51.6%) $1,147.7 $2, x 4.3x 7.1x 7.4x LUFK Lufkin Industries Inc. $54.32 $90.81 $42.10 (23.8%) $1,824.9 $2, x 13.2x 16.2x 26.2x MTRX Matrix Service Co. $11.33 $15.06 $ % $291.5 $ x 5.4x 7.1x 14.3x NBR Nabors Industries Ltd. $14.40 $27.63 $11.05 (24.3%) $4,180.4 $8, x 4.4x 8.8x 10.8x NGS Natural Gas Services Group Inc. $14.82 $17.22 $10.92 (0.5%) $182.4 $ x 4.9x 9.0x 16.7x NOF Northern Offshore Ltd $1.52 $2.69 $1.34 (29.4%) $235.9 $ x 16.5x NM NM NOV National Oilwell Varco, Inc. $64.44 $87.72 $47.97 (9.1%) $27,465.2 $24, x 6.5x 7.6x 12.5x NR Newpark Resources Inc. $5.90 $10.62 $5.19 (39.9%) $530.4 $ x 4.5x 5.5x 7.4x OIS Oil States International Inc. $66.20 $87.65 $44.77 (14.5%) $3,419.0 $4, x 5.6x 7.3x 9.2x RES RPC Inc. $11.89 $18.21 $8.75 (13.0%) $2,609.8 $2, x 3.9x 5.4x 8.4x SLB Schlumberger Limited $64.91 $95.53 $54.79 (7.4%) $86,561.0 $92, x 8.8x 12.8x 17.1x SPN Superior Services, Inc. $20.23 $42.87 $17.54 (33.0%) $3,187.0 $5, x 6.5x 10.7x 9.2x TESO Tesco Corporation $12.00 $23.39 $10.01 (11.2%) $463.3 $ x 4.9x 8.6x 12.6x TTI TETRA Technologies, Inc. $7.13 $13.45 $6.09 (28.3%) $553.1 $ x 11.4x NM 80.3x WG Willbros Group Inc. $6.46 $9.41 $ % $316.6 $ x 7.9x 62.1x NM 1 Cal Dive International, Exterran Holdings, Inc., Hornbeck Offshore Ltd, TETRA Technologies Inc., and Willbros Group Inc. High 3.7x 16.5x 20.3x 34.2x are excluded from all multiple calculations. Low 0.3x 3.1x 5.4x 5.1x Mean 1.5x 7.2x 10.5x 15.7x Median 1.5x 5.6x 8.8x 13.6x Enterprise Value (EV) = Common equity value + preferred equity + debt cash & short-term investments. EBITDA = Earnings before interest, taxes, depreciation and amortization. EBIT = Earnings before interest and taxes. EV multiples are based on the book value of the companies debt and not current trading volume. The numbers presented in this report have been adjusted to exclude non-recurring and extraordinary items, net of taxes. NM = No Multiple. Sources: Capital IQ, Bloomberg, company 10-K, 10-Q and 8-K SEC filings, annual reports and press releases Page 14 of 48

15 S E C O N D Q U A R T E R 2012 Performance Overview TTM Revenue TTM Financials Margins Debt / as of: Growth Revenue EBITDA EBIT Gross Profit EBITDA EBIT EBITDA Assets and Services BAS Basic Services, Inc. 03/31/ % $1,368.1 $368.6 $ % 26.9% 14.8% 2.1x BHI Baker Hughes Incorporated 03/31/ % $20,661.0 $4,271.0 $2, % 20.7% 14.0% 1.1x CAM Cameron International Corporation 03/31/ % $7,262.0 $1,157.9 $ % 15.9% 12.9% 1.4x CRR CARBO Ceramics Inc. 03/31/ % $638.0 $236.6 $ % 37.1% 31.1% 0.0x DRC Dresser-Rand Group Inc. 03/31/ % $2,619.2 $399.5 $ % 15.3% 11.9% 2.7x DRQ Dril-Quip, Inc. 03/31/ % $640.8 $167.1 $ % 26.1% 22.4% 0.0x DVR Cal Dive International Inc 03/31/ % $444.4 $10.1 -$ % 2.3% -10.6% 17.0x DWSN Dawson Geophysical Co. 03/31/ % $360.2 $54.0 $ % 15.0% 6.3% 0.3x EXH Exterran Holdings, Inc. 03/31/12 7.5% $2,691.5 $379.6 $ % 14.1% 0.6% 4.5x FTI FMC Technologies, Inc. 03/31/ % $5,413.7 $696.4 $ % 12.9% 10.8% 1.1x GIFI Gulf Island Fabrication Inc. 03/31/ % $374.6 $39.2 $ % 10.5% 4.8% 0.0x GLF Gulfmark Offshore, Inc. 03/31/12 8.9% $388.0 $139.1 $ % 35.9% 20.4% 3.1x GOK Geokinetics Inc. 03/31/ % $739.6 $85.1 -$ % 11.5% -8.9% 4.8x HAL Halliburton Company 03/31/ % $26,415.0 $6,370.0 $4, % 24.1% 18.7% 0.8x HLX Helix Solutions Group, Inc. 03/31/ % $1,514.9 $732.1 $ % 48.3% 20.4% 1.6x HOS Hornbeck Offshore Services, Inc. 03/31/12 5.5% $429.3 $163.9 $ % 38.2% 19.1% 5.5x IO ION Geophysical Corporation 03/31/12 6.6% $475.8 $164.8 $ % 34.6% 15.8% 0.6x KEG Key Services Inc. 03/31/ % $1,969.3 $464.1 $ % 23.6% 14.4% 1.9x LUFK Lufkin Industries Inc. 03/31/ % $1,017.3 $157.1 $ % 15.4% 12.6% 2.0x MTRX Matrix Service Co. 03/31/ % $717.8 $46.5 $ % 6.5% 4.9% 0.0x NBR Nabors Industries Ltd. 03/31/ % $6,577.2 $1,978.2 $1, % 30.1% 15.2% 2.4x NGS Natural Gas Services Group Inc. 03/31/ % $76.5 $31.6 $ % 41.4% 22.4% 0.0x NOF Northern Offshore Ltd 03/31/ % $148.9 $17.9 -$ % 12.0% -11.9% 3.4x NOV National Oilwell Varco, Inc. 03/31/ % $15,815.0 $3,773.0 $3, % 23.9% 20.3% 0.1x NR Newpark Resources Inc. 03/31/ % $1,017.9 $162.5 $ % 16.0% 13.0% 1.4x OIS Oil States International Inc. 03/31/ % $3,817.7 $813.1 $ % 21.3% 16.2% 1.5x RES RPC Inc. 03/31/ % $1,930.6 $705.2 $ % 36.5% 26.6% 0.3x SLB Schlumberger Limited 03/31/ % $41,435.0 $10,483.0 $7, % 25.3% 17.2% 1.0x SPN Superior Services, Inc. 03/31/ % $2,652.0 $760.2 $ % 28.7% 17.3% 2.7x TESO Tesco Corporation 03/31/ % $559.8 $95.3 $ % 17.0% 9.7% 0.3x TTI TETRA Technologies, Inc. 03/31/12-9.6% $803.5 $68.1 -$ % 8.5% -2.7% 4.5x WG Willbros Group Inc. 03/31/ % $1,710.3 $64.8 $ % 3.8% 0.5% 3.7x High 49.7% 48.3% 31.1% 17.0x Low 1.1% 2.3% -11.9% 0.0x Mean 28.2% 21.8% 11.9% 2.2x Median 26.5% 21.0% 14.2% 1.4x Page 15 of 48

16 6/30/11 7/31/11 8/31/11 9/30/11 10/31/11 11/30/11 12/31/11 1/31/12 2/29/12 3/31/12 4/30/12 5/31/12 6/30/12 S E C O N D Q U A R T E R 2012 LTM Returns vs. Market Indices S&P 500 S&P 500 Assets and Services News June 28 - Percheron Acquisitions, LLC acquired Mason Dixon, LLC, which provides contract land services to oil and gas exploration and production companies in the United States. Percheron Acquisitions, LLC, OGM Land and Mason Dixon will operate as the wholly owned subsidiary Percheron LLC. June 25 - Geo-Reservoir Solutions Ltd. acquired Xworks Geoservices Inc., which provides geophysical assistance to the oil and gas industry. Post acquisition, Xworks GeoServices will operate as a wholly owned subsidiary of Geo- Reservoir Solutions. June 21 - Do All Industries Ltd. entered into a definitive agreement to acquire Hyduke Services Inc. (TSX:HYD), which operates as an integrated oilfield services company in Canada and internationally, for CAD 34.4 million in cash. Do All will acquire all of the outstanding common shares of Hyduke, including any shares issued upon the exercise of options to acquire Hyduke shares, for CAD 1.37 per share. June 20 - Emerald Bay Inc. (TSXV:EBY), which engages in the exploration and development of petroleum and natural gas properties, as well as develops a lateral drilling technology in Alberta and Texas, announced a private placement of up to 14,285,715 units at CAD 0.07 per unit for gross proceeds of up to CAD 1,000,000. Each unit shall consist of one common share and one share purchase warrant. June 20 - MDS Development LLC, which drills for natural gas and is based in Kittanning, PA, announced that it will raise $40,000,000 in an equity round of funding. June 18 - Axon Pressure Products Inc. signed a definitive agreement to acquire Doyles Valves, Inc., which manufactures pressure control equipment for the drilling industry in the United States. The Doyles Valves employees, including the executive management team, are expected to be retained as employees of Axon Pressure Products. Page 16 of 48

