Pursuant to the terms of the agreement, the company reports it will purchase all of the operational assets, including 10 oilfield trucks with trailers and related equipment, and Defender’s oilfield business; and retain most of Defender’s workforce. The assets acquired from Defender will be placed into the NextMart’s main oilfield service operational entity, EMCO Oilfield Services, which originally was acquired in January.
“This is exactly the type of ongoing acquisition we are currently focusing on to build the operational capacity of Emco,” said William Bouyea, CEO of NextMart. “By structuring our oilfield service asset acquisitions in this manner—placing them under one operational entity—Emco will be able to negotiate and sign larger master service agreements for oilfield services.”
Defender is an oilfield services company that mainly has operated in the Texas Permian Basin and southeastern New Mexico since 2013. Over the last three fiscal years, Defender produced top-line revenue of approximately $4.6 million. Defender specialized in bulk transportation services, including asset-based trucking, chemical hauling, and plant-to-plant transfers; oil and gas services such as water hauling, drilling and frac-site hauling, drilling fluids and kill mud, freshwater and kill mud, and frac tank rental and transport; and environmental services like tank cleaning, hydrocarbon and salt cleanup and remediation, site construction, and hazardous and non-hazardous waste transport.
“Emco will maintain the Defender office in West Texas, which will allow them to provide oilfield services across the Permian Basin,” Bouyea said. “The company will continue its asset rollup strategy in the oilfield services industry to expand the operational footprint of its Emco subsidiary. We are looking for additional acquisitions in the oilfield service industry and are currently in final negotiations with several operating entities.
“Our goal is to roll up oilfield services operations into Emco in the Permian Basin, as well as other hot-oil production zones in the state of Texas. With the close of the Defender asset acquisition, Emco will have the asset footprint to meet our fiscal year 2022 and 2023 revenue goals of $10 million and $20 million, respectively, without further acquisition of related assets. But we have no plans to stop there.
“In short, the company has a goal of becoming a significant player in the oilfield service industry in the Permian Basin.”