The Water/Energy nexus

1. Capitaland Sponsorshipfor the Natural Resources Industry Since 1988
THE WATER/ENERGY NEXUS
JUNE 2013

2. – 23-year longevity
– 31% Gross IRR (21% Net IRR)
since inception in 1988
– Top quartile performance since
inception in 1988
– No senior leadership turnover
– Proprietary deal flow
throughout platform
– Consistently applied investment
process
Natural Gas Partners
Unparalleled Track Record
Offices: Irving, TX (Dallas); Houston, TX; Santa Fe, NM; Stamford, CT; Washington, DC
Confidential: Not for Reproduction or Distribution.
Francis J. Harvey
Robert W. Jordan
Thomas R. Pickering
James R. Schlesinger
PaulD. Wolfowitz
Pat Wood, III
Strategic Advisory Council
Natural Gas
Partners IX, L.P.Natural Gas
Partners IX, L.P.Natural Gas
Partners IX, L.P.Natural Gas
Partners IX, L.P.Natural Gas
Partners IX, L.P.Natural Gas
Partners IX, L.P.Natural Gas
Partners IX, L.P.Natural Gas
Partners IX, L.P.Natural Gas
Partners IX, L.P.
 Mezzanine Debt  Midstream
 In “Harvest” Period
 Focus Folded into NGP X
NGP MIDSTREAM
& RESOURCES, L.P.
NASDAQ: NGPC Total:$1.4 Billion
II, L.P.
 Energy Technology Growth Capital
─ Energy Efficiency
─ Power Technologies
─ AlternativeEnergy
─ Oilfield Services Technologies
Total:$496MM
2004 2007
2008
2005
1988
1994
1995
1996
1998
2000
2003
2005
2007
$100 MM
$37 MM
$30 MM
$150 MM
$320 MM
$370 MM
$600 MM
$1,300MM
$4,000MM
$148 MM
$348 MM
NGP Natural
Resources X, L.P.
2012$3,586MM
 Energy Assets and Services (>90%)
─ Oil & Gas Resources
─ Oilfield Services
─ Pipeline and Processing
 Other (up to 10%)
─ Food & Agriculture
─ Water Infrastructure & Services
Total:$10.5 Billion
FIRMOVERVIEW
Founded in 1988, NGP Energy Capital Management is a Premier Investment
Franchise in the Natural Resources Industry, Which Together With Its
Affiliates Has Managed $13.0 Billion in Cumulative Committed Capital
22
Note: Past Performance is not indicative of future results. See Performance Notes in the Appendix.

3. NGP GLOBAL ADAPTATION PARTNERS
Interesting Water Facts
WATERFACTOIDS
• Water is heavy (7 lbs/gal) and expensive to move
– Which makes it very local and leads to virtual water strategies
• Water has no substitute at any price
– Which makes it “perfectly price inelastic” (unlike energy and other natural resources)
• Water is becoming a much more constrained and limited resource
– There are many examples across the world of over-drafting of ground water
• Water can not remain a “free good”
– Prices continue to increase to reflect full value
– Higher prices should lead to better stewardship
3

4. NGP GLOBAL ADAPTATION PARTNERS
The Water Value Chain in Fracing
• The owner/drilling customer is beginning to consider the entire water value chain
• (e.g. sourcing, transpiration, storage, Recycle /Reuse (clean brine and desal water) and
disposal
• Flow back vs. produced water strategy changes with fracing activity
• Logistics is the primary valuation metric (reduce windshield time)
• Hub and spoke vs. empty back haul
• proven simple and reliable water solutions win the day…no silver bullet
• Solutions and strategy are different form by formation (Marcellus is very different from
Eagle ford)
• Price does matter…but so does safety, reliability and good old fashion customer service
• Top down MSA’s without local relationships is a flawed strategy
4

5. NGP GLOBAL ADAPTATION PARTNERS
SUMMARY
• Water and energy are inextricably tied as critical global resources and
fundamental to all economies
• NGP’s investment thesis is to partner with smart executive teams and bring
both capital and domain expertise in energy and water sectors
• U.S. statesmen, Ben Franklin, stated “We will know the value of water when
the well runs dry”
5
Summary

6. Founded in 1988, NGP Energy Capital Management
is a premier investment franchise in the natural resources sector
Santa Fe, NM
100 North Guadalupe Street
Suite 205
Santa Fe, NM 87501
(505) 983-8400
Irving, TX
125 East John Carpenter Fwy.
Suite 600
Irving, TX 75062
(972) 432-1440
Stamford, CT
1266 East Main Street
6th Floor
Stamford, CT 06902
(203) 504-5072
Houston, TX
5 Houston Center
1401 McKinney
Suite 1025
Houston, TX 77010
(713) 579-5700
www.ngpenergycapital.com
NATURAL GAS PARTNERS • NGP GLOBAL ADAPTATION PARTNERS
Houston, TX
811 Main Street
Suite 4200
Houston, TX 77002
NGP MIDSTREAM
& RESOURCES, L.P.
Houston, TX
909 Fannin Street
Suite 3800
Houston, TX 77010
(713) 752-0062
www.ngpcrc.com
NGPC
NGP Capital Resources Company
Washington, DC
1700 K Street NW
Suite 750
Washington, DC 20006
(202) 536-3920
www.ngpetp.com
NGP
ENERGY TECHNOLOGY PARTNERS