17 S E C O N D Q U A R T E R 2012 June 15 - TGS-Nopec Geophysical Company ASA (OB:TGS) acquired Arcis Seismic Solutions Corp., which provides seismic solutions to the energy, and oil and gas industries in North America and internationally, for $72 million. Arcis Seismic Solutions Corp. will operate as a wholly-owned subsidiary of TGS-Nopec Geophysical Company ASA. June 14 - Patterson-UTI Inc. (NasdaqGS:PTEN), which provides onshore contract drilling services to oil and natural gas exploration and production companies in the United States and Canada, announced a private placement of unsecured series B senior notes for gross proceeds of $300,000,000. The notes will carry a coupon rate of 4.27% per annum and will mature on June 14, June 13 - Royale, Inc. (Nasdaq:ROYL), which operates as an independent oil and natural gas producer in the United States, reported that it is commencing, subject to market conditions, an underwritten public offering of up to 200,000 Units, with each Unit comprised of one share of its perpetual non-convertible 8.0% Series A1 Cumulative Preferred Stock, one Class A stock purchase warrant to purchase one share of its common stock with an exercise price of $5.55 per share and one Class B stock purchase warrant to purchase one share of its common stock with an exercise price of $10.00 per share. June 12 - Hornbeck Offshore Services, Inc. (NYSE: HOS), which provides marine transportation services to exploration and production, oilfield service, offshore construction, and the United States military customers, is offering to exchange registered $375 million of 5.875% Series B Senior Notes due 2020 for $375 million of unregistered 5.875% Series A Senior Notes due June 11 - Glori, Inc., which engages in the recovery of barrels of oil trapped in reservoirs using existing oil wells, announced that it has raised $8 million in funding from new investor, Hercules Technology Growth Capital, Inc. June 8 - Junex Inc. (TSXV:JNX), which engages in the exploration and development of oil and natural gas properties in Quebec, announced a private placement of 7,142,857 units at CAD 0.70 per unit for gross proceeds of CAD 4,999,999. June 6 - C&J Spec-Rent Services, Inc. entered into a definitive purchase agreement to acquire Casedhole Holdings, Inc., which provides field services to oil and gas companies, from BNY Mellon-Alcentra Mezzanine III, L.P., fund of BNY Mellon-Alcentra Mezzanine Partners, Intervale Capital I, L.P., fund of Intervale Capital and other shareholders for approximately $270 million in cash. June 1 - Open Joint Stock Company Oil company LUKOIL (MICEX:LKOH) signed an agreement to acquire Vanco Exploration Company, which provides technical, operations, and operations management services in the areas of oil and gas exploration and appraisal. June 1 - Rockwater Solutions, Inc. acquired Southwest Proppants & Services, LLC, which sources and distributes sand and other proppants, and Silverline Transportation, LLC, which provides oil field services. June 1 - Cactus Wellhead, LLC acquired True Turn Machine LLC, which manufactures, remanufactures and repairs wellhead equipment for the oil and gas industry. May 31 - Badger Daylighting Limited, a provider of excavating services for the utility, engineering, construction, and oil and gas industries, agreed to issue 1.5 million common shares at a price of CAD 25 per share, for gross proceeds of CAD 37.5m in a public offering. May 30 - National Oilwell Varco, Inc. (NYSE:NOV), which designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, as well as provides oilfield services and supplies, and supply chain integration services to the upstream oil and gas industry worldwide, entered into an agreement to acquire CE Franklin Ltd. (NasdaqGM:CFK), which engages in the distribution of pipes, valves, flanges, fittings, production equipment, tubular products, and other general industrial supplies primarily to the oil and gas industry in Canada, from Schlumberger Limited (NYSE:SLB) and other shareholders for approximately CAD 220 million. Page 17 of 48

18 S E C O N D Q U A R T E R 2012 May 16 - Hy-Bon Engineering Company, Inc. acquired Electronic Design for Industry, Inc., which engages in the design and development of controllers to support the production needs of the oil and gas industry in the United States and Canada. May 16 - Rowan Companies, Inc., which provides offshore oil and gas contract drilling services and is based in Texas, entered into an underwriting agreement to issue $500 million aggregate principal amount of the Company s 4.875% Senior Notes due 2022, along with the related guarantee of Rowan UK of the Notes on a full and unconditional basis. May 14 - Ridgeline Services Inc. (TSX-V: RLE; OTCQX: RGDEF), which provides waste management services to the oil and gas industry in Canada, announced a bought deal offering has been increased by approximately $8 million, to $10,000,200. May 14 - Avista Capital Holdings, L.P. signed a definitive agreement to acquire Top-Co Inc., which designs, manufactures, and distributes float equipment, casing cementing equipment, and casing accessories for oil and gas industry. May 14 - Cameron International Corporation (NYSE: CAM), which provides flow equipment products, systems, and services worldwide, has priced a public offering of $250 million aggregate principal amount of 1.60% senior notes due 2015 and $250 million aggregate principal amount of 3.60% senior notes due May 11 - IHS Inc. (NYSE: IHS), acquired Xedar Corporation (OTCPK: XDRC), which provides geospatial, data editing and enhancement, scanning, data conversion and integration, custom mapping, and geophysical mapping services to the oil and gas industry for approximately $28 million in cash. May 10 - Independence Corp. (OTCBB:IDNG), which focuses on the acquisition of oil and natural gas properties in Canada and the United States, signed a letter of intent to acquire an interest in a development well drill program and several productive oil wells in Oklahoma. The transaction also includes interest in six productive oil wells and one salt water disposal well in the area. May 10 - Prophet Equity LLC acquired the assets of Francis Drilling Fluids, Ltd., which provides drilling, completion, and specialized fluids, dry drilling, and completion products to the oil industry in the Gulf Coast of the United States, from Nytex Holdings, Inc. (OTCBB:NYTE) for $62.5 million. May 8 - MCW Group Limited (DB:MW4), which engages in oil production/distribution and oil sands recovery technology businesses, announced a private placement 10,000,000 subscription receipts at CAD 0.50 per subscription receipt for gross proceeds of CAD 5,000,000. Each subscription receipt is convertible into units of the company. May 3 - Magnum Hunter Resources Corporation (NYSE: MHR), which engages in the acquisition, exploration, exploitation, development, and production of crude oil, natural gas, and natural gas liquids primarily in West Virginia, Ohio, Texas, Kentucky, and North Dakota, as well as in Saskatchewan, Canada, announced that, subject to market conditions, it is commencing an offering of 35,000,000 shares of its common stock in an underwritten public offering. May 1 - TriMas Corporation (NASDAQ: TRS), which provides metallic and non-metallic gaskets; and various types of stud bolts, industrial fasteners, and specialty products for petroleum refining, petrochemical, oil field, and industrial markets, announced that it is commencing an offering of 4,000,000 shares of its common stock in a public offering. May 1 - DXP Enterprises, Inc. (NasdaqGS:DXPE) entered into a binding agreement to acquire HSE Integrated Ltd., (TSX:HSL), which provides health, safety, and environmental monitoring services to customers in the energy, manufacturing, construction, and other industries in Canada and the United States, from Boeckh Investments Inc., Forum National Investments Ltd. (OTCBB:FMNL) and other shareholders for CAD 71 million in cash. May 1 - Well Services Ltd. signed a definitive agreement to acquire Sun Well Service, Inc., which provides well servicing and workover services along with equipment rental for the oil and gas market in Williston Basin, from BNS Holding Inc. (OTCPK:BNSS.A) for $85 million in stock and cash. The consideration is subject to certain adjustments. Page 18 of 48

19 S E C O N D Q U A R T E R 2012 The acquisition price will be paid through a combination of up to 2.2 million shares of common stock of Steel Excel and the remainder in cash. April 30 - Enteq Upstream Plc (AIM:NTQ) signed conditional asset purchase agreement to acquire substantially all of the operating assets of XXT Incorporated, which designs and manufactures ruggedized electronic equipment for use in energy exploration and services sectors of the oil and gas industry, for $54.2 million. Enteq Upstream Plc will also assume certain liabilities of XXT Incorporated. April 30 - Lloyd's Register Group acquired WEST Engineering Services, Inc., which provides consulting, training, and services for drilling equipment. Post-acquisition, WEST Engineering will join the Lloyd's Register Group and combine with the ModuSpec Group. April 30 - Proserv Group AS agreed to acquire Subsea Controls' Business from Weatherford International Ltd. (NYSE:WFT), which comprises subsea and topside communication and control systems and subsea termination equipment for offshore production optimization, control, and monitoring. April 30 - Schlumberger Technology Corporation and Schlumberger Oilfield Holdings Limited signed a definitive agreement to acquire Casing Drilling Division, which comprises CASING DRILLING process from Tesco Corporation (NasdaqGS:TESO), for $45 million in cash. April 23 - Element Partners, a fund of Element Partners, CSL Capital Management, LLC and North Sky Capital, acquired an undisclosed majority stake in Environmental Drilling Solutions, LLC, which provides rig containment vacuum systems and zero discharge equipment. April 23 - National Oilwell Varco, Inc. (NYSE:NOV) agreed to acquire Enerflow Industries, Inc., which designs, develops, and fabricates oil field service equipment and controls for oilfield service firms. April 20 - CASA Services Corp., which offers well servicing and deep coil tubing services, announced that it will issue secured convertible notes to West Face Capital Inc. for gross proceeds of CAD 40,000,000. April 16 - Chesapeake Oilfield Services, L.L.C., which offers drilling, pressure pumping, trucking, equipment rental, and rock excavation services, filed with regulators for an initial public offering of its Class A common stock of up to $862.5 million. April 13 - US Initiatives Corporation. (OTCPK:USEI) acquired AM Oil Resources & Technology, Inc, which provides thermal extraction technologies for oil fields in domestic and international markets. April 11 - Seismic Reservoir 2020 Inc., which provides high resolution subsurface imaging for monitoring oil and gas reservoir behavior, announced that it will raise $2 million in an equity round of funding with returning investor, International Oil and Gas Technology Limited, a fund managed by Quorum Group of Companies. April 11 - Parker Drilling Company (NYSE: PKD), which provides contract drilling and drilling-related services in the United States, Latin America, Africa and the Middle East, the Asia Pacific, and Commonwealth of Independent States, announced that it intends, subject to market and other conditions, to offer and sell to eligible purchasers an additional $125 million aggregate principal amount of its 9 1/8% Senior Notes due April 5 - Red Mountain Resources, Inc. (OTCBB:RDMP) won an auction to acquire substantially all assets of O & G Leasing, LLC, which owns and operates oil drilling rigs, for $42.9 million. April 5 - Norris Production Solutions agreed to acquire Production Control Services, Inc., which designs and manufactures plunger lift equipment to oil and gas producers in the United States and Canada, from Devonshire Investors and other shareholders. April 3 - Tri-Valley Corp. (AMEX:TIV), which engages in the exploration and production of crude oil and natural gas in California, announced a private placement of notes for gross proceeds of $1,500,000. The notes bear simple interest at 14% per annum and due on April 30, April 2 - SandRidge, Inc. (NYSE: SD), which operates as an independent natural gas and oil company in the United States, announced that it intends to commence a private offering to eligible purchasers of $750 million of Senior Notes due Page 19 of 48

