Energy Mezzanine Opportunities Group IPAA Private Capital Conference Rahul Culas Co-Head Energy Mezzanine Opportunities February 24, 2011

2 Object # 3 R-26 G-58 B-107 Object # 1 R-72 G-106 B-154 Object # 2 R-204 G-153 B-0 Object #4 R-41 G-73 B-122 Object # 5 R-101 G-135 B-180 Object # 6 R-111 G-163 B-220 Object # 7 R-49 G-120 B-155 Chart #3 r2c1 Chart #1 r1c5 Chart #2 r2c5 Chart #4 r4c2 Text & line #2 Chart #5 r6c6 R-0 G-102 B-204 Chart #6 r3c3 Chart #7 r6c4 Overview of The Carlyle Group  Established in Washington, D.C. in 1987  One of the world’s largest global alternative asset management firms today: $97.7 billion in capital committed to 78 private equity and debt funds Note: As of September 30, 2010, unless otherwise noted. More than 1,300 investors located in 73 countries 917 employees in 27 offices around the world North America: Offices: 4Offices: 4 Funds:Funds:  Buyouts  Growth Capital  Energy & Power  Real Estate Europe: Offices: 9Offices: 9 Funds:Funds:  Buyouts  Growth Capital  Real Estate  Structured Credit  Mezzanine  Distressed Situations Asia: Offices: 9Offices: 9 Funds:Funds:  Buyouts  Growth Capital  Real Estate Middle East/North Africa: Offices: 4Offices: 4 Fund:Fund:  Buyouts South America: Office: 1Office: 1 Fund:Fund:  Buyouts  Structured Credit  Mezzanine  Distressed Situations  Energy Mezzanine  Infrastructure

3 Object # 3 R-26 G-58 B-107 Object # 1 R-72 G-106 B-154 Object # 2 R-204 G-153 B-0 Object #4 R-41 G-73 B-122 Object # 5 R-101 G-135 B-180 Object # 6 R-111 G-163 B-220 Object # 7 R-49 G-120 B-155 Chart #3 r2c1 Chart #1 r1c5 Chart #2 r2c5 Chart #4 r4c2 Text & line #2 Chart #5 r6c6 R-0 G-102 B-204 Chart #6 r3c3 Chart #7 r6c4 Team Overview 1 Bill Conway Co-founder of The Carlyle Group Mitch Petrick 2 Head of Global Credit Alternatives Former Global Head of Institutional Sales and Trading at Morgan Stanley David Albert Managing Director Portfolio Manager Co-Head of CEMOF Former Global Head of Project & Structured Finance at Morgan Stanley Rahul Culas Principal Co-Head of CEMOF Former Head of Power Finance at Morgan Stanley David Gibson Vice President Petroleum Engineer Former SVP at Central Resources Daniel East Vice President Former SVP at KGen Power and Senior Director at Dynegy Investment Professional 7 Investment Committee Investment Team Ron Harrell Former Chairman & CEO of Ryder Scott Bobby Shackouls Former Chairman & CEO of Burlington Resources Inc Senior Advisors David Albert Co-Head of CEMOF Rahul Culas Co-Head of CEMOF Julie Kim Associate Former Analyst in Project & Structured Finance at Morgan Stanley Investment Professional 8 Senior Advisor 3Senior Advisor 4 Notes: 1. As of February 21, Chairman of the Investment Committee. Sun-Young Chung Associate Former Analyst in Mergers & Acquisitions at Citi

4 Object # 3 R-26 G-58 B-107 Object # 1 R-72 G-106 B-154 Object # 2 R-204 G-153 B-0 Object #4 R-41 G-73 B-122 Object # 5 R-101 G-135 B-180 Object # 6 R-111 G-163 B-220 Object # 7 R-49 G-120 B-155 Chart #3 r2c1 Chart #1 r1c5 Chart #2 r2c5 Chart #4 r4c2 Text & line #2 Chart #5 r6c6 R-0 G-102 B-204 Chart #6 r3c3 Chart #7 r6c4 Energy Mezzanine Opportunities Group Overview  We invest in projects and companies across the energy value chain, primarily in the US and Canada Upstream oil and gas Power generation (commercially proven technologies) Energy-related infrastructure and processing assets Mining and related natural resource assets  Provider of capital for acquisitions, refinancings, and development and growth  Investment process emphasizes flexible deal structures, rapid turnarounds, and straightforward negotiations  Team headed by former Morgan Stanley Project & Structured Finance professionals who have spent their careers focused on investing in, and financing, energy projects Full time reservoir engineer on staff

