market view: quarter’s we’d - bryant park...

MARKET OBSERVATIONS:

■ Crude Oil:

□ U.S. production declined by an estimated 140,000 bbl/d in August relative to production in July. Production is

forecast to continue decreasing through mid-2016 before increasing in late 2016. Total U.S. production is projected

to average 9.3 million bbl/d in 2015 and 8.8 million bbl/d in 2016.

□ Brent Crude oil prices decreased by $10/bbl to $47/bbl in August. Contributing factors to this decrease include

concerns about lower economic growth in emerging markets, expectations of higher oil exports from Iran, and

continuing growth in global inventories.

Brent Crude oil prices are projected to average $54/bbl in 2015 and $59/bbl in 2016, which is $3/bbl

lower than last month’s estimate.

■ The Henry Hub average natural gas spot price was $2.77/MMBtu in August, a decrease from $2.84/MMBtu in July.

□ Henry Hub natural gas prices are expected to average $2.84/MMBtu in 2015 and increase to an average

$3.11/MMBtu in 2016.

■ In August, U.S. regular gasoline retail prices reached a monthly average of $2.64/gallon (gal), which is a decrease of 16

cents/gal from July and 85 cents/gal lower than August 2014. Up until the end of August and the beginning of

September, there has been a decline in crude oil prices. The EIA predicts monthly average gasoline prices will continue to

decline from the August level through the rest of the year, averaging $2.383/gal in 2016.

SEPTEMBER 2015

BRYANT PARK CAPITAL EMERGING ENERGY COMPANY UPDATE

MERGERS & ACQUISITIONS CAPITAL RAISING ADVISORY VALUATION

ENERGY TRENDS

MARKET VIEW: In this quarter’s issue of the Emerging Energy Company Update, we’d

like to highlight the continuing trend of capital liquidity coming into the market for the

purposes of acquiring fossil fuel energy assets at potentially discounted values, due in large

part to the sustained low price environment for the underlying oil and gas

commodities. More than $31 billion of natural resources private equity capital globally has

been raised year to date, with more expected to come. Producers seeking to shore up their

balance sheets in a sustained low oil and gas price environment have been and likely will

continue to seek private equity corporate capital or sell non-core assets to private equity-

1

Inside this issue:

Energy Trends p. 1

Power Trends p. 2

M&A p. 4

Private Placements p. 7

Public Comps p. 9

financed E&Ps. Credit facilities, which have been the primary liquidity source for smaller E&Ps, are likely to see

reductions over the next 12 months as borrowing bases have been devalued due to the steep drop in commodity

prices. Thus, the potential for E&Ps to divest non-core assets in order to retain financial flexibility. Among the

numerous middle market E&P transactions we have witnessed this past 3Q15, we note that Kayne Anderson has been

particularly active with at least $800M committed equity deployed in this quarter alone.

Source: EIA

40.00

50.00

60.00

70.00

80.00

90.00

100.00

110.00

120.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

Oil Prices vs. Gas Prices

Henry Hub Spot(dollars per million Btu)

West Texas Intermediate Spot Average(dollars per barrel)

SEPTEMBER 2015



ENERGY TRENDS

■ Shale Oil & Gas

□ From September to October, Utica, Niobrara, and Permian basins are expected to have the largest increase in

production of oil per rig and Utica is expected to have the largest increase in production of natural gas per rig

with 141 thousand cubic feet/day.

□ The Permian basin was the only basin that continued seeing increases in month-over-month production of

barrels per day, seeing an increase of twenty three thousand barrels per day.

□ The Haynesville basin was the largest producers of natural gas, producing 39 million cubic feet per day month-

over-month.

2

Source: EIA

MARKET OBSERVATIONS:

■ In August, retail residential electricity prices increased to an average of 13.05 cents/kWh from 13.00 cents/kWh in July, also

an increase from August 2014, when the average was 13.02 cents/kWh.

□ The U.S. retail residential electricity price is projected to increase by 1.3% than the average price last year.

□ EIA cites various reasons for the increase in retail electricity prices specifically surrounding the New England area:

Electricity distribution companies are recovering higher generation and power purchase costs incurred in 2014.

Residential electricity prices in New England are expected to increase by 10.8% in 2015. EIA expects New

England’s retail prices during the second half of 2015 will be lower than the first half due to the relatively low

wholesale power prices experienced in the area.

