Post Oak Energy Capital has invested in Refinery Specialties through a purchase of a majority stake in the company. Formed in 1989, RSI has evolved from a chemical company serving the refinery industry into an oilfield services company providing well site services. The Hempstead, Texas headquartered company operates in the Eagle Ford Shale, Austin Chalk, East Texas, Barnett Shale, North Texas, Arkansas and Southern Louisiana.
Post Oak Energy Capital, LP (Post Oak), through investment partnerships it manages, today announced its partnership with Refinery Specialties, Inc. (RSI) through a purchase of a majority stake in the company.
Formed in 1989, RSI has evolved from a chemical company serving the refinery industry into an oilfield services company providing well site services, including formulating, blending, selling and providing technical support for customized specialty oil and gas chemicals as well as providing acidizing, remedial pumping, pressure pumping and hot oiler services. The Hempstead, Texas headquartered company operates in the Eagle Ford Shale, Austin Chalk, East Texas, Barnett Shale, North Texas, Arkansas and Southern Louisiana.
As part of the transaction, both Post Oak and RSI’s management team have committed a significant amount of capital to strengthen and expand RSI’s service offerings and geographic footprint.
“While Post Oak’s investment strategy focuses on oil and gas companies, we will make investments in energy services and infrastructure when they are additive to Post Oak’s primary mission, and the RSI opportunity fulfills that requirement,” said Post Oak Managing Director Philip Davidson. “RSI is a well-established company with a strong management team that has a great growth platform in the specialty chemical business.”
“We are extremely enthusiastic about the opportunities created through this partnership with Post Oak,” said Mickey Tucker, RSI owner and technical manager. “This partnership provides RSI with additional capital flexibility and industry sophistication to more fully serve the needs of our customers.”
Post Oak’s majority interest purchase of RSI rounds out 2012 with a total of more than $140 million in investment commitments during the year. Post Oak announced in December 2012 a $40 million equity capital commitment to Core Minerals Management II, LP. In March, Post Oak led commitments of $60 million in Crown Oil Partners IV, LP. In addition, April marked the sale of Post Oak’s portfolio company, National Specialty Alloys, LLC to, Reliance Steel & Aluminum Co.
“2012 demonstrated another robust year for energy investment and we believe the opportunities will continue in 2013 and beyond,” said Post Oak Managing Director Frost Cochran. “We are seeing a tremendous appetite for investing in onshore North American oil and gas assets and supporting services as investors perceive a value opportunity in today’s environment.”
About Post Oak Energy
Post Oak, which was established in 2006, is based in Houston, Texas. Its management team has executive management experience and a broad network in the energy business as well as significant expertise in private equity investments, operations, development, finance, acquisitions and divestitures. The firm pursues private equity investments primarily in the upstream sector of the oil and gas industry in North America and, to a lesser extent, in oil field services and related infrastructure. Post Oak works in close partnership with operating management teams to build businesses, accelerate growth and enhance shareholder value.
Refinery Specialties, Inc. (RSI) is a privately held Hempstead, Texas-based oilfield service company focusing on formulating, blending, selling and providing technical support for the use of process and production treating chemicals for the oil field, including production, pipeline, refinery, and gas plants. The RSI Management Team is focused on expanding its technical expertise and cost-effective applications from its core operations in the Eagle Ford Shales, Austin Chalk, East Texas, Barnett Shale, North Texas, Arkansas and Southern Louisiana into West Texas, Oklahoma, Ohio and beyond.