IPAA Private Capital Conference January 18, 2007

GSO Capital Partners Overview

Asset Under Management

Total Assets Under Management of $5.7 billion • $3.3 billion in Fund assets • $2.4 billion in CLO Debt Funds

Investment Products

Invest across the capital structure • Leveraged Loans • High Yield Bonds • 2 nd Lien • Mezzanine Securities • Distressed Lending • Private Equity

“Side Pocket” Structure allows for Private Investments with Long Durations

Up to 30% of Fund assets

Significant Organizational Investment with 100+ professionals

Offices in New York City, Houston and London Senior Professionals with deep product and industry expertise

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Why GSO Capital?

Wide investment latitude: $25mm - $400+ mm One stop solution for the entire capital structure Institutional knowledge of wide spectrum of industries and companies Built and managed the dominant Leveraged Finance group on Wall Street for over a decade Unsurpassed track record in providing innovative capital structure solutions Speed to investment decision

Small, nimble GSO diligence teams Expedited GSO Committee process

Certainty of closure

Certainty of pricing Certainty of committed capital

Speed to close

No ratings No roadshow No syndication

“Partner of Choice” to the LBO and Corporate Communities

Ability to co-invest in private equity without requiring control Deep relationships and extensive global sourcing network

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Energy/Power Professionals

Founding Members

Bennett Goodman Tripp Smith Doug Ostrover

Research / Trading Trading James Didden

Doug Logigian Alan Milstein

Industry Vertical Jason New Houston Dwight Scott

James Bennett David Finan Dan Westcott

Origination London Peter Bacon

Ed Goldstein Mirza Beg

Energy

Omar Jama Rob Horn

Chemicals

Omar Jama Valerie Kritsberg

Utilities / Power

Jason New Rob Horn

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GSO Originated Energy/Power Investments

Issuer

1/10/07

MCV Power Partners

11/21/06 $50 mm ---

Caledonia Date Closed Commitment 1 st Lien 2 nd Lien High Yield Mezzanine / Holdco Private Equity Distressed Financing Controlling Shareholder

7/27/06 $78 mm     GSO GSO / Rockland Capital Tenaska Power Fund 7/18/06 $47 mm  Public Company 3/27/06 $25 mm 12/13/05 $100 mm      Natural Gas Partners Bruckman, Rosser, Sherrill & Co.

Ontelaunee

12/7/05; 5/5/06 $125 mm; $150 mm   LS Power

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GSO E&P Recent Debt Participation

Issuer Date Closed Transaction Size 1 st Lien 2 nd Lien High Yield

11/22/06 $ 850 mm  9/29/06 400 mm  8/30/06 4/25/06 150 mm 500 mm 10/15/05 175 mm 7/21/05 225 mm     4/14/05 525 mm 

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