20 S E C O N D Q U A R T E R 2012 Oil and Gas Refining and Marketing Valuation Overview Stock 52 - Week % Change Market Enterprise Enterprise Value to: Price to Price High Low YTD Cap Value Revenue EBITDA EBIT Earnings Oil and Gas - Refining and Marketing CLMT Calumet Specialty Products Partners LP $23.78 $27.74 $ % $1,368.1 $2, x 9.0x 12.7x 12.5x CVI CVR, Inc. $26.58 $31.71 $ % $2,307.4 $2, x 4.2x 5.0x 8.5x HFC HollyFrontier Corporation $35.43 $38.90 $ % $7,326.9 $7, x 3.3x 3.6x 5.5x SUN Sunoco, Inc. $47.50 $50.89 $ % $4,968.7 $6, x 5.2x 7.4x NM TSO Tesoro Corporation $24.96 $30.15 $ % $3,469.8 $4, x 3.6x 4.6x 7.2x VLO Valero Corporation $24.15 $28.68 $ % $13,351.9 $19, x 3.6x 5.1x 8.7x WNR Western Refining, Inc. $22.27 $22.50 $ % $2,022.5 $2, x 3.1x 3.6x 30.8x INT World Fuel Services Corp. $38.03 $49.15 $29.53 (10.7%) $2,733.9 $2, x 9.4x 10.7x 13.7x High 0.6x 9.4x 12.7x 30.8x Low 0.1x 3.1x 3.6x 5.5x Mean 0.3x 5.2x 6.6x 12.4x Median 0.2x 3.9x 5.0x 8.7x Performance Overview TTM Revenue TTM Financials Margins Debt / as of: Growth Revenue EBITDA EBIT Gross Profit EBITDA EBIT EBITDA Oil and Gas - Refining and Marketing CLMT Calumet Specialty Products Partners LP 03/31/ % $3,699.3 $229.0 $ % 6.2% 4.3% 2.9x CVI CVR, Inc. 03/31/ % $5,830.5 $663.2 $ % 11.4% 9.7% 1.3x HFC HollyFrontier Corporation 03/31/ % $18,044.7 $2,203.0 $2, % 12.2% 11.2% 0.6x SUN Sunoco, Inc. 03/31/ % $46,766.0 $1,198.0 $ % 2.6% 1.8% 2.1x TSO Tesoro Corporation 03/31/ % $31,213.0 $1,308.0 $1, % 4.2% 3.3% 1.3x VLO Valero Corporation 03/31/ % $133,934.0 $5,385.0 $3, % 4.0% 2.9% 1.4x WNR Western Refining, Inc. 03/31/ % $9,121.0 $835.9 $ % 9.2% 7.8% 0.9x INT World Fuel Services Corp. 03/31/ % $37,022.5 $296.6 $ % 0.8% 0.7% 1.0x High 13.8% 12.2% 11.2% 2.9x Low 1.8% 0.8% 0.7% 0.6x Mean 7.6% 6.3% 5.2% 1.4x Median 6.9% 5.2% 3.8% 1.3x Page 20 of 48

21 6/30/11 7/31/11 8/31/11 9/30/11 10/31/11 11/30/11 12/31/11 1/31/12 2/29/12 3/31/12 4/30/12 5/31/12 6/30/12 S E C O N D Q U A R T E R 2012 LTM Returns vs. Market Indices S&P 500 S&P 500 Oil and Gas Refining and Marketing News June 28 - Philippe Gosselin & Associes Limitee, which manufactures, markets, sells, and distributes gasoline and diesel under the Shell brand name, announced a round of funding for gross proceeds of CAD 26,000,000. The company will issue common shares and debentures. June 28 - Alter NRG, which provides alternative energy solutions, announced that it has undertaken a marketed offering of approximately 7,500,000 common shares of the Corporation at a price per share of 0.29, for total proceeds of approximately $2,175,000. June 21 - Calumet Specialty Products Partners, L.P. (NasdaqGS:CLMT), which produces and sells specialty hydrocarbon products in North America, and its wholly owned subsidiary Calumet Finance Corp. announced the pricing of their private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended, to eligible purchasers of $275 million in aggregate principal amount of 9 5/8% senior unsecured notes due The offering size was increased to $275 million from $250 million. June 18 - Western Gas Partners, LP (NYSE:WES), which owns, operates, acquires, and develops midstream energy assets in east, west, and south Texas; the Rocky Mountains; and the Mid-Continent, announced a registered underwritten public offering of 5,000,000 common units representing limited partner interests. June 19 - Occidental Petroleum Corporation, an energy company, priced its public offering of 1.5% senior notes, due February 15, 2018, for gross proceeds of $500 million. The notes are priced at % of the principal amount to yield 1.515% till maturity. Interest on notes is payable semi-annually in arrears on February 15 and August 15, commencing February 15, June 19 - Occidental Petroleum Corporation, an energy company, priced its public offering of 2.7% senior notes, due February 15, 2023, for gross proceeds of $1,250 million. The notes are priced at % of the principal amount to Page 21 of 48

22 S E C O N D Q U A R T E R 2012 yield 2.728% till maturity. Interest on notes is payable semi-annually in arrears on February 15 and August 15, commencing February 15, June 19 - Regency Partners LP (NYSE: RGP), which engages in gathering, treating, processing, compressing, and transporting natural gas and natural gas liquids, entered into an equity distribution agreement with Citigroup Global Markets Inc. to offer and sell common units having an aggregate offering price of up to $200,000,000 from time to time at market prices. June 6 - Calumet Lubricants Co., Limited Partnership signed a definitive agreement to acquire Royal Purple, Inc., which manufactures, packages, and sells synthetic lubricants in the United States and internationally, for approximately $310 million. May 30 - Eagle Rock Partners, L.P. (NasdaqGS: EROC), which engages in gathering, compressing, treating, processing, transporting, marketing, and trading natural gas, as well as fractionating and transporting natural gas liquids (NGL), is offering $100 million worth of common units pursuant to an equity distribution agreement. May 29 - AltaGas Ltd., an energy infrastructure company which focuses on natural gas, power and regulated utilities, agreed to issue 6 million series C cumulative rate reset preferred shares, at a price of $25 per share, for gross proceeds of $150 million, in a public offering. In addition, the company granted underwriters an option to purchase additional 2 million Series C preferred shares at any time up to 48 hours prior to the closing time of the offering. May 25 - Noble Royalties, Inc., which engages in the acquiring and managing of oil, gas, and coal royalty properties, acquired oil and natural gas royalties in seven North Dakota counties from an undisclosed seller for $37.8 million. The acquisition consists of 81% oil, 15% natural gas and 4% natural gas liquids production. The acquisition includes not only the currently producing wells in the Bakken Shale, but other target formations which are being developed in the area. These include the three Forks, Mission Canyon, Duperow and Red River formations. May 24 - Cancen Oil Canada Inc. (TSXV:COI), which provides services to the upstream oil and gas industry in western Canada, signed a letter of intent to acquire Kinsella crude oil terminal and blending facility from Astra Canada Inc. for CAD 5 million in cash. May 24 - U.S. Venture, Inc. acquired Trueblood Oil Co., Inc., which provides fuel transportation services and owns and leases Sunoco stations in the Midwest of the United States. May 21 - NGL Partners LP (NYSE:NGL) entered into an agreement to acquire High Sierra, L.P., which markets and distributes crude oil and Natural Gas Liquids, from Tortoise Capital Advisors L.L.C., its fund Tortoise Capital Resources Corp. (NYSE:TTO) and other shareholders for approximately $570 million. In a related transaction, NGL Holdings LLC acquired High Sierra GP, LLC for approximately $125 million. May 18 - Amyris, Inc. (NasdaqGS:AMRS), which provides alternatives to a range of petroleum-sourced products used in specialty chemical and transportation fuel markets worldwide, announced a private placement 1,736,100 at $2.36 per share for gross proceeds of $4,097,196. May 15 - Murphy Oil Corporation, an oil and gas exploration and production company, completed the public offering of 4% senior unsecured notes, due June 1, 2022, for gross proceeds of $500 million. The notes are priced at % of the principal amount to yield 4.026% till maturity. May 15 - Talisman Inc., an oil and gas company, priced a public offering of 5.5% notes, due May 15, 2042, for gross proceeds of $600 million. The notes are priced at % of the principal amount to yield 5.629% till maturity. May 7 - Penn Virginia Resource Partners LP, which engages in the management of coal and natural resource properties; and gathering and processing of natural gas in the United States, announced the pricing of its private placement of $600 million aggregate principal amount of senior notes due The offering of the Notes has been upsized from $450 million to $600 million. The Notes were priced at 100% of principal amount and will bear interest at a rate of 8.375% per year. May 7 - Devon Corporation, an oil and gas company, completed the public offering of 4.75% senior notes, due May 15, 2042, for gross proceeds of $750 million. The notes were issued at a price of % of the principal amount to yield 4.806% at maturity. Page 22 of 48

23 S E C O N D Q U A R T E R 2012 May 7 - Devon Corporation, an oil and gas company, completed the public offering of 3.25% senior notes, due May 15, 2022, for gross proceeds of $1 billion. The notes were issued at a price of % of the principal amount to yield 3.320% at maturity. May 4 - Maxum Logistics Partners LP, which markets and distributes refined petroleum products, filed with U.S. regulators on Friday to raise up to $230 million in an initial public offering of its common stock. May 1 - NGL Partners LP (NYSE:NGL), which operates as a vertically-integrated energy company in the United States, announced a private placement of common units for gross proceeds of $16,650,000. April 30 - Monroe LLC entered into a purchase and sale agreement to acquire Trainer oil refinery, which processes 185,000 barrels of crude oil a day, from Phillips 66 (NYSE:PSX.WI) for $150 million. In addition to the purchase price, Monroe will spend $100 million to re-tool the refinery to expand jet fuel output. April 30 - Transfer Partners LP (NYSE:ETP) signed a definitive merger agreement to acquire Sunoco, Inc. (NYSE:SUN), which refines and markets petroleum products in the United States, for $5.4 billion. April 16 - Investcan Corporation entered into a term sheet agreement to acquire a remaining 30% stake in exploration license 1107 offshore Labrador, which comprises petroleum and natural gas reserves and is located in Canada, from Vulcan Minerals Inc. (TSXV:VUL) for CAD 2.8 million. Page 23 of 48