■ Coal

□ It is projected that an 86 MMst or 9% decline will occur in coal production in 2015 with only a slight decrease of 3

MMst in 2016. EIA cites the lower domestic coal consumption and exports along with the slight increase in coal

imports as the reason for this decline.

□ EIA expects the delivered coal price to average $2.27/MMBtu in both 2015 and 2016.

POWER TRENDS

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000 Natural Gas (Mcf/d) Production per Rig by Shale Play

Bakken Eagle Ford Haynesville Marcellus Niobrara Permian Utica

0

100

200

300

400

500

600

700Oil (bbl/d) Production per Rig by Shale Play

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000Natural Gas (Mcf/d) Production per Rig by Shale Play

SEPTEMBER 2015



POWER TRENDS

3

Sources: EIA, American Wind Energy Association & Solar Energy Industries Association

■ Solar

□ In Q2 2015, the U.S. installed 1,393 MW of solar PV, marking another record quarter, with 70% growth year-over-

year. About 51% of all new electric-generating capacity in the U.S. came from solar in Q1 2015.

This totals 22.7 GW of total installed capacity which supplies enough to power 4.6 million American

homes.

The utility-scale segment grew as well with 729 MW of installed capacity.

■ Wind

□ The U.S. installed a record setting 1,661 MW in Q2 2015 which totals 1,994 MW installed for the first two

quarters.

The most capacity was installed in Texas (1,226 MW) and the state now has over 15,000 MW of installed

capacity. The states that follow for Q2 are Oklahoma (150 MW), California (107 MW), Illinois (99 MW),

and South Dakota (80 MW).

The U.S. has now installed 67,879 MW of wind capacity and over 49,00 wind turbines.

□ Developers estimated 2,200 MW of new wind power construction activity in Q2 2015. This quarter also includes

the commissioning of two utility-scale wind projects with corporate purchaser investment; the 98 MW

Hoopeston wind farm in Illinois owned by IKEA and the 211 MW Mesquite Creek wind farm in Texas owned

by Mars, Inc.

■ Other Renewables

□ EIA expects total renewables used for electric power will decline by 3.5% in 2015.

Non-hydropower generation is expected to increase by 3.2%, while hydropower is expected to decrease

by 3.2%.

The hydropower generation decrease reflects the effects of the California drought, while EIA projects an

increase in the electric power sector by 9.2% in 2016.

130.0

141.5

100.5

95.1

83.5

73.6 72.6

0

25

50

75

100

125

150

Utility-Scale SolarPV

ConventionalCombustion

Turbine

Biomass ConventionalCoal

Hydro Wind AdvancedCombined

Cycle

U.S. Average Levelized Cost of Electricty (2012 $/MWh) for Plants entering Service in 2019

Levelized capital cost Fixed O&M Variable O&M (including fuel) Transmission investment

RECENT ENERGY TRANSACTIONS:

■ September 21st – Cambrian Coal Corp. acquired TECO Coal Corporation from TECO Diversified, Inc. for $60 million.

TECO Coal Corp. was founded in 1982 and is based in Corbin, Kentucky. The Company owns and operates coal mines in

Northeastern Tennessee, Eastern Kentucky, and Western Virginia.

■ September 1st – CHS, Inc. completed the acquisition of the remaining 25.57% stakes in National Cooperative Refinery

Association from GROWMARK, Inc. and MFA Oil Company. National Cooperative Refinery Association (NCRA) was

founded in 1943 and is based in McPherson, Kansas. The Company operates as inter-regional petroleum cooperative that

offers petroleum products to farm cooperatives.

■ August 31st – Gulfport Energy Corp. (NasdaqGS:GPOR) completed the acquisition of Paloma Partners III, LLC from

Macquarie Group Limited, Investment Arm. Paloma Partners III, LLC was incorporated in 2012 and is based in

Houston, Texas. The Company is an oil and gas company that operates in the acquisition and development of acreage in the

United States.

■ August 19th – Renewable Energy Group, Inc. (NasdaqGS:REGI) (REG) signed an asset purchase agreement to acquire

substantially all the assets of Imperium Renewables, Inc. for $37.5 million in cash and stock. Imperium Renewables, Inc.

was founded in 2004 and is based in Seattle, Washington. The Company produces and markets biodiesel in the United

States.

