Houston, Texas – May 9, 2016 – Terra Oilfield Services, LLC (“TerraOFS” or the “Company”) is pleased to announce that it recently closed on the acquisition of strategic water transfer and water filtration assets and completion chemical mixing units from a Spring, Texas based competitor that has exited these service lines. The acquisition significantly expands TerraOFS’s capacity in its core Water Transfer service line. Additionally, TerraOFS has expanded its offerings by adding two new service lines, Water Recycling and Water Treatment.
On April 8, 2016, TerraOFS expanded and high graded its fleet of water transfer equipment with a strategic asset acquisition, which included 600 horsepower pumps, 10” Angus lay flat hose, road crossings, filter pods, mixing units, and various other water transfer and completion chemical equipment. The additional capacity will allow TerraOFS to continue to support its customers, meet increasing demand from existing customers, and build working relationships with new customers. TerraOFS has hired certain key employees and salespeople from the selling company. Further, work for certain customers of the selling company has been transferred to TerraOFS, providing the customers continuity of service.
New Service Lines – Water Recycling and Water Treatment
TerraOFS has expanded its operations to include Water Recycling and Water Treatment service lines. The Water Recycling division began operations in late 2015 and uses a proprietary treatment process to recycle flowback and produced water for reuse in fracing operations. To date, the Water Recycling service line has recycled over 2.5 million barrels of water. The Water Treatment division began operations in early 2016 and uses internally built chlorine dioxide treatment units that treat water in line with water transfer operations. TerraOFS’s chlorine dioxide treatment units provide an effective and low cost alternative to other forms of biocides. To date, the Water Treatment service line has treated over 3.5 million barrels of water.
“We are pleased to expand our Water Transfer fleet, which will allow us to continue to provide quality service to our customers and grow the business,” said TerraOFS CEO James Wingo.
TerraOFS President Stan Peach said, “We are excited about the initial performance and success of the Water Recycling and Water Treatment service lines and look forward to growing both service lines over the coming months.”
“OFS Energy Fund is pleased with TerraOFS’s agility in a challenging market environment and will continue to support TerraOFS as the company executes its growth plan,” said Jerad McMayon, Partner at OFS Energy Fund. “The water transfer asset acquisition and introduction of the two new service lines will allow TerraOFS to continue to differentiate itself and provide excellent service to its customers.”
About Terra Oilfield Services
TerraOFS provides critical water transfer, water recycling, water treatment, and fluids management services to the oil and gas industry primarily during the drilling and completion phases. TerraOFS is headquartered in Conroe, Texas and has operations across Texas, Oklahoma, Ohio, and New Mexico. For more information, please visit www.terrafos.com.
About OFS Energy Fund
Houston-based OFS Energy Fund is a private equity firm that specializes in acquiring and recapitalizing lower middle-market energy service companies. OFS seeks to provide capital to business owners in the form of buyouts, recapitalizations and growth equity investments. The Fund supports the development of management, appropriate governance, professionalization of reporting and tracking of operating metrics. OFS currently has in excess of $300 million of committed private equity capital under management across its Fund II and Fund III. Additionally, OFS lends industry relationships, ideas for operational improvement and support in developing strategic growth plans and initiatives. For more information please visit www.ofsfund.com.