Rockwater Completes Successful Equity Offering and Merger with Crescent Companies to Create Leading Water Management Services Company
HOUSTON – March, 2017. SCF Portfolio company, Rockwater Energy Solutions, Inc. (“Rockwater”) has successfully completed a private placement of 8.3 million shares of its Class A-1 Common Stock for aggregate proceeds of approximately $150 million, which is being used to pay off all outstanding indebtedness and to pursue further growth opportunities.
Rockwater has also just announced an agreement to merge with Crescent Companies, LLC (“Crescent”) in an all-stock transaction, creating a leading water management services company.
The combination brings together two highly complementary and growing companies with a shared belief in simplifying oilfield water management and logistics through innovation. Together, Rockwater and Crescent is one of the largest oilfield water management services companies serving key shale plays across the U.S. and Western Canada.
Holli Ladhani, President and CEO of Rockwater views the opportunity as a proactive initiative to capture market share as activity increases. “This is a unique opportunity to combine our resources with an organization that has an incredibly talented team with similar values and vision,” Ladhani said. “The result is an even stronger company with more capabilities to meet the fast paced change in our industry and to deliver value to our customers through cost effective solutions.”
Ken Davidson, a director and co-owner of Crescent, stated “The dedication, skill, and professionalism of our employees have built a market leader in water management services, and joining the outstanding team at Rockwater allows us to further increase our capabilities and breadth of service. The combined company is able to provide a broad spectrum of complementary services that will enhance our ability to deliver results for our customers. The caliber of the combined workforce and expertise, together with Ms. Ladhani’s proven leadership and vision, create exciting opportunities for growth.”
Broad Technology Portfolio – The merger combines IP and expertise of both companies to create better outcomes for customers facing increasingly technical challenges.
Strength and Scale – The merger creates an opportunity for two successful and growing companies to leverage their respective strengths and competitive advantages to better compete in a recovering industry.
Team Expertise Positioned To Capture Growth Opportunities – The comprehensive integration of the expertise of employees from both companies will promote a continued track record of driving growth, innovation, and shareholder value.
Financial Strength and Flexibility – The combined company, post-closing and after giving effect for the recent equity offering in which Rockwater raised approximately $150 million, will have a balance sheet with low leverage and sufficient liquidity enabling it to execute its growth strategy both through organic initiatives as well as selective accretive acquisitions.
Headquarters and Management
Rockwater’s Holli Ladhani will continue in her role as Chairman, President and CEO, and the combined company will be headquartered in Houston, Texas.
About Rockwater Energy Solutions, Inc.
Rockwater is a leading provider of comprehensive water management solutions to the North American unconventional oil and gas industry and the only company that provides complementary chemistry products and expertise in connection with our water solutions. The water management solutions Rockwater provides include water sourcing, transfer, treatment and storage; flowback and well testing; fluids conditioning and recycling; and field fluids logistics. Rockwater also develops and manufactures a full suite of specialty chemicals used in the well completion process and production chemicals used to enhance performance over the producing life of a well, which gives the company a unique competitive advantage in our industry. The company currently provides services to exploration and production companies and oilfield service companies operating in all the major shale and producing basins in North America, including the Permian Basin, the Mid-Continent (including the SCOOP/STACK plays), the Bakken, Western Canada, the Marcellus and Utica basins, the Rockies and the Eagle Ford.
About Crescent Companies
Crescent was founded in 2006 to address the demand for end-to-end water management services to the oilfield including the growing need for experienced well site supervision. Crescent is made up of Crescent Services, LLC and Crescent Consulting, LLC. Crescent Services is an end-to end water management company, which covers everything from sourcing and transfer to recycling. Along the way, Crescent Services is able to measure, track and account for every drop of water through its leading edge EnviroEdge reporting and automation tool ensuring maximum efficiency, transparency and superior service. Crescent Services has over 400 employees with locations in Oklahoma, Texas, Arkansas, Pennsylvania, Ohio, New Mexico, and Wyoming. Crescent Consulting is a leader in oil and gas consulting services including: project management, drilling and completion well site management, environmental and safety management and cement and frac specialists. Crescent Consulting’s highly qualified and experienced management team provides its customers with unparalleled support and expertise.
About SCF Partners
Founded in 1989, SCF Partners (“SCF”) provides equity capital and strategic growth assistance to build leading energy service and equipment companies that operate throughout the world. The firm is headquartered in Houston, Texas and has additional offices in Calgary, Singapore and Aberdeen. SCF currently oversees approximately $2 billion under management and has built more than 70 platform services companies, completing over 400 growth acquisitions, through partnerships with energy services & equipment entrepreneurs.