(Creedence, 13.Sep.2021) — Creedence Energy Services, a portfolio company of Tower Arch Capital, recapitalized Magna Energy Services, LLC in partnership with its CEO, Adam Kelly.
Founded in 2006, Magna Energy Services is headquartered near Farmington, NM and led by Adam Kelly. Magna provides a comprehensive suite of production chemicals to leading oil and gas providers in the San Juan and Permian basins. Magna will be a wholly owned subsidiary of Creedence, and Adam will continue as an operator and a significant investor.
Kevin Black, CEO of Creedence, said, “We are thrilled about this partnership with Magna Energy Services and to add Adam Kelly to our team. Magna represents our continued investment into New Mexico, the second largest oil producing state in the country. Following our partnership with ProChem Energy Services earlier this year, we have expanded into Carlsbad, NM to support our customers and their increasing production chemistry needs throughout the Permian. Magna’s extensive history in New Mexico, coupled with its deep industry relationships in the area, will further our collective ability to serve new and existing customers in the San Juan and Permian basins. Our commitment to safety, customer service, and data driven solutions are fully aligned and make this the perfect partnership. We are also well capitalized with the support of Tower Arch Capital, and we’ll continue expanding, both organically and through acquisition, into new geographies and additional capabilities.”
Adam Kelly, CEO of Magna, added, “The partnership with Creedence is a great fit for Magna, and our team, because both organizations share a strong commitment to serving our customers. Creedence will broaden our chemical solutions capabilities while bringing improved laboratory and analytical solutions to solve the toughest problems for our customers. I’m very excited with this partnership and for the future of Magna as part of Creedence.”
The partnership with Magna Energy Services, and prior combination with ProChem Energy Services, expands Creedence’s scale and geographic reach. The combined company manages over 8,000 wells and 5 million gallons of production chemicals each year. With ten locations across ND, OK, TX, and NM Creedence covers roughly 83% of the Lower 48 on-shore U.S. oil production and provides expansive reach and support throughout the country. The company’s customer centric approach, real-time reporting capabilities, and customized chemistries provide comprehensive solutions for producers’ production chemistry programs. Additionally, Creedence’s partnership with Locus Bio-Energy Solutions, a leading bio-surfactant manufacturer, is expanding its ability to deliver sustainable solutions for chemical treatment programs – improving oil recovery through cost effective, green solutions.
Terms of the transaction were undisclosed. Financing for the transaction was provided by KeyBank. Advisors for Creedence included Dorsey & Whitney LLP and RSM US LLP. Advisors for Magna Energy Services, LLC included Ferguson White and Brady & Hamilton, LLP.
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