Extreme Plastics Plus Inc., which provides geomembranes and polyethylene sheet for oil and gas containment including liners and storage tanks, is merging with competitor Mustang Energy Services Inc.
New York-based Blue Wolf Capital Partners LLC, which bought Extreme Plastics Plus in late 2016, has acquired a majority stake in Mustang. Todd and Whitney Creel, who founded Mustang in 2011, have retained a significant ownership interest in the combined company.
Terms were not disclosed.
Extreme is based in Fairmont, W.Va. Mustang is headquartered in Aledo, Texas.
The combined company has a presence in most of the major domestic oil and natural gas basis in the United States. It serves exploration and production operators in Texas, New Mexico, Oklahoma, Pennsylvania, West Virginia, Ohio, Colorado and Wyoming.
Extreme Plastics Plus and Mustang provide containment services, including environmental liner systems and installations, above-ground storage tanks, composite maps and floating covers. Both companies serve the hydraulic fracturing sector.
Extreme Plastics Plus began in 2007. The company expanded over the years, but a downturn caused by slumping oil prices that began in 2014 hit the U.S. fracking sector, prompting the company to file for Chapter 11 protection from creditors in January 2016. Blue Wolf made a majority investment in December 2016 and the company came out of bankruptcy with a debt-free balance sheet.
“The strategic combination of EPP and Mustang creates an unrivaled environmental containment business with the capabilities to service the most active exploration and production operators across the country,” said Aakash Patel, principal at Blue Wolf.
Blue Wolf recently appointed Jay Minmier as CEO of Extreme, and he will be CEO of the combined company. Minmier most recently served as president of Nomac Drilling LLC from 2011-2017, when Nomac's parent company was bought by driller Patterson-UTI.