Carlyle/Riverstone Commits $50 Million to CDM - CDM to Expand Natural Gas Compression Services

Houston, TX and New York, NY -- CDM Resource Management, Ltd. (CDM), a natural gas compression services company, and Carlyle/Riverstone Global Energy and Power Fund II, L.P. (C/R) announced today that C/R made a $50 million capital commitment to CDM to purchase limited and general partnership interests in CDM in order to provide equity funding for continued growth initiatives.

CDM, based in Houston TX, provides contract gas compression services. Rather than simply renting compression equipment, the company works closely with its customers to provide a complete engineered natural gas compression solution designed to optimize gas production, reduce field costs, and guarantee high run-time.

Randy Dean, CDM President said, “C/R’s investment in CDM will further strengthen our ability to serve the growing needs of our existing customers as well as to offer our customized compression services to new customers.”

Greg Beard, C/R Principal said, “We look forward to partnering with such an experienced team in the growing natural gas compression services industry. This investment is consistent with our strategic focus on fee-for-service midstream sectors exhibiting strong organic growth and a growing trend towards outsourcing by customers. We expect the gas compression industry and CDM in particular to continue benefiting directly from the strong fundamentals supporting the natural gas sector.”

Before CDM deploys its equipment, a thorough review of each customer’s gas compression needs is conducted, including compression sizing, compression placement, fuel costs, gas conditions, compression ratios, and customer production plans. This is a markedly different sales process compared to the rest of the industry. Typically, gas compression companies simply quote compression on a $/HP/month basis without performing an engineering study that could increase overall efficiency. As contrasted above, CDM provides a cost saving, production enhancing solution that benefits the customer.

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