Differentiated Structured Approach For The Way We Invest Our Capital In Distressed or Opportunistic Energy Sector

Highly Unique, Experienced and Complementary Team

• Crestmoor: Significant expertise in developing proprietary “on balance sheet” solutions for banks
• BSEG: Long and distinguished history of generating significant results for its investors
• Zavanna: Third largest private producer in North Dakota with multi-basin operation expertise

With a Proprietary Structuring Approach

• All structures designed to achieve accruing and performing loan status for banks
• Solutions have not been reproduced by competitors or used in third party transactions
• Over 100 transactions completed in multiple asset classes

Competitive Advantage to Engage in Bilateral Discussions

• Allows banks to reposition their loans, maximize recovery rates and avoid fire sale scenarios
• Borrower can retain ownership and control of the business in certain structured situations
• Structured format to ultimately meet bank target credit underwriting guidelines for accruing and performing loan situations

Via Bank Friendly Solutions

• Collaborative approach allows SECAP to differentiate itself from “cannibalistic” institutional hedge/private equity funds
• Aligned interest with bank partners to achieve quickest loan repayment / asset recovery at highest value
• Creates immediate route to partial/full exit, at minimum cost to bank

Extensive Energy Sector Opportunities in Both Distressed & Normalized Markets

• Energy sector currently in distress, bank and commercial borrower situations significant – over $400B of problem energy loans and assets at present, creating broad demand for our solutions
• We deploy capital in strategic and off-market transactions, outside often expensive and highly competitive post-bankruptcy auction or liquidation processes
• Our structures solve normal annual migrating problem loan and asset situations for bank partners in any market conditions
• SECAP’s long standing industry relationships causes bank partners to think of us for their customers, as potential capital and operating partners, when opportunistic, off-market or pre-disclosure situations occur

 Optimal Timing to Use SECAP

• Extended trough of the oil price cycle
• Continued partnership with banks under pressure to reduce sector exposure and hold greater capital against impaired loans
• Incoming redeterminations, quarter / year end and bankruptcy situations are important catalysts for our business