5 Object # 3 R-26 G-58 B-107 Object # 1 R-72 G-106 B-154 Object # 2 R-204 G-153 B-0 Object #4 R-41 G-73 B-122 Object # 5 R-101 G-135 B-180 Object # 6 R-111 G-163 B-220 Object # 7 R-49 G-120 B-155 Chart #3 r2c1 Chart #1 r1c5 Chart #2 r2c5 Chart #4 r4c2 Text & line #2 Chart #5 r6c6 R-0 G-102 B-204 Chart #6 r3c3 Chart #7 r6c4 Investment Profile We structure creative & flexible capital solutions tailored for specific company needs Sector Focus Upstream, midstream, downstream Geographic Focus US and Canada Investment Size Target $25 million to $100 million Investment Tenor 2 – 6 years Return Combination of current cash pay, PIK and equity kickers (e.g. warrants)

6 Object # 3 R-26 G-58 B-107 Object # 1 R-72 G-106 B-154 Object # 2 R-204 G-153 B-0 Object #4 R-41 G-73 B-122 Object # 5 R-101 G-135 B-180 Object # 6 R-111 G-163 B-220 Object # 7 R-49 G-120 B-155 Chart #3 r2c1 Chart #1 r1c5 Chart #2 r2c5 Chart #4 r4c2 Text & line #2 Chart #5 r6c6 R-0 G-102 B-204 Chart #6 r3c3 Chart #7 r6c4 Benefits & Advantages of Carlyle as a Financial Partner Cost & Control Flexible & Efficient Capital Solution Provider Cheaper than private equity Allows management to retain full control Management friendly capital – not “loan-to-own” approach Can close quickly Structurally flexible Streamlined credit and investment approval process Healthy risk appetite for more challenging capital requirements Extensive relationships with banks and hedge counterparties Houston presence Full-time reservoir engineer on staff

7 Object # 3 R-26 G-58 B-107 Object # 1 R-72 G-106 B-154 Object # 2 R-204 G-153 B-0 Object #4 R-41 G-73 B-122 Object # 5 R-101 G-135 B-180 Object # 6 R-111 G-163 B-220 Object # 7 R-49 G-120 B-155 Chart #3 r2c1 Chart #1 r1c5 Chart #2 r2c5 Chart #4 r4c2 Text & line #2 Chart #5 r6c6 R-0 G-102 B-204 Chart #6 r3c3 Chart #7 r6c4 What We Look For Strong operating capabilities Proven track record Industry expertise ManagementAssets RiskFinancial Focus on quality project, not long track record alone Leverage specific to assets / production Reserves development and engineering play -Not pure exploration risk -Not price play Strong cash flow that withstands downside scenario “Skin in the game” from owner / developer Total return: more than bank debt, less than equity

8 Object # 3 R-26 G-58 B-107 Object # 1 R-72 G-106 B-154 Object # 2 R-204 G-153 B-0 Object #4 R-41 G-73 B-122 Object # 5 R-101 G-135 B-180 Object # 6 R-111 G-163 B-220 Object # 7 R-49 G-120 B-155 Chart #3 r2c1 Chart #1 r1c5 Chart #2 r2c5 Chart #4 r4c2 Text & line #2 Chart #5 r6c6 R-0 G-102 B-204 Chart #6 r3c3 Chart #7 r6c4 What We Need  To Get Started: Overview of development opportunity Financial model / historical statements Meeting with management team Development Plan (projects, properties, timing, funds required, schedule, forecast of outcomes)  To Get to Financial Close: Reserve report / Resource feasibility study Meeting with technical staff / third-party consultants Site visit

9 Object # 3 R-26 G-58 B-107 Object # 1 R-72 G-106 B-154 Object # 2 R-204 G-153 B-0 Object #4 R-41 G-73 B-122 Object # 5 R-101 G-135 B-180 Object # 6 R-111 G-163 B-220 Object # 7 R-49 G-120 B-155 Chart #3 r2c1 Chart #1 r1c5 Chart #2 r2c5 Chart #4 r4c2 Text & line #2 Chart #5 r6c6 R-0 G-102 B-204 Chart #6 r3c3 Chart #7 r6c4 Contact Information Rahul Culas (212) David Gibson (713)