Morgan Stanley Infrastructure Enters into Partnership with Respect to Strategic US Midstream Asset

New York —

Morgan Stanley Infrastructure, the dedicated infrastructure investing platform of Morgan Stanley, announced today an agreement to acquire in stages co-control ownership of Eureka Hunter Holdings, LLC, a natural gas gathering system situated in the Marcellus and Utica shale basins in the Appalachian region of the United States.

Upon completion of all stages of the transaction, Morgan Stanley Infrastructure will have co-control governance and economic interest in Eureka Hunter along with Magnum Hunter Resources Corporation (NYSE: MHR), the other co-control owner of Eureka Hunter and one of Eureka Hunter’s anchor customers.  Additionally, Morgan Stanley Infrastructure will begin a broader partnership with management at Eureka Hunter and Magnum Hunter aimed at expanding operations, growing the customer base, and securing additional build-out opportunities.

The Eureka Hunter gas gathering system uses a network of pipelines to transport dry and wet gas from wellheads to long-haul pipelines and processing plants.  The system currently has more than 100 miles of pipeline in Ohio and West Virginia with interconnections to multiple processing plants and interstate pipelines.  There are more than 50 additional miles under construction, most of which is scheduled for completion in 2014.

The transaction, which was concluded with Magnum Hunter and the seller of the initial stake, Ridgeline Midstream Holdings, LLC, a portfolio company of ArcLight Capital Partners, LLC, includes a restructuring of the capital structure of Eureka Hunter, including the elimination of an early-stage preference share instrument, in order to better position the company for future growth.  Negotiations with Magnum Hunter were conducted on an exclusive basis.

Morgan Stanley Infrastructure (MSI) is a leading global infrastructure investment platform.  MSI employs a value-creation investment strategy and through an established, disciplined process, seeks to invest in diverse infrastructure assets in predominantly OECD countries. MSI's team, one of the largest in the industry, is based in New York, London, Melbourne, Hong Kong, Amsterdam, and Mumbai. Team members possess considerable knowledge and experience with respect to investing in and managing infrastructure assets and leverage their own senior-level relationships as well as the unparalleled global network of Morgan Stanley to source investment opportunities. MSI is part of Morgan Stanley Merchant Banking & Real Estate Investing.

Morgan Stanley Merchant Banking & Real Estate Investing (MB&REI) is the Firm’s direct private investing group that puts capital to work on behalf of a diverse client base, including governments, institutions, corporations, and individuals worldwide.  MB&REI employs a consistent, proven value-creation approach across a full range of strategies, including private equity, real assets, and credit.  From 22 locations around the world, over 400 experienced professionals with extensive private markets expertise and access to Morgan Stanley’s global franchise provide an unparalleled network to source investment intelligence and opportunities.  MB&REI’s deep resources include best-in-class reporting, operations, and risk management, providing investors with a comprehensive approach to disciplined investing.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, investment management and wealth management services.  With offices in more than 43 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals.  For further information about Morgan Stanley, please visit www.morganstanley.com.

Media Relations Contact: Matt Burkhard, 212.761.2444