Pittsburgh-based Water Provider for Shale Drillers Expanding
HydroEdge Solutions is on the grow. The company designs and operates temporary water lines for Marcellus/Utica drillers. The company started in 2013 in Pittsburgh with three employees, and today they have 92 employees! HydroEdge is looking to add another 20 employees using $8 million of debt financing they just received from an unnamed “independent, third party lender.” That money breaks down as a $5 million one-year loan and a $3 million line of credit. Some of HydroEdge’s A-list customers include EQT, CNX/CONSOL, Rice Energy, Statoil, and EdgeMarc Energy. Impressive list. Here’s the lowdown on an up-and-coming service provider in the Marcellus/Utica, flush with cash and ready to hire…
First up, a press release issued last week by HydroEdge announcing the new $8 million infusion of cash:
HydroEdge Solutions, a privately held leading turnkey water solutions provider to the U.S. energy marketplace, today announced that it has completed an $8 million round of debt financing with an independent, third party lender. Under the terms of the transaction, the Company has received a $3 million revolving line of credit and a $5 million one-year term loan.
HydroEdge, along with related affiliates, provides water solutions to oil & gas, municipal, mining, and other industries. Leveraging key customer and supplier relationships in an otherwise highly fragmented industry, the Company’s strong customer retention drives recurring project revenue that provides excellent visibility to its new-business pipeline. In a domestic energy market that is in recovery mode, HydroEdge is experiencing out- sized growth, robust profitability, and cash flow.
The capital raised in this financing will be used to fund rapidly growing operations, receivables, capex and as general working capital.
HydroEdge, which maintains a deep base of global blue-chip customers in both the private and public sectors – including EQT Corp., CNX Gas Company, LLC – a subsidiary of Consol Energy, Rice Energy, Statoil, and EdgeMarc Energy – boasts an attractive financial growth profile. HydroEdge is on track to increase its 2017 revenue 67 percent to approximately $13.2 million with $2.7 million in EBITDA. It is projected to organically grow revenue another 40 percent in 2018 to $18.5 million with $4.4 million in EBITDA.
“Aggressively expanding our product and servicing offering, while maintaining lean operations, are key components of our strategy,” said Matt Brewer, Chief Executive Officer of HydroEdge. “This financing validates our business model and enables us to rapidly expand our customer base and diversify revenue sources while ensuring the best-in-class service and reliability upon which our growing reputation is built.”
About HydroEdge Solutions
HydroEdge is a leading turnkey water solutions provider to the U.S. energy marketplace. Its growing, diversified customer base includes Chevron, Eclipse Resources, Consol Energy, Statoil and many others. The Company, founded in 2013 and based in Pittsburgh, PA, provides custom-designed, engineered, and managed supply chain solutions capable of reaching the most remote well locations throughout the Appalachian Basin. HydroEdge supplies high-volume, controlled supply of water directly to destination, free of leaks and service interruption. For more information about the company, please visit www.hydroedgesolutions.com. (1)
HydroEdge spoke to the Pittsburgh Business Times. Reporter Paul Gough turned in this excellent article, with details not found in the press release:
HydroEdge Solutions, which provides turnkey water services for the oil and gas industry, is planning to hire more than 20 employees by the end of the year to accommodate its growth.
The company, which is based in McMurray and has a yard in Eighty Four, designs, develops and operates temporary water lines for hydraulic fracturing operations in the Marcellus and Utica Shales. It has 92 employees, up from three when it was started in 2013. Its clients include some of the biggest names in the industry, including EQT Corp. (NYSE: EQT), CNX Gas Co., Statoil and EdgeMarc Energy.
HydroEdge completed $8 million in debt financing that includes a $5 million one-year term loan and a $3 million revolving line of credit that will be used to grow operations as well as working capital and capital expenditures.
The company employs all types of workers, from field technicians who run pumps and other equipment all the way up to petroleum engineers. The new employees will go through the company’s extensive training and development program, HydroEdge CEO Matt Brewer said.
“We have a strong team, we’ve got a strong balance sheet and a desire to grow,” Brewer said. “We’re going to let our customers and the market dictate how quickly.”
The growth prospects are looking bright: HydroEdge CEO Matt Brewer said that after a strong 2013 and 2014, the company, like the rest of the natural gas industry, suffered a slowdown in 2015 and 2016. But improvement began to occur on both the balance sheet and bottom line in the beginning of 2017, and Brewer said that each month has been better than the last in 2017, and 2018 is looking good, too. The privately held company will likely see its revenue up 67 percent to about $13.2 million and $2.7 million in EBITDA. (2)
- HydroEdge Solutions (Nov 9, 2017) – HydroEdge Closes $8 Million Financing
- Pittsburgh (PA) Business Times (Nov 10, 2017) – Washington County energy company services eyes growth in ’17 and beyond