Basic Energy Services Enters Into Agreement With Quantum Energy Partners


Jul 30, 2015

in News

by ECS


Basic Energy Services Enters Into Agreement With Quantum Energy Partners

FORT WORTH, Texas, July 30, 2015 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today announced that it had entered into a non-binding letter of intent with an affiliate of private capital investor Quantum Energy Partners (“Quantum”) to fund up to $250 million, and expandable under certain conditions, for selected future transactions in North American oilfield service assets, companies or strategic joint ventures. The ultimate form and structure of Quantum’s investment will depend on the size and nature of the transaction.

“The opportunity to partner with Quantum represents a very attractive opportunity for Basic to remain active in the consolidation market by providing the frame work for larger deals that could require funding beyond the reach of our current cash position and available debt capacity, especially strategic joint ventures.  It also creates a long-term relationship with a private capital provider which is scalable, and can be tailored on a deal-by-deal basis. We’re excited about the prospects of working with a successful group like Quantum, and we believe this could present a meaningful benefit to our company and our shareholders.”

Bill Montgomery, Managing Director of Quantum, commented, “We are excited to work with such an accomplished team led by Roe Patterson. The Basic team has a long history of success in the oilfield services industry and we plan on utilizing our combined resources to continue Basic’s growth strategy and success. This flexible structure and capital availability could allow Basic to opportunistically make acquisitions and grow its business in today’s oilfield services market.  We believe that there will be compelling acquisition opportunities over the near term that will provide attractive risk-adjusted returns for our investors.”

Energy Capital Solutions LLC acted as financial advisor to Basic

About Basic Energy Services

Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area.  The company employs more than 4,400 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado,Utah, Montana, West Virginia, Ohio, California, Kentucky and Pennsylvania. Additional information on Basic Energy Services is available on the Company’s website at www.basicenergyservices.com.

About Quantum Energy Partners

Quantum Energy Partners is a leading provider of private equity capital to the global energy industry, having managed together with its affiliates, more than $10 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumep.com.

About Energy Capital Solutions

Energy Capital Solutions (“ECS”) is a leading investment banking firm focused on private capital raising and M&A advisory assignments for mid-size public and private energy companies. For more information on ECS, please visit www.energycapitalsolutions.com.