FERC Approves Transaction Under Which Blackstone, Private Equity to Acquire Majority Stake in Parent of National Retail Supplier

FERC has granted approval for a transaction under which a subsidiary of The Blackstone Group L.P. and a private equity firm will acquire more than 50% of Twin Eagle Resource Management, LLC.

Twin Eagle Resource Management, LLC is the parent of TERM Power & Gas, LLC d/b/a ENCOA.

The transaction had been first reported by EnergyChoiceMatters.com in January.

Currently, Twin Eagle Resource Management, LLC is owned by Junction Creek Investments, LLC, Wincrest Ventures, LP, Chesapeake Operating, Inc., LSP TWEM, LLC, and certain members of TERM's management who, collectively, hold less than a five percent interest.

Under the transaction, GSO Capital Partners LP, and Five Point Capital Partners LLC are to purchase a combined 43.7 percent of the voting shares in Twin Eagle Resource Management, LLC and all of the non-voting shares in Twin Eagle Resource Management, LLC (which, at closing, will convert to voting interests in Twin Eagle Resource Management, LLC) from Chesapeake Operating, Inc. and LSP TWEM, LLC by a special purpose vehicle to be formed (Newco) that will be jointly owned by investment funds managed by GSO and Five Point and/or their affiliates and jointly managed and controlled by GSO and Five Point. Newco is to also acquire up to an additional 11.48 percent of the voting interests in Twin Eagle Resource Management, LLC through additional capital contributions

GSO Capital Partners LP is a wholly-owned subsidiary of The Blackstone Group L.P.

Five Point Capital Partners LLC is a private equity group based in Houston, Texas, that is focused on midstream energy infrastructure and energy sector investments in North America. Five Point is 100 percent owned by David Capobianco.

Through their joint ownership of Newco, certain funds managed by GSO and certain funds managed by Five Point are to acquire at least 50.02% and up to 61.5% of Twin Eagle Resource Management, LLC, and are to take passive, non-voting membership interests in Newco which will not confer any rights to manage, direct or otherwise control the day-to- day activities of either Newco or its public utility affiliates and their respective wholesale power marketing activities.

Junction Creek Investments, LLC, Wincrest Ventures, LP, and minority investors are to retain their ownership stakes in Twin Eagle Resource Management, LLC.

Chesapeake Operating, Inc. is a subsidiary of Chesapeake Energy Corp., and LSP TWEM, LLC is a subsidiary of LS Power Equity Partners II, LP and an indirect subsidiary of LS Power Development, LLC