Riverstone Holdings and The Carlyle Group Commit $200 Million to Legend Natural Gas III

New York, NY – Carlyle/Riverstone Global Energy and Power Fund III (Fund) and management have committed $200 million to Legend Natural Gas III, L.P. (Legend III), a new company that will acquire, develop and exploit long-lived onshore, primarily natural gas properties in and around South Texas. In addition to their $200 million commitment, the Fund and management have an at-cost option to invest an additional $100 million, providing certain investment landmarks are achieved.

Legend III, based in Houston, TX, is led by the same team that led Legend Natural Gas, L.P. (Legend I), including President and Chief Executive Officer James A. Winne III and Vice President and Chief Financial Officer Michael Becci. This team will also continue to lead Legend Natural Gas II, L.P. (Legend II), allowing both entities to benefit from a larger scale operation, including cost savings, improved asset utilization and enhanced development opportunities. Legend I was sold in August 2004 to Chesapeake Energy Corporation.

Gregory A. Beard, a Managing Director of Riverstone, said, "We are excited that we can extend our partnership with one of the best teams in the industry and hope we can duplicate the success of Legend I and the ongoing success of Legend II. There is an attractive set of external growth opportunities for the company and we are eager to get started."

James A. Winne, CEO of Legend II and Legend III, said, "The dynamics of the industry remain strong and there are promising growth opportunities in our traditional operating areas in Texas."

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Riverstone Holdings LLC and The Carlyle Group are the co-general partners of Carlyle/Riverstone Global Energy and Power Funds. Riverstone, a New York-based energy and power focused private equity firm founded in 2000, has over $6.5 billion under management. Riverstone conducts buyout and growth capital investments in the midstream, upstream, power and oilfield service sectors of the energy industry. To date, the firm has committed more than $2.4 billion to 23 investments across each of these four sectors.

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