Houston-based Covenant Testing Technologies LLC said Tuesday it is combining with Stuart Pressure Control to provide well flow and pressure control for operators across the Lower 48.
The tie-up is designed to expand services for exploration and production companies in the Permian and Denver-Julesburg basins, as well as the Eagle Ford and Haynesville shales.
“In this new oil price environment, consolidation in the oilfield services business is necessary, and partnering with Covenant will make us both stronger and able to retain and build on our leading positions in the marketplace,” said Stuart CEO Joe Compofelice.
Covenant CEO Jim Burtner is to lead the combined businesses.
“By combining our people, assets and systems in accordance with our core values and safety culture, the combined company will deliver superior equipment and service to the well site from fracture to production,” Burtner said. “With our expanded service offerings, our competitiveness in each business line will increase and enable us to be more efficient and cost-effective for our customers.”
The transaction, structured as a debt-free, equity-for-equity combination, would give common equity ownership in Covenant to Catapult Energy Services Group LLC, an NGP and NGP Energy Technology Partners portfolio company. In addition, affiliates of White Deer Energy would have equity ownership as Stuart was one of its portfolio companies.
The pressure control lines of the combined company include fracture stacks, zipper manifolds, wireline pressure control, drill outs, torque/test and blow-out preventers. The well flow management lines provide flowback, well testing, sand management and production site management services.
Catapult managing partner Greg Laake was named Covenant’s executive chair.
“Bringing together two top-flight field organizations under one set of professional management with a strong performance culture makes all the sense in the world,” Laake said. “We will continue to seek efficiency and cost reductions in the industry to provide a better value proposition to our combined customer base.”
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