Hydrocarbon Storage Experts in underground storage Position on Hydrocarbon investments Haddington’s fund level management team has a broad range of experience in the underground storage business, spanning operations, engineering, regulatory issues and marketing. In fact, our founding partners are among the leading experts in salt cavern storage. Our Focus Today, Haddington focuses both on developing greenfield gas and liquids storage opportunities and acquiring storage projects on previously developed sites. We understand that development of storage assets is a time-consuming process that can take several years before cash flow. As a result, we work closely with our portfolio companies through each stage of the process to create a profitable, environmentally safeproject . Salt Caverns Geology Salt caverns are formed out of existing salt dome formations usually located 1500 feet plus beneath the surface. A well is drilled into the formation and large amounts of water are cycled through the well dissolving the salt. The brine is extracted, leaving a large empty space in the formation for natural gas storage. Salt cavern storage provides the link between “upstream” and “downstream.” Upstream storage helps prevent shut in of wells producing into gas plants. Downstream storage provides fuels andfeedstock for plants, refineries, and end users. The Advantages Of Storing Gas and Liquid In Salt Caverns Salt cavern storage of natural gas liquids is an integral part of the oil and gas production process. High Deliverability Low ratio of base gas to working gas Multiple storage cycles per year Geologically sealed Our Investments The Magnum Energy Project is a multi-purpose, integrated energy storage facility under development in Utah. The facility was built to serve initially NGL and eventually natural gas and power storage needs in the Western U.S. Haddington’s recent investments in natural gas storage have also included Bobcat Gas Storage in Louisiana and Lodi Gas Storage in California. The Future Plans Haddington’s fund level management team has a broad range of experience in the underground storage business, spanning operations, engineering, regulatory issues and marketing.