■ August 13th – American Power Group, Inc. acquired substantially all assets of Trident Resources, LLC from Thomas

Lockhart for $2 million. Trident Resources, LLC was founded in 2010 and is based in Houston. Texas. The Company

produces captured natural gas and liquid natural gas and operates as a subsidiary of American Power Group, Inc.



4

Sources: EIA, Cap IQ

MERGERS AND ACQUISITIONS

SEPTEMBER 2015

28

7

70

27

97

50

33

8

97

3235

4

182

60

29

15

0

20

40

60

80

100

120

140

160

180

200

Energy Utilities Energy Utilities

M&A Private Placement

# o

f D

eals

Middle Market Trends for Energy & Power Companies

Q3 2015 Q2 2015 Q1 2015 Q4 2014

SEPTEMBER 2015



■ August 12th – SunCoke Energy Partners, L.P. completed the acquisition of an additional 23% stake in Gateway Energy &

Coke Company, LLC from SunCoke Energy Inc. (NYSE:SXC) for $66.6 million. Gateway Energy & Coke Company is

based in Lisle, Illinois and was formerly known as Granite City Coke Company, LLC. The Company owns and operates

coke and steam generation facilities.

■ August 1st – Westmoreland Resource Partners, LP (NYSE:WMLP) completed the acquisition of Westmoreland

Kemmerer, LLC from Westmoreland Coal Co. (NasdaqGM:WLB). Westmoreland Kemmerer, LLC is based in

Kemmerer, Wyoming and owns and operates a coal mine.

■ July 31st – Alliance Resource Partners LP (NasdaqGS:ARLP) completed the acquisition of remaining 60% stake in

White Oak Resources, LLC from White Oak Finance, Inc., Acon Investments, LLC, and other investors and members of

White Oak management for $50 million in cash. White Oak Resources, LLC was incorporated in 2006 and is based in

McLeansboro, Illinois. The Company engages in development, mining, and exploration of coal mines.

■ July 31st – Legacy Reserves Operating LP completed the acquisition of Dew Gathering LLC from WGR Operating, LP

for approximately $150 million in cash. Dew Gathering LLC is based in Dallas, Texas and owns and operates a 324 mile

natural gas pipeline gathering system and oil storage facilities.

■ July 22nd – Tesoro Logistics LP (NYSE:TLLP) completed the acquisition of a 42.25% stake in QEP Midstream

Partners, LP (NYSE:QEPM). QEP Midstream Partners, LP was founded in 2013 and is based in San Antonio, Texas.

The Company provides gathering, compression, transportation, and processing services to producers and users of natural

gas and crude oil in the United States.

■ July 15th – Kinder Morgan, Inc. (NYSE:KMI) completed the acquisition of the remaining 49% stake in Elba

Liquefaction Company, LLC from Shell U.S. Gas & Power LLC for $200 million. Elba Liquefaction Company, LLC

was incorporated in 2013 and is based in Savannah, Georgia. The Company owns and operates Elba Liquefaction Project

with 10 small-scale liquefaction units and produces approximately 350,00 million cubic feet per day of natural gas.

■ July 14th – Arc Terminals Holdings LLC acquired UET Midstream, LLC from United Energy Trading, LLC and

Hawkeye Midstream, LLC for approximately $76.5 million. UET Midstream, LLC is based in Lakewood, Colorado and

owns and operates a crude oil terminal.

■ July 1st – Shell Midstream Operating LLC acquired a 36% stake in Poseidon Oil Pipeline Company, LLC from

Equilon Enterprises LLC for $350 million. Poseidon Oil Pipeline was incorporated in 1996 and is based in Houston,

Texas. The Company offers crude oil pipeline system for oil transportation in the Gulf of Mexico.

■ July 1st – Pennsylvania Services Corporation acquired the remaining 50% stake in Pennsylvania Land Resources

Holding Company, LLC from EDF Trading Resources, LLC for approximately $130 million. Pennsylvania Land

Resources Holding Company, LLC was founded in 2013 and is based in Waynesburg, Pennsylvania. The Company provides

oil and gas exploration and production services.

■ July 1st – Pacific Ethanol, Inc. (NasdaqCM:PEIX) completed the acquisition of Aventine Renewable Energy

Holdings, Inc. (OTCPK:AVRW) from Candlewood Investment Group, LP and others. Aventine Renewable Energy

Holdings, Inc. was founded in 1981 and is headquartered in Pekin, Illinois. The Company engages in the production and

marketing of corn-based fuel-grade ethanol in the U.S.

