Treadstone II Receives $100 Million Equity Commitment

HOUSTON--()--Following the successful divestment of the Fort Trinidad field in July 2014, the former team of Treadstone Energy Partners, LLC (“Treadstone I”) is pleased to announce that it has formed Treadstone Energy Partners II, LLC (“Treadstone II” or the “Company”) with a $100 million equity commitment from Kayne Anderson Energy Fund VI, L.P. (“Kayne Anderson”) and members of the management team.

Treadstone II is a private exploration and production company formed to pursue acquire and exploit opportunities with scalable exploitation and development upside. The Company will focus on opportunities in the Mid-Continent region and Texas. The Treadstone II management team is led by Frank McCorkle, Key Sanford, and Gene Roberts, the three founding management team members of Treadstone I. In 2011, Treadstone I acquired the Fort Trinidad field (consisting of 18,300 net acres located in Houston and Madison Counties, Texas) for $17.7 million. Treadstone I subsequently ran a 3-rig development program and increased production from less than 20 bopd at the time of acquisition to over 10,000 bopd at exit. On July 22, 2014, Treadstone I sold the Fort Trinidad field to Energy & Exploration Partners for total consideration of $715 million. Based on its success with the Fort Trinidad field, Treadstone I received the Oil & Gas Investor Magazine’s “Best Field Rejuvenation” award for 2013.

Frank McCorkle commented, “We are excited to partner with Kayne Anderson again for Treadstone II. Our success with Treadstone I is directly tied to the working relationship we have with our Kayne portfolio team, who provides exceptional advice, challenge and insights to our analyses and plans. Our larger equity commitment shows our intent to grow a larger company with Treadstone II.”

“We are excited to recommit capital to an accomplished management team with an outstanding track record of evaluating, acquiring and developing oil and gas assets,” said Mike Heinz, Managing Partner at Kayne Anderson. “We look forward to the Company’s future growth.”

ABOUT TREADSTONE II

Headquartered in Houston, Texas, Treadstone II will pursue acquisitions of property sets with scalable exploitation and development upside. The Company will consider opportunities throughout select North American basins with an initial focus on the Mid-Continent region and Texas. For more information, please visit www.treadstone-ep.com or call 713-482-2990.

ABOUT KAYNE ANDERSON

Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading independent alternative investment management firm focused on niche investing in upstream oil and gas companies, energy infrastructure, specialized real estate, middle market credit, growth private equity and distressed municipal opportunities. Kayne’s investment philosophy is to pursue niches, with an emphasis on cash flow, where its knowledge and sourcing advantages enable it to deliver above average, risk-adjusted investment returns. Kayne manages approximately $30 billion in assets (as of 10/31/2014) for institutional investors, family offices, high net worth and retail clients and employs nearly 250 professionals in eight offices across the United States.

Through Kayne Anderson Energy Funds, the firm manages over $4.0 billion of committed capital dedicated to private equity investments in primarily upstream and midstream oil and gas companies. Currently, the firm has 35 active portfolio companies focused on upstream and midstream oil and gas assets across North America.

The firm is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta and Boca Raton. For more information, please visit www.kaynecapital.com.

Contacts

Treadstone Energy Partners, LLC
Frank McCorkle, 713.482.2991

Contacts

Treadstone Energy Partners, LLC
Frank McCorkle, 713.482.2991