HII Technologies, the power and water management innovation-focused, Houston-based oilfield services firm with a solid operational footprint in both Texas and Oklahoma, reported launching their new E&P operator-aligned, onsite portable power division today, South Texas Power (STP), in conjunction with issuance of a non-binding letter of intent that will bolster the launch via capital obtained through a strategic alliance with Power Reserve Corp.
This is a natural symbiosis of parallel architectures, with Power Reserve heavily deployed in the oilfield equipment space and STP geared towards hooking customers up with the latest and best in mission critical power hardware. STP is bound to make a killing in the localized power game for E&P’s, with so many companies today craving robust onsite power solutions, generally in operating areas where the power grid can’t reach or can’t handle the load required. The plan is to farm out a considerable inventory of generators and ancillary equipment, harnessing the customer-centric rental finesse accrued by industry veterans in both the TX and OK markets to deliver an oilfield services power platform supercharged by deep client engagement standards. HIIT intends to announce vital personnel additions in this area moving forward, and investors should be on the lookout in the near future for those reports as STP ramps up.
The oilfield services sector thrives on loyalty and proving that you can get the job done, deliver the goods, and not flinch when pressures inevitably mount. That is what makes the client-oriented approach STP will be taking so essential and HIIT management has gone to great lengths to ensure that top personnel will be employed for bridging the gap, bringing oilfield end markets that much closer to the innovation/commercialization technology window so vigorously advanced by the company since its inception. HIIT has really proven itself over the last five plus decades of aggressive, brilliant commercialization in water management solutions for E&P’s, providing high-cap, environmentally sound, 10-inch aluminum total mobile piping systems (complete with distribution manifolds, pumps, and road crossing). The experience HII Technologies has from working hand-in-hand with E&P operators to develop custom solutions will serve STP well as the company moves to secure additional power and water management territory.
The letter of intent with private firm, Power Reserve, will allow for a non-dilutive funding mechanism to accelerate the launch, bringing in some $3M in key hardware for STP’s rental inventory, with an initial $1.2M purchase of equipment already floated. The plan is to rent out to operators at a negotiated day rate and split the take on a shared basis between the two entities for the lifespan of the hardware obtained under the partnership. While the letter of intent is still subject to customary closing conditions, including the arrival at and execution of definitive agreements, the company is confident that alternative financing won’t be necessary.
CEO of HIIT, Matt Flemming, spoke immediately of the logistical shortfalls facing many operators when it comes to providing their infrastructure with power and boldly proclaimed that STP will be there to help operators solve the challenges presented by drilling in difficult locations. By making portable onsite power generation a no-brainer for E&P developers, who are already usually swamped with the technical and visceral complexities of running an extraction program, STP is going to be getting some real sweetheart provider relationships in the difficult, yet burgeoning domestic energy space. But then, when an outfit like STP can swoop in and solve all of your power problems with a robust array of rental hardware options, the technical know-how to execute, and the customer service attitude needed to make sure the solution fits the client’s dilemma precisely, it is hard not to fall in love and come back for more business.
President of Power Reserve Corp., Nancy P. Boyd, spoke of the huge synergy in this deal and called it a win-win scenario, with Power Reserve providing capital muscle for HIIT’s extremely deft handling of the oilfield equipment end of things. The best margins come from a provider that really knows what the operators need and STP will be fielding only the best, most in-demand solution sets, something which should please shareholders as the new division emerges to prominence.
For more information on HII Technologies www.HIIT Inc.com
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