Basic Energy Services signed a nonbinding letter of intent (LOI) for an affiliate of Quantum Energy Partners to fund $250 million in equity to support acquisitions of oilfield assets, companies and joint ventures (JV) throughout North America, the company said July 30.
Depending on the size and nature of the transaction, the amount provided will vary.
"We continue to look for acquisition targets and excess equipment that can be bought at significant discounts to replacement costs. We have made some of these smaller purchases already, and we expect the service space to consolidate further in the second half of 2015. We will be actively participating in this process,” said Roe Patterson, president and CEO of Basic.
The LOI allows Basic to remain active in the consolidation market regarding larger deals, especially strategic JVs—if funding beyond what the current cash and debt could cover is needed, he added.
Energy Capital Solutions LLC was Basic’s financial adviser.
Basic Energy Services is based in Fort Worth, Texas.
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