Analyst: Pressure Pumping Asset Sale Implies Extraordinary Upside
Analysts with Tudor, Pickering, Holt & Co. noted the sale of Quintana’s legacy conventional pressure pumping operations was a small deal but that it also highlighted a “prodigious valuation upside.”
Hurricane Services, a privately-held oilfield service company based in Wichita, Kan., agreed to buy Quintana’s legacy pressure pumping assets for $4.4 million in cash. (Source: Hart Energy/Shutterstock.com)
Quintana Energy Services Inc. exited its conventional pressure pumping business in a recent sale that analysts believe highlights a massive valuation upside to the Houston-based oilfield service provider.
Coming off a second-quarter miss due to market softness surrounding U.S. onshore activity, Quintana said Aug. 19 it sold its legacy conventional pressure pumping operations in Kansas and Oklahoma as the company continues to focus on cutting costs.
The legacy business included about 12,000 hydraulic horsepower (hhp) across five facilities plus 26 personnel. Hurricane Services Inc., a privately-held oilfield service company based in Wichita, Kan., agreed to buy the assets for $4.4 million in cash.