Press
Release
SOURCE:
The Dillard Anderson Group
Basic
Energy Services Acquires Wildhorse Services and Eagle Frac Tank Rentals Tuesday,
June 5, 2007
MIDLAND,
Texas, June 5 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE:
BAS - News)
announced today it has acquired all of the outstanding capital stock of
Wildhorse Services, Inc and purchased substantially all of the operating
assets of Eagle Frac Tank Rentals, LP in two separate transactions for a
total combined consideration of $19.0 million in cash, excluding working
capital acquired. Combined projected full-quarter revenues and EBITDA
(earnings before interest, taxes, depreciation and amortization) for the
acquired businesses are expected to be approximately $3.1 million and $1.2
million, respectively. Wildhorse
Services, located in Woodward, Oklahoma, provides rental and fishing tool
services to the northwestern Oklahoma and Texas Panhandle markets. This
business operation will become Basic's 20th location in its Rental and
Fishing Tool Services Division within its Completion and Remedial Services
segment. The
Eagle Frac Tank assets include 103 frac tanks located in the Permian Basin
market of west Texas. The fleet of frac tanks will be added to the
company's existing fluid services truck and tank fleet within its Permian
Basin operating regions. Ken
Huseman, President and CEO, commented: "These two transactions
reflect the deals we continue to find at reasonable valuations that allow
us to increase the level of service to our customers and build value for
our shareholders. The Wildhorse Services operation improves our coverage
of the active western Anadarko Basin market with high quality people and
equipment. The virtually new equipment from the acquisition of Eagle Frac
Tank immediately expands our tank fleet in the area by more than 35% to
take advantage of the increasing frac activity in the Permian Basin
market." The
Dillard Anderson Group served as the exclusive financial advisor to Wildhorse Services in the sale.
The principals are Max M. Dillard and Sam R. Anderson. |