Lafayette businessman Mike Moreno’s Green Field Energy Services announced Tuesday a plan to sell the business and assets as part of its bankruptcy reorganization effort. The company, which specializes in hydraulic fracturing pump equipment and other oilfield services, sought Chapter 11 bankruptcy protection in Delaware in late October.
Moreno’s company (Billy Rucks and Kevin Moody are minor investors, according to Green Field’s annual report) hopes to reorganize its approximately $500 million in outstanding debt — about the same amount it lists in assets.
The Lafayette-based company, the first to run its hydraulic fracturing equipment on natural gas, plans to put its assets (“all or substantially all of the business and assets,”) on the auction block and conduct a Section 363 sale under the supervision of Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del. The company indicated that Tuesday’s announcement represents the start of the marketing process. (Read more about 363 sales here.)
The process is being handled by investment bank Carl Marks Advisory Group.
|Green Field's proprietary turbine-powered hydraulic fracturing pumping units are powered by remanufactured turbine engines previously used in U.S. military applications.|
An unexpected market shift was blamed for the bankruptcy filing. Green Field President Rick Fontova told the Houston Chronicle that the company started offering its fracturing services at a time when competitors were expanding and other companies were entering the market, creating an immediate glut in equipment. “Back in 2011 in this market, the demand far exceeded the supply and margins were much higher, which was how we entered the market,” Fontova told the newspaper. “But very quickly the conditions changed to where there was an oversupply.”
Green Field’s response was to dramatically increase its fleet of fracturing pumps, which mine natural gas, from eight in 2011 to 65 most recently. All the while, natural gas prices were starting to bottom out, causing a slowdown in hydraulic fracturing.
“We continue to see compelling long term opportunities for our unique turbine driven gas powered technology which is proven and not otherwise available in the marketplace,” Fontova said in announcing the asset sale — that, despite the current volatility in the market for hydraulic fracturing equipment. “No other provider has been able to develop a comparable technology, and we believe it has high strategic value to both service providers and customers.”
Moreno, who is in his mid-40s, serves as chairman and CEO of the private company, having led the group that purchased Lafayette businessman John Egle’s Hub City Industries in mid-2011, changing its name to Green Field — which was soon boasting that it was years ahead of its competition in the use of natural gas to run its hydraulic fracturing equipment (claiming it could even pipe the hydrocarbon directly from the wellhead). Its turbine-powered hydraulic fracturing pumping units are powered by remanufactured turbine engines previously used in U.S. military applications. The company also offers cementing, coiled tubing, pressure pumping, acidizing and other pumping services. Its major competitors are the big boys of the oilfield services industry, Halliburton, Schlumberger and Baker Hughes.
Moreno’s The Moreno Group once included Dynamic Industries, ARC Industries, Southern Steel & Supply, and Industrial Solutions Group, but he has not been involved in the management of entity (now called Dynamic Energy Services International) since mid-2012.
Read more here.
Mellow Mushroom Pizza Bakers opens on Johnston.
Acadiana's Top 50 Private Companies
It would be an understatement to say Schumacher Group had a challenging year in 2013.
Hampton Toyota has been serving Acadiana as the premier Toyota dealership for more than 10 years. And now, the glossy Johnston Street dealership is looking forward to a makeover.
Even when Floyd Degueyter is on “vacation” he’s hard at work.
As the second largest metal heat treating company in the country, Analytic Stress Relieving Inc. has grown by leaps and bounds since its inception in 1979.
When the Prohibition era came to an end in 1933, Joseph R. Streva saw an opportunity to make a little extra money to supplement his day job.
When a hurricane hits, Brent Mouton doesn’t run. The convenience store chain owner is proof that the challenges of mother nature can almost break a business, but Mouton learned to grow out of temporary closure from near devastation in 2002 and of lost potential revenue.
By launching a Super PAC to end all Super PACs, our Top 50 keynote speaker hopes to change the game in Washington.
Oil Center-based private facility extends its offerings with special events venue in failed women’s store.
One year later, is his expansion plan paying off?
Newspaper industry insiders question John Georges’ expansion plan.
How the U.S. has gotten itself into another fine mess
The Heymann Center was transformed into a culinary adventure in mid-June for the EatLafayette kick-off event, A Taste of Lafayette, and for the third consecutive year, a sellout crowd filled the Cajundome Convention Center June 19 to hear LEDA chief Gregg Gothreaux’s State of the Economy report.
A look at recent hirings, promotions and other announcements from Acadiana's business community.
Anne Pyle puts a bow on a stellar, expectations-defying career with her latest venture.
The company currently has 10 branches throughout Louisiana, including an Ambassador Caffery location which opened last year.
Lawmakers have added $15 million to the attorney general's budget to pay for Louisiana's ongoing legal case against BP for damages caused by the 2010 Gulf oil spill.
The state's jobless rate rose to 5 percent in June from 4.9 percent in May. Louisiana's unemployment rate was 6.4 percent in June 2013.
Long-established private club opening special events venue in failed women’s store at Kaliste Saloom Road and Camellia Boulevard.
High-dollar legal teams are preparing to spar in federal court over the regional levee authority’s historic lawsuit against oil and gas companies, but a panel of volunteers could preempt those efforts when they meet in August.
May sales, the highest on record for the month at $534 million, increased 6.1 percent over May 2013.
Trendy Shi Shi is heading to the Ranch, longtime retail institution Partners’ Ltd. is relocating to Parc Lafayette, and ariel artist haven Vertical Barre is moving downtown.
There’s another debit/credit card scam making the rounds — the second this year — this time via a robo call purportedly from MidSouth Bank.
The 2014 Louisiana Annual Sales Tax Holiday exempts the first $2,500 of the purchase price of each eligible item for non-business use when the customer buys and accepts delivery of eligible property or places property on layaway.