HOUSTON, March 28, 2017 /PRNewswire/ -- Rockwater Energy
Solutions, Inc. ("Rockwater") and Crescent Companies, LLC
("Crescent") today announced their agreement to combine the two
companies, creating a leading water management services
company. The all-stock transaction is valued at $207 million to Crescent shareholders. The boards
of directors of both companies unanimously approved the
combination.
The combination brings together two highly complementary and
growing companies with a shared belief in simplifying oilfield
water management and logistics through innovation. The combined
company provides an unmatched suite of services including: water
sourcing, transportation, treatment and storage capabilities paired
with EnviroEdge® remote monitoring and control, water treatment
including Neohydro® Electro-oxidation, flowback and well testing
services, fluid logistics, and production and fracturing chemical
technologies. Together, Rockwater and Crescent is one of the
largest oilfield water management services companies serving key
shale plays across the U.S. and Western
Canada.
Holli Ladhani, President and CEO
of Rockwater views the opportunity to merge as a proactive
initiative to capture market share as activity increases. "This is
a unique opportunity to combine our resources with an organization
that has an incredibly talented team with similar values and
vision," Ladhani said. "The result is an even stronger company with
more capabilities to meet the fast paced change in our industry and
to deliver value to our customers through cost effective
solutions."
"The dedication, skill, and professionalism of our employees
have built a market leader in water management services, and
joining the outstanding team at Rockwater allows us to further
increase our capabilities and breadth of service," said
Ken Davidson, a director and
co-owner of Crescent. "The combined company is able to
provide a broad spectrum of complementary services that will
enhance our ability to deliver results for our customers. The
caliber of the combined workforce and expertise, together with Ms.
Ladhani's proven leadership and vision, create exciting
opportunities for growth."
Strategic Rationale
Broad Technology Portfolio – The merger combines IP and
expertise of both companies to create better outcomes for customers
facing increasingly technical challenges.
Strength and Scale – The merger creates an opportunity
for two successful and growing companies to leverage their
respective strengths and competitive advantages to better compete
in a recovering industry.
Team Expertise Positioned To Capture Growth Opportunities
– The comprehensive integration of the expertise of employees from
both companies will promote a continued track record of driving
growth, innovation, and shareholder value.
Financial Strength and Flexibility – The combined
company, post-closing and after giving effect the recent 144A
common equity offering in which Rockwater raised approximately
$150 million, will have a balance
sheet with low leverage and sufficient liquidity enabling it to
execute its growth strategy both through organic initiatives as
well as selective accretive acquisitions.
Headquarters, Management and Board of Directors
Rockwater's Holli Ladhani will
continue in her role as Chairman, President and CEO, and the
combined company will be headquartered in Houston,
Texas.
Upon closing, the combined company will retain all current
members of Rockwater's Board of Directors with the addition of one
member, Alexander P. Lynch, Partner
of White Deer Energy.
About Rockwater Energy Solutions, Inc.
We are a
leading provider of comprehensive water management solutions to the
North American unconventional oil and gas industry, and we believe
we are the only company that provides complementary chemistry
products and expertise in connection with our water
solutions. The water management solutions we provide include
water sourcing, transfer, treatment and storage; flowback and well
testing; fluids conditioning and recycling; and field fluids
logistics. We also develop and manufacture a full suite of
specialty chemicals used in the well completion process and
production chemicals used to enhance performance over the producing
life of a well, which we believe gives us a unique competitive
advantage in our industry. We currently provide our services to
exploration and production companies and oilfield service companies
operating in all the major shale and producing basins in
North America, including the
Permian Basin, the Mid-Continent (including the SCOOP/STACK plays),
the Bakken, Western Canada, the
Marcellus and Utica basins, the Rockies and the Eagle Ford.
About Crescent Companies
Crescent was founded in 2006
to address the demand for end-to-end water management services to
the oilfield including the growing need for experienced well site
supervision. Crescent is made up of Crescent Services, LLC and
Crescent Consulting, LLC. Crescent Services is an end-to end
water management company, which covers everything from sourcing and
transfer to recycling. Along the way, Crescent Services is
able to measure, track and account for every drop through our
leading edge EnviroEdge reporting and automation tool ensuring
maximum efficiency, transparency and superior service.
Crescent Services has over 400 employees with locations in
Oklahoma, Texas, Arkansas, Pennsylvania, Ohio, New
Mexico, and Wyoming.
Crescent Consulting is a leader in oil and gas consulting services:
project management; drilling and completion well site management,
environmental and safety management and cement and frac
specialists. Crescent Consulting's highly qualified and experienced
management and consultant team provides our customers with
unparalleled support and expertise.
Cautionary Statement Concerning Forward-Looking
Statements. This press release includes "forward-looking
statements" within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995. Such
statements may include, but are not limited to, statements about
our plans, objectives, expectations and intentions. Our
forward-looking statements are generally, but not always,
accompanied by words such as "estimate," "project," "predict,"
"believe," "expect," "anticipate," "potential," "should," "may,"
"will," plan," "goal," "can," "could," "continuing," "ongoing,"
"intend," or other words that convey the uncertainty of future
events or outcomes. While our management considers these
expectations and assumptions to be reasonable, they are inherently
subject to significant business, economic, competitive, regulatory
and other risks, contingencies and uncertainties, most of which are
difficult to predict and many of which are beyond our control.
For further information, contact:
Dustin Brown
Marketing Director
Rockwater Energy Solutions, Inc.
713-986-2587
dmbrown@rockwaterenergy.com
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SOURCE Rockwater Energy Solutions