Heckmann Corporation (NYSE: HEK)
(“Heckmann” or “the Company”) today announced that its merger (“the Merger”) with Badlands Power Fuels, LLC (“Power Fuels”) closed effective today. Mr. Mark D. Johnsrud, founder and owner of Power Fuels, has been appointed as Chief Executive Officer of the Company and joined Heckmann’s Board of Directors as a Vice Chairman. Mr. Richard J. Heckmann now serves as the Company’s Executive Chairman of the Board.
As a result of the merger, Heckmann paid $125 million in cash and issued 95 million shares of the Company’s common stock to the owner of Power Fuels. The shares are subject to a two-year lockup agreement and a two-year standstill agreement and are not available for any type of borrow or exchange. In addition, in connection with the transaction, Heckmann repaid all of Power Fuels’ outstanding debt obligations totaling approximately $150 million. The Company also closed on the previously announced $325 million amended revolving credit facility.
About Heckmann Corporation
Heckmann Corporation (HEK) is an environmental services company. Heckmann is dedicated to the movement, treatment and disposal of water generated by energy companies involved in the discovery and production of oil, natural gas liquids and natural gas. Heckmann is also a one-stop-shop for collection and recycling services for oily waste products, including used motor oil, oily wastewater, spent antifreeze, used oil filters and parts washers. Heckmann is building a national footprint across its environmental service offerings and has more than 1,500 employees and operates in more than 55 locations in the United States.
About Power Fuels
Badlands Power Fuels, LLC, d/b/a Power Fuels, is a privately held North Dakota-based environmental services company providing water delivery and disposal, fluids transportation and handling, water sales and related equipment rental services for shale, or “unconventional,” oil and gas exploration and production businesses. Power Fuels is the largest environmental services company in the Bakken Shale area in North Dakota, a premier U.S. unconventional shale oil basin. Power Fuels also provides rental equipment and operates 19 saltwater disposal wells. Through its network of seven district offices and roughly 1,100 employees, Power Fuels serves the leading oil and natural gas exploration and production companies and energy marketing companies in its markets under the “Power Fuels,” “Badlands Power Fuels” and “Landtech” brands. Power Fuels' sales have increased from approximately $34 million for the fiscal year ended December 31, 2007 to approximately $364 million, on a pro forma basis, for the 12-month period ended June 30, 2012, representing a 70% compound annual growth rate during the period.