Houston’s Quintana Energy Services Inc. announced the sale of its legacy conventional pressure pumping operations in Kansas and Bartlesville, Oklahoma to Hurricane Services Inc. , a privately-held oilfield service company based in Wichita, Kansas, for gross cash consideration of $4.4 million.
As part of the transaction, QES divested approximately 12,000 hydraulic horsepower, five facilities including Bartlesville, OK and Kansas locations in Oakley, Ottawa, Thayer and El Dorado; and 26 personnel to Hurricane in exchange for $4.4 million.
These assets and locations were responsible for 2018 revenue and adjusted EBITDA of $7.9 million and $1.0 million, respectively. For the six months ended June 30, 2019, these locations were responsible for $2.2 million of revenue and an Adjusted EBITDA loss of $(0.4) million.
“This sale allows us to streamline our focus and cost structure on our go forward service offering and the needs of our unconventional pressure pumping and cementing customers,” said Chris Baker, QES’ President and CEO. “Our regional pressure pumping predecessor, Consolidated Oil Well Services, had been active in the Kansas pressure pumping market since 1956, but as our operating strategy evolved to focus on high-utilization unconventional completions, these legacy conventional pumping services have become non-core. Post-closing, we retain the remainder of our Pressure Pumping operations, including the unconventional frac business operating in the Mid-Con, Permian and Rockies and our cement business based in Gillette, Wyoming.”
QES is a provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the U.S. QES’ primary services include: directional drilling, pressure pumping, pressure control and wireline services.