24 S E C O N D Q U A R T E R 2012 Oil and Gas Transportation and Storage Valuation Overview Stock 52 - Week % Change Market Enterprise Enterprise Value to: Price to Price High Low YTD Cap Value Revenue 1 EBITDA 1 EBIT 1 Earnings 1 Oil and Gas - Transportation and Storage ATLS Atlas, L.P $30.51 $39.35 $ % $1,565.7 $3, x 15.9x 36.2x NM BKEP Blueknight Partners, L.P. $6.66 $9.00 $ % $ $43.8 NM NM NM NM BPL Buckeye Partners LP $52.17 $68.45 $44.55 (18.5%) $5,100.6 $7, x 16.0x 21.3x 51.9x LNG Cheniere, Inc. $14.74 $18.92 $ % $2,748.8 $5, x 53.7x 160.9x NM CPNO Copano LLC $27.80 $38.03 $24.24 (19.5%) $2,008.2 $3, x NM NM NM XTXI Crosstex Inc. $14.00 $15.87 $ % $662.9 $2, x 10.5x 27.3x NM DPM DCP Midstream Partners LP $42.15 $49.93 $34.40 (12.0%) $2,195.8 $3, x 11.9x 17.3x 19.2x EEP Enbridge Partners LP $30.77 $33.85 $24.66 (6.9%) $8,770.6 $14, x 15.2x 23.2x 16.8x ETE Transfer Equity, L.P. $41.02 $45.42 $ % $11,483.8 $37, x 19.6x 29.4x 23.8x EPD Enterprise Products Partners LP $51.24 $52.95 $ % $45,284.7 $60, x 14.8x 19.8x 19.6x GEL Genesis LP $29.07 $33.81 $ % $2,310.0 $3, x 19.3x 30.8x 31.9x GLP Global Partners LP $22.76 $27.20 $ % $623.9 $1, x 20.5x 33.8x 55.4x NRGY Inergy, L.P. $18.62 $35.90 $15.06 (23.8%) $2,341.5 $4, x 14.0x 40.6x NM KMP Kinder Morgan Partners LP $78.58 $90.60 $63.42 (7.0%) $26,756.8 $40, x 12.5x 17.9x 112.3x MMP Magellan Midstream Partners LP $70.64 $73.74 $ % $7,989.4 $9, x 15.3x 18.9x 19.2x MWE MarkWest Partners, L.P. $49.31 $61.60 $39.00 (9.2%) $5,458.3 $6, x 11.7x 17.7x 27.7x MMLP Martin Midstream Partners LP $32.74 $40.25 $27.00 (4.8%) $756.8 $1, x 12.5x 23.8x 31.7x NS NuStar L.P. $53.89 $66.39 $49.02 (5.0%) $3,813.0 $6, x 13.0x 20.1x 20.2x OKS ONEOK Partners, L.P. $53.75 $61.58 $36.31 (6.7%) $11,815.1 $15, x 11.4x 13.2x 14.6x PAA Plains All American Pipeline, L.P. $80.81 $84.48 $ % $13,036.2 $20, x 12.9x 15.1x 16.2x RGP Regency Partners LP $23.77 $27.40 $20.20 (4.1%) $4,043.4 $6, x 17.4x 33.6x 61.7x SE Spectra Corp. $29.06 $32.27 $22.80 (4.4%) $18,968.6 $31, x 10.5x 13.9x 16.7x SXL Sunoco Logistics Partners L.P. $36.27 $42.11 $24.40 (5.8%) $3,755.4 $5, x 8.8x 10.3x 12.3x TCP TC Pipelines LP $43.10 $49.04 $38.20 (9.2%) $2,304.7 $3, x 15.4x 16.5x 15.1x TLP Transmontaigne Partners L.P. $33.26 $37.50 $29.65 (2.4%) $480.8 $ x 9.6x 16.3x 11.8x WMB Williams Companies, Inc. $28.82 $34.63 $ % $18,031.3 $28, x 8.4x 14.5x 22.2x WPZ Williams Partners L.P. $52.24 $65.40 $45.39 (14.0%) $16,575.6 $23, x 9.6x 12.9x 10.8x 1 Buckeye Partners LP, Cheniere, Inc., Global Partners LP, Kinder Morgan Partners LP, and Regency High 13.7x 19.6x 40.6x 31.9x Partners LP are excluded from all multiples calculations. Low 0.5x 8.4x 10.3x 10.8x Mean 3.0x 13.0x 20.9x 19.4x Median 2.1x 12.7x 18.3x 19.2x Page 24 of 48

25 S E C O N D Q U A R T E R 2012 Performance Overview TTM Revenue TTM Financials Margins Debt / as of: Growth Revenue EBITDA EBIT Gross Profit EBITDA EBIT EBITDA Oil and Gas - Transportation and Storage ATLS Atlas, L.P 03/31/ % $1,611.3 $208.8 $ % 12.9% 5.5% 3.0x BKEP Blueknight Partners, L.P. 03/31/ % $179.8 $70.0 $ % 38.9% 26.3% 3.1x BPL Buckeye Partners LP 03/31/ % $4,766.5 $464.8 $ % 9.8% 7.3% 5.3x LNG Cheniere, Inc. 03/31/12-3.3% $281.6 $96.5 $ % 34.3% 11.4% 27.7x CPNO Copano LLC 03/31/ % $1,341.4 $131.8 $ % 9.5% 4.3% 6.8x XTXI Crosstex Inc. 03/31/12 4.5% $1,895.9 $207.4 $ % 10.9% 4.2% 4.2x DPM DCP Midstream Partners LP 03/31/12-7.8% $1,433.3 $222.5 $ % 15.5% 9.8% 3.9x EEP Enbridge Partners LP 03/31/12 6.8% $8,640.4 $969.9 $ % 11.2% 7.3% 5.7x ETE Transfer Equity, L.P. 03/31/ % $7,614.8 $1,738.2 $1, % 21.9% 13.9% 10.3x EPD Enterprise Products Partners LP 03/31/ % $45,381.8 $4,020.2 $2, % 8.9% 6.6% 3.7x GEL Genesis LP 03/31/ % $3,332.8 $155.9 $ % 4.7% 2.9% 5.1x GLP Global Partners LP 03/31/ % $15,260.1 $81.6 $ % 0.5% 0.3% 12.9x NRGY Inergy, L.P. 03/31/ % $1,423.0 $299.1 $ % 13.8% 4.7% 5.6x KMP Kinder Morgan Partners LP 03/31/12 3.5% $8,142.2 $2,918.5 $1, % 35.8% 23.8% 4.8x MMP Magellan Midstream Partners LP 03/31/12 7.7% $1,799.3 $645.3 $ % 35.9% 29.0% 3.3x MWE MarkWest Partners, L.P. 03/31/ % $1,584.7 $594.4 $ % 37.5% 24.8% 3.0x MMLP Martin Midstream Partners LP 03/31/ % $1,292.3 $85.1 $ % 6.6% 3.1% 5.1x NS NuStar L.P. 03/31/ % $7,076.3 $479.3 $ % 6.8% 4.3% 5.3x OKS ONEOK Partners, L.P. 03/31/ % $11,417.1 $1,202.4 $1, % 10.5% 8.9% 3.3x PAA Plains All American Pipeline, L.P. 03/31/ % $35,799.0 $1,559.0 $1, % 4.4% 3.7% 4.2x RGP Regency Partners LP 03/31/ % $1,440.0 $219.3 $ % 14.7% 3.4% 7.3x SE Spectra Corp. 03/31/12 4.1% $5,094.0 $2,453.0 $1, % 46.4% 32.5% 4.8x SXL Sunoco Logistics Partners L.P. 03/31/ % $12,048.0 $610.0 $ % 5.1% 4.3% 2.6x TCP TC Pipelines LP 03/31/12 9.4% $69.4 $197.6 $ % 89.0% 82.6% 3.6x TLP Transmontaigne Partners L.P. 03/31/12-0.6% $152.0 $66.4 $ % 43.7% 25.6% 1.6x WMB Williams Companies, Inc. 03/31/ % $8,053.0 $3,334.0 $1, % 41.3% 23.9% 2.6x WPZ Williams Partners L.P. 03/31/ % $6,835.0 $2,300.0 $1, % 33.7% 24.6% 3.1x High 93.0% 89.0% 82.6% 27.7x Low 1.4% 0.5% 0.3% 1.6x Mean 27.4% 22.4% 14.8% 5.6x Median 20.2% 13.8% 7.3% 4.2x Page 25 of 48

26 6/30/11 7/31/11 8/31/11 9/30/11 10/31/11 11/30/11 12/31/11 1/31/12 2/29/12 3/31/12 4/30/12 5/31/12 6/30/12 S E C O N D Q U A R T E R 2012 LTM Returns vs. Market Indices S&P 500 S&P 500 Oil and Gas Transportation and Storage News June 29 - ArcLight Capital Partners, LLC entered into a definitive agreement to acquire Blackwater Midstream Corp. (OTCBB:BWMS), which engages in developing, managing, and leasing third party fuel, agricultural, and chemical liquid storage terminals in the United States, from its shareholders for $36.1 million. June 28 - Holly Partners L.P (NYSE:HEP) agreed to acquire a 75% stake in UNEV Pipeline, LLC, which develops, constructs, owns, and operates pipelines along with associated pumping stations and equipment for the shipment of refined petroleum products, from Holly UNEV Pipeline Company for approximately $320 million. June 28 - Gaz Métro Limited Partnership, which distributes natural gas in Quebec and Vermont, Canada, announced that it has raised CAD 259,999,995 in funding on June 28, The company issued 17,333,333 units at a price of CAD 15 per unit. June 27 - Transfer Partners LP (NYSE: ETP), which engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States, announced it has priced a public offering of 13,500,000 common units representing limited partner interests at $44.57 per common unit. June 25 - DCP Midstream Partners LP (NYSE:DPM), which engages in gathering, compressing, treating, processing, transporting, storing, and selling natural gas in the United States, announced a private placement of 4,989,802 partnership common units at a price of $35.55 per unit for gross proceeds of $177,387,461. June 22 - Susser Petroleum Partners LP, which engages in the wholesale distribution of motor fuels primarily in Texas, New Mexico, Louisiana, and Oklahoma, filed with U.S. regulators on Friday to raise up to $200 million in an initial public offering of common stock. Page 26 of 48

