PROPRIETARY DATA ANALYSIS BY MERGERMARKET RESEARCH

ENERGY SECTORPRIVATE EQUITYINVESTMENT ACTIVITY

2010-2016 DATA ANALYSIS

SUB-SECTOR OVERVIEW

TOP PE ENERGY DEALS

PE LEAGUE TABLES

IN THE REPORT:

ANNUAL BREAKDOWN (2010-2016):

PE ACTIVITY IN THE US ENERGY SECTOR

2016 DEAL VALUE

2016 DEAL COUNT

US$ 23.4B

69 DEALS

Oversupply of oil in the US contributed to a sharp decline in oilprices between 2014 and 2015.

As investors hit the brakes in 2015 due to the volatility of theoil market, number of deals in the energy sector dropped, bothfor strategic and for private equity buyers. The latter wasdown 36.0% compared to the previous year.

In 2016, however, M&A activity in the energy sector saw acomplete turnaround. PE investors started to take advantageof lower valuations of distressed energy assets, increasing thenumber of deals by 115.6% compared to 2015.

PE buyers represented 17.9% of the US energy sector by dealcount in 2016, up 7.4% compared to 2015. Buyout energydeals in the US also claimed 51.5% of all global buyout dealsin the sector, up 23.2% by deal count compared to 2015.

CRUD

E O

IL W

TI P

RICE

S*US

$/BB

LDE

AL V

ALUE

DEAL

CO

UNT

36 41 3950

32

69

38

$15.8B$20.0B

$6.4B$10.7B

$7.5B

$23.4B

$6.9B

- 1 -

03-Jul-2014$104.06

03-Jul-2015$55.52

03-Jul-2016$49.01

03-Jul-2013$101.24

03-Jul-2012$87.66

01-Jul-2011$94.94

02-Jul-2010$72.14

* Source of Crude Oil WTI Prices: Investing.com

210.6%

VS. 2015

115.6%

SUB-SECTOR OVERVIEW (2010 - 2016)*:

- 2 -

DEAL COUNT - ANNUAL BREAKDOWN:

UPSTREAM

RENEWABLE ENERGY

DEAL COUNT (%):

9.8%

19.9%

30.2%

24.8%

3.0%

12.3%

US$ 40.7B91 DEALS

DOWNSTREAM

ELECTRICALPOWERGENERATION &TRANSMISSION

MIDSTREAM

OILFIELD SERVICES

UPSTREAM

DEAL VALUE

MIDSTREAM

US$ 17.2B45 DEALS

DEAL VALUE

US$ 7.8B111 DEALS

OILFIELD SERVICES

DEAL VALUE

2.7

5.6

2.0

4.8

813

9

25

1.40.7

5.1

3.3

8

7

6 6

*Downstream, Midstream and Oilfield Services sub-sectors includedeals outside the energy sector (Business services, Industrialproducts and services, Chemical materials, and Consumer).

DEAL COUNT DEAL COUNT

(2010-2016) (2010-2016) (2010-2016)

in US$ Billions in US$ Billions in US$ Billions

0.4

1.2

0.020.2

18

24

5

15

77

36

62

505147

44

DEAL COUNT

REVENUE(Median)

Private Equity as a share of US Energy M&A

17.9%

10.5%

10.9%

11.2%12.7%

US share of global energy Private Equity M&A

51.5%

28.3%

34.7%

35.8%42.3%

- 3 -

RENEWABLE ENERGY SUB-SECTOR OVERVIEW (2010-2016):

DEAL COUNT (%):

ENERGY-FROM-WASTE

US$ 1.1B17 DEALS

HYDROELECTRIC

SOLAR POWER

WIND POWERUS$ 1.4B

12 DEALS

US$ 2.1B4 DEALS

US$ 2.3B3 DEALS

47.2%

33.3%

11.1%

8.3%

Industry profile (based on the deal value) - Top 5 sectors targeted by PE in the US in 2010-2016: PE Energy Exit Multiples (2010-2016):

14.1%

11.3%

9.6%

6.4%

6.1%

Computersoftware

Energy

Services

Industrial productsand services

Consumer (Foods) 11.0x

EBITDA(Median)

3.3x

18.0x

EBIT(Median)

DEAL COUNT - ANNUAL BREAKDOWN(2013-2016):

4 4

7

14

- 4 -

TOP 10 PE ENERGY DEALS (2010-2016 BUYOUTS):

