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AVAD Energy Partners II Announces Partnership with Pearl Energy Investments and NGP

DALLAS–(BUSINESS WIRE)–AVAD Energy Partners II, LLC (“AVAD II”), a newly formed oil and natural gas production company, announced today the closing of equity commitments from investment funds managed by Pearl Energy Investments (“Pearl”) and NGP Energy Capital Management (“NGP”). AVAD II will pursue an acquire and exploit strategy focused on creating value through operational excellence with an agnostic view to commodity type or basin.

“Pearl is excited to partner again with this team given their strong historical track record, technical expertise, and industry relationships. Our new equity commitment reflects the confidence we have in them”

AVAD II was co-founded by John Davis, Chief Executive Officer and Tom Quigley, Senior Vice President of Reservoir Engineering. John and Tom have worked together for over 30 years at Exxon Company, Netherland, Sewell & Associates, Inc., Alpine Gas Company, and most recently AVAD I. Joining John and Tom as co-founders are Michael Krehel, Vice President of Operations and Steven Mickey, Vice President of Business Development. After spending six years at Southwestern Energy, Michael joined AVAD I shortly after its inception and has been instrumental in the operational success of the company. Steven joins AVAD II after working in several different areas of the oil and gas industry with Goldman Sachs, Denham Capital Management, and a large private equity backed E&P focused on the Eagle Ford.

“I am thrilled and humbled to join this team to continue to build upon their track record of profitable oil and gas investing. I believe we are uniquely positioned to execute our strategy due to John, Tom, and Michael’s experience successfully evaluating, operating, and monetizing a wide variety of asset types across the United States including conventional, unconventional, secondary recovery, coal-bed methane, and shallow offshore,” said Steven Mickey.

“Our team has the rare combination of accurate underwriting and operational experience with a successful track record of realizing excellent returns for our capital providers, even in downward commodity price cycles, resulting in our strong capital partnerships over the past 17 years via Alpine and AVAD I. We look forward to capitalizing on the current market environment and continuing to deliver superior risk-adjusted returns to our investors,” added John Davis.

“Pearl is excited to partner again with this team given their strong historical track record, technical expertise, and industry relationships. Our new equity commitment reflects the confidence we have in them,” said Billy Quinn, Managing Partner and co-founder of Pearl.

“We are pleased to partner again with management and Pearl, and we believe that AVAD II is well poised to thrive in this environment,” said Craig Glick, Partner at NGP.

About AVAD II
AVAD II is a Dallas-based upstream oil and gas company focused on acquiring and optimizing oil and gas properties across the United States. For additional information, please visit www.avadenergy.com.

About Pearl Energy Investments
Pearl Energy Investments is a Dallas-based energy investment firm with $1.2 billion of committed capital under management. Pearl focuses on partnering with best-in-class management teams to invest in the North American upstream, midstream, and oilfield services sectors. For additional information, please visit www.pearl-energy.com.

About NGP
Founded in 1988, NGP is a premier private equity firm in the natural resources industry with approximately $20 billion of cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors. For additional information, please visit www.ngpenergycapital.com.

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Covenant Testing Technologies Merges with Stuart Pressure Control to Create Pressure Control and Flowback Powerhouse

HOUSTON–(BUSINESS WIRE)–Covenant Testing Technologies, LLC (“Covenant”) announced today that it has combined with Stuart Pressure Control (“Stuart”) to form the premier provider of Well Flow & Sand Management and Pressure Control Solutions in the Permian, DJ, Eagle Ford and Haynesville. The transaction is a debt-free, equity-for-equity combination whereby Catapult Energy Services Group, LLC, an NGP and NGP Energy Technology Partners portfolio company, and affiliates of White Deer Energy will partner together under common equity ownership in Covenant.

Covenant now represents the leading provider of flowback, production and sand management, and pressure control products and associated services. The combined strength of Covenant’s well flow technology and Stuart’s pressure control offering creates the largest independent well flowback and pressure control provider in the Permian, DJ, Eagle Ford, and Haynesville. The combined company’s blue-chip customer base will benefit from the expanded product and service offerings to deliver superior value to their completion, production, and workover applications. This platform drives deeper focus and talent into the areas Covenant and Stuart are known for – well flowback and pressure control. The Company’s pressure control lines now consist of frac stacks, Single Line®, zipper manifolds, wireline PC, drill outs, torque & test, and blow-out preventers (BOPs). The well flow management lines now consist of flowback, well testing, sand management and production site management services.

Stuart’s Chairman and CEO, Joe Compofelice, commented, “In this new oil price environment, consolidation in the oilfield services business is necessary, and partnering with Covenant will make us both stronger and able to retain and build on our leading positions in the marketplace.”

Jim Burtner, President and CEO of Covenant, will lead the combined businesses. Mr. Burtner has extensive oilfield service experience, largely focused on completions, production services and technologies as a Vice-President of Baker Hughes and Partner at Select Energy Services. Mr. Burtner commented, “By combining our people, assets and systems in accordance with our core values and safety culture, the combined company will deliver superior equipment and service to the well site from frac to production. With our expanded service offerings, our competitiveness in each business line will increase and enable us to be more efficient and cost-effective for our customers. “

Greg Laake will continue as Managing Partner of Catapult Energy Services Group and take a strategic role as Executive Chairman at Covenant. Mr. Laake remarked, “Bringing together two top-flight field organizations under one set of professional management with a strong performance culture makes all the sense in the world. We will continue to seek efficiency and cost reductions in the industry to provide a better value proposition to our combined customer base. We are pleased to partner with White Deer Energy as we continue to seek efficiencies and deliver value in this market segment.”

FMI Capital Advisors served as exclusive financial advisor to Covenant and Locke Lord LLP served as legal counsel in the transaction. Bracewell LLP served as legal counsel for Stuart.

About Stuart Pressure Control & White Deer Energy
Stuart Pressure Control offers a complete pressure control package for unconventional oil and gas development. Stuart’s customers benefit from the cost savings associated with purchasing complete pressure control services from one vendor, as well as from their safer and more efficient well site environments. Stuart was a portfolio company of White Deer Energy, a leading energy, industrials, and infrastructure focused private equity firm that has raised in excess of $2.7 billion in committed capital since inception. White Deer will continue to be a shareholder in Covenant.

About Covenant Testing Technologies
Covenant combines high-quality equipment and leading technology with some of the most skilled and knowledgeable operators in the business. Covenant provides best-in-class flowback and well testing services with a special focus on horizontal and pad drilling for the upstream oil and gas services industry.

About Catapult Energy Services Group
Catapult uses an innovative approach to invest in start-ups, acquisitions, and workout situations in the oilfield services sector. Led by experienced OFS professionals, Catapult is funded by NGP and NGP Energy Technology Partners.

About NGP
Founded in 1988, NGP is a premier private equity firm in the natural resources industry with over $20 billion of cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors. For more information, visit www.ngpenergycapital.com.

About NGP Energy Technology Partners
NGP Energy Technology Partners (“NGP ETP”) invests equity capital for growth and buyout transactions in companies that provide products and services to the oil and gas, power, environmental, energy efficiency, and alternative energy sectors. Founded in 2005, NGP ETP manages approximately $500 million in committed capital and is led by investment professionals that have extensive experience investing in those subsectors. The investment team strives to partner with strong, experienced management teams and work with them to create significant value.