Calumet Specialty Products LP said it has acquired substantially all of the assets of one of its competitors, privately-held Specialty Oilfield Solutions Ltd. (SOS), in a cash deal valued at $30 million.
On Friday, Indianapolis-based Calumet said its acquisition of SOS would help solidify its position as a leading supplier of specialty oilfield products and services to the drilling industry, adding that SOS has operations in the Eagle Ford, Marcellus and Utica shales. In a statement, Calumet added that acquiring Houston-based SOS will enable it "to provide a more comprehensive offering that extends beyond drilling fluids to include solids control equipment and services."
Last March, Calumet acquired ADF Holdings Inc. -- the parent company of privately-held Anchor Drilling Fluids USA Inc., a major provider of drilling and completion fluids and production chemicals to the oil and gas industry -- in a deal valued at $235 million.
At the time of that deal, Calumet said Tulsa-based Anchor served about 250 exploration and production companies operating in several North American shale plays, including the Bakken, Eagle Ford, Fayetteville, Granite Wash, Haynesville, Marcellus, Niobrara, Permian, Piceance, Uinta and Utica.
Calumet said SOS will operate as an Anchor subsidiary.
"Oilfield services remains a rapidly growing, yet highly fragmented industry," said Jennifer Straumins, president and COO of Calumet. "This accretive transaction helps to further build upon Calumet's position as a leading supplier of specialized, high-quality products and services to drillers in the field."
Calumet holds a 50% stake in a partnership with MDU Resources Group to build the Dakota Prairie Refinery in Dickinson, ND (see Shale Daily, March 26). Once complete, the $350 million facility will have the capacity to refine 20,000 b/d of Bakken crude oil into diesel fuel, naphtha, atmospheric bottoms and natural gas.
The company has also proposed building and operating a dock on Lake Superior to load barges with crude from the Bakken and western Canada for shipment to refineries elsewhere (see Shale Daily, Jan. 2). Calumet proposed spending $20 million to upgrade a dock adjacent to its 45,000 b/d refinery in Superior, WI.
Last December, a Calumet subsidiary contracted with TexStar Midstream Logistics LP for TexStar to build, own and operate the 30,000 b/d Karnes North Pipeline System (KNPS) to carry Eagle Ford crude to a Calumet refinery in San Antonio, TX (see Shale Daily, Dec. 26, 2013). The 15-year agreement calls for Calumet San Antonio Refining LLC to receive at least 10,000 b/d of crude oil through a supply route that includes KNPS and a Calumet terminal in Elmendorf, TX.