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Slide 1 of 9 ROCKFORD ENERGY PARTNERS, LLC CORPORATE OVERVIEW IPAA TEXAS SOUTHEAST REGIONAL SPEAKERS’ SERIES HOUSTON, TEXAS JULY 10, 2002
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Slide 2 of 9 uOrganized May, 2002 uInitial Funding - $15,900,000 uCorporate Headquarters – Tulsa, Oklahoma uMid Continent Acquire and Exploit Company uManagement Team – Technically strong, good deal flow uCapital Partner – Quantum Energy Partners Rockford Energy Partners, LLC
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Slide 3 of 9 Rockford Energy Partners, LLC Management Team uCharles H. PerrinPresident and CEO uThomas E. Boullt, Jr.Vice President of Reservoir Engineering uRobert W. Von RheeVice President of Geology uSusan C. KearyDirector of Accounting and Administration
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Slide 4 of 9 Rockford Energy Partners, LLC Strategy uPatience uAbility to quickly evaluate, make offer and close uAcquire and exploit high working interest properties in the Mid Continent uEmphasis on operated gas uBuild a diversified portfolio containing long lived, predictable reserves with upside potential uReduce costs, increase production via workovers, enhancements and low risk drilling uBuild a long term low risk drilling inventory uUtilize the financial expertise of Quantum in the areas of banking, price hedges, tax and financial analysis and industry contacts uUse combination bank debt and equity uContinuously evaluate exit opportunities
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Slide 5 of 9 Rockford Energy Partners, LLC FOCUS AREAS Anadarko Basin Arkoma Basin Ark-La-Tex Area
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Slide 6 of 9 Rockford Energy Partners, LLC Why the Mid Continent u Multiple productive zones u Good product market u Long-lived reserves u Actively drilled basins u Low drilling costs, high success rates u Under-explored deeper potential u Oklahoma’s force pooling statute a plus u Leverage Rockford’s strong Mid Continent technical expertise
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Slide 7 of 9 uPrivate equity fund focused on making equity investments primarily in acquisition, exploitation, and exploration companies and secondarily in mid-stream and service companies. uGeographical focus: US and Canada. uCapital under management: $320 million. uTarget investment size: $10 to $35 million. uTarget ownership: 40% to 95% with board representation. uInvestment structure: common equity, preferred equity, sub-debt with warrants (No project financing) invested in a limited partnership or LLC. uPortfolio target IRR and ROI: 25%+ and 3.0x. uInvestment time frame: 3 to 6 years. uInvestment Team: 3 managing partners, 2 principals, 2 associates, CFO and controller. uInvestment Team’s competitive advantage: experience as owners and managers of oil & gas and mid-stream companies, combined with multidisciplinary expertise in finance, technical sciences (geology, engineering and geophysics), and tax. Overview of Quantum Energy Partners
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Slide 8 of 9 Quantum’s Investment Strategy uInvest in smaller companies (post money equity value < $50MM) that focus on building portfolios of assets that will be highly attractive acquisition candidates for larger companies. uInvest in management teams with a demonstrable track record that: Possess strong technical, financial, managerial and operational capabilities, Have a geographically focused strategy based on sustainable competitive advantages, Are able to manage a considerably larger asset base than currently managing, and Have demonstrated successful risk/return analysis and allocation of capital decisions. uAlign interests between Quantum and each portfolio company management team: Require management team to invest a meaningful portion of their net worth, and Create a “performance-based” incentive compensation structure. uActively work with portfolio companies to assist in executing business plan. uOnly make investments where multiple exit scenarios are viable. uMaintain a long-term commitment to the energy industry through multiple cycles. uSystematically make investments during periods of below-equilibrium commodity prices and monetize investments during periods of above-equilibrium commodity prices.
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Slide 9 of 9 Rockford Energy Partners, LLC Contact Information Chuck Perrin 918.583.9400 ext. 16 cperrin@rockfordpartners.com 2800 First Place Tower 15 East Fifth Street Tulsa, OK 74103 918.583.9400 Fax 918.583.9410
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