1 Confidential. For discussion purposes only. Introduction to CIT Energy January 16, 2007 IPAA

2 Confidential. For discussion purposes only.  Headquartered in New York City  Over $80 billion in managed assets  Rated A/A2  Market Capitalization of $4 Billion  Fortune 500 Company; member of the S&P 500  80% of clients are Fortune 1000 companies  Over 7,000 employees worldwide The World’s Largest Independent Finance Company

3 Confidential. For discussion purposes only. CIT is not…  …a commercial bank – we are not regulated like a bank allowing us to invest across the entire capital spectrum  … a hedge fund - we are an arranger, underwriter and distributor of both 1 st and 2 nd Lien paper, as well as junior capital investments.  …an Energy Merchant Bank with a unique ability to arrange and underwrite solutions across the entire capital spectrum. CIT is… The World’s Largest Independent Finance Company

4 Confidential. For discussion purposes only. Power Generation Alternative Energy Transmission & Services Industry Sub-Vertical Focus CIT Energy - Overview Power/Renewables Upstream E & P Oil Field Services SourcesConversionDelivery Midstream Gathering & Service Transmission HoustonNew York CIT Energy provides advice and financial solutions for clients that operate throughout the energy industry value chain

5 Confidential. For discussion purposes only. Source: Reuters Loan Pricing Corporation “Traditional Middle Market” = Deal size $ million U.S. Middle Market Lead Arranger

6 Confidential. For discussion purposes only. CIT Energy – Life Cycle Solution Life Cycle Example Time $100 million Acquisition CIT arranges, underwrites and syndicates $100 million 1 st Lien & $40 million 2 nd Lien Acreage acquired, drilling begins; reserve mix of some PDPs, but mostly PUDs CIT provides $10 million Stretch 1 st Lien Stage of Growth Company Initial Capitalization- Equity Financing CIT begins initial dialogue Additional drilling; more PDPs, some PDNPs & PUDs; large acreage position Refinancing 6 months later; 1 st & 2 nd Lien structure now available CIT provides $25 million Conforming 1 st Lien & $15 million 2 nd Lien CIT provides $25 million Stretch 1 st Lien CIT Solution

7 Confidential. For discussion purposes only. ProfileFormer executive of major oil companies making a $15 million start-up acquisition SituationStart-up acquisition with drop dead date CIT Energy to underwrite debt (Unitranche equivalent to 1st, 2nd, and Mezz) Equity bows out of transaction at 5:00 p.m. on Friday with deal set to close the following Wednesday CIT SolutionCIT Energy obtains approval to bridge the equity (based on soft circle from new equity provider) on the following Tuesday and the deal closes on Wednesday as scheduled CIT Energy: Start-Up Acquisition Financing

8 Confidential. For discussion purposes only. ProfileEarly Stage Development Financing - $12 million SituationVery small producer in business for two years No PDPs and in need of development capital Use of proceeds: 1) buy out other 50% owner, 2) lay gathering line, 3) refinance existing debt, 4) fund drilling and acquisition of additional acreage CIT SolutionArranged and hold both 1st ($0 outstanding) and 2nd Lien facility Debt facilities structured to grow with the company with appropriate pricing for 1st and 2nd Lien risks CIT Energy: Early Development Financing

9 Confidential. For discussion purposes only. ProfileGulf of Mexico - $34 million development capital SituationProducer seeking financing for additional development capital Positioning company for sale CIT SolutionCIT Energy arranged $16 million 1st Lien and $18 million 2nd Lien Use of proceeds: $30 million refinancing and $4 million for new drilling capital Noteworthy 2nd Lien underwriting and hold on GOM properties CIT Energy: Gulf of Mexico

10 Confidential. For discussion purposes only. CIT Energy Overview – Sample Transactions $25,000,000 Senior Secured 2 nd Lien Credit Facility Co-Lead Arranger July 2007 Ascent Oil and Gas, Inc. Sole Lead Arranger June 2007 Corkran Energy, LP Senior Secured Revolving Credit Facility $18,000,000 Sole Lead Arranger June 2007 TransEnergy, Inc. Senior Secured Revolving Credit Facility $15,000,000 Sole Lead Arranger October 2007 Senior Secured 2 nd Lien Credit Facility Term Financing Natural Gas Compression Sole Lead Arranger Senior Secured Credit Facility Sole Lead Arranger August 2007 Senior Secured Revolving Credit Facility and 2 nd Lien Credit Facility Sole Lead Arranger Co-Syndication Agent Senior Revolving Facility September 2007March 2007 $38,000,000 ERG Resources, LLC $15,000,000 $400,000,000 $65,000,000 $18,000,000

11 Confidential. For discussion purposes only. Questions and Follow-Up