Basic Energy Acquires West Texas Pumping Service Co. Triple N
Basic Energy Services, Inc. has expanded its pressure pumping and well abandonment services in the Permian Basin by acquiring substantially all of the operating assets of Triple N Services Inc., located in Midland, Texas, for a total consideration of approximately $16 million in cash. Projected annualized revenue for this acquisition is expected to be approximately $13.5 million and this acquisition is anticipated to be accretive to earnings in 2008.
Ken Huseman, President and CEO, commented, "We are excited to announce the addition of the Triple N organization and operations to our company. Triple N's highly regarded 5-rig well abandonment operations when combined with Basic's 7-rig operation will make us by far the largest well abandonment company in the Permian Basin, where more than 2,500 wells were permitted for abandonment in 2007. In addition, Triple N's well-known reputation as a quality provider of cementing services throughout west Texas and eastern New Mexico provides a firm foundation for expansion ofour pressure pumping activities in those markets. Triple N is a prime example of the type of companies we believe will continue to provide meaningful growth opportunities for Basic Energy Services throughout our footprint."
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