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Capital Solutions for Building a Business In Energy Markets

Capital Solutions for Building a Business In Energy Markets. Chuck Watson Chairman Eagle Energy Partners January 19, 2006. Introduction . Many financing options exist for growing a business –both private and public

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Capital Solutions for Building a Business In Energy Markets

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  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 Worldwide M&A Activity $ billions, global

  6. 2005 Energy Market Themes Energy Market Fundamentals • 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 Private Equity

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

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