Legacy Oilfield Pressure Pumping Company BJ Services Re-Emerges as Industry Leader
BJ Services has re-emerged today as North America’s largest pure-play
oilfield pressure pumping company. Founded in 1872 by Byron Jackson, the
BJ brand is built upon a rich 145-year history, which will continue
under the newly independent company. The transaction to create the new
BJ Services, whereby Baker Hughes Incorporated (NYSE:BHI) contributed
its North American land cementing and hydraulic fracturing businesses
and CSL Capital Management (CSL) and West Street Energy Partners (WSEP)
– a fund managed by the Merchant Banking Division of Goldman Sachs –
contributed cash along with CSL contributing its Allied and ALTCem
pressure pumping services platform, was announced November 29 and
completed today.
With a combined capacity of 1.9 million hydraulic horsepower and 240
cementers, BJ is positioned with a strategic footprint to serve clients
in all targeted basins. With reliability as a core value driving the
company’s teams and operations, BJ Services will be led by a leadership
team with a passionate commitment to perfecting operational execution in
the oilfield. Effective immediately, Warren Zemlak has been appointed as
BJ’s President and Chief Executive Officer. Mr. Zemlak brings more than
27 years of industry experience to his new role having served as a
former long-time senior executive with Schlumberger and a privately
owned services company. Rounding out the initial executive team will be
Caleb Barclay, appointed Chief Operating Officer. Mr. Barclay brings
more than 16 years of industry experience, having held progressively
senior North American pressure pumping leadership roles.
“We are proud to build upon the BJ legacy. I believe our focus on
execution, broad expertise and strong capital discipline combined with
the second largest cementing and fracturing fleets in North America will
result in the new BJ Services being a fierce competitor," said Warren
Zemlak, President and CEO of BJ Services. "We will utilize proven
processes and leadership experience to activate assets and develop
personnel to exceed our clients' expectations of cementing and
fracturing service delivery."
BJ Services will be headquartered in Tomball, Texas, with operations
strategically located throughout North America. The newly re-emerged
company will leverage its strong balance sheet and cost and cash
discipline to position itself for growth, enabling it to effectively
respond to market dynamics.
“We have received a tremendous amount of support for this transaction
from clients, suppliers and the broader industry. Our combined team is
passionate about the mission of BJ Services and excited to move
forward,” said Charlie Leykum, Chairman of BJ Services and Founding
Partner of CSL Capital Management. “We are pleased to partner with Baker
Hughes and Goldman Sachs to introduce the new BJ Services to the market.
With a drive for performance, operational expertise and a strong balance
sheet we will become the premier provider of completion services in the
market.”
About BJ Services
BJ Services is a leading provider of land-based North American pressure
pumping services. The company has over 1,500 employees and is
headquartered in Tomball, TX. For more information about BJ Services,
visit: www.bjservices.com
About Baker Hughes
Baker Hughes is a leading supplier of oilfield services, products,
technology and systems to the worldwide oil and natural gas industry.
The Company’s 34,000 employees today work in more than 80 countries
helping customers find, evaluate, drill, produce, transport and process
hydrocarbon resources. For more about Baker Hughes, visit: www.bakerhughes.com
About CSL Capital Management
CSL Capital Management is an SEC-registered private equity firm founded
in early 2008 and headquartered in Houston, TX. Since its inception, CSL
Capital Management has raised in excess of $1.4 billion in equity
capital and commitments across various investment vehicles. CSL Capital
Management is currently investing out of CSL Energy Opportunities Fund
II, L.P. CSL’s current portfolio includes several de novo, growth,
recapitalization, and other investments.
About Goldman Sachs’ Merchant Banking Division
Founded in 1869, The Goldman Sachs Group, Inc., is a leading global
investment banking, securities and investment management firm. Goldman
Sachs’ Merchant Banking Division (MBD) is the primary center for the
firm’s long-term principal investing activity. With nine offices across
seven countries, MBD is one of the leading private capital investors in
the world with equity and credit investments across corporate, real
estate, and infrastructure strategies. Since 1986, the group has
invested approximately $180 billion of levered capital across a number
of geographies, industries and transaction types.
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