HII Technologies, the Houston-based oilfield services firm with over a decade in manufacturing and service for E&P power and water management, reported wrapping the milestone AES acquisition today, adding key, high-volume fracking water infrastructure to the company's bottom line.
AES has an established presence in the industry doing high volume water transfer via a sophisticated array of no-leak mobile piping solutions, praised not only for their performance metrics in hydraulic fracturing work, but also for their ability to ensure that environmental stewardship targets are met with ease. AES has built up a sizeable network of E&P clients in the Texas and Oklahoma region, with nationally recognized customers engaged in the burgeoning hydrocarbon recovery industry.
HIIT pretty much dumped their wholly-owned valve design and production subsidiary, KMHVC (Hemiwedge Valve Corp.) back in early 2011, but has built up the kind of lensing capability needed to produce an incredibly powerful, focused beam through the acquisition of such rich oilfield service capacity as that represented by today's announcement. AES has a good five decades of boots on the ground in the industry doing complex, customized systems for oil and gas operators, with broad proficiencies in everything from drilling water wells, to implementing ad hoc water circuits that can handle intricate high-capacity water transferring requirements.
With some 10 miles of 10-inch aluminum, leak-proof, and cam lock connection-based piping in inventory, which they install with complete ancillary instrumentation, valves, and vents, AES can do big, temporary, on-site water transfer jobs without breaking a sweat. AES has earned its reputation by working directly with client frac engineers to design custom systems, providing everything from drilling site design and preparation, to roadways, pits, and the linings for containment/disposal facilities. A fleet of distribution manifold trailers, as well as top of the line high volume Cornell pumps (175 HP Duetz turbo engines capable of 80 BPM and 325 HP John Deeres capable of 100 BPM), all with exemplary leakage-eliminating valve designs, stands ready to be deployed for clientele. AES even has the 12-foot and 20-foot road crossings needed to do safe, convenient, low-profile crossings for driveways and roads.
HIIT will look to file an 8-K on the deal with the SEC directly and will also file an amendment to its own current report that includes the audited financials for AES by Dec 11, with full faith and confidence that the deal will be accretive to EPS.
CEO of HIIT, Matt Flemming, noted the rapid turnaround on the acquisition, having filed the LOI last month and closing the deal yesterday. Flemming underscored the $4M initial revenue guidance for the coming 12 months from AES and spoke warmly to shareholders about the advantages of the turn-key water handling capabilities for sector operators. It is an extremely valid point, especially considering the spike in demand for such high volume water handling solutions, which stem out of the constantly innovative fracking work being done in domestic hydrocarbons.
President of AES, Brent Mulliniks, P.E., affirmed his colleagues sentiments about the organic growth potential of the portfolio in today's market, noting in particular how more recent developments in multi-stage fracking and horizontal drilling have pushed the envelope for water volumes required. Mulliniks ensured investors and markets that together AES and HIIT would be redoubling their efforts to expand the water supply services portfolio available to clients, with features like flow-back water recycling technology taking developmental precedent.
For more information on HII Technologies, Inc., please visit the company's website at: HIITinc.com
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