Source: Cap IQ

5




Source: Cap IQ

6



RECENT POWER TRANSACTIONS:

■ August 31st – Southern Renewable Partnerships, LLC completed the acquisition of a majority controlling interest in

Desert Stateline Holdings, LLC from First Solar, Inc. (NasdaqGS:FSLR) for approximately $440 million. Desert

Stateline Holdings, LLC operates as a subsidiary of Southern Renewable Partnerships, LLC.

■ August 26th – Argo Infrastructure Alliance (AIA) Energy North America, a fund managed by Argo Infrastructure

Partners completed the acquisition of Cross-Sound Cable Company, LLC from Brookfield Infrastructure Partners,

LP (NYSE:BIP) and others. Cross-Sound Cable Company, LLC was founded in 2002 and is based in Marlborough,

Massachusetts. The Company provides high voltage electrical transmission services.

■ August 3rd – Pattern Energy Group, Inc. (NasdaqGS:PEGI) completed the acquisition of the remaining stake in Pattern

Gulf Wind LLC from Metlife Capital and Pattern Energy Group LP for approximately $240 million in cash. Pattern

Gulf Wind LLC was incorporated in 2009 and is headquartered in Sarita, Texas. The Company owns and operates a 283

MW wind power plant.

■ July 31st – Spark HoldCo, LLC completed the acquisition of CenStar Energy Corp. for $8.3 million in cash. CenStar

Energy Corp. is based in New Rochelle, New York and supplies natural gas and electricity to businesses and residential

customers in New York, New Jersey, and Ohio.

■ July 2nd – Crius Energy Corporation completed the acquisition of a 16.3% stake in Crius Energy, LLC from Michael

Fallquist, GF Power I, LLC and GF Factoring, LP. Crius Energy LLC was founded in 2012 and is based in Stamford,

Connecticut. The Company operates as an independent energy retailing company.

■ July 2nd – ALLETE Clean Energy, Inc. completed the acquisition of AES Armenia Mountain Wind, LLC from The

AES Corporation (NYSE:AES) and other shareholders.

■ June 30th – Full Circle Capital Corporation (NasdaqGM:FULL) is a fund managed by Full Circle Advisors, LLC and

acquired an unknown stake in Granite Ridge Energy, LLC for $13 million. Granite Ridge Energy, LLC was founded in

1998 and is based in Londonderry, New Hampshire. The Company owns and operates electric power facilities.

■ June 29th – Eagle Mountain LLC completed the acquisition of Kaiser Eagle Mountain, LLC from CIL&D, LLC for $25

million. Kaiser Eagle Mountain, LLC was incorporated in 2001 and is based in Ontario, California. The Company provides

electricity generation services.

■ June 29th – NRG Yield Operating LLC completed the acquisition of 25% interest in Desert Sunlight Investment

Holdings, LLC from GE Energy Financial Services for approximately $290 million. Desert Sunlight Investment

Holdings, LLC was incorporated in 2011 and is based in Juno Beach, Florida. The Company owns and operates solar

photovoltaic facilities.


■ June 30th – Eagle Rock Energy Partners, L.P. (NasdaqGS:EROC) completed the sale of remaining units of Energy

Transfer Partners, L.P. (NYSE:ETP) for approximately $200 million. Energy Transfer Partners, L.P. was founded in

2995 and is based in Dallas, Texas. The Company engages in the natural gas midstream, and intrastate transportation and

storage businesses in the U.S.

■ June 30th – United Airlines, Inc. acquired an unknown stake in Fulcrum BioEnergy, Inc. for $30 million. Fulcrum

BioEnergy, Inc. was founded in 2007 and is based in Pleasanton, California. The Company develops processes for

transforming municipal solid waste into a source of low-cost, low-carbon transportation fuels including jet fuel and diesel.


SEPTEMBER 2015

SEPTEMBER 2015


Source: Cap IQ

7


PRIVATE PLACEMENTS

RECENT ENERGY PRIVATE PLACEMENT TRANSACTIONS:

■ September 23rd – Bluewing Midstream, LLC raised approximately $100 million in equity funding from new investor Energy

Spectrum Capital. The Company, headquartered in Houston, Texas, is an energy logistics company that acquires, operates,

and optimizes terminals, storgae, and transportation facilities on the Golf Coast of the United States.

