Market Overview

Morgan Stanley Energy Partners and Catalyst Energy Services Announce Strategic Partnership


Investment funds managed by Morgan Stanley Energy Partners
(collectively, "MSEP"), part of Morgan Stanley Investment Management,
and Midland, Texas-based Catalyst Energy Services LLC ("Catalyst" or the
"Company") announced today a strategic partnership whereby MSEP has made
a majority equity investment in Catalyst to support the growth of the
Company's pressure pumping and other complementary services in premier
U.S. oil and gas basins. Proceeds from MSEP's investment will be used to
purchase state-of-the-art Tier IV pressure pumping equipment
specifically designed to maximize pumping efficiency and meet the needs
of E&P customers' modern completion designs.

The partnership with MSEP provides the Company with capital and
resources to significantly expand Catalyst's equipment fleet and service
offerings. In connection with MSEP's equity investment, the Company
expects to introduce new pressure pumping and pump down equipment into
the Permian Basin in 3Q 2018 with additional plans to expand its service
offerings and geographic footprint to support its customers.

Catalyst's senior management team, led by Bobby Chapman and Seth Moore,
has decades of operating experience in the pressure pumping business.
Bobby Chapman, CEO of Catalyst, said, "Our partnership with Morgan
Stanley Energy Partners provides Catalyst with a strong sponsor and the
world-class resources to build an industry-leading oilfield services
franchise. In light of the high demands and specifications required in
today's state-of-the-art completion techniques, we see a unique
opportunity to provide our customers with the industry's newest
equipment and differentiated services that will drive efficiency in
their completion operations. We are very excited to grow this business."

John Moon, Managing Director and Head of Morgan Stanley Energy Partners,
said, "We are delighted to be partnering with Catalyst to grow the
Company into a leading provider of high-end pressure pumping services.
We believe this is a compelling opportunity for us to invest alongside
an experienced management team to build a leading energy services
business across the most attractive oil and gas basins in the United

Logan Burt, Executive Director of Morgan Stanley Energy Partners, added,
"The current operating environment requires the deployment of advanced
equipment and an innovative, cost-effective approach to well
completions. We are thrilled to be partnering with Bobby and Seth to
deliver that differentiated service offering and grow Catalyst into an
industry leader."

About Catalyst Energy Services
Headquartered in Midland,
Texas, Catalyst Energy Services provides pressure pumping and other
complementary services to upstream producers in premier U.S. oil and gas
basins. For further information about Catalyst, please visit

About Morgan Stanley Energy Partners
Morgan Stanley Energy
Partners, the energy-focused private equity business of Morgan Stanley
Investment Management, is a leading energy private equity platform that
makes privately negotiated equity and equity-related investments in
energy companies located primarily in North America. Morgan Stanley
Energy Partners pursues a differentiated investment strategy, focused on
the buyout and build-up of strategically attractive, established energy
businesses across the energy value chain in partnership with world-class
management teams. For further information about Morgan Stanley Energy
Partners, please visit

About Morgan Stanley Investment Management
Morgan Stanley
Investment Management, together with its investment advisory affiliates,
has more than 600 investment professionals around the world and $474
billion in assets under management or supervision as of June 30, 2018.
Morgan Stanley Investment Management strives to provide outstanding
long-term investment performance, service and a comprehensive suite of
investment management solutions to a diverse client base, which includes
governments, institutions, corporations and individuals worldwide.

About Morgan Stanley
Morgan Stanley (NYSE:MS) is a leading
global financial services firm providing investment banking, securities,
wealth management and investment management services. With offices in
more than 41 countries, the Firm's employees serve clients worldwide
including corporations, governments, institutions and individuals. For
further information about Morgan Stanley, please visit

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