Denham Capital’s MS Energy nets $100 mln

Natural Gas Partners and NGP Energy Technology Partners II have agreed to invest $100 million in MS Energy Services. Denham Capital, the current majority owner of MS Energy, will retain its position. Headquartered in Conroe, Texas, MS Energy is an oilfield service company.

PRESS RELEASE

IRVING, Texas–(BUSINESS WIRE)–Natural Gas Partners, through its most recent fund, NGP Natural Resources X, L.P., and NGP Energy Technology Partners II, L.P. (collectively “NGP”) have made a $100 million equity commitment to MS Energy Services, LLC (“MS Energy” or the “Company”). MS Energy is a leading independent, vertically-integrated directional drilling company with operations in most major onshore oil and gas basins in the United States. Denham Capital (“Denham”), the current majority owner of MS Energy, will maintain its ownership position in the Company going forward.
NGP’s growth equity investment will be used primarily to fund MS Energy’s organic growth opportunities, allowing the Company to further expand its current fleet of over 1,300 directional drilling motors, which have a long history of providing superior performance through the use of MS Energy’s proprietary technology and experienced personnel. This investment gives MS Energy the ability to keep up with increasing demand resulting from the proliferation of horizontal drilling and increasing lateral lengths. In addition to directional drilling motors, MS Energy will also expand its fleet of measurement-while-drilling (“MWD”) and survey equipment, offering its customers some of the latest, most advanced horizontal drilling technologies on the market today.
MS Energy is led by Allen Neel, an experienced oilfield services executive with a track record of creating value in the directional drilling business. Mr. Neel has a successful background developing and managing an array of oilfield services operations, including wireline, survey, MWD and various other directional drilling services. Mr. Neel has been the Chief Executive Officer of MS Energy since August 2004. Prior to serving in his current role, Mr. Neel held senior management positions at MS Energy’s predecessor, Warrior Energy Services (formerly Black Warrior Wireline Corp.). Prior to Warrior Energy Services, Mr. Neel held management roles at Graves Well Drilling and Halliburton Services.
MS Energy is also led by Neel’s long-time partners Paul Culbreth (President and Chief Operating Officer) and Ron Whitter (Executive Vice President and Chief Financial Officer). Prior to serving in his current role as President and Chief Operating Officer of MS Energy, Mr. Culbreth held various senior management and operations positions at Warrior Energy Services, Phoenix Drilling Services and Ocean Drilling and Exploration. Mr. Culbreth was also a founder of Houston Directional Services. Prior to serving in his current role as Executive Vice President and Chief Financial Officer of MS Energy, Mr. Whitter served as Chief Accounting Officer of Stewart & Stevenson LLC, Chief Financial Officer of Warrior Energy Services, and held other financial and accounting positions with Oil States Industries, Norfolk Energy and Transco Energy.
“I am very excited to partner with NGP,” said Mr. Neel. “This investment allows us to continue meeting our customers’ directional drilling equipment and service needs, and also provides capital to further enhance our existing product lines while also developing new cutting-edge technologies to help our clients drill laterals longer, quicker, and with more precision than ever before. With involvement from two leading energy-focused private equity firms in NGP and Denham, I am confident that we can continue growing the company to meet the industry’s ever-expanding needs.”
“NGP is extremely pleased to be partnering with MS Energy and Denham, as this investment represents numerous core tenets of NGP. MS Energy is led by a cohesive, experienced management team with a track record of creating outsized returns in oilfield services, and the Company has multiple attractive uses of capital. As the unconventional revolution continues to resemble a manufacturing operation, best-in-class service providers such as MS Energy will play a major role in E&P operators’ ability to drill wells on time and on budget,” said Kenneth A. Hersh, CEO of NGP Energy Capital Management.
About MS Energy Services, LLC
With over 20 years of experience in the industry, MS Energy is ranked as a leading independent directional drilling services company with an established presence in most major producing onshore oil and gas basins in the United States. As one of the most comprehensive oilfield service companies, MS Energy provides expertise in downhole electric wireline, directional survey, MWD and various other directional drilling services.
About Natural Gas Partners
Founded in 1988, Natural Gas Partners (NGP) is a $10.5 billion family of private equity investment funds organized to make investments in the natural resources sector. NGP is part of the investment platform of NGP Energy Capital Management, a premier investment franchise in the natural resources industry, which together with its affiliates has managed approximately $13 billion in cumulative committed capital since inception. www.naturalgaspartners.com
About NGP Energy Technology Partners
NGP Energy Technology Partners (“NGP ETP”) is a private equity firm that invests in companies that provide products and services to the oil and gas, power, environmental, energy efficiency and alternative energy sectors. Founded in 2005, NGP ETP manages approximately $500 million in committed capital and is led by professionals that have extensive experience investing across the energy industry. NGP ETP partners with experienced management teams executing on compelling strategic plans and works with them to drive significant value creation. NGP ETP is an affiliate of NGP Energy Capital Management. NGP ETP is headquartered in Washington, DC and has an office in New Orleans, LA. www.ngpetp.com
About Denham Capital
Denham Capital is a leading energy and resources-focused global private equity firm. With over $7.9 billion of invested and committed capital, Denham makes direct investments in the energy and resources sectors, including businesses involving oil and gas, metals and minerals, and power and renewables. With offices in Boston, Houston, London, São Paulo and Perth, Denham invests across the globe. Denham invests across all stages of the corporate lifecycle, from exploration and development projects to mature, operating businesses, and all segments of the capital structure. www.denhamcapital.com

 

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