■ September 10th – Hendricks Omnis Holding Co, LLC raised $20.69 million in a round of funding. The Company will issue

membership units pursuant to exemption provided under Regulation D. Hendricks Omnis Holding Co, based in Lexington,

KY, operates as a coal mining company.

■ August 27th – Reeder Energy Partners, LP raised $3.25 in equity and included participation from 14 investors. The

Company operates as an oil exploration and production company

■ August 24th – Evolution Midstream, LLC raised $300 million in equity from EnCap Investments LP and EnCap

Flatrock Midstream. Evolution Midstream offers integrated midstream solutions to oil and gas producers. The Company’s

services include natural gas gathering, processing, treating and compression, crude oil gathering, transportation and

marketing, water delivery, and produced water disposal.

■ August 19th – Southcross Holding LP raised $125 million in equity from EIG Global Energy Partners, Charlesbank

Capital Partners, LLC, and Tailwater Capital, LLC. Southcross Holdings LP owns and operates gathering and

fractionation assets in the midstream energy sector.

■ August 17th – Monadnock Resources, LLC raised $100 million in equity from Kayne Anderson Capital Advisors, LP.

The Company, based in Addison, Texas, is engaged in the exploration and production of oil and gas, and focuses on the

acquisition and development of oil and natural gas assets in North America.

■ August 6th – Hicor Technologies, Inc. raised $3.5 million in funding and will issue common stock in the transaction. Hicor

Technologies, Inc. provides end-to-end transportation solution for transporting natural gas using its virtual pipeline system.

■ July 17th – EVX Midstream Partners, LLC raised $75 million in equity from Five Point Capital Partners. The Company,

headquartered in The Woodland, Texas, is a midstream development company that focuses on acquiring, developing, and

operating crude oil, natural gas, and produced water gathering, processing, treating, and transportation assets in the Permian

Basin.

■ July 16th – Oak Ridge Natural Resources, LLC raised $300 million in equity from Kayne Anderson Capital Advisors,

LP. The Company, based in Tulsa, Oklahoma, provides oil and gas exploration and production services and acquires,

develops large, long-life producing oil and gas assets in North America, focusing on Ark-La-Tex and Mid-Continent regions.

■ July 15th – Fairway Energy Partners, LLC raised approximately $51 million which included participation from 29 investors.

Fairway Energy Partners, based in Houston Texas, is a midstream asset development company that engages in developing

the Pierce Junction crude oil storage project.

■ July 10th – Triumph Energy Partners, LLC raised $100 million in equity from Kayne Anderson Capital Advisors, LP.

Triumph Energy Partners is based in Tulsa, Oklahoma and offers oil and gas exploration and production.

■ July 9th – Balidor Oil & Gas, LLC raised $150 million in equity from Kayne Anderson Capital Advisors, LP. The

Company, based in Houston, Texas, explores and develops oil and gas properties.

■ July 7th – Stakeholder Midstream, LLC raised $250 million from EnCap Flatrock Midstream. Stakeholder Midstream,

based in San Antonio, Texas, designs, builds, and operates a range of natural gas, NGL, and crude oil infrasture solutions.

SEPTEMBER 2015


Source: Cap IQ

8


PRIVATE PLACEMENTS

RECENT ENERGY PRIVATE PLACEMENT TRANSACTIONS:

■ July 7th – Amistad Energy Partners, LLC raised $150 million in equity from Kayne Anderson Capital Advisors, LP.

Amistad Energy Partners is based in Houston, Texas and offers oil and gas exploration services.

■ July 7th – Fulcrum BioEnergy, Inc. raised $30 million in funding from an undisclosed investor. Fulcrum BioEnergy, based

in Pleasanton, California, develops processes for transforming municipal solid waste into a source of low-cost, low-carbon

transportation fuels, including jet fuel and diesel.

RECENT POWER PRIVATE PLACEMENT TRANSACTIONS:

■ August 13th – Apex Clean Energy closed the transaction of receiving $30 million in its funding and included participation

from existing investor Prudential Capital Group, LP. Apex Clean Energy Holdings, LLC was founded in 2014 and is

based in Bethesda, Maryland. The Company engages in developing, building, and operating wind energy facilities.

