White Deer Energy Pours $52M into O-Tex Pumping

Private equity firm White Deer Energy has invested $52 million into O-Tex Pumping, including $42 million for existing equity and $10 million to acquire newly issued shares. O-Tex will use the proceeds to expand its cement pumping truck fleet and to open additional locations. Houston and New York-based White Deer has about $821 million under management and focuses on investments in energy exploration and production.

O-Tex Pumping, LLC and an affiliate (collectively “O-Tex” or the “Company”) today announced that White Deer Energy L.P. (“White Deer”) had made a $52 million investment in the Company. O-Tex is the largest independent provider of downhole cementing services to the oil industry in Texas and Oklahoma. The investment included a $42 million purchase of existing equity and $10 million to acquire newly issued shares. O-Tex will use its share of the proceeds to accelerate the expansion of its cement pumping truck fleet and to finance the opening of additional locations. While the Company’s internal cash flow should be more than sufficient to fund its continued rapid growth from this point forward, White Deer has reserved additional capital for possible future investment on then mutually acceptable terms.

O-Tex currently provides cement pressure pumping from five locations in Texas, Oklahoma and Arkansas. The majority of its revenues are derived from drilling in the oil prone reservoirs of West Texas’ Permian Basin. The Company’s fleet consists of state-of-the-art pumping units and its equipment is among the youngest in the industry. The Company is headquartered in Duncan, Oklahoma. It currently has 165 employees and a management team that has an average of over 25 years of industry experience. From its inception, less than four years ago, the Company has become one of the largest independently owned cementing companies in the United States.

Commenting on the transaction, John Leffler, O-Tex’s President and CEO, said, “We are pleased and excited to have White Deer as a partner and are eager to capitalize on the many growth opportunities this investment and White Deer’s relationships can bring. By combining White Deer’s experience, capital and relationships in the energy sector with O-Tex’s premiere cementing fleet and expansion potential, the Company is positioned for rapid growth in existing as well as new markets.”

Ben Guill, Managing Partner of White Deer, said, “Over the past few years, John Leffler and his team have established a reputation as a premium provider of cementing services. We look forward to being partners with them and helping to build O-Tex into an exceptionally successful oil service company providing superior service to its customers.”

White Deer is an energy private equity fund focused on the exploration & production, oilfield service and equipment and midstream sectors of the oil and gas industry. With $821 million of committed capital, the Fund is a long-term investor targeting equity investments of $50 to $120 million in its portfolio companies. With offices in Houston and New York, White Deer has a combination of industry expertise and capital that makes it an attractive partner for rapidly growing North American energy companies.

Growth Capital Partners, L.P. acted as O-Tex’s financial advisor on the transaction.