GreenHunter Water Further Expands Equipment Fleet in Appalachian Region
GRAPEVINE, Texas--(BUSINESS WIRE)-- GreenHunter Energy, Inc. (NYSE MKT: GRH), a diversified renewable energy company predominately focused on water resource management in the unconventional oil and natural gas shale resource plays, announced today that its wholly owned subsidiary, GreenHunter Water, LLC, has completed the purchase of new rolling stock equipment assets to service oil and gas operators active in the Marcellus and Utica Shale plays located in the states of Pennsylvania, Ohio and West Virginia. The equipment consists of ten new Peterbilt 388 trucks (2012 model year), five new 150 BBL aluminum vacuum trailers and five new 130 BBL steel vacuum trailers.
To facilitate the purchase, the Company expanded an existing commercial loan facility with an Appalachia regional bank. The loan was increased from our existing lending facility of $800,000 to $2.5 million. This loan facility is secured by future accounts receivable to be generated under a new long term contract with a large Texas based independent exploration and production company active in the Appalachian region. The equipment is scheduled to be delivered to the Appalachian region by the end of May and is anticipated to be 100% utilized by the middle of June.
Commenting on this business expansion, Jonathan D. Hoopes, GreenHunter President and COO, stated, This most recent addition to our hauling and logistics fleet will help to right-size our asset base relative to current demand which will allow us to reduce our dependence on third-party operators. We anticipate continuing our trend of realizing improved margins as we fine tune our operations and integrate these new trucks with our barge terminal leases and bulk-storage facilities. Our customers remain very active in the liquids rich regions of the Marcellus and Utica Shale plays despite current natural gas price levels.
About GreenHunter Water, LLC (a wholly owned subsidiary or GreenHunter Energy, Inc.)
GreenHunter Water, LLC provides Total Water Management Solutions" in the oilfield. An understanding that there is no single solution to E&P fluids management shapes GreenHunters technology-agnostic approach to services. In addition to licensing of and joint ventures with manufacturers of mobile water treatment systems (Frac-CycleTM), GreenHunter Water is expanding capacity of salt water disposal facilities, next-generation modular above-ground storage tanks (MAG Tank"), advanced hauling and fresh water logistics servicesincluding 21st Century tracking technologies (RAMCATTM) that allow Shale producers to optimize the efficiency of their water resource management and planning while complying with emerging regulations and reducing cost.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com.
Any statements in this press release about future expectations and prospects for GreenHunter Energy (GRH) and its business and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.
GreenHunter Energy, Inc.
Jonathan D. Hoopes
President & COO
1048 Texan Trail
Grapevine, TX 76051
Tel: (972) 410-1044
Source: GreenHunter Energy, Inc.Copyright Business Wire 2012