Quintana Capital Group, L.P. 3 RD QUARTER MEETING 2011 The Petroleum - PowerPoint PPT Presentation

Quintana Capital Group, L.P. 3 RD QUARTER MEETING 2011 The Petroleum Club Monday, September 12 th , 2011 8:30 a.m. to 5:00 p.m.

3 RD QUARTER MEETI NG The Petroleum Club Monday, September 12 th , 2011 8:30 a.m. to 5:00 p.m. Meeting Objectives  Fund Level Alignment on Return and Timing Objectives (Fund I/II) o  Investment Level: 8:30 a.m. to 9:00 a.m. Alignment on Valuation and Exit Objectives for Key Investments o Identify Critical Path Issues and Milestones for Key Investments o Revisit and Align on Plan to Track Performance Against Objectives o  Establish Fund III Objectives Fund Level Performance and Strategic Assessment Fund Performance  Return Analysis (as of 6/30/11)  Exit and Return Scenarios 9:00 a.m. to 10:00 a.m.  Uncommitted Capital and Balance Sheet  Current Valuations vs. Exit Scenarios (Opportunity Cost Analysis) J. McDonald Strategic Assessment  Investment Horizon  10:00 a.m. to 11:00 a.m. Peer/Vintage Analysis & LP Expectations  Long Term QEP Objectives (Fund III) L. Soetenga Investment Level Valuation and Exit Assessment Downstream and Coal Services  Talen’s (30 Min each) 11:00 a.m. to 1:00 p.m.  Taggart  AmerCable 12:00 p.m. Working Lunch – to be served at 12:00 Oil and Gas Services  1:00 p.m. to 2:30 p.m. MWD Services  Quintana WellPro Oil and Gas Upstream  Irion Minerals 2:30 pm to 4:00 pm  Prize Petroleum  Deep Gulf Energy I/II Board Meeting 4:00pm – 5:00 pm Board Meeting

Quintana Capital Group, L.P. Financial Overview September 12, 2011 9:00am to 10:00am Jimmy McDonald

3 | Quintana Capital Group, L.P.  Fund I & II Scenarios  Status of Funds  Hurdle Review

Quintana Capital Group, L.P. Status of Funds Fund I Fund II   $0.00 Unallocated Dry Powder $56.4 million Unallocated Dry Powder   $40.0 million Allocated Dry Powder $155.0 million Allocated Dry Powder   $46.6 million outstanding under the Citi facility $58.4 million outstanding under the Natixis (including Kopper Glo Note Payable) facility (including Chase LC’s) – $4.0 million available under the Citi facility – $16.6 million available under the Natixis facility   Approximately $5.3 million of liquidity Approximately $18.3 million of liquidity available for portfolio company capital calls available for portfolio company capital calls (capital needs in excess of current liquidity (capital needs in excess of current liquidity will require a Fund capital call) will require a Fund capital call) | 4

Quintana Capital Group, L.P. Fund I & II Scenarios Pref Undistr Profit Carried Fund I Scenario Total Proceeds Capital Returned Return Pref Split Interest ROI IRR GP GP Total (Capital Total (Capital GP LP GP LP LP LP LP GP Fund GP LP interest) Fund GP LP interest) Scenario I - 6-30-11 Hypothetical Liquidation (p. 5) $32.8 $597.7 $24.7 $509.7 $88.0 $67.7 $0.0 $0.0 1.2x 1.3x 1.2x 1.3x 4.9% 8.1% 4.7% 8.1% Scenario II – exit scenarios (no impairments) (p. 6) $42.7 $775.3 $24.7 $522.8 $252.5 $24.7 $0.0 $0.0 1.5x 1.7x 1.5x 1.7x 8.8% 22.0% 8.3% 11.6% Scenario III – exit scenarios (with impairments 1 ) (p. 6) $65.2 $752.8 $24.7 $520.3 $226.9 $0.0 $5.6 $22.0 1.5x 2.6x 1.4x 1.7x 8.8% 20.1% 8.1% 11.6% 1 Investment in EFH and Talen's are impaired in Scenario III. Pref Undistr Profit Carried Fund II Scenario Total Proceeds Capital Returned Return Pref Split Interest ROI IRR GP GP Total (Capital Total (Capital GP LP GP LP LP LP LP GP Fund GP LP interest) Fund GP LP interest) Scenario I - 6-30-11 Hypothetical Liquidation (p. 7) $33.9 $164.9 $9.2 $105.2 $14.0 $0.0 $45.7 $14.9 1.7x 3.7x 1.6x 2.1x 35.9% 73.4% 29.7% 35.4% Scenario II – Chase development fee 2 (p. 8) $67.9 $264.8 $9.2 $120.9 $28.6 $0.0 $115.2 $36.0 2.6x 7.4x 2.2x 3.5x 34.7% 64.9% 29.4% 36.9% Scenario III – Chase = cost (p. 9) $51.1 $221.0 $9.2 $120.9 $28.6 $0.0 $71.4 $25.0 2.1x 5.6x 1.8x 2.8x 26.3% 52.2% 21.9% 29.6% Scenario IV – Chase = 50% cost (p. 10) $45.3 $206.0 $9.2 $120.9 $28.6 $0.0 $56.4 $21.3 1.9x 4.9x 1.7x 2.6x 23.1% 47.1% 19.1% 26.9% Scenario V – Chase = 0 (p. 11) $39.6 $191.0 $9.2 $120.9 $28.8 $0.0 $41.3 $17.5 1.8x 4.3x 1.6x 2.4x 20.0% 42.2% 16.3% 24.3% 2 Chase development fee scenario assumes $75 million development fee plus expenses received by Chase Power Development LLC. | 5

