Stabilis Energy Announces Signing of Definitive Agreement to Purchase Encana
Natural Gas Inc.'s Domestic LNG Business
Combined Company to Be a Leading Provider of Liquefied Natural Gas
Fueling Solutions to High Horsepower Engines
BEAUMONT, TX -- (Marketwired) -- 04/14/14 -- Stabilis Energy
announced that it has signed a definitive agreement to purchase
substantially all of the U.S. based assets of Encana Natural Gas Inc.
(ENGI). Denver-based ENGI is a leading distributor of liquefied
natural gas (LNG) fuel to domestic high horsepower engine operators
in the oilfield, mining, rail, marine, over the road transportation,
and industrial sectors. ENGI is a subsidiary of Encana Corporation.
The transaction is scheduled to close on April 30, 2014. Terms of the
transaction were not disclosed.
"We are proud to announce the addition of Encana Natural Gas Inc.'s
people, assets, and customer relationships to Stabilis Energy," said
Casey Crenshaw, President and CEO of Stabilis Energy. "ENGI has a
world-class staff that will help us reach our goal of being the
leading provider of LNG fuel solutions to high horsepower operators
in North America. They possess deep sector expertise and strong
customer relationships that we believe will make Stabilis Energy an
LNG industry leader across multiple geographies and end markets."
In addition to adding ENGI's staff, Stabilis has agreed to purchase
its fleet of cryogenic rolling stock assets including storage and
regasification trailers, mobile fueling units, and other related
equipment. Stabilis will fulfill all of ENGI's existing customer
obligations including its existing contracts, subject to customer
consent. Crenshaw stated, "Stabilis is excited about growing the LNG
market in partnership with ENGI's market leading customers."
"Encana Natural Gas Inc.'s customers should expect business as usual
-- with the same great people, great equipment, and great customer
service," said Jim Reddinger, Chief Operating Officer of Stabilis
Energy. "But they also will benefit from the expanded scope and scale
of the new Stabilis Energy business. Our fully integrated LNG fuel
solutions offering -- spanning from LNG production to delivery and
on-site technical service -- will give our customers the confidence
they need to choose LNG to fuel their mission critical high
horsepower engine activities."
Stabilis plans to open its first LNG production facility in George
West, TX in January 2015 to service oilfield customers in the Eagle
Ford shale. The facility is being built as part of a previously
announced venture with Flint Hills Resources LLC, a leading refining,
chemical and biofuels company and a subsidiary of Koch Industries, to
build up to five LNG production facilities that target oilfield
customers. The George West facility is under construction now and
will be able to produce approximately 100,000 LNG gallons per day
when complete. Other targeted LNG liquefaction plant locations
include West Texas, North Dakota, and other major oilfield regions.
Stabilis also will continue to source fuel from ENGI's large existing
third-party supply network.
"Encana is pleased that Stabilis Energy will carry on the outstanding
LNG business that our Natural Gas team has worked hard to build over
the past several years," said David Hill, Executive Vice-President of
Encana Corporation. "Encana believes that natural gas has a bright
future as a domestic fuel source for high horsepower engines and that
LNG will be an important part of this value chain." Encana will
remain a customer of Stabilis Energy for LNG.
After the transaction closes, Stabilis Energy will operate one of the
largest cryogenic rolling stock fleets in North America across 20
states and multiple end markets, including oilfield, mining, rail,
marine, and general industrial. Senior management teams from both
organizations will assume leadership positions with Stabilis Energy.
About Stabilis Energy
Stabilis Energy is one of the fastest growing suppliers of liquefied
natural gas (LNG) to the oilfield sector in North America. Stabilis
also serves other end markets including mining, rail, and industrial.
Stabilis provides turnkey fuel solutions to help industrial users of
diesel and other crude-based fuel products convert to LNG, resulting
in reduced fuel costs and improved environmental footprint. Stabilis
is vertically integrated from LNG production (beginning January 2015)
through distribution and cryogenic equipment rental. Stabilis is
headquartered in Beaumont, TX and is privately held.
COO and CFO
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