HII Technologies, Inc. (OTCBB: HIIT), an oilfield services company located in Houston, Texas, announced it has consummated its acquisition of the oilfield services company headquartered in Dallas/Ft Worth, that operates under the name “AES.” We announced the execution of the letter of intent for this acquisition on August 21, 2012.
AES specializes in high volume water transfer services through mobile piping solutions with top-of-the line environmentally safe, no-leak systems designed to support hydraulic fracturing, or “fracing,” used in hydrocarbon reservoirs. Currently, AES’ primary focus is with nationally recognized customers that are exploration & production (E&P) companies that have operations in Texas and Oklahoma. AES’ current customers are drilling and fracing crude and liquids-rich reservoirs that in many cases were not previously productive before current fracing technologies.
HIIT anticipates filing a Current Report on Form 8-K with the SEC contemporaneously with this press release announcing consummation of the acquisition. In addition, HIIT will file an amendment to its Current Report on Form 8-K to include audited financial statements for AES, which amendment will be filed on or before December 11, 2012. HIIT believes this transaction is accretive to its earnings per share.
The Company’s CEO, Matt Flemming, stated, “The Company is pleased to report that the letter of intent announced in August 2012 to acquire AES has now closed effective September 27, 2012. Currently, HIIT believes significant organic growth can be obtained through AES’ turn-key water handling programs and the industry’s need for high volume water transfer services in connection with fracing. The Company’s initial guidance for AES revenues over the next twelve months is currently $4 million in revenues.”
Mr. Brent Mulliniks, P.E., AES’ President, stated, “We are excited to join with HIIT and grow AES. Our customer’s typical frac job may require handling of a half million gallons or more of water. This requires a high degree of coordination and expertise that we are proud to offer as a turn-key solution for established E&P companies. Recent improvements in multi-stage fracs through new horizontal drilling techniques will require significantly larger amounts of water and related equipment accelerating opportunities for our growth. With HIIT’s assistance, we look forward to expanding our water supply services to include flow-back water recycling technologies.”