27 S E C O N D Q U A R T E R 2012 June 19 - Delmarva Power & Light Company, a regulated public utility which engages in the distribution, transmission, and default supply of electricity in Delaware and Maryland, entered into a Purchase Agreement for the offer and sale of $250,000,000 in aggregate principal amount of the Company's First Mortgage Bonds, 4.00% Series due June 1, June 19 - Fortis Inc. (TSX:FTS), which operates as an electricity and natural gas distribution utility in Canada, announced that it has entered into an agreement to sell to the public 18,500,000 Subscription Receipts of the Corporation for a price of $32.50 per Subscription Receipt. June 19 - CenterPoint Field Services, LLC, a natural gas mid-stream company which provides gathering, processing, treating, and administrative services to producers in the mid-continent region of the United States, acquired 139 mile Amoruso gathering systems from Encana Oil & Gas (USA) Inc. for $89 million. June 18 - DCP Midstream Partners, LP (NYSE:DPM) entered into an agreement to acquire Crossroads gathering system and processing plant, which comprise a natural gas processing plant and associated pipeline systems, from Penn Virginia Resource Partners, LP (NYSE:PVR) for approximately $63 million. June 18 - Transfer Partners LP (NYSE:ETP) agreed to acquire Southern Union Co. which engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States, from Transfer Equity, L.P. (NYSE:ETE). June 18 - Canadian Utilities Limited, which engages in utilities, energy, and technologies businesses, announced it has closed its previously announced public offering of Cumulative Redeemable Second Preferred Shares Series AA. June 12 - Florida Gas Transmission Company, which provides natural gas transportation services to customers in Florida, sold $300 million of senior unsecured notes in the 144a private placement market. June 9 - Summit Natural Gas of Maine Inc. agreed to acquire The Kennebec Valley Gas Co., which constructs and operates gas pipelines. The transaction is subject to approval from the Maine Public Utilities Commission. June 8 - Harvest-Marks Pipeline, LLC acquired four petroleum pipelines off the East Side of Mississippi River from Cypress Interstate Pipeline, LLC and Chevron Pipe Line Company. June 8 - Global Infrastructure Partners entered into an agreement to acquire an additional 42.72% stake of Chesapeake Midstream Partners, L.P. (NYSE:CHKM), which owns, operates, develops, and acquires natural gas, natural gas liquids, and oil gathering systems, as well as other midstream energy assets in the United States, from Chesapeake Corporation (NYSE:CHK) for $2 billion. June 7 - Boardwalk Pipeline Partners, LP, which operates interstate and intrastate natural gas pipelines and storage facilities in the Gulf Coast states of Texas, Louisiana, Mississippi, Alabama, and Florida, announced that its indirect wholly-owned subsidiary, Gulf South Pipeline Company, LP, entered into a purchase agreement with the initial purchasers named therein with respect to the issue and sale by Gulf South of $300 million aggregate principal amount of 4.00% senior notes due June 6 - Kinder Morgan, Inc. (NYSE: KMI), which owns and operates energy transportation and storage assets in the United States and Canada, announced a public offering of its common stock. The size of the offering is 63,000,000 shares of common stock offered by investment funds affiliated with Goldman, Sachs & Co., The Carlyle Group and Riverstone Holdings LLC. May 31 - Enbridge Inc., a diversified energy company, agreed to issue 9.83 million treasury common shares, at a price of CAD per share, for gross proceeds of CAD 400 million in a public offering. In addition, the company granted underwriters an option to purchase up to an additional 2.46 million shares, at any time up to 48 hours prior to the closing time of the offering. May 31 - Enterprise Products Partners LP (NYSE: EPD), which provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products, and petrochemicals in the United States, Canada, and Gulf of Mexico, entered into an equity distribution agreement with underwriters to issue from time to time, $1 billion worth of Common Units. Page 27 of 48

28 S E C O N D Q U A R T E R 2012 May 30 - Canadian Utilities Limited, a diversified energy utility company, agreed to issue 6 million 4.9% Series AA cumulative redeemable second preferred shares in a public offering, at a price of CAD 25 per share, for gross proceeds of CAD150 million. May 21 - Bitter Creek Pipelines, LLC acquired a 50% stake in natural gas and oil midstream assets from Whiting Oil and Gas Corporation, which comprises a natural gas processing plant and a natural gas gathering pipeline system connected to the plant, for $66 million. May 21 - Primoris Solutions, Inc., which engages in transportation of alternative fuels, announced that it will receive $2,000,000 in equity funding. May 18 - El Paso Pipeline Partners, L.P. (NYSE:EPB) agreed to acquire Cheyenne Plains Investment Company, L.L.C. and a 14% stake in Colorado Interstate Gas Company, L.L.C. from El Paso Corp. (NYSE:EP) for approximately $880 million. May 17 - North Star, LLC entered into a merger agreement to acquire Brick Propane, which operates as a marketer and wholesaler of propane and propane related equipment for customers in North and South Dakota, Inc. May 16 - IAHL Corp. (OTCPK:IAHL), which provides alternative energy services, acquired TransCryogen, LLC, which provides natural gas transportation services. May 11 - Phoenix Oilfield Hauling Inc. (TSXV: PHN), which engages in the transportation of products, materials, and equipment for the drilling, exploration, development, and production of petroleum resources in western Canada and the United States, announced that it has entered into an agreement with a syndicate of underwriters pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 2,860,000 common shares in the capital of the Company at a purchase price of $2.80 per Common Share, for aggregate gross proceeds of approximately $8.0 million. May 11 - Lehigh Gas Partners LP, which engages in the wholesale distribution of motor fuels to gas stations, truck stops, and toll road plazas in the United States, filed with U.S. regulators to raise up to $120 million in an initial public offering of its common stock. May 11 - Enbridge Inc., a diversified energy company, completed the public offering of 16 million cumulative redeemable preference shares, series L, at a price of CAD 25 per share, for gross proceeds of CAD 400 million. May 9 - Crosstex, L.P. (NasdaqGS:XTEX), which operates as an independent midstream energy company, announced the commencement of an underwritten public offering of 8,800,000 common units representing limited partner interests of the Partnership. May 8 - MarkWest Partners, L.P. (NYSE: MWE), which engages in the gathering, processing, and transportation of natural gas in the southwest, Gulf Coast, and northeast regions of the United States, announced that it is commencing a public offering of 8,000,000 common units. May 8 - Unitil Corporation (NYSE: UTL), which engages in the distribution of electricity and natural gas in the states of New Hampshire, Massachusetts, and Maine, announced that it plans to make an underwritten public offering of 2,300,000 newly issued shares of common stock pursuant to an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission. May 7 - MarkWest Liberty Midstream & Resources, L.L.C. entered into an agreement to acquire Keystone Midstream Services, LLC, which owns and operates two cryogenic gas processing plants totaling 90 million cubic feet per day (MMcfd) of capacity, a gas gathering system and associated field compression in Butler County, Pennsylvania, from Stonehenge Resources LP, RE Gas Development, LLC and Summit Discovery Resources II, LLC for approximately $510 million in cash. May 7 - Cheniere, Inc. (AMEX: LNG), which engages in the ownership and operation of liquefied natural gas receiving terminals and natural gas pipelines in the Gulf Coast of the United States, announced that it has entered into a definitive agreement with institutional investors to sell 31,000,000 shares of its common stock at a negotiated price per share of $ Page 28 of 48

29 S E C O N D Q U A R T E R 2012 May 4 - Kinder Morgan Management LLC (NYSE: KMR), which holds interests in Kinder Morgan Partners, L.P., entered into an equity distribution agreement with Credit Suisse Securities (USA) LLC to offer and sell shares having an aggregate offering price of up to $500 million from time to time through Credit Suisse Securities (USA) LLC, as its sales agent. April 25 - Kinder Morgan Partners LP (NYSE:KMP) entered into a definitive agreement to acquire a 50% interest in El Paso Midstream Investment Company L.L.C., which owns Uinta Basin in Utah and Eagle Ford Shale in Texas from Kohlberg Kravis Roberts & Co. (NYSE:KKR) for $300 million in stock. April 20 - Southcross Partners, L.P., which provides natural gas gathering, processing, treating, compression and transportation services, filed with U.S. regulators on Friday to raise up to $230 million in an initial public offering of common stock. April 12 - DCP Midstream Partners LP (NYSE:DPM), which engages in gathering, compressing, treating, processing, transporting, storing, and selling natural gas in the United States, acquired a 10% stake in Texas Express Pipeline LLC, which owns and operates natural gas liquids pipelines, for $10.9 million. April 10 - Enbridge Inc. (TSX:ENB), which engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States, completed the public offering of 8 million series J cumulative redeemable preference shares, at a price of $25 per share, for gross proceeds of $200 million. April 10 - PVR Marcellus Gas Gathering, LLC, a subsidiary of Penn Virginia Resource Partners LP, entered into a membership interest purchase and sale agreement to acquire Chief Gathering LLC, which constructs and operates pipelines to deliver natural gas, from Chief E&D Holdings LP for $1 billion in cash and units. April 9 - Penn Virginia Resource Partners LP (NYSE:PVR), which engages in the management of coal and natural resource properties; and gathering and processing of natural gas in the United States, announced a private placement of 8,780,487 common units at a price of $20.50 per share for gross proceeds of $179,999,984. April 9 - Hilcorp Alaska LLC, which offers oil and gas exploration and production services, entered into a definitive agreement to acquire Alaska assets from Marathon Oil Corporation (NYSE:MRO), which comprises oil and gas reserves and includes 17 million barrels of oil equivalent of net proved reserves. April 5 - Perpetual Inc. (TSX:PMT), which engages in the acquisition, exploration, and development of oil and gas properties in Alberta, Canada, signed a definitive agreement to sell non-core oil and gas assets in Southern Alberta. April 5 - Brookfield Asset Management Inc. (TSX:BAM.A) signed a definitive agreement to acquire a 90% stake in Warwick Gas Storage, Inc., which engages in the storage of natural gas, from Perpetual Inc. (TSX:PMT). April 4 - Empire Petroleum Partners, LLC, which distributes motor fuels to gas stations in the United States, acquired American Distribution LP, which supplies branded and unbranded fuel to stations across Texas. April 3 - Williams Partners L.P. (NYSE: WPZ), which focuses on natural gas transportation, gathering, treating and processing, storage, natural gas liquid fractionation, and oil transportation activities in the United States, announced that it intends to commence an underwritten public offering of 9,000,000 common units representing limited-partner interests. April 2 - ES Investments Ltd. acquired New Wave Services Ltd., which offers on site frac fluid storage and handling services to oil and gas industry. ES Investments issued 1.8 million shares of its common stock. April 2 - Quality Carriers, Inc., which operates as a bulk transportation company in North America, acquired operating assets of Trojan Vacuum Services from Wiley Lease Co. Ltd. for $9.7 million in cash. April 2 - South Jersey Gas Company, which engages in the purchase, transmission, and sale of natural gas for residential, commercial, and industrial use, announced a private placement of medium term notes, series D, , due April 1, 2032 for gross proceeds of $35,000,000. Page 29 of 48