■ July 31st – Spark Energy, Inc. (NasdaqGS:SPKE) closed the transaction of one 5% subordinated convertible note for

gross proceeds of $5 million. The note carries a fixed coupon of 5% per annum and the note is convertible into shares of

class B common stock at a conversion price of $14.00 following an 18-month holding period. Spark Energy, Inc. was

founded in 1999 and is headquartered in Houston, Texas. The Company operates as an independent retail energy services

company.

■ July 21st – Geopower Energy, LLC closed the transaction of receiving $3,046,172 million in funding from a single investor.

Geopower Energy, LLC was incorporated in 2010 and is based in Park City, Utah. The Company develops a portfolio of

renewable projects with a focus on base load generation renewable energy power projects.

PRIVATE PLACEMENTS

Emerging Energy Company UpdateAnalysis of Comparable Publicly Traded Smid Cap Companies & Utilities(US$ in millions, except per share data)

Sales EBITDA Net Income EV / Sales EV / EBITDA

Mkt Cap Enterprise LTM

Company Ticker 9/24/15 Value LTM $ 2015 E LTM 2015 E LTM LTM 2015 E

Smid Cap Pipelines/MLP's:

Chesapeake Granite Wash Trust CHKR $224.9 $223.5 $68.4 NA NA $42.2 NA 3.3x NA NA

Calumet Specialty Products Partners LP CLMT $1,850.1 $3,588.9 $5,190.0 $304.9 $424.0 $10.2 $143.1 0.7x 11.8x 8.5x

Delek Logistics Partners, LP DKL $761.7 $1,071.0 $717.0 $93.4 $103.1 $39.4 $68.6 1.5x 11.5x 10.4x

Holly Energy Partners L.P HEP $1,709.3 $2,585.5 $343.8 $222.0 $234.7 $35.0 $90.5 7.5x 11.6x ` 11.0x

Memorial Production Partners LP MEMP $432.1 $2,262.5 $424.0 $529.4 $340.4 ($7.6) $36.0 5.3x 4.3x 6.6x

Midcoast Energy Partners, L.P. MEP $487.0 $3,708.2 $4,504.2 $270.8 $92.7 $124.8 ($23.5) 0.8x 13.7x NM

Enduro Royalty Trust NDRO $92.1 $92.0 $16.9 NA $25.8 $10.1 $10.6 5.4x NA 3.6x

Niska Gas Storage Partners LLC NKA $123.8 $864.8 $113.3 ($15.7) $31.0 ($49.1) ($112.6) 7.6x NM NM

NuStar GP Holdings, LLC NSH $1,141.1 $1,166.7 $78.3 NA NA $45.5 $77.1 NM NA NA

Summit Midstream Partners, LP SMLP $1,112.6 $1,995.6 $320.7 $173.1 $210.0 $18.4 $7.2 6.2x 11.5x 9.5x

Southcross Energy Partners, L.P. SXE $313.8 $2,052.6 $787.2 $48.0 $77.0 ($32.4) ($71.3) 2.6x NM NM

USA Compression Partners, LP USAC $791.1 $1,100.4 $249.4 $132.7 $146.9 $23.0 $5.5 4.4x 8.3x 7.5x

Western Refining Logistics, LP WNRL $1,012.9 $1,889.1 $3,008.8 $100.2 $118.6 $55.3 $72.5 0.6x 18.9x 15.9x

High 7.6x 18.9x 15.9x

Low 0.6x 4.3x 3.6x

Mean 3.8x 11.4x 9.1x

Median 3.8x 11.6x 9.0x

Generation:

American DG Energy, Inc. ADGE $18.5 $32.9 $8.6 ($2.5) NA ($2.9) NA 3.8x NM NA

Ameresco, Inc. AMRC $274.9 $447.6 $617.9 $42.1 $46.3 $6.5 $9.8 0.7x 10.6x 9.7x

Capstone Turbine Corp. CPST $144.8 $139.0 $119.2 ($25.1) ($25.5) ($17.1) ($38.2) 1.2x NM NM

Covanta Holding Corporation CVA $2,434.5 $4,791.5 $1,640.0 $357.0 $436.6 $17.8 $31.0 2.9x 13.4x 11.0x

FuelCell Energy Inc. FCEL $212.1 $235.4 $166.0 ($21.9) ($21.2) ($20.6) ($30.5) 1.4x NM NM

High 3.8x 13.4x 11.0x

Low 0.7x 10.6x 9.7x

Mean 2.0x 12.0x 10.3x

Median 1.4x 12.0x 10.3x

Valuation MetricsOperating MetricsMarket Statistics

9






Infrastructure:

