Howard Energy Partners Sells Bottom Line Services, Llc To Mastec, Inc.
Howard Energy Partners
SAN ANTONIO, February 28, 2013 – Howard Midstream Energy Partners, LLC (HEP) today announced the company has sold its construction subsidiary, Bottom Line Services, LLC (BLS), to MasTec, Inc. for an undisclosed amount. BLS, a company specializing in pipeline and plant construction, operates primarily in the Eagle Ford Shale play in South Texas.
Since acquiring BLS in June 2011, HEP recapitalized the company and refocused its business from the midstream to the upstream sector, broadening BLS’s customer base to include major and independent exploration and production companies. HEP also worked to improve the management structure to ensure the company could handle larger business volumes, installing construction-specific accounting software for finite cost tracking and acquiring directional drilling equipment to broaden service offerings to customers. HEP expanded BLS’s original office location in George West, Texas, and added two additional Texas office locations in Cuero and Asherton. BLS grew from 300 employees in mid-2011 to a team of more than 1,050 employees by year-end 2012.
“I want to thank the Bottom Line Services employees for their commitment since becoming a part of HEP. Their hard work and dedication helped us create a great partnership. MasTec is an outstanding infrastructure company and we are confident that Bottom Line employees will play important roles there,” said Mike Howard, Chairman and Chief Executive Officer of Howard Energy Partners.
“Our divestiture of our construction business at this transformative juncture in our history is a strategic one. We are now 100 percent focused on the midstream sector and are developing our company around opportunities in the Eagle Ford Shale and other areas. We are fortunate to have earned a strong 2.2 times return on our equity investment in Bottom Line Services in only 18 months, and plan to redeploy this capital to help us execute our 2013 growth plan,” Howard added.
BLS is headquartered in George West, Texas, in the heart of the Eagle Ford Shale oil and gas play, and concentrates on gathering systems and facilities construction in that area. Since the company’s start in 2002, BLS has built hundreds of miles of pipeline and dozens of facilities including compressor stations, production facilities, cryogenic plants, stabilizers and amine treating facilities. BLS completed more than 2,400 projects in 2012 alone. MasTec will add to the already extensive experience of BLS by providing management depth, capital and construction focus to MasTec’s expanding Oil and Gas segment.
About Howard Energy Partners
San Antonio-based Howard Midstream Energy Partners, LLC dba Howard Energy Partners is an independent midstream energy company, owning and operating approximately 500 miles of natural gas pipelines, natural gas liquids processing plants, amine treating plants and other related facilities in South Texas primarily serving the Olmos, Escondido and Eagle Ford resource plays. The company has offices in Houston, San Antonio, Three Rivers and Asherton, Texas. For more information on Howard Energy Partners, please visit our website www.howardenergypartners.com.
About MasTec, Inc.
MasTec, Inc. (NYSE: MTZ) is a leading infrastructure construction company operating mainly throughout North America across a range of industries. The company’s activities include the engineering, building, installation, maintenance and upgrade of energy, communication and utility infrastructure, such as: electrical utility transmission and distribution, natural gas and petroleum pipeline infrastructure, wireless, wireline and satellite communications, wind farms, solar farms and other renewable energy, industrial infrastructure and water and sewer systems. MasTec’s customers are primarily in the utility, communications and government industries. The company’s corporate website is located at www.mastec.com.
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