Flex Leasing Power and Service Announces New Financing Led by Texas Capital Bank to Meet Growing Demand
- Proceeds will be used to increase the fleet of Flex Turbines® to over 50 MW of installed capacity by the end of 2019.
- Newbuild Flex Turbines will be manufactured and delivered to Flex Leasing Power and Service (FLPS) by its sister-OEM business, FlexEnergy.
- Growing market acceptance of FLPS offerings, including the innovative FlexGrid microgrid solution, continues to drive demand in oil production applications.
DENVER, March 05, 2019 (GLOBE NEWSWIRE) — Flex Leasing Power and Service, LLC, (FLPS) the leader in small gas turbine power solutions for the oil and gas sector, today announced that it has closed on a senior secured credit facility with Texas Capital Bank to support the continued growth of its fleet of Flex Turbines® through 2019 and beyond. The company expects to increase the size of its fleet by approximately 30% in 2019, bringing total installed capacity to over 50 MW by the end of the year. Newbuild Flex Turbines will be manufactured and delivered to FLPS by its sister-OEM business, FlexEnergy.
This financing builds on an exceptional year for which FLPS saw rapid growth in utilization of the existing fleet by oil and gas producers. Continued development of unconventional oil and gas resources in North America has resulted in more producing wells and a significant increase in demand for high-quality baseload electric power. FlexGrid power solutions based on the proprietary Flex Turbine provide oil producers and other industrial customers with clean, reliable and high-quality power when and where they need it.
The advent of 2019 marks several important milestones for FLPS, including:
- More than six years of continuous operation in North America’s most active oil and gas producing regions, accumulating nearly three million operating hours with exceptionally high uptime performance.
- Currently powering all types of oil and gas applications including production facilities, SWD wells, central facilities and compressor stations.
- More than 200 GWh of prime power generated from over seven billion cubic feet of avoided flare gas.
- With the planned additions, the FLPS fleet will provide more than 50 MW of installed and available capacity by the end of 2019.
“Growing market acceptance of our oilfield power offerings, including our innovative FlexGrid microgrid solution, is driving demand faster than expected,” said Doug Baltzer, President of FLPS. “Oil and gas producers with active drilling programs need high-quality, clean and reliable power for field operations and facilities. The Flex Turbine is the most reliable power option available, providing our customers with 99.4% uptime performance last year. With its wide fuel tolerance, it can use untreated wellhead gas without special configuration. Modularity means several units can be connected together into a FlexGrid, giving operators the ability to scale power capacity up, or down, as demand changes over the life of a producing well or production pad with minimal environmental impact.”
The primary attributes of the Flex Turbine make it ideal for oilfield applications:
- In a FlexGrid microgrid application, Flex Turbines can be added seamlessly to supply additional power as needed. As natural production declines, reducing the number of units on-site can be easily accommodated and re-deployed to areas where power needs are increasing.
- The Flex Turbine GT333S microturbine unit emits less than 9 ppm for NOx, CO and VOC, which is approximately ten times cleaner than any Tier IV reciprocating engine. The Flex Turbine is certified to the California Air Resources Natural Gas Distributed Generation Standard, setting the benchmark for clean air, efficiency and fuel flexibility in one compact package.
- Wide fuel tolerance and the ability to operate on untreated wellhead gas, rich tank vapor gas or even “sour” gas containing up to 10,000 ppm of hydrogen sulfide.
- FLPS supports is fleet with a 24/7 local service team that is factory certified and trained to operate the Flex Turbines.
- Leasing option allows operators to allocate more capital to drilling wells instead of power infrastructure.
Chris Capriotti, Executive Vice President with Texas Capital Bank said, “We are excited about collaborating with Flex and supporting the company’s growth as they work to build value in oil production and other exciting market sectors. Growing companies with a differentiated offering are exactly the kind of businesses we partner with best.”
Wes Kimmel, Chief Financial Officer of FlexEnergy Power Solutions LLC, said, “We are thrilled to partner with Texas Capital Bank. This new capital is a testament to how Doug and his team at FLPS have grown the leasing and service business throughout the North American oilfield. With its competitive terms, this well-timed financing strengthens our balance sheet and allows us to further scale our business in 2019 and beyond.”
Gordian Group acted as sole financial advisor to Flex Leasing Power and Service.