Page 11 - NorthAmOil Week 01 2023

NorthAmOil NEWS IN BRIEF NorthAmOil

accretive to earnings and cash flow in 2023.
With these transactions, ProFrac has
expanded its geographic footprint to include
the Rockies and Bakken, and increased
its pressure pumping and manufacturing
presence in the Northeast. By the end of
January, ProFrac expects to have 45 active
fleets, with an additional four electric fleets
under construction that the company expects
to deploy in the first half of 2023.
PROFRAC HOLDING, January 03, 2023

MOVES

Newpark Resources
Dakota, Texas, New Mexico and Oklahoma. ProFrac Holding completes
John Eric Turner, President of ProChem, announces completion of
said, “My father (John Turner) and I, as major acquisition of REV Energy
shareholders, could not be happier with the Gulf of Mexico transactions
partnership with Creedence. It has been a Holdings and Producers
great fit for the ProChem team. Together, we Newpark Resources today announced it
have seen tremendous growth, and we are Services Holdings, adding has completed the previously announced
excited to take this next step towards further transactions, which effectively provide for
unifying our organisation. I am certain six frack fleets the company’s exit from the Gulf of Mexico
this initiative will help us better serve our market. The two completed transactions
customers, align our team members, and ProFrac Holding today reported that it include the sale of substantially all assets
make us a better company.” has closed on its previously announced associated with the Gulf of Mexico
To further support this successful acquisition of REV Energy Holdings, a completions fluids operations, as well as
partnership and to better communicate the privately owned pressure pumping service a separate transaction, through which the
company’s collective scale, scope, and reach, provider with operations in the Rockies company has entered a seven-year sublease of
ProChem recently updated its legal name to and Eagle Ford. ProFrac acquired REV for the company’s Fourchon, Louisiana drilling
Creedence, Inc. As a result, the consolidated $140mn, consisting of $70mn in ProFrac fluids shorebase and blending facility with a
company will be unifying its branding under Class B common shares, approximately leading global energy services provider. Both
Creedence Energy Services across all locations $39mn in seller-provided financing, and of these transactions include the assignment
and operations. the balance with cash on hand and debt or sublease of the underlying properties
“This is a major milestone for Creedence,” assumption of approximately $5.5mn. The that remain subject to the final approval
said Dave Parkin, Partner at Tower Arch purchase agreement also provides for up to of the local port authority. As a result of
Capital. “Since the combination of Creedence $20mn of earn-out payments in the event these transactions, the company received
and ProChem in 2021, the company has REV achieves EBITDA of approximately approximately $6mn of cash from the sale
continued to innovate and deliver industry $90mn in 2023. REV operates three premium of the completions fluids assets in the fourth
leading service to its customers. This brand frac fleets totaling 204,500 hydraulic quarter of 2022 and expects to generate
unification will intensify the value of our horsepower that offer significant opportunity additional cash of nearly $25mn over the next
service and technology offerings across the US for upgrades through the additions of DGB few quarters, primarily associated with the
while eliminating any confusion around the engines and engine idle reduction systems. ongoing wind-down of working capital. The
Creedence and ProChem partnership.” ProFrac also closed the acquisition of company also announced that it repurchased
“The consolidated Creedence Energy Producers Services Holdings, an employee- 4.4mn shares (4.7% of outstanding shares)
Services brand will help us represent a more owned pressure pumping services provider of its common stock under its existing share
unified organisation for our customers, serving Appalachia and the Mid-Continent. repurchase program, using total cash of
suppliers, and partners,” added Kevin Black, Under the terms of the agreement, ProFrac $17.6mn during the fourth quarter of 2022.
CEO of Creedence. “While the company has has acquired Producers for approximately Matthew Lanigan, Newpark’s president
grown rapidly, its commitment to service, $35mn of total transaction value, of and chief executive officer, stated: “With
safety, and technical excellence has not which approximately half was paid in the completion of the Gulf of Mexico
changed. The collective entrepreneurial spirit ProFrac Class A common shares. Through transactions, we have accomplished all four
that has distinguished us since our founding, this transaction, ProFrac will add three of our previously-discussed divestitures.
combined with an impeccable safety record, fleets, of which two are currently active, Including the wind-down of working
will continue to lead us forward through our totaling 200,000 HHP as well as a 50,000 capital, the four divestitures should generate
next phase of growth.” square foot manufacturing facility located more than $100mn in cash. This includes
CREEDENCE ENERGY SERVICES, January 05, near Zanesville, OH, through which the approximately $80mn in cash received in
2023 company plans to expand its manufacturing the fourth quarter, enabling us to reduce our
footprint to support Northeast operations. debt levels and return value to shareholders
The company expects the transaction to be through meaningful share repurchases.”

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