30 S E C O N D Q U A R T E R 2012 Independent Power Producers (IPPs)/Merchant Generators Valuation Overview Stock 52 - Week % Change Market Enterprise Enterprise Value to: Price to Price High Low YTD Cap Value Revenue 1 EBITDA 1 EBIT 1 Earnings 1 IPPs and Merchant Generators ADGE American DG, Inc. $2.27 $3.05 $ % $105.8 $ x NM NM NM ATP Atlantic Power Corporation $12.76 $15.16 $12.63 (11.7%) $1,451.1 $3, x 23.5x 58.7x NM CPN Calpine Corp. $16.51 $19.03 $ % $7,971.5 $17, x 11.2x 18.0x 81.4x DYNI.Q Dynegy Inc. $0.59 $6.92 $0.30 (79.5%) $71.9 $1, x 15.4x NM NM GEN GenOn, Inc. $1.71 $4.14 $1.24 (34.5%) $1,321.6 $3, x 4.3x 8.0x NM NRG NRG, Inc. $17.36 $25.66 $14.29 (3.4%) $3,953.2 $13, x 9.3x 36.8x 17.0x AES The AES Corporation $12.83 $14.01 $ % $9,846.9 $33, x 6.5x 8.6x 17.6x 1 Atlantic Power Corporation and Calpine Corp. are excluded from all multiples calculations. High 18.5x 15.4x 36.8x 17.6x Low 0.9x 4.3x 8.0x 17.0x Mean 4.8x 8.9x 17.8x 17.3x Median 1.5x 7.9x 8.6x 17.3x Performance Overview TTM Revenue TTM Financials Margins Debt / as of: Growth Revenue EBITDA EBIT Gross Profit EBITDA EBIT EBITDA IPPs and Merchant Generators ADGE American DG, Inc. 03/31/12 0.5% $5.9 -$3.0 -$ % -50.9% -73.5% NM ATP Atlantic Power Corporation 03/31/ % $359.9 $140.7 $ % 35.3% 12.9% 13.5x CPN Calpine Corp. 03/31/12 0.1% $6,537.0 $1,554.0 $ % 23.8% 14.6% 6.9x DYNI.Q Dynegy Inc. 03/31/ % $1,257.0 $97.0 -$ % 7.7% -13.5% 18.9x GEN GenOn, Inc. 03/31/ % $3,521.0 $770.0 $ % 21.9% 11.7% 5.5x NRG NRG, Inc. 03/31/12 3.7% $8,946.0 $1,447.0 $ % 16.2% 3.7% 7.1x AES The AES Corporation 03/31/ % $17,858.0 $5,142.0 $3, % 28.8% 21.6% 4.4x High 45.8% 35.3% 21.6% 18.9x Low 13.0% 7.7% -13.5% 4.4x Mean 26.1% 22.3% 8.5% 9.4x Median 24.4% 22.8% 12.3% 7.0x Page 30 of 48

31 6/30/11 7/31/11 8/31/11 9/30/11 10/31/11 11/30/11 12/31/11 1/31/12 2/29/12 3/31/12 4/30/12 5/31/12 6/30/12 S E C O N D Q U A R T E R 2012 LTM Returns vs. Market Indices S&P 500 S&P 500 IPPs/Merchant Generators News June 27 - Invenergy LLC, which develops, owns, and operates renewable and clean energy generation facilities in North America and Europe, announced that it has received $174 million in funding from Prudential Capital Group, L.P. June 26-3Power Group Inc. (OTCBB:PSPW), which focuses on producing and selling renewable generated electrical power and other alternative energies to private and utility customers in eastern Europe, Asia, and South America, and Greenworld Development, Inc. (OTCBB:GREW), agreed to acquire a North Carolina Biomass/Wood Pellet Plant. June 22 - Quantum Fuel Systems Technologies Worldwide Inc. (NasdaqGM:QTWW), an integrated alternative energy company which develops and produces natural gas, fuel cell, and other propulsion systems, and renewable energy generation systems and services in the United States and internationally, announced a private placement for gross proceeds of $2,375,000. The company will issue unsecured senior subordinated nonconvertible promissory notes and 4,088,428 warrants to accredited investors pursuant to Regulation D in the transaction. June 20 - Osaka Gas Co., Ltd. (TSE:9532), which together with its subsidiaries, engages in the supply of natural gas in the Kansai region, Japan, and Mitsubishi Corporation (TSE:8058) acquired nine photovoltaic generating facilities in Ontario, Canada. June 18 - Synthesis Systems, Inc. (NasdaqGM:SYMX), which provides products and solutions to the energy and chemical industries, announced a private placement of 10,352,428 common shares at $1.50 per share for gross proceeds of $15,528,642. June 15 - Juhl Wind, Inc. (OTCBB:JUHL), which engages in the development, construction, and management of community wind power projects primarily in the United States and Canada, announced a private placement of common shares for gross proceeds of $10,000,000. Page 31 of 48

32 S E C O N D Q U A R T E R 2012 June 14 - Canadian Natural Resources Limited (TSX:CNQ), which engages in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas liquids, and natural gas, has priced C$500 million principal amount of 3.05% unsecured notes due June 19, 2019 which have been sold to investors in Canada. June 13 - Exelon Generation Company, LLC, which engages in the generation and marketing of electricity in the United States, announced that it plans to offer up to $775 million of senior notes in two separate series maturing in 2022 and 2042, respectively. June 13 - Tri Global, LLC, which develops, constructs, owns, and operates energy projects powered by wind, announced that it will raise $2,010,000 in equity financing. The company will issue membership units in the transaction pursuant to Regulation D. June 11 - DayStar Technologies Inc. (NasdaqCM:DSTI) and Sunlogics Power Fund Management Inc. agreed to acquire seven Hawaii Solar PV projects from Avatar Solar, Inc. June 8 - SunBorne Holdings, LLC, which produces environment friendly grid parity electricity using solar energy, announced that it will raise $20,000,004 in funding. June 5 - Finavera Wind Inc. (TSXV:FVR), which focuses on the development, construction, and operation of wind farms in North America and Ireland, announced a private placement of bridge loan for gross proceeds of CAD 850,000. The loan has a one-year term with an annual interest rate of 7%. June 6 - PowerSecure International, Inc. (NasdaqGS:POWR) acquired a 90% stake in Southern Management, Inc., which provides solar energy for home owners, residential and commercial builders, companies, non-profits, utilities, and government clients for $3.9 million. June 1 - Capstone Infrastructure Corporation (TSX:CSE), which engages in building and managing a portfolio of infrastructure businesses in Canada and internationally, announced that it will raise CAD million in funding. The company will issue senior secured bonds for gross proceeds of CAD 80.4 million and subordinated secured bonds for gross proceeds of CAD 20.2 million. June 1 - Tri Global, LLC, which develops, constructs, owns, and operates energy projects powered by wind, announced that it will raise $3,400,000 in funding. The company will issue equity securities to the investors pursuant to Regulation D. June 1 - Algae Farm (USA), Inc. (OTCPK:ALGF), which engages in the research and development of alternative and renewable energy, announced a private placement of common shares for gross proceeds of $1,000,000. May 29 - Emera Inc., a power generation and utility company, completed the public offering of 10 million cumulative rate reset first series C preferred shares, at a price of CAD 25 per share, for gross proceeds of CAD 250 million. May 24 - enxco, Inc., which designs, develops, and manages renewable energy projects, acquired Pinelands Biomass Project, which comprises a bio mass power project which includes two 17.8 megawatt generating facilities for generation of renewable energy, from Southeast Renewable, LLC. May 23 - SunRun Inc., which provides solar power panels and systems installation and maintenance services, announced that it has raised $60 million in an equity round of funding led by new investor Madrone Capital Partners. May 23 - Recycled Development, LLC, which engages in the development, ownership, and operation of industrial cogeneration/combined heat and power (CHP) and recycling energy projects in the United States, announced that it expects to receive $26 million in funding from new investor Tulum Trust and company s management. May 22 - US Geothermal Inc. (AMEX: HTM), which engages in the acquisition, development, and utilization of geothermal resources in the western region of the United States, is offering $10,750,000 worth of shares to be sold from time to time to Lincoln Park Capital Fund, LLC. Page 32 of 48

33 S E C O N D Q U A R T E R 2012 May 18 - Alterra Power Corp. (TSX:AXY), which engages in the acquisition, exploration, development, and operation of renewable power projects, entered into an agreement to acquire a portfolio of wind development assets in British Columbia from a group of sellers led by English Bay Limited. May 18 - Atlantic Power Corporation (TSX:ATP), which operates as a power generation and infrastructure company with a portfolio of assets in the United States and Canada, is offering to exchange registered $460 million of 9% Senior Notes Due 2018 for $4.6 billion of unregistered 9% Senior Notes Due May 16 - Genalta Power Inc., which operates as an independent developer and operator of waste energy to electricity generation facilities, announced that it will raise CAD million in a round of funding. The company will issue unsecured convertible debentures and traditional debt. May 15 - Valener Inc., which engages in the distribution of natural gas to residential and commercial customers in Canada, announced that due to strong demand, it has increased the size of its previously announced public offering to 4,000,000 Cumulative Rate Reset Preferred Shares, Series A, at a price of $25.00 per Series A Preferred Share for gross proceeds of $100,000,000. May 15 - Western Wind Corp. (TSXV:WND) signed a term sheet to acquire 4,000 MW wind project pipeline from Champlin / GEI Wind Holdings, LLC for $12.7 million. Western Wind will issue 8 million shares to Champlin / GEI Wind Holdings. May 14 - Yeland Group Co., Ltd. (SZSE:000616) signed a letter of intent to acquire Butter Creek wind power project in Oregon, which is made up of four wind farms of approximately 10MW each, from Intelligent Wind for $38.4 million. May 14 - Otter Tail Corporation (NasdaqGS: OTTR), which engages in electric and nonelectric operations in the United States and internationally, entered into a distribution agreement to offer and sell common shares having an aggregate offering price of up to $75,000,000 from time to time. May 14 - Westar, Inc. (NYSE: WR), which engages in the generation, transmission, and distribution of electricity in Kansas, is offering $300,000,000 additional principal amount of First Mortgage Bonds, 4.125% Series due 2042 which will constitute a further issuance of, and are fungible with, the $250,000,000 aggregate principal amount of First Mortgage Bonds, 4.125% Series due 2042 that the company issued on March 1, 2012 and form a single series with the existing bonds. May 14 Northland Power Inc., which develops and operates power generation projects in Canada, the United States, and Germany, announced that it will issue in Canada a total of 4.8 million Cumulative Rate Reset Preferred Shares, Series 3, at a price of $25 per share, for aggregate gross proceeds of $120 million. May 10 - Florida Power & Light Company, which engages in the generation, transmission, distribution, and sale of electric energy in Florida, agreed to issue 4.05% first mortgage bonds, due June 1, 2042, for gross proceeds of $600 million. Interest on the bonds will be paid semi-annually on June 1 and December 1 each year, beginning from December 1, The bonds are priced to yield 4.058% at maturity. May 9 - BlackLight Power Inc., which develops and commercializes catalyst-induced-hydrino-transition, announced that it will raise $5,013,000 through the issuance of equity shares. May 8 - EmberClear Corp. (TSXV:EMB), which operates as an energy development company, announced a private placement on best efforts basis of 889 units at CAD 9,000 per unit, and a non-brokered private placement of 56 units at CAD 9,000 for aggregate gross proceeds of CAD 8,505,000. May 2 - Duke Renewables LLC acquired Black Mountain Solar Project, a 10 MW project in Arizona, from SOLON Corporation. May 2 - K Road Power Holdings LLC, an independent power producer which develops, finances, constructs, owns, and operates utility-scale renewable power facilities in the Southwest United States, acquired 25-megawatt (AC) McHenry solar project from SunPower Corporation (NasdaqGS:SPWR). Page 33 of 48

