MEZ&Co

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The energy industry today is one characterized by dramatic change. Enormous demand, the costs of international exploration, and the continuing pressures of competition have forced energy companies to seek new approaches to their business. To improve reported return on assets, the majors continue to divest assets once considered essential, electing to control but not own, the strategically important facilities used to link energy production with the end-user (the “midstream”). MEZ & Co. participates in transactions which assist the majors in achieving company-specific objectives, and believes that there will be many such opportunities in the future.

MEZ & Co.’s investment thesis is simple: leverage its energy sector expertise and relationships to source proprietary deal flow outside of the traditional auction market in order to partner with the energy majors on strategic energy assets. MEZ & Co.’s success has been and will be rooted in the fact that it co-invests with energy companies of the highest quality in terms of industry leadership, substantial size, stable cash flows, positive growth prospects and exceptional management. MEZ & Co. defines a major energy company as the multinational integrated oil companies, super-independents, large pipeline and storage companies, and utilities. For over two decades, the Firm has been co-investing in the energy and natural resource sector and has built lasting relationships with: ConocoPhillips, Royal Dutch Shell, ExxonMobil, Kinder-Morgan Energy Partners, Equilon/Motiva and others. The Firm is unique in that it co-invests as a long-term partner, rather than simply a financial investor with a limited investment horizon. As a true risk-sharing partner, the Firm works closely with management and its operating partner throughout the life of the investment.

LONG-TERM INVESTMENT HORIZON

In every deal it does, the Firm invests its own capital to achieve stable cash-on-cash returns and, unlike private equity and infrastructure funds, does not have obligations to accelerate the return of capital to third party investors through quick exits. Also, as a principal investor rather than a financial advisor or a fund manager, the Firm is motivated by actual investment returns rather than earning fees irrespective of the outcome of a particular transaction.

With its long-term investment horizon, MEZ & Co. differentiates itself from most financial investors. The Firm employs a buy, hold and build strategy with its investment, and frequently provides a source of expansion capital for its investments. In recognizing the buy and hold strategy is unique, the Firm is equipped and prepared to provide liquidity for its financial investor partners with shorter-term investment horizons.

KNOWLEDGEABLE AND FLEXIBLE RISK-SHARING PARTNER

As a non-operating and non-competing partner with both operational experience and corporate finance sophistication, MEZ & Co. participates directly in the oversight of its co-investments and ensures efficiency in operations, but the Firm also recognizes the value of allowing its partners to utilize their expertise to manage ongoing operations. MEZ & Co. is valued for its creativity and flexibility in facilitating its partners’ accounting, tax, regulatory, credit rating and financial reporting needs. The Firm can structure an investment to meet a partner’s need for off-balance sheet treatment as well as proportional consolidation or deconsolidation of the joint venture’s assets and liabilities from a credit rating perspective.

MEZ & Co. supplements its capital in leading sophisticated co-investment partners, which have similar investment parameters and long-term investment horizons. The Firm uses its operating and financial expertise to oversee these co-investments, while also representing these passive co-investors in relations with the energy major partners. The Firm is not required to publicly disclose its investment holdings, partners, or co-investors, which facilitates its ability to enter and exit transactions discreetly. MEZ & Co. is independent of major energy company and government influence and does not have an agenda other than achieving superior investment returns, giving it the freedom to invest in a variety of industry sectors and geographic regions without the entanglements created by competition or politics. Over the past two decades, MEZ & Co. has used its relationships with the energy majors to complete transactions with a fair market value in excess of $3.0 billion.

CAPITAL ALLOCATION BENEFITS TO ENERGY MAJORS

Despite access to the global public debt and equity markets, major energy companies turn to private capital to fund certain of their most important projects. There are unique benefits created by partnering with MEZ & Co. rather than approaching public markets.

Co-investments with MEZ & Co. allow energy majors to monetize lower risk/lower return production, midstream, downstream, or renewable energy assets and to reallocate capital to higher risk/higher return exploration and production projects or foreign operations. Energy majors can continue to control the operation and use of these strategic production, midstream and downstream assets, while sharing project costs/risks with a sophisticated financial partner without tying-up capital in lower return infrastructure assets. Such joint ventures improve profit center measures of Return on Capital Employed, Return on Assets, or Return on Investment, without compromising operational excellence. MEZ & Co. is a closely-aligned, sophisticated, long-term, cash-motivated investor instead of a competing, short-term, or otherwise non-aligned partner in a strategic venture.

Proprietary operations or complex businesses can be financed on a standalone basis without an obligation for market disclosure of operating or financial strategies or proprietary geologic, manufacturing, or marketing data. Non-core yet valuable businesses that are otherwise unable to compete for precious capital expansion budgets within an energy major are better able to obtain necessary capital infusions.