An Expert Approach to the Energy Services Market
Annapurna Capital Management has unparalleled expertise in the energy services industry. We understand the major oil and gas regions in North America and the industry's key players. We're one of the few private equity investors with an office in the U.S. Mid Continent, which allows us to optimize management of portfolio company operations and make vital connections on behalf of our management teams. We retain strong ties in the domestic, off-shore and Canadian energy markets and the industry intelligence they provide.
Our partners have sourced and executed acquisitions in the energy services space, including the highly successful Cimarron Acid & Frac, LLC story described below. We evaluate opportunities in all niches of the energy services space, including companies serving the upstream, midstream and downstream sectors.
Case Study: Cimarron Acid & Frac LLC
Prior to its merger with Consolidated Oil Well Services in 2015, Cimarron Acid & Frac LLC, was a leading energy services company providing pressure pumping services to leading independent oil and gas companies, primarily in Oklahoma, Texas, and Kansas.
“The Annapurna team provided much more than just a capital infusion that drove our market share. Their operational input accelerated the maturity of our business, and we were able to move much faster because of it.””
Annapurna acquired a majority stake in Cimarron in September 2013. Immediately post-transaction, we brought in an interim CFO to elevate the level of financial oversight at the firm, we upgraded all back office functions and company benefits, and we built an incentive program to align the interests of key employees with those of shareholders. We granted equity units to key people in business development, engineering, safety, and finance.
Following the implementation of near-term initiatives, we made permanent hires at CFO and Controller, relocated the company's headquarters to Tulsa, OK, and recapitalized the business partnering with GE Capital to double Cimarron’s equipment base. With the company’s profile and structure now fully upgraded, Cimarron was able to expand its customer base and simultaneously raise prices on its offerings.
Annapurna exited its Cimarron investment in January 2015 with the company having tripled earnings during the period of Annapurna’s ownership.