NEW YORK — Jun 2, 2009
Morgan Stanley Private Equity has entered into a strategic partnership with and majority investment in Triana Energy Investments, LLC (Triana Energy). Triana Energy is a natural gas exploration and production (E&P) company based in Charleston, WV, with operations focused on the Appalachian Basin, including the Marcellus Shale. This investment is intended to be the first step in a broader partnership as Triana Energy expands operations to become a leading North American energy company.
Triana Energy was founded by Chairman and CEO, Henry Harmon, in 2006. Dr. Harmon was previously the President of Columbia Natural Resources, the natural gas E&P subsidiary of Columbia Energy, a division of NiSource. Columbia Natural Resources was acquired in 2003 by Dr. Harmon and his prior company, also called Triana Energy and also with financial support provided by Morgan Stanley Private Equity through its Morgan Stanley Capital Partners IV fund.
This is Morgan Stanley Private Equity's second investment with Dr. Harmon and the Triana Energy management team and its fourth investment in the Appalachian Basin. Morgan Stanley Private Equity pursued a similar investment strategy with the Triana Energy team from 2001 to 2005, which concluded with a successful sale to Chesapeake Energy (NYSE: CHK) for over $2.2 billion. The current Triana Energy management team comprises senior executives from the prior company, including Henry Harmon, Dick Beardsley (Chief Geoscientist), Shawn Casey (VP, Land), Mark Chandler (CFO) and Jim Dissen (VP, Corporate Development), and also includes Ray Prudnick (VP, Operations) and Jim Jarrell (VP & General Counsel).
John Moon, a Partner and Managing Director of Morgan Stanley Private Equity, said, "We have had a successful relationship with this team for nearly a decade, and we believe this is an extraordinary investment environment. We couldn't be more pleased to be working again with Triana Energy - the premier energy team in the Appalachian Basin."
Dr. Harmon added, "Given the strength and success of our longstanding relationship with Morgan Stanley Private Equity, we are eager to reengage with them in the development of our existing assets and the expansion of our business throughout the Appalachian Basin."
This transaction represents Morgan Stanley Private Equity's fifth investment since May 2007.
About Morgan Stanley Private Equity
Morgan Stanley Private Equity, part of Morgan Stanley Investment Management's Merchant Banking Division, makes private equity and equity-related investments on a global basis. Morgan Stanley Private Equity utilizes Morgan Stanley's vast resources, including the Firm's global franchise and relationships with leading corporate management teams and financial sponsors, to source attractive opportunities for its investment funds. Morgan Stanley's roots in private equity investing date back to 1985 with the Morgan Stanley Capital Partners private equity funds. To date, Morgan Stanley Private Equity and its funds have invested nearly $7 billion of equity across a broad spectrum of industries. For further information about Morgan Stanley Private Equity, please visit www.morganstanley.com/im/capitalpartners.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 36 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.
About Triana Energy
Triana Energy Investments, LLC is an independent, privately held oil and gas exploration and production company headquartered in Charleston, West Virginia. Triana Energy and its management team have a long and successful history operating in the Appalachian Basin. Its leadership has more than 170 years of collective industry experience and has provided consistent growth in production and distribution. With state-of-the-art technology, skilled technical professionals, experienced management and extensive relationships in the Appalachian Basin, Triana Energy is well-positioned to be an energy leader in the region for years to come. For further information about Triana Energy, please visit www.trianaenergy.com.