Keep Truckin': Russell Stanley On How To Snap Up Growing Energy Services Companies

TER: Are private equity investors interested in the energy services M&A game in western Canada?

RS: We are seeing more interest from private equity. Private equity firms are starting to participate in managing public entities acquiring the oil and gas field service companies, but that game is still in the fourth inning.

TER: Do acquiring firms typically wait for market corrections to buy target companies on the cheap?

RS: Acquisitive service companies tend to know which smaller companies they want to buy well in advance, so it is a matter of getting to the right price. The market plays a role, but it is not determinate. Enterprise is closing on an acquisition this month that it has been working on for some time. There are counter examples. Back in the spring, Great Prairie acquired some assets from Calmena Energy Services (CEZ:TSX), which was an opportunistic purchase. Calmena has been divesting assets during the last few years due to balance sheet troubles. Its frack fluid management assets were available to Great Prairie at an opportunistic time, and at a very attractive price.

TER: Thanks for the insights, Russell.

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DISCLOSURE:

1) Tom Armistead conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and ...

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