Badger Meter Inc. BMI $854.7 $915.0 $368.2 $60.5 $59.4 $25.6 $28.2 2.5x 15.1x 15.4x

CECO Environmental Corp. CECE $285.3 $379.9 $307.4 $38.5 $43.0 $11.6 $32.1 1.2x 9.9x 8.8x

CIRCOR International, Inc. CIR $671.4 $730.5 $755.1 $92.2 $80.2 $44.0 $39.3 1.0x 7.9x 9.1x

Enphase Energy, Inc. ENPH $173.8 $158.9 $393.1 $7.5 $2.7 ($2.9) $3.3 0.4x NM NM

ESCO Technologies Inc. ESE $953.1 $981.7 $535.1 $83.7 $88.2 $40.7 $44.8 1.8x 11.7x 11.1x

Fuel Systems Solutions, Inc. FSYS $91.6 $35.6 $300.9 $4.6 $5.8 ($4.2) ($11.7) 0.1x 7.8x 6.1x

Graham Corporation GHM $169.6 $107.1 $134.3 $25.5 $17.9 $14.6 $9.3 0.8x 4.2x 6.0x

Global Power Equipment Group Inc. GLPW $65.8 $102.0 $538.5 $26.9 NA $9.5 $8.6 0.2x 3.8x NA

Gorman-Rupp Co. GRC $612.9 $592.9 $418.3 $60.8 $57.9 $28.8 $28.6 1.4x 9.8x 10.2x

MFRI, Inc. MFRI $38.0 $59.8 $159.7 ($6.7) NA ($7.1) NA 0.4x NM NA

MTS Systems Corporation MTSC $846.8 $829.7 $563.6 $83.5 $86.0 $39.1 $43.9 1.5x 9.9x 9.7x

Powell Industries, Inc. POWL $348.7 $288.1 $662.4 $31.3 $48.2 $12.1 $21.7 0.4x 9.2x 6.0x

Power Solutions International, Inc. PSIX $259.1 $411.7 $378.7 $33.2 $32.6 $18.0 $12.4 1.1x 12.4x 12.6x

High 2.5x 15.1x 15.4x

Low 0.1x 3.8x 6.0x

Mean 1.0x 9.2x 9.5x


Technology:

Advanced Emissions Solutions, Inc. ADES $156.5 $174.5 $269.3 $9.2 $20.1 ($8.1) ($2.9) 0.6x 18.9x 8.7x

Advanced Energy Industries, Inc. AEIS $1,028.8 $845.6 $573.8 $85.9 $64.0 $41.7 $83.0 1.5x 9.8x 13.2x

Energy Recovery, Inc. ERII $116.5 $93.7 $36.5 ($17.4) ($7.0) ($13.2) ($11.6) 2.6x NM NM

Hydrogenics Corporation HYGS $86.3 $89.8 $41.7 ($5.0) ($6.4) ($4.9) ($10.0) 2.2x NM NM

Lightbridge Corp. LTBR $17.1 $14.7 $1.1 NA NA ($2.7) NA NM NA NA

Plug Power Inc. PLUG $347.2 $241.8 $74.8 ($40.2) ($27.7) ($22.0) ($36.9) 3.2x NM NM

High 3.2x 18.9x 13.2x

Low 0.6x 9.8x 8.7x

Mean 2.0x 14.4x 11.0x

Median 2.2x 14.4x 11.0x

10






Services:

Broadwind Energy, Inc. BWEN $35.5 $44.0 $230.4 $2.1 $8.0 ($6.2) ($2.9) 0.2x NM 5.5x

Ecology & Environment, Inc. EEI $49.9 $49.2 $124.8 $6.3 NA $2.5 NA 0.4x 7.8x NA

ENGlobal Corp. ENG $29.1 $20.2 $98.0 $6.5 NA $3.0 NA 0.2x 3.1x NA

EnerNOC, Inc. ENOC $236.0 $233.6 $498.4 $48.2 ($17.9) $2.6 ($50.0) 0.5x 4.8x NM

Fuel-Tech, Inc. FTEK $47.0 $32.0 $74.0 $0.5 ($1.6) ($3.3) ($4.4) 0.4x NM NM

Furmanite Corporation FRM $233.0 $263.1 $510.0 $31.6 $34.7 $10.1 $12.7 0.5x 8.3x 7.6x

