Creedence Energy Services Recapitalizes Magna Energy Services and opens new Carlsbad, NM facility
MINOT, N.D., Sept. 13, 2021 /PRNewswire/ -- Creedence Energy Services ("Creedence"), a portfolio company of Tower Arch Capital, is pleased to announce that it has recapitalized Magna Energy Services, LLC ("Magna") in partnership with its CEO, Adam Kelly.
Founded in 2006, Magna Energy Services is headquartered near Farmington, NM and led by Adam Kelly. Magna provides a comprehensive suite of production chemicals to leading oil and gas providers in the San Juan and Permian basins. Magna will be a wholly owned subsidiary of Creedence, and Adam will continue as an operator and a significant investor.
Kevin Black, CEO of Creedence, said, "We are thrilled about this partnership with Magna Energy Services and to add Adam Kelly to our team. Magna represents our continued investment into New Mexico, the second largest oil producing state in the country. Following our partnership with ProChem Energy Services earlier this year, we have expanded into Carlsbad, NM to support our customers and their increasing production chemistry needs throughout the Permian. Magna's extensive history in New Mexico, coupled with its deep industry relationships in the area, will further our collective ability to serve new and existing customers in the San Juan and Permian basins. Our commitment to safety, customer service, and data driven solutions are fully aligned and make this the perfect partnership. We are also well capitalized with the support of Tower Arch Capital, and we'll continue expanding, both organically and through acquisition, into new geographies and additional capabilities."
Adam Kelly, CEO of Magna, added, "The partnership with Creedence is a great fit for Magna, and our team, because both organizations share a strong commitment to serving our customers. Creedence will broaden our chemical solutions capabilities while bringing improved laboratory and analytical solutions to solve the toughest problems for our customers. I'm very excited with this partnership and for the future of Magna as part of Creedence."
The partnership with Magna Energy Services, and prior combination with ProChem Energy Services, expands Creedence's scale and geographic reach. The combined company manages over 8,000 wells and 5 million gallons of production chemicals each year. With ten locations across ND, OK, TX, and NM Creedence covers roughly 83% of the Lower 48 on-shore U.S. oil production and provides expansive reach and support throughout the country. The company's customer centric approach, real-time reporting capabilities, and customized chemistries provide comprehensive solutions for producers' production chemistry programs. Additionally, Creedence's partnership with Locus Bio-Energy Solutions, a leading bio-surfactant manufacturer, is expanding its ability to deliver sustainable solutions for chemical treatment programs improving oil recovery through cost effective, green solutions.
Terms of the transaction were undisclosed. Financing for the transaction was provided by KeyBank. Advisors for Creedence included Dorsey & Whitney LLP and RSM US LLP. Advisors for Magna Energy Services, LLC included Ferguson White and Brady & Hamilton, LLP.
About Creedence Energy Services
Founded in 2014, Creedence is a leading provider of oilfield production chemicals, acidizing, and other oilfield services in the Bakken, Scoop and Stack, Eagle Ford, and Permian basins. The company services oil wells, gas wells, midstream pipelines, and saltwater disposal wells, throughout their lifecycle, providing comprehensive chemical solutions to improve the life of a well, enhance performance, and increase overall production yields. For more information, please visit www.creedence-energy.com or www.prochemes.com.
About Magna Energy Services, LLC
Founded in 2006, Magna Energy Services, LLC is an oil and gas chemical company that focuses on helping customers through superior chemistry, innovative products, and technical expertise. Magna provides cost effective solutions to challenging problems for leading oil and gas producers. For more information, please visit https://magna-chem.com
About Tower Arch Capital
Headquartered in Salt Lake City, UT, Tower Arch Capital is a lower-middle market private equity firm. Tower Arch seeks to partner with and grow high-quality family and entrepreneur-owned companies to deliver long-term value for their management teams and investors. Tower Arch brings operational, consulting, and financial expertise to small companies to help them improve their operations, scale, and grow. Target investments include control positions in entrepreneur and family-owned businesses with revenue between $20 million and $150 million or EBITDA between $5 million and $25 million. For more information, please visit www.towerarch.com.
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SOURCE Tower Arch Capital