1. Capital Solutions for Building a Business In Energy Markets Chuck Watson Chairman Eagle Energy Partners January 19, 2006

2. Introduction Many financing options exist for growing a business –both private and public After 20 years of building energy businesses, and over 10 major transactions, Eagle Energy Partners is finally tapping private equity

3. Long Term Private Market Landscape

4. Sources of Capital You are only limited by your own creativity in building a business.

5. 2001-2005 Up Cycle $ billions, global Worldwide M&A Activity

6. 2005 Energy Market Themes High Commodity Prices Recent Under Investment Public: High Liquidity/Low Leverage Private: Nominal Equity High Leverage Heavy Competition Record Fund Sizes Declining Required Returns High Acquisition Premiums Energy Market Fundamentals Private Equity

7. 2005 Energy Market Themes Entering Market Buy/Hedge Arbitrage Increasing Sophistication Increasing Demands for Control Aging Energy Infrastructure Tighter Environmental Regs. Desire for US Energy Independence Deregulation Hedge Funds Other Drivers

8. What to Expect from Private Equity Large ownership stake and influence Strong Management Experience Deep pockets seeking lucrative returns A complete financing solution to maximize growth and value

9. What to Really Expect from Private Equity

10. Growing an Energy Business Over Time Stay Creative  Times will change Find Strategic Partners  Diversify risks  Gather and integrate knowledge Be Patient  Let the market come to you