Five Point and GSO Acquire a 50% Interest in Twin Eagle

  Five Point and GSO Acquire a 50% Interest in Twin Eagle

Business Wire

HOUSTON -- March 19, 2014

Five Point Capital Partners LLC ("Five Point") and affiliates of GSO Capital
Partners LP ("GSO") announced the acquisition of a 50% interest in Twin Eagle
Resource Management, LLC ("Twin Eagle") from Chesapeake Energy Corporation and
LS Power Group. Five Point, GSO and the management of Twin Eagle have also
committed to invest up to an additional $200,000,000 to fund the Company’s
next growth phase.

Headquartered in Houston, Texas, Twin Eagle was founded in 2010 and is led by
industry veterans Chuck Watson and Griff Jones. Twin Eagle is a leader in the
wholesale marketing of energy-related commodities including natural gas, coal,
power and environmental products and services and has multi-commodity,
regional midstream operations in several major oil producing basins in the
United States. Twin Eagle's energy marketing business is customer-focused,
providing origination, sourcing, supply, management, and sale of natural gas
and power. Twin Eagle's midstream business is focused on oil, gas and NGL
gathering, marketing, pipe and rail transportation and storage, as well as
frac sand trans-loading, storage, and logistics management.

“We are pleased to align ourselves with strong investors that share our vision
to continue to grow and expand our footprint in our core businesses. The
commitment to our Company by our new partners will strengthen our balance
sheet and help fuel growth in both our marketing and midstream businesses.
With terminal locations spanning Texas, North Dakota, Montana and Wyoming, we
are on track to becoming a premier provider of oilfield logistics services in
addition to our core marketing business,” said Chuck Watson, Chairman of Twin
Eagle.

“Since 2010, our Company has experienced solid growth and performance. Much of
our success can be attributed to our positive relationship with Chesapeake and
LS Power. We look forward to working with them as commercial partners as we
expand our services in the surging US energy market. We see a fantastic
opportunity to continue to build our midstream infrastructure asset base given
the added financial strength of our new partners,” noted Griff Jones,
President and CEO of Twin Eagle.

"We believe the North American midstream energy infrastructure sector is at a
critical inflection point, and entrepreneurial businesses with exceptional
leaders are best positioned to capitalize on the market opportunity to bring
new shale production to end markets. This transaction is prototypical of Five
Point’s investment strategy of partnering with strong management teams to
execute highly disciplined, focused midstream strategies. We look forward to
supporting Chuck, Griff, and the entire Twin Eagle management team as they
continue to build upon Twin Eagle's outstanding track record of success," said
David Capobianco, Managing Partner of Five Point Capital Partners.

“Chuck and Griff have built an excellent team and platform that is uniquely
positioned with a combination of wholesale marketing and midstream
capabilities. The addition of capital to the equation should allow Twin Eagle
to continue to grow its business and to take advantage of the significant
changes taking place in both segments,” said Dwight Scott, a Senior Managing
Director at GSO.

About Twin Eagle

Twin Eagle Resource Management, LLC, headquartered in Houston, Texas, is in
the oil and gas midstream business and engages in the logistics and wholesale
marketing of crude, natural gas, power, and environmental products throughout
North America. Through its subsidiary, Enserco Midstream, LLC, Twin Eagle owns
and operates crude oil logistical assets, providing services including crude
oil operations, distribution and marketing. Through its subsidiary Frac
Resources, LLC, Twin Eagle owns and operates frac sand trans-loading, storage
and logistics management terminals. For more information, please visit
www.termna.com.

About Five Point

Five Point Capital Partners is a private equity firm focused on midstream
energy infrastructure and energy sector investments across North America. Five
Point’s investment strategy is to partner with, develop and support strong
management teams through buyouts and growth capital investments within the
midstream energy sector. Five Point was founded in 2011 and is based in
Houston, Texas. For further information, please visit www.fivepointcp.com.

About Blackstone and GSO

Blackstone is one of the world’s leading investment and advisory firms. We
seek to create positive economic impact and long-term value for our investors,
the companies we invest in, the companies we advise and the broader global
economy. We do this through the commitment of our extraordinary people and
flexible capital. Our credit business, GSO, with approximately $65 billion of
assets under management as of December 31, 2013, is one of the largest
credit-oriented alternative asset managers in the world and a major
participant in leveraged finance. Our other alternative asset management
businesses include the management of private equity funds, real estate funds,
hedge fund solutions and closed-end funds. Blackstone also provides various
financial advisory services, including financial and strategic advisory,
restructuring and reorganization advisory and fund placement services.

Contact:

Five Point Capital Partners
David Capobianco, 713-579-5100
or
GSO Capital Partners
Peter Rose, 212-583-5871
or
Twin Eagle
M.A. Shute, 713-303-0456
 
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