34 S E C O N D Q U A R T E R 2012 May 1 - Native American Group, Inc. (OTCPK:NAGP), a development stage resource development and management company, announced a private placement of 5,000,000 units at a price of $1 per unit for gross proceeds of $5,000,000. April 30 - NextEra, Inc. (NYSE: NEE), which engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada, offered 12,000,000 Equity Units comprising of a purchase contract and a 5% undivided beneficial ownership interest in Series E Debenture due June 1, April 27 - Southern USA Resources Inc. (OTCBB:AGPH.D), which focuses on locating and developing utility-scale solar energy generation projects in the Mid-Atlantic United States, announced a private placement of secured convertible promissory notes due April 27, 2014 for gross proceeds of $1,920,000. April 20 - Capital Riesgo Global, SCR de Régimen Simplificado, S.A. agreed to acquire an unknown stake in Solana Solar Power Project, which comprises a concentrating solar power project with a production capacity of 280 megawatts, from Abengoa Solar S.A. for approximately $130 million. April 17 - Canadian Solar Inc. (NasdaqGS:CSIQ), which engages in the design, development, manufacture, and sale of solar power products in Canada and internationally, entered into an agreement to a acquire majority stake in 16 Solar Projects in Ontario from SkyPower Limited for approximately CAD 190 million. April 11 - Pacific Gas and Electric Company, a power generation and distribution company, completed the public offering of 4.45% senior notes, due April 15, 2042, for gross proceeds of $400 million. The notes were priced at % of the principal amount to yield 4.481% at maturity. Interest on notes is payable on April 15 and October 15 of each year, commencing October 15, April 6 - Harvest Power, Inc., which develops, builds, owns, and operates facilities that produce renewable energy and soil enhancement products from discarded organic materials, announced that it expects to receive $1,999,999 in a round of equity funding. April 2 - SolarCity Corporation, which provides solar system design and installation services, announced that it has raised a round of funding with new investor, Firsthand Technology Value Fund, Inc., a fund managed by Firsthand Capital Management, Inc. The company issued 120,000 common shares in the transaction. April 2 - EverPower Wind Holdings, Inc. signed an agreement to acquire Alta VI Wind Farm from Terra-Gen Operating Company LLC for $480.6 million. April 2 - Madison Gas & Electric Co, which engages in electric utility and gas utility operations in Wisconsin, announced a private placement of 4.38% senior notes for gross proceeds of $28,000,000. The notes will carry a coupon of 4.38% per annum and will mature on April 1, The interest is payable semiannually on April 1 and October 1 of each year, commencing on October 1, Page 34 of 48

35 6/30/11 7/31/11 8/31/11 9/30/11 10/31/11 11/30/11 12/31/11 1/31/12 2/29/12 3/31/12 4/30/12 5/31/12 6/30/12 S E C O N D Q U A R T E R 2012 Comparative Segment Returns Assets and Services Oil and Gas Transportation and Storage Oil and Gas Refining and Marketing IPPs/Merchant Generators 15.0% 10.0% 5.0% 0.0% (5.0%) (10.0%) (15.0%) 30 Day Return 60 Day Return 90 Day Return Assets and Services Oil and Gas Transportation and Storage Oil and Gas Refining and Marketing IPPs/Merchant Generators Page 35 of 48

36 S E C O N D Q U A R T E R 2012 Mergers and Acquisitions Assets and Services Transactions Date Announced Target Buyer Implied Enterprise Value Value/ Rev. Value/ EBITDA 06/28/2012 Mason Dixon, LLC Percheron Acquisitions, LLC ($USDmm) /21/2012 Hyduke Services Inc. (TSX:HYD) Do All Industries Ltd x 6.4x 06/25/2012 Xworks Geoservices Inc. Geo-Reservoir Solutions Ltd /15/2012 Arcis Corporation TGS Nopec Geophysical Co. ASA (OB:TGS) /06/2012 Casedhole Holdings, Inc. C&J Spec-Rent Services, Inc x - 06/01/2012 Vanco Exploration Company Open Joint Stock Company Oil company LUKOIL (MICEX:LKOH) 06/01/2012 Southwest Proppants & Services, LLC and Rockwater Solutions, Inc /01/2012 True Turn Machine LLC Cactus Wellhead, LLC /30/2012 CE Franklin Ltd. (NasdaqGM:CFK) National Oilwell Varco, Inc. (NYSE:NOV) x 8.1x 05/14/2012 Top-Co Inc. Avista Capital Holdings, L.P /11/2012 Xedar Corporation (OTCPK:XDRC) IHS Inc. (NYSE:IHS) /10/2012 Development Well Drill Program And Independence Corp Several Productive Wells In Oklahoma (OTCBB:IDNG.D) 05/10/2012 AM Oil Resources & Technology, Inc. US Initiatives Corporation /16/2012 Electronic Design for Industry, Inc. Hy-Bon Engineering Company, Inc /10/2012 Francis Drilling Fluids, Ltd. Prophet Equity LLC /01/2012 HSE Integrated Ltd. (TSX:HSL) DXP Enterprises, Inc. (NasdaqGS:DXPE) x 5.1x 05/01/2012 Sun Well Service, Inc. Well Services Ltd x - 04/30/2012 XXT Incorporated Enteq Upstream Plc (AIM:NTQ) x 9.4x 04/30/2012 WEST Engineering Services, Inc. Lloyd's Register Group /30/2012 Tesco Corporation, Casing Drilling Schlumberger Technology Corporation; Division Schlumberger Oilfield Holdings Limited 04/23/2012 Environmental Drilling Solutions, LLC North Sky Capital; Element Partners; CSL Capital Management, LLC 04/23/2012 Enerflow Industries, Inc. National Oilwell Varco, Inc. (NYSE:NOV) /05/2012 O & G Leasing, LLC Red Mountain Resources, Inc /05/2012 Production Control Services, Inc. Norris Production Solutions x - High 3.2x 9.4x Low 0.4x 5.1x Mean 1.6x 7.2x Median 1.7x 7.2x Page 36 of 48

37 S E C O N D Q U A R T E R 2012 Oil and Gas Refining and Marketing Transactions Implied Date Announced 06/06/2012 Target Challenger Brands Corp. Buyer Structural Enhancement Technologies Corp Enterprise Value ($USDmm) Value/ Rev. Value/ EBITDA /06/2012 Royal Purple, Inc. (OTCPK:EMWW) Calumet Lubricants Co., Limited x 9.8x 06/01/2012 Chatom Gas Plant American Midstream Partners LP x 05/25/2012 Oil And Natural Gas Royalties In Seven Noble Royalties, Inc North Dakota Counties 05/24/2012 Astra Canada Inc., Kinsella Crude Cancen Oil Canada Inc. (TSXV:COI) /24/2012 Trueblood Oil Co., Inc. U.S. Venture, Inc /21/2012 High Sierra, L.P. NGL Partners LP (NYSE:NGL) /21/2012 High Sierra GP, LLC NGL Holdings LLC /07/2012 Pure Biofuels Corp. Pegasus Capital Advisors, L.P /01/2012 Norjohn-ACI Inc. Norjohn Limited /30/2012 Phillips 66, Trainer Oil Refinery Monroe, LLC /30/2012 Lorenz Lubricant Company, Inc. PetroChoice /30/2012 Sunoco, Inc. (NYSE:SUN) Transfer Partners LP (NYSE:ETP) 6, x 5.6x 04/16/2012 Canada-Newfoundland and Labrador Investcan Corporation High 2.6x 9.8x Low 0.1x 5.6x Mean 1.4x 7.7x Median 1.4x 7.9x Page 37 of 48

38 S E C O N D Q U A R T E R 2012 Transportation and Storage Transactions Date Announced Target Buyer Implied Enterprise Value Value/ Rev. Value/ EBITDA 06/29/2012 Blackwater Midstream Corp. ArcLight Capital Partners, LLC ($USDmm) x 12.9x 06/28/2012 UNEV Pipeline, LLC Holly Partners L.P (NYSE:HEP) /18/2012 Penn Virginia Resource Partners, L.P., DCP Midstream Partners LP (NYSE:DPM) /18/2012 Southern Union Co. Transfer Partners LP (NYSE:ETP) /09/2012 The Kennebec Valley Gas Company LLC Summit Natural Gas of Maine, Inc /08/2012 Chesapeake Midstream Development, L.P., Global Infrastructure Partners Certain Midstream Assets 06/08/2012 Four Petroleum Pipelines Off the East Side Harvest-Marks Pipeline, LLC of Mississippi River 06/08/2012 Chesapeake Midstream Partners, L.P. Global Infrastructure Partners 5, x 15.4x 06/19/2012 Encana Oil & Gas (USA) Inc., 139 Mile CenterPoint Field Services, LLC /01/2012 SMF Corporation, Certain Vehicles Sun Coast Inc.; On-Site Fuel Service, Assets Outside Texas Inc.; RelaDyne, Inc.; Leader D.O.T. Services Inc. 05/24/2012 Astra Canada Inc., Kinsella Crude Cancen Oil Canada Inc. (TSXV:COI) /24/2012 Trueblood Oil Co., Inc. U.S. Venture, Inc /21/2012 Whiting Oil and Gas Corporation, Natural Bitter Creek Pipelines, LLC Gas and Oil Midstream Assets 05/18/2012 Cheyenne Plains Investment Company, El Paso Pipeline Partners, L.P. (NYSE:EPB) /17/2012 Brick Propane, Inc. North Star, LLC /16/2012 TransCryogen, LLC IAHL Corp. (OTCPK:IAHL) /07/2012 Keystone Midstream Services, LLC MarkWest Liberty Midstream & Resources, L.L.C. 04/25/2012 El Paso Midstream Investment Company Kinder Morgan Partners LP /12/2012 Texas Express Pipeline LLC DCP Midstream Partners LP (NYSE:DPM) /10/2012 Chief Gathering LLC PVR Marcellus Gas Gathering, LLC 1, /09/2012 Marathon Oil Corporation, Alaska assets Hilcorp Alaska LLC /05/2012 Perpetual Inc., Non-Core Oil and /05/2012 Warwick Gas Storage, Inc. Brookfield Asset Management Inc /02/2012 New Wave Services Ltd. ES Investments Ltd /02/2012 American Distributors, L.P. Empire Petroleum Holdings, LLC /02/2012 Trojan Vacuum Services Quality Carriers, Inc High 9.9x 15.4x Low 4.9x 12.9x Mean 7.4x 14.1x Median 7.4x 14.1x Page 38 of 48

