HOUSTON, TX, July , 2016 – Covenant Testing Technologies, LLC (“Covenant”), a leading provider of flowback and well testing services in North America has closed on the purchase of certain well testing assets from one of its largest competitors. The seller and the consideration of the transaction are undisclosed. The Assets compose of 25 high capacity flowback kits and additional ancillary assets. These kits are well suited for trending completions composing of significantly higher volumes of sand and water.
Covenant’s Chief Executive Officer, John Cavitt, commented, “The purchase of these high quality assets are another important step toward Covenant becoming the leading Well Flow Management Company in the US Shale market. The large volume test separators from this distressed type of purchase will give Covenant the largest fleet of like assets in the U.S. and position the company well for a potential recovery that seems to have green shoots in the Permian Basin. This along with multiple prior highly accretive transactions have brought our overall kit cost down to remain competitive in the difficult markets even at current prices. I’m very proud of the Covenant Team and the hard work that has gone into navigating one of the worst downturns in history. We look forward to an improving market and are well positioned with a high capacity fleet to enjoy any recovery that may develop in days ahead.“
About Covenant Testing Technologies
Founded in 2013, Covenant combines leading technology with some of the most skilled and knowledgeable operators in the business. With operations in the key areas of the Permian Basin and Niobrara Shale, Covenant provides best-in-class flowback and well testing services with a special focus on horizontal and pad drilling for the upstream oil and gas services industry. Covenant is in affiliate of Catapult Energy Services Group.
About Catapult Energy Services Group
Founded in 2013, Catapult uses an innovative approach to establish and invest in start-up oilfield services companies. Led by experienced entrepreneurs, Catapult is funded by NGP and NGP Energy Technology Partners.
Founded in 1988, NGP is a premier private equity firm in the natural resources industry with approximately $17 billion of cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors. For more information, visit www.ngpenergycapital.com.
About NGP Energy Technology Partners
NGP Energy Technology Partners (“NGP ETP”) invests equity capital for growth and buyout transactions 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 investment professionals that have extensive experience investing in those subsectors. The investment team strives to partner with strong, experienced management teams and work with them to create significant value.