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 States.”

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 ServicesHeadquartered 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 www.catalystenergyservices.com.

About Morgan Stanley Energy PartnersMorgan 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 www.morganstanley.com/im/energypartners.

About Morgan Stanley Investment ManagementMorgan 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 StanleyMorgan 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 www.morganstanley.com.

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Media Relations:MSEP Corporate Communications212-761-2448