Wastewater Company Heckmann Corp. Makes Major Expansion in Shale Gas Regions, Including the Marcellus
Heckmann Corporation, a water solutions company focused on water issues and, in particular, oil and natural gas exploration and production, has completed four acquisitions that substantially expand the Company’s water solutions for energy development business segment, including a major presence in the Marcellus Shale region. Within the past year, the California-based company has grown from 30 employees to over 750, and from $8.6 million in revenue for the first quarter of 2010 to $23.8 million for the first quarter of 2011.(1) Heckmann has a small but rapidly growing operational base in Pittsburgh for it’s Marcellus Shale operations.
Heckmann’s recent investments have included:
- April 1, 2011: Acquired certain assets from Bear Creek LLC including fresh water and produced water transportation and two salt water disposal wells in the Haynesville Shale area of Texas with complementary transportation operations extending into Louisiana.
- April 4, 2011: Acquired substantially all of the assets and business of Devonian Industries, a fresh water and produced water transportation and frac tank rental company, operating in southwest Pennsylvania, southeast Ohio and northern West Virginia (Marcellus Shale area);
- April 12, 2011: Acquired certain fresh water and produced water transportation assets and two salt water disposal wells in the Haynesville Shale area from Sand Hill Foundation pursuant to a Bankruptcy Code section 363 transaction; and
- May 1, 2011: Acquired Excalibur Energy Services LLC, a fresh water and produced water transportation company, and Blackhawk, LLC, a frac tank rental company, operating in northern Pennsylvania (Marcellus Shale area), as well as the Eagle Ford and Barnett Shale areas in Texas.
The Bear Creek and Sand Hill transactions offer substantial expansion of fresh water and produced water transport, treatment and disposal assets and capacity in the Haynesville Shale and Barnett Shale areas, increasing the capabilities and capacity of Heckmann Water Resources, or HWR. In addition to Excalibur’s assets in the Eagle Ford and Barnett Shale areas, the Excalibur Energy Services and Devonian Industries transactions will be used as platforms for HWR’s integrated services in the Marcellus Shale area, including recycle and reuse technologies.
Richard J. Heckmann, Chairman and CEO of Heckmann Corporation, stated: “The completion and integration of four acquisitions since the beginning of the second quarter is a major achievement in building out the operations of our water solutions for energy development business. We now have approximately 750 employees in our U.S. shale gas operations and believe we are an employer of choice in unconventional oil and gas exploration services. As our team grows in strength and number, our strategy is to continue to build our company’s capabilities and services to meet the increasing and complex requirements of our customers in the nation’s highest producing shale plays.”(2)
(1) Pittsburgh Business Times (May 11, 2011) – Heckmann reveals Marcellus Shale-minded acquisitions
(2) Heckmann Corporation Press Release (May 10, 2011) – Heckmann Corporation Expands Water Solutions for Energy Development Operations with Completion of Four Acquisitions