BIDDERCOMPANY

TARGET COMPANY SUB-SECTOR DEAL VALUE

US$(M)PORTFOLIO

STATUS

Consortium led byKohlberg Kravis

Roberts

RANKING

Consortium led by Apollo GlobalManagement

Consortium led byTemasek Holdings

RiverstoneHoldings

Energy CapitalPartners; Dynegy

GlobalInfrastructure

Partners

GlobalInfrastructure

Partners

SheridanProductionPartners II

Blackstone Group;ArcLight Capital

Partners

Energy CapitalPartners

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

SamsonResources

EP Energy

FTS International(f.k.a. Frac Tech)

Talen Energy (65%Stake)

Atlas Power

Williams Partners (46.1% Stake)

Hess InfrastructurePartners

(50% Stake)

SandRidge Energy(Oil & Gas properites

in Permian Basin)

AEP GenerationResources

(four power plants)

WheelabratorTechnologies

UPSTREAM

UPSTREAM

OILFIELDSERVICES

ELECTRIC POWERGENERATION &TRANSMISSION

ELECTRIC POWERGENERATION &TRANSMISSION

MIDSTREAM

UPSTREAM

ELECTRIC POWERGENERATION &TRANSMISSION

RENEWABLEENERGY

(Energy-from-waste)

7,200

7,150

5,000

4,973

3,300

3,188

2,675

2,600

2,170

1,940

YEARSHELD

2011-2013

2012 -Present

2011 -Present

2016 -Present

2016-2017

2012-2014

2015-Present

2012-Present

2016-Present

2014-Present

BANKRUPTCY

PARTIAL EXIT- IPO IN 2014

IPO EXPECTEDIN 2017

CURRENT

EXIT(STAKE SOLDTO DYNEGY)

EXIT

MIDSTREAM CURRENT

CURRENT

CURRENT

CURRENT

PE LEAGUE TABLE (2010-2016 BUYOUTS):

- 6 -

Company Name Value (US$m) Deal CountRanking

1.

2.

Energy Capital Partners 8,049 14

ArcLight Capital Partners 5,055 14

3.

4.

Riverstone Holdings 12,722 13

First Reserve 2,101 12

5.

6.

Kayne Anderson Capital Advisors 3,829 10

6,973 9

7.

8.

EnCap Investments 3,651 8

The Carlyle Group 918 8

9.

10.

Rockland Capital Energy Investments 280 8

Kohlberg Kravis Roberts 8,879 7

11.

12.

Ares Management 150 7

Natural Gas Partners 8,039 6

13.

14.

Temasek Holdings 7,543 5

Warburg Pincus 3,575 5

15. Quantum Energy Partners 1,542 5

Blackstone Group

- 5 -

PE MID-MARKET LEAGUE TABLE (2010-2016 BUYOUTS)*:

Company Name Value (US$m) Deal CountRanking

1.

2.

ArcLight Capital Partners 1,820 8

Energy Capital Partners 2,159

7

3.

4.

Riverstone Holdings 599

6

Flatrock Energy Advisors 425

6

5.

6.

Kayne Anderson Capital Advisors 1,480

4

Rockland Capital Energy Investments 280 4

7.

8.

3

RRJ Capital 833

3

9.

10.

EnCap Investments 1,300

3

Kohlberg Kravis Roberts 679

3

11.

12.

Crestview Partners 265 3

Kleiner Perkins Caufield & Byers 261 3

13.

14.

Blackstone Group 616

2

Natural Gas Partners 315

2

15.

Quantum Energy Partners

643 2

*PE Mid-market LT includes deals between US$ 500m - US$ 5m. Undisclosed transactions are excluded.

Temasek Holdings

800

Head of Research, Americas

PEP/IPO Content Manager, Americas

Head of Sales, Americas

Lana Vilner

+1 212 390 7812

Aleksandra Duda

+1 646 378 3151

Kurt Viehl

+1 212 390 7814

CRITERIA

Based on announced deals, excluding lapsed and withdrawn bids. Based ondominant geography of target company being the US. Based on dominantsector of target company being energy, unless indicated otherwise.

Includes all deals valued over USD 5m. Where deal value is not disclosed, dealhas been entered based on turnover of target exceeding USD 10m.

Data run from 01/01/2010 to 12/31/2016.

Data correct as of 02/23/2017.

The data analysis consists of investments made directly by PE firms (excludingexits, as well as investment made by PE portfolio companies).

PE involvement includes: BIMBO, EBO, IBI, IBO, MBI, MBO, SecondaryBuyout.