Select Energy Services, a provider of water and chemical solutions to the oil and gas industry, recently acquired Complete Energy Services, an operating subsidiary of Superior Energy Services.
Select secured substantially all of the water-related assets and ongoing operations of the business, including working capital, the company said. Superior will retain certain non-core and non-water-related assets that were part of Complete as part of the transaction. In consideration, Select issued Superior 3.6 million shares of Class A common stock and paid $14.2 million in cash, subject to standard post-closing adjustments.
“I am excited to expand Select’s world-class water-related services and infrastructure footprint through this consolidation opportunity,” said John Schmitz, Select’s chairman, president and CEO. “This acquisition will strengthen our geographic footprint, particularly in the Mid-Continent, Permian and Rockies, while adding new geographic breadth through a market-leading position in the Powder River Basin.
“Complete and its legacy operating companies possess an illustrious 50-plus-year operating history, and we anticipate strong operational and customer benefits from the acquisition.”
Complete is a provider of completion and production-related water solutions, including water transfer, flowback and well testing, water heating, containment, fluids handling, produced water gathering and disposal solutions across the United States, including the Permian, Mid-Continent, DJ and Powder River Basins, and the Marcellus and Utica Shales.
“With this transaction, we will be adding more than 300,000 barrels per day of permitted daily disposal capacity in Oklahoma and Texas,” Schmitz said. “More importantly, this sizable existing disposal portfolio provides us with a significant footprint of recurring produced water volumes and meaningful optionality for incremental infrastructure development, including gathering and recycling infrastructure across larger networked systems.
“Supported by our strong technology platform and our market-leading position in sustainable full life cycle water and chemicals solutions, our FluidMatch capabilities provide a holistic approach to produced water sourcing, treatment and recycling, chemistry and logistical delivery. We believe there remains significant opportunity to consolidate, further commercialize and transition legacy infrastructure assets such as these toward new sustainable strategies revolving around our water recycling and FluidMatch expertise in order to both limit waste and decrease fresh water demand in the industry, while simultaneously generating better well results for our customers.”
Schmitz also said the company believes consolidation in oilfield service markets remains a key priority for the industry to regain profitability.
“We expect to realize immediate operational advantages as well,” he said. “We are experiencing a strong recovery in many of our markets, with increasingly tight labor supply and increasing demand for comprehensive water solutions. With this transaction, we are excited to welcome Complete’s over 700 field personnel to the Select team, and believe we have the opportunity to meaningfully expand our service capabilities and add depth to our operational leadership.”