Select Harris Williams Transactions

screen_shot_2019-04-09_at_2.30.56_pm.pngProvider of integrated software, data and analytics solutions to the global energy industry

 

 

 

 

screen_shot_2019-04-09_at_2.31.29_pm.pngLeading provider of non-destructive testing and inspection services for oil and gas tubular products

 

 

 

 

screen_shot_2019-04-09_at_2.32.00_pm.pngProvider of specialized laboratory and field services to the upstream oil and gas industry

 

 

 

 

screen_shot_2019-04-09_at_2.32.42_pm.pngProvider of reinforced polymer tubing solutions for the upstream oil and gas industry

 

 

 

 

screen_shot_2019-04-09_at_2.33.15_pm.pngIndependent wireline services provider with a presence in major oil and gas plays throughout the continental U.S.

 

 

 

 

screen_shot_2019-04-09_at_2.34.43_pm.pngProvider of comprehensive natural gas and oil production equipment and services, including, repair, testing, on-site support and consulting

 

 

 

 

screen_shot_2019-04-09_at_2.35.20_pm.pngProvider of oil and gas optimization solutions for compression and vapor recovery applications

 

 

 

 

screen_shot_2019-04-09_at_2.35.52_pm.pngProvider of specialized plunger lift products and services that allow for uninterrupted production

 

 

 

 

screen_shot_2019-04-09_at_2.36.21_pm.pngProvider of cased hole wireline solutions, including logging, perforation, mechanical, plug and abandonment services

 

 

 

 

screen_shot_2019-04-09_at_2.37.25_pm.pngMarket leading provider of engineering and geomatics services for the oil and gas industry in Western Canada

Select Oilfield Services M&A Transactions1,2

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KLX Energy Services acquires Red Bone & Tecton Energy Services | Completion and Wellsite Services

  • KLX Energy Services has acquired Red Bone Services and Tecton Energy Services
  • Red Bone Services provides non-frac high pressure pumping, thru-tubing, and fishing services to operators primarily in the Mid-Continent region
  • Tecton Energy Services is provider of flowback, drill-out, and production services to operators in the greater Rocky Mountains region
  • The acquisition of both companies advances KLX’s strategic priorities of expanding the customer base and enhancing service offerings in key geographies

 

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Waste Management Acquires Petro Waste Environmental | Environmental Services

  • Waste Management has acquired Petro Waste Environmental from Tailwater Capital
  • Petro Waste Environmental is a leading provider of comprehensive oilfield environmental services and solid waste disposal serving the Permian Basin and Eagle Ford
  • The acquisition expands Waste Management's energy footprint and enables their company to provide superior and differentiated solid waste disposal services to oil and gas producing customers
  • Through Petro Waste’s scale, core competencies, high-graded disposal facilities, Waste Management expects to generate momentum for significant and sustainable business growth

 

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Quorum Software Acquires Coastal Flow Measurement | Energy Technology

  • Quorum Software has acquired Costal Flow Measurement, a portfolio of energy measurement services and software companies including Flow-Cal, a provider of gas and liquid measurement software
  • Coastal Flow provides gas and liquids measurement, analytical services, and software to the energy industry
  • The acquisition of Coastal Flow and its Flow-Cal subsidiary broadens and strengthens Quorum’s software and services portfolio in measurement and data management for natural gas and petroleum liquids

 

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EQT Acquires Kodiak Gas Services | Contract Compression Equipment

  • EQT Infrastructure has acquired Kodiak Gas Services, LLC, the fastest-growing and largest privately held contract compression business providing critical compression equipment in the US
  • Kodiak benefits from attractive long-term market dynamics, including growing US oil and gas production, increased centralization of compression needs, and growing utilization of large compression to drive improved margins
  • EQT Infrastructure will support Kodiak’s growth with existing and new customers and will support the Company’s continued operational improvement by providing deep sector expertise in the Energy sector and Midstream end markets as well as its network of Industrial Advisors

 

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Ansell Limited Announces the Acquisition of Ringers Gloves | Safety Protection Solutions

  • Ansell announces the acquisition of Ringers Gloves, headquartered in Houston, Texas for a total consideration of $70 million
  • Ringers Gloves is a leading provider of specialty impact gloves to oil & gas and general industry segments and has $34 million in sales and 39 employees
  • Ansell’s CEO and Managing Director, Magnus Nicolin, said the acquisition provides Ansell with a highly complementary suite of industry leading impact protection products, expanding the company’s position in this attractive and growing specialty category
  • Acquiring Ringers will advance Ansell’s safety protection solutions platform, creating a leading position in the important and growing specialty category of impact protection gloves

 

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SCF Partners Announces Investment in ProDirectional | Directional Drilling Services

  • SCF Partners announces its partnership with and investment in Professional Directional Enterprises. Diamond Castle Partners, ProDirectional’s previous capital sponsor, will also maintain an ownership position
  • ProDirectional is a leading independent directional drilling services company that has established a track record of providing skilled personnel, differentiated technology, and best-in-class equipment to generate superior performance for its customers
  • Through this investment, SCF plans to develop a drilling technologies platform that will enable customers to drill longer, better wells at lower costs

Well Services | Potential Consolidation of a Fragmented Market

As investors call for greater pricing discipline and focus on profitability, cash flow and return on capital, the market for traditional well services remains highly fragmented. This fragmentation is unlikely to be solved via liquidations, as the equipment utilized by failing concerns typically falls back into the hands of an existing or new operator. After an unsuccessful move for exits and liquidity in 2018, many are calling for 2019 to be the year of more aligned expectations between buyers and sellers as some seek to capitalize on the potential for industry consolidation to drive the return on capital improvements so many are seeking from the sector. KLX’s recent acquisition of RedBone Services and Tecton Energy Services may represent the start of an active year for M&A in the sector. The below highlights the fragmentation in just a handful of service lines: pressure pumping, coiled tubing, wireline and flowback services.

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Public Market Observations1,2

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Strategic M&A Activity1,2

Acquirers of OFS Assets by Volume

(total # of transactions)

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  • Strategic acquirers represented 80% of OFS M&A transaction volume in Q1 2019
  • Strategic acquirers completed 12 transactions in Q1 2019, up slightly from 11 in Q1 2018 and remaining well below market peak of 34 transactions completed in Q1 2014
  • Despite recent Q4 2018 commodity price volatility, private equity buyers continue to show increased investment appetite for OFS assets

Note: Does not include add-on transactions or minority purchases

Annual Sub-Sector M&A Activity by Volume

(as a % of total transactions)

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  • KLX Energy and WaterBridge’s acquisition appetite support the market consolidation theme that is expected to unfold during 2019 
  • Water and environmental assets and technology focused wellsite service providers are experiencing growing interest from both strategic and private equity buyers

Note: Includes only major NAM and EUR transactions

Public OFS Valuation Multiples by Sector1

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Select HW EPI Transactions

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1. FactSet

2. PitchBook

 

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.