GSE Systems Inc. GVP $24.7 $15.0 $48.6 ($2.4) NA ($2.0) NA 0.3x NM NA

Integrated Electrical Services, Inc. IESC $161.8 $127.2 $550.0 $15.6 NA $7.2 NA 0.2x 8.2x NA

Mistras Group, Inc. MG $386.7 $509.2 $711.3 $57.6 $69.1 $12.9 $15.4 0.7x 8.8x 7.4x

Matrix Service Company MTRX $608.9 $529.7 $1,343.1 $32.3 $59.2 $24.2 $28.8 0.4x 16.4x 9.0x

PowerSecure International, Inc. POWR $263.4 $263.2 $333.5 $12.5 $22.8 $1.0 $5.4 0.8x NM 11.5x

TRC Companies Inc. TRR $361.1 $323.7 $414.6 $40.0 NA $19.1 NA 0.8x 8.1x NA

High 0.8x 16.4x 11.5x

Low 0.2x 3.1x 5.5x

Mean 0.5x 8.2x 8.2x


Utility Scale Generation:

DTE Energy Company DTE $14,227.0 $23,317.0 $10,925.0 $2,442.0 $2,573.5 $715.6 $849.0 2.1x 9.5x 9.1x

NextEra Energy, Inc. NEE $45,406.1 $74,892.1 $17,781.0 $8,106.0 $7,379.1 $2,624.8 $2,603.7 4.2x 9.2x 10.1x

NRG Energy, Inc. NRG $4,983.0 $26,228.0 $15,984.0 $3,154.0 $3,240.4 $228.4 $459.5 1.6x 8.3x 8.1x

PG&E Corporation PCG $25,886.7 $42,449.7 $17,363.0 $4,668.0 $5,243.1 $865.0 $1,473.7 2.4x 9.1x 8.1x

Public Service Enterprise Group Inc. PEG $20,684.7 $29,391.7 $10,863.0 $4,495.0 $4,063.3 $1,701.3 $1,475.3 2.7x 6.5x 7.2x

Southern Company SO $40,081.6 $67,768.6 $17,876.0 $6,176.0 $6,867.5 $1,996.9 $2,575.2 3.8x 11.0x 9.9x

Sempra Energy SRE $23,289.2 $38,065.2 $10,611.0 $3,170.0 $3,500.8 $974.1 $1,203.5 3.6x 12.0x 10.9x

High 4.2x 12.0x 10.9x

Low 1.6x 6.5x 7.2x

Mean 2.9x 9.4x 9.1x


11

SELECTED ENERGY TRANSACTIONS

NEW YORK CITY

489 Fifth Avenue

16th Floor

New York, NY 10017

212-798-8200

PHILADELPHIA

Eight Tower Bridge

161 Washington Street

Suite 310

Conshohocken, PA 19428

484-586-8200

www.finra.org

www.sipc.org

www.bryantparkcapital.com

SEPTEMBER 2015


EXECUTIVES &

PRINCIPALS

Joel Magerman

Managing Partner

Dan Avnir

Managing Director

Volfi Mizrahi

Managing Director

Dan Pickens

Managing Director

John Poeta

Managing Director

Edward Wu

Managing Director

The information in this newsletter is believed by Bryant Park Capital to be accurate and current and comes from reliable sources. However, unintentional errors

may occur. With this being said the information is “as is” and without any representation or warranty of any kind, implied or expressed. Reproduction,

retransmission, republication, or use of any of this document is prohibited.

12

Why Bryant Park?

Energy and Power Experience

We have extensive experience working with and advising energy and power driven

businesses

We understand the issues

We know how to analyze the company

We know how to position it properly

Access to Capital Sources

Extensive network of investors, lenders and buyers in the space

Proven Track Record

Have consistently brought incremental value to our clients

Founded in 1991, Bryant Park Capital (“BPC”) is a boutique investment bank which assists both public and

private companies in meeting their strategic objectives through Merger and Acquisition, Capital Raising and

Strategic Advisory services. BPC's principals have an average of 20 years of experience as investment bankers,

portfolio managers, entrepreneurs and operators in both private and public enterprises and have successfully

completed over 385 M&A and capital raising assignments with an aggregate deal value of over $80 billion.

Securities are offered through Bryant Park Capital Securities, Inc., a licensed broker-dealer and FINRA and

SIPC member firm


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