Pipeline Supply & Service, LLC Has Acquired Wasatch Supply, Inc.

HOUSTON, October 26, 2011 — GulfStar Group (“GulfStar”) is pleased to announce the acquisition of Wasatch Supply, Inc. (“Wasatch”) by Pipeline Supply & Service, LLC (“PSS”), a portfolio company of Cadent Energy Partners, LLC (“Cadent”). GulfStar served as exclusive financial advisor to PSS. The transaction closed on September 30, 2011. PSS’ legal advisor was DuBois, Bryant & Campbell, LLP of Austin, Texas.

Wasatch provides consumable supplies and equipment to the oil and gas, pipeline and construction industries in the U.S. and abroad. Since its inception, Wasatch Supply has experienced steady growth under the direction of its president, Karma Newberry, and has forged a great reputation in the industry for its expedited delivery.

PSS, headquartered in Houston, Texas, is one of the largest independent providers of industrial products and services to the domestic oil and gas transmission industry. PSS stocks and distributes one of the industry’s most comprehensive industrial and safety product offerings.

“This partnership strengthens our commitment to help our customers succeed by providing more competitive pricing, more locations for increased availability and accessibility, and service that continues to exceed expectations,” said Chuck Dalio, Chief Executive Officer of PSS.

The GulfStar transaction team included Managing Director Tom Hargrove, Vice President Justin Moers, Associate Jay Stone, and Analyst Kristie Ganss. “The acquisition of Wasatch Supply expands PSS’ geographic presence in the Northwest and Northeast regions of the United States, providing PSS access to the important Bakken, Niobrara and Marcellus oil and gas pipeline markets,” said Tom Hargrove. “We were pleased to represent PSS on this acquisition and look forward to future initiatives that will continue to allow PSS to achieve its strategic objectives.”

About Cadent
Cadent Energy Partners, with offices in Stamford, Connecticut and Houston, Texas, is a private equity firm that invests in small to medium-sized companies in the energy industry. Cadent provides expansion capital to firms that want to accelerate growth and build shareholder value in partnership with an experienced energy investor. Over the course of their careers, the Cadent principals have invested approximately $900 million in privately negotiated transactions across a broad range of energy sub-sectors. Cadent works closely with the management teams of its portfolio companies to assist them in creating long-term value for investors and management shareholders.

About GulfStar Group
GulfStar Group is a leading middle market investment and merchant bank headquartered in Houston, Texas, with a strong market presence in Austin, Dallas, Louisiana and Oklahoma. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, restructuring and turnaround advisory services and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed over 500 transactions in more than 30 states and six foreign countries across a variety of industries. Through its merchant banking affiliate, the firm also makes equity and subordinated debt co-investments.