39 S E C O N D Q U A R T E R 2012 IPPs/Merchant Generators Transactions Implied Date Announced 06/26/2012 Target North Carolina Biomass/Wood Pellet Plant Buyer 3Power Group Inc. (OTCBB:PSPW); Enterprise Value ($USDmm) Greenworld Development, Inc. (OTCBB:GREW) 06/20/2012 Nine Photovoltaic Generating Facilities in Ontario, Canada 06/18/2012 Solar Trust of America, LLC, 500 MW Project in California 06/11/2012 Avatar Solar, Inc., Seven Hawaii Solar PV Mitsubishi Corporation (TSE:8058); Osaka Gas Co., Ltd. (TSE:9532) Value/ Rev. Value/ EBITDA BrightSource, Inc DayStar Technologies Inc /06/2012 Projects Southern Management, Inc. (NasdaqCM:DSTI); PowerSecure International, Sunlogics Inc. Power Fund (NasdaqGS:POWR) 05/24/2012 Southeast Renewable, LLC, enxco, Inc Pinelands Biomass Project 05/18/2012 Portfolio of Wind Development Assets in Alterra Power Corp. (TSX:AXY) British Columbia 05/15/2012 Champlin / GEI Wind Holdings, LLC, 4,000 Western Wind Corp. (TSXV:WND) MW Wind Project Pipeline 05/14/2012 Butter Creek wind power project in Oregon Yeland Group Co., Ltd. (SZSE:000616) /02/2012 SOLON Corporation, Black Mountain Solar Duke Renewables LLC Project 05/02/2012 SunPower Corp., 25-Megawatt (AC) K Road Power Holdings LLC /20/2012 Solana Power Project Capital Riesgo Global, SCR de Régimen /17/2012 SkyPower Limited, 16 Solar Projects in Canadian Solar Inc. (NasdaqGS:CSIQ) Ontario 04/02/2012 Terra-Gen Operating Company LLC, Alta EverPower Wind Holdings, Inc VI Wind Farm Note: Includes announced, closed, and effective transactions. Page 39 of 48

40 S E C O N D Q U A R T E R 2012 Distressed News Assets and Services June 22 - S&P downgraded the credit rating for Green Field Services Inc., which offers oilfield services, to CCC/Developing/-- from CCC+/Developing/--. June 20 - Auditors for Hanwei Services Corp. (TSX:HE), which engages in the engineering and production of fiber glass reinforced plastic (FRP) pipe systems for oil and gas, marine and offshore, chemical, salt, infrastructure, and municipal applications, raised Going Concern Doubts about the company. May 31 - S&P downgraded the credit rating for FTS International Services, LLC, which provides oil and natural gas well stimulation services to the oil and gas industry in the United States, to B/Negative/- from B+/Negative/--. May 24 - S&P downgraded the credit rating for Exterran Holdings, Inc. (NYSE:EXH), which provides operations, maintenance, service, and equipment for oil and natural gas production, processing, and transportation applications, to B+/Stable/- from BB/Negative/--. May 15 - S&P downgraded the credit rating for Chesapeake Oilfield Operating LLC, which explores and produces oil and gas, to BB-/Negative/- from BB/Watch Neg/--. May 2 - Auditors for Raise Production Inc. (TSXV:RPC), which provides technologically current artificial lift, data gathering, and management solutions to the oil and gas industry primarily in Canada, raised Going Concern Doubts about the company. April 30 - Auditors for Genoil Inc. (TSXV:GNO), which engages in the development and commercialization of hydrocarbon, and oil and water separation technologies to the oil and gas industry in Canada, raised Going Concern Doubts about the company. April 27 - Auditors for NXT Solutions, Inc. (OTCBB.NSFD.F), which provides airborne survey services to the oil and gas exploration industry, raised Going Concern Doubts about the company. April 27 - Auditors for RMS Systems, Inc. (TSXV:RMS), which develops Web-based remote drilling data retrieval software solutions in Canada, raised Going Concern Doubts about the company. April 27 - Auditors for Tasca Resources Ltd. (TSXV:TAC), which previously provided a range of blow out prevention products and services, and environmental products primarily to the drilling and well servicing and related industries in Western Canada, raised Going Concern Doubts about the company. April 23 - Auditors for SSP Offshore Inc. (TSXV:SSZ), which engages in the development and commercialization of its proprietary technology, raised Going Concern Doubts about the company. April 16 - Auditors for Divestco Inc. (TSXV:DVT), which offers products and services to customers in the oil and gas exploration and production industry worldwide, raised Going Concern Doubts about the company. April 5 - Parkland Services Inc. (TSXV:PKE), which engages in the manufacture and sale of oilfield equipment in Canada, received a demand for payment dated April 2 from Unilavor Trust SA. April 5 - Auditors for Nytex Holdings, Inc. (OTCBB:NYTE), which operates as an energy holding company in the United States, raised Going Concern Doubts about the company. Page 40 of 48

41 S E C O N D Q U A R T E R 2012 Oil and Gas Refining and Marketing May 16 - Auditors for China Yili Petroleum Co. (OTCBB:CYIP), which focuses on refining heavy oil into asphalt, fuel oil, and lubricants, raised Going Concern Doubts about the company. April 18 - Auditors for All Corp. (OTCBB:AFSE), which engages in the acquisition, exploration, development, and production of oil and natural gas properties in the United States, raised Going Concern Doubts about the company. April 16 The U.S. Bankruptcy Court granted an order for joint administration of the Chapter 11 cases of SMF Corporation (OTCPK:FUEL.Q), which offers specialized transportation and distribution services for petroleum products and chemicals, and its affiliates, which include H & W Petroleum Company, Inc. and SMF Services, Inc. Oil and Gas Transportation and Storage May 31 - The US Bankruptcy Court approved the Official Committee of Unsecured Creditors amended disclosure statement of Getty Petroleum Marketing Inc., which retails gasoline and hydraulic fluids, as well as motor, engine, gear, transfer, and drill oils in the Northeastern United States. May 29 - S&P downgraded the credit rating for Ferrellgas L.P., which distributes propane and related equipment and supplies to customers primarily in the United States, to B/Stable/-- from B+/Negative/--. May 16 - S&P downgraded the credit rating for NGPL PipeCo LLC, which owns and operates natural gas pipelines, to B+/Stable/-- from BB-/Watch Neg/--. May 15 - S&P downgraded the credit rating for Chesapeake Midstream Partners, L.P. (NYSE:CHKM), which owns, operates, develops, and acquires natural gas, natural gas liquids, and oil gathering systems, as well as other midstream energy assets in the United States, to BB-/Watch Ng/- from BB/Watch Neg/--. April 3 - S&P downgraded the credit rating for Pembina Pipeline Corporation (TSX:PPL), which operates as an energy transportation and service provider company in Canada, to BB-/Watch Ng/- from BB/Watch Neg/--. IPPs/Merchant Generators June 29 - S&P downgraded the credit rating for Edison Mission, which engages in acquiring, developing, owning or leasing, operating, and selling energy and capacity from independent power production facilities, to CCC/Negative/NR from CCC+/Negative/NR. June 26 - The US Bankruptcy Court granted an order for the extension of the exclusivity periods for Northampton Generating Co. L.P, which owns and operates electrical power generation facilities which produce electricity by burning waste tires. June 12 - The US Bankruptcy Court granted a first order for the extension of the exclusivity periods for Dynegy Holdings Inc., which engages in the production and sale of electric energy, capacity, and ancillary services in the United States. As per the order, the debtor s exclusivity period to file its plan and to solicit votes on its plan, have been extended by 130 days i.e. up to July 16, 2012 and September 14, 2012, respectively. May 30 - The US Bankruptcy Court granted an order for the appointment of trustee for the Chapter 11 bankruptcy case of International Environmental Solutions Corp., which engages in converting biomass and Page 41 of 48

42 S E C O N D Q U A R T E R 2012 plastic wastes into electric energy and marketable products using a set of non-combustion thermochemical and biochemical technologies. May 9 - Auditors for Andover Holdings, Inc. which owns, operates, and acquires companies focusing on the energy sector, raised Going Concern Doubts about the company. May 8 - The US Bankruptcy Court granted a first order for the extension of the exclusivity periods for LSP Limited Partnership, which engages in the development, construction, ownership, and operation of gasfired electric generating facility. As per the order, the debtor s exclusivity period to file its plan and to solicit votes on its plan, have been extended by 90 days i.e. up to September 7, 2012 and November 6, 2012, respectively. May 3 - S&P downgraded the credit rating for GenOn, Inc., which provides energy, capacity, ancillary, and other energy services to wholesale customers in the United States, to B-/Stable/-- from B/Negative/--. April 30 - Auditors for Sea Breeze Power Corp. (TSXV:SBX), which develops hydro-electric, wind power generation, and transmission projects in Canada and the United States, raised Going Concern Doubts about the company. April 30 - Auditors for Finavera Wind Inc. (TSXV:FVR), a wind energy development company, raised Going Concern Doubts about the company. April 30 - Auditors for Alaska Hydro Corporation (TSXV:AKH), which focuses on the acquisition and development of renewable energy project, raised Going Concern Doubts about the company. April 20 - Auditors for USA Synthetic Fuel Corporation (OTCPK:USFC), which focuses on pursuing clean energy solutions based on gasification and other Btu conversion technologies, raised Going Concern Doubts about the company. April 13 - Auditors for Salamon Group Inc. (OTCPK:SLMU), which focuses on the acquisition and funding of solar powered electricity generating facilities that have long term power purchasing agreements in place with local power utilities, raised Going Concern Doubts about the company. April 5 - S&P downgraded the credit rating for Capstone Infrastructure Corporation (TSX:CSE), which engages in acquiring, developing, owning or leasing, operating, and selling energy and capacity from independent power production facilities, to BB+/Watch Dev/-- from BBB-/Stable/--. Page 42 of 48

43 Jul-12 S E C O N D Q U A R T E R 2012 General Distressed Market Indicators Business Bankruptcy Filings 18,000 16,000 14,000 12,000 10,000 8,000 6,000 Bankruptcy Reform Chapter 7 Filings involving predominantly business debts totaled 46,393, down 14% from the 54,212 business bankruptcies filed in the 12-month period ending March 31, ,000 2,000 Chapter 11 0 Chapter 12/13 Source: Federal Judiciary U.S. Speculative-Grade Default Rate Versus Distressed Credit Ratio Source: Standard and Poor s U.S. Distressed Debt Monitor, June 22, 2012 After a positive start to 2011, negative developments in the sovereign debt markets sparked risk aversion among investors and caused borrowing costs for corporate issuers to rise. Recent financial distress in Spain has renewed investors' fears, and the distress ratio rose again to 14.5% as of June 15 and is now higher than its 12-month moving average of 13.7%. Page 43 of 48