OFS Energy Fund Sells Conquest Completion Services, LLC; Transaction generates strong return for OFS’s Fund III limited partners over three-year ownership period
HOUSTON, Aug. 1, 2017 /PRNewswire/ — OFS Energy Fund (“OFS”) has closed the sale of Conquest Completion Services, LLC (“Conquest” or the “Company”), a Fund III portfolio company. Alex Dempsey (Chief Executive Officer), Nathan Moore (Chief Operating Officer), and other key members of the Conquest management team will remain with the Company post-transaction.
OFS invested in Conquest in July of 2014, providing growth capital to Conquest’s legacy business that allowed the Company to expand into the large diameter coiled tubing market with the initial purchase of two 2-3/8″ and two 2-5/8″ coil tubing units. During 2016, Conquest took delivery of two additional 2-5/8″ coil tubing units. In Q1 2017, due to the Company’s continued strong growth and high demand for its services, Conquest placed an order for an additional three 2-5/8″ coil tubing units with expected deliveries in the second half of 2017.
The Company’s investment in large diameter coil tubing units allowed it to capitalize on the industry’s prevailing completions trends. In the wake of an incredibly difficult market and operating environment, Conquest was able to aggressively expand its business and take market share when most of its peers were contracting. Conquest consistently achieved high utilization rates at favorable pricing while maintaining an excellent safety record.
“We are very excited about the results we were able to achieve from this investment, particularly given the time period in which Conquest operated. The last three years for the industry have proven to be one of the worst downturns we have seen since the 1980s. Due to Conquest’s operational efficiencies and differentiated service offering, the Company was able to provide its customers with substantial cost savings in a low price commodity environment,” said Robert Whilden, Managing Director of OFS.
“Working with Alex, Nathan, and the entire Conquest team to develop and grow the business has been an absolute pleasure. The Conquest team led the Company through a challenging market environment to produce market-leading profitability and, ultimately, an extremely positive outcome for all shareholders. The coil tubing drill out program developed by Conquest has been instrumental to the success of the business,” said Bruce Ross, Managing Partner of OFS. “We hope the Conquest team realizes similar success in the business’s next chapter.”
“We selected OFS as our capital partner based on their commitment to the oilfield service space and their successful history of helping companies grow rapidly. Our working relationship with OFS allowed us to quickly develop a strategy for growing the business during the energy downcycle and to position the Company to achieve a high level of profitability. The partnership with OFS not only allowed us to grow our core coiled tubing business, but also provided us an opportunity to expand our product offering to include chemical and nitrogen products and services. We are very pleased that the Conquest team was able to work through a very tough energy cycle and achieve these significant results for all shareholders,” said Alex Dempsey, Conquest’s CEO.
Simmons & Company International served as exclusive financial advisor and Locke Lord acted as legal counsel to Conquest in the transaction.
About OFS Energy Fund
Houston-based OFS Energy Fund is a private equity firm that specializes in acquiring and recapitalizing lower middle-market energy service companies. OFS seeks to provide capital to business owners in the form of buyouts, recapitalizations, and growth equity investments. The Fund supports the development of management, appropriate governance, professionalization of reporting, and tracking of operating metrics. OFS currently has in excess of $300.0 million of committed private equity capital under management across Fund II and Fund III.
About Conquest Completion Services, LLC
Conquest Completion Services, LLC provides coil tubing services and completion fluids to its customers in the west Texas, south Texas, and New Mexico oil and natural gas markets. Conquest was founded in 2014 and is based in Bossier City, Louisiana, with additional locations in Midland, Texas, and Pleasanton, Texas.