The facility will be used 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.
The new financing builds on an exceptional year in which FLPS saw rapid growth in utilization of its 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 Flex Turbine provide oil producers and other industrial customers with clean, reliable and high-quality power when and where they need it.
“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.”
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.”
Gordian Group acted as sole financial advisor to Flex Leasing Power and Service on the transaction.