Quintana Capital Group, L.P. Fund I & II Scenarios - Assumptions  Fund I 6-30-11 Hypothetical Liquidation (FAS Values reduced by outstanding fund debt) EXIT ASSUMPTIONS Previously QEP share Distributed Exit Date / net of Capital / Distribution promote per QEP Proceeds Realized Total Date Enterprise Value Net Debt 8/8 Equity Value 6/30/11 FAS Net of Fund Debt Investments Distributions XL Prospect 12/31/2009 - - - - - - - Beryl Oil & Gas Company GP 12/31/2009 - - - - - 315,821 315,821 Gulfstream Terminals & Marketing, LLC 5/25/2011 - - - - - 4,407,189 4,407,189 IRION Minerals (partial interest) 5/25/2011 - - - - - 7,477,564 7,477,564 Cypress Eaglewood 5/25/2011 - - - - - 7,415,625 7,415,625 Stone Mountain Resources, Ltd 6/30/2011 150,510,000 18,700,000 131,810,000 26,362,000 6,843,320 - 6,843,320 Quintana WellPro 6/30/2011 90,800,000 (9,000,000) 99,800,000 92,800,000 89,490,000 9,500,000 98,990,000 Q Consolidated Oil Well Services, LLC 6/30/2011 173,800,000 21,500,000 152,300,000 142,837,000 142,837,000 - 142,837,000 Taggart Global, LLC 6/30/2011 79,240,426 6,900,000 72,340,426 34,000,000 34,000,000 1,768,793 35,768,793 AmerCable Incorporated 6/30/2011 201,823,949 122,100,000 79,723,949 43,609,000 43,609,000 687,195 44,296,195 Q Directional Drilling Company, LLC 6/30/2011 118,861,724 27,100,000 91,761,724 72,400,000 69,090,000 7,581,650 76,671,650 MWD Services, LLC (includes NES) 6/30/2011 35,000,000 (1,000,000) 36,000,000 26,600,000 25,080,070 173,298 25,253,368 Deep Gulf Energy, L.P. 6/30/2011 277,911,019 (33,200,000) 311,111,019 13,500,000 13,500,000 3,003,290 16,503,290 Kopper Glo Fuel Inc. 6/30/2011 70,926,316 10,400,000 60,526,316 48,325,000 48,325,000 - 48,325,000 Deep Gulf Energy II, L.P. 6/30/2011 211,055,726 (14,200,000) 225,255,726 9,980,000 6,049,375 - 6,049,375 Prize Petroleum, LLC 6/30/2011 160,757,211 48,400,000 112,357,211 58,819,000 56,486,437 - 56,486,437 Texas Energy Future LP 6/30/2011 35,000,000,000 34,000,000,000 1,000,000,000 4,180,000 4,180,000 - 4,180,000 IDS 6/30/2011 3,000,000 - 3,000,000 2,625,000 2,625,000 - 2,625,000 Talen's Marine & Fuel, LLC 6/30/2011 41,000,000 12,800,000 28,200,000 28,200,000 28,200,000 - 28,200,000 Team CO2, LLC 6/30/2011 8,122,511 (600,000) 8,722,511 4,363,000 3,535,500 154,166 3,689,666 IRION Minerals, LLC (remaining interest) 6/30/2011 5,060,000 (1,600,000) 6,660,000 6,660,000 6,660,000 - 6,660,000 Falcon VPP, LP 6/30/2011 209,570,000 198,300,000 11,270,000 11,270,000 2,043,015 5,488,359 7,531,374 Total QEP I 36,837,438,882 34,406,600,000 2,430,838,882 626,530,000 582,553,717 47,972,950 630,526,667 | 6