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.
Project Front Yard has been launched to help us change our image and our habits.
Alleged victim is a Navy vet with brain trauma resulting from a car accident three decades ago.
Richard Buswell was sentenced Tuesday to more than 10 years in prison for his role in an investment scheme that defrauded his clients of more than $6 million.
Lafayette Regional seeking new leadership after longtime director Greg Roberts’ June resignation.
The U.S. rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999.
The state labor department figures released Friday show the initial claims decreased to 2,068 from the previous week's total of 2,071. For the comparable week a year earlier, there were 2,494 claims.
The struggle for control of the regional flood authority board and its lawsuit against oil and gas companies for wetlands damage has taken an unexpected turn.
U.S. District Judge Carl Barbier agreed several weeks ago to change the compensation formula for any future payments, but he ruled Wednesday that a deal is a deal when it comes to money BP has already paid out.
IberiaBank has already retrofitted many of the Teche Federal Bank locations it acquired in a buyout earlier this year, but some residuals from the estimated $161 million deal are still playing out, namely a federal lawsuit alleging the theft of sensitive information by two former Teche executives.
Both join Russo as brand developers.
Targets of an investigation of alleged corruption within the settlement program for compensating victims of the 2010 Gulf of Mexico oil spill will be in federal court Tuesday.
Excitement over Bell Helicopter’s 505 Jet Ranger X is growing, as is the international demand for the state-of-the-art chopper, which will soon be manufactured at the company’s first-ever Louisiana assembly facility in Lafayette.
The Louisiana Hospital Association, Louisiana Nursing Home Association, Louisiana Pharmacists Association, ambulance providers and intermediate care facilities are pooling their resources and planning for a statewide media buy to promote the passage of the first two constitutional amendments on the November ballot.
New report also reveals negative results of Medicaid cuts.
The Pentagon says two Louisiana companies have Navy contracts worth a total of $26.8 million.
Newcomer to Top 50 among five companies selected for Naval contract
Both sets of figures — adjusted to cancel out seasonal changes — were released by the U.S. Labor Department.
Texas declined by five rigs, West Virginia dropped three and Louisiana was down two.
A federal appeals court in New Orleans has upheld a federal safety board's right to investigate the role of Transocean Deepwater Drilling Corp. in the 2010 Gulf of Mexico oil disaster.
A supporter of a lawsuit against the oil industry has been re-nominated to a seat on a south Louisiana flood control board despite opposition from Gov. Bobby Jindal.
The nominating committee for the Southeast Louisiana Flood Protection Authority-East was set Thursday to nominate applicants for two people on the board whose terms have expired.
Restaurant could see ‘a little facelift,’ Bobby Butcher tells Daily Report.
Attorney General Buddy Caldwell says he won't approve a Cameron Parish Police Jury resolution to hire outside attorneys for such a lawsuit until the resolution is amended. Caldwell's Sept. 15 letter says the resolution must make clear that those attorneys will represent the parish alone — not the state.
Michelle D. Lavergne, who worked for the Lafayette law office of L. Clayton Burgess for 13 years, faces up to 10 years in prison.
Sonnier, former media buyer and account exec at Sides, joins Acadian companies as marketing specialist; Maggard, who most recently worked for Potenza, joins Russo as director of media and PR.