Small Cap Capital
Long/short equity, deep value, special situations, energy

Cypress Energy Partners: Next Wave Of MLPs

Cypress Energy Partners

Founded in 2012 and IPO'd in January 2014, CELP (NYSE: CELP) provides saltwater disposal and other water and environmental services. CELP operates under Water & Environmental Services ("W&ES") and Pipeline Inspection & Integrity Services ("PI&IS") segments - for 1Q14, W&ES and PI&IS contributed 43% and 57% of gross margins respectively. I plan on briefly touching upon the PI&IS business but will focus more so on the W&ES segment and more broadly so the salt water disposal industry.

Saltwater Disposal

While you do not hear about saltwater disposal as much as other midstream value chains like gathering and processing and interstate pipelines, water handling is an integral part of drilling activities that could pose cost, logistics, and...

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