Transactions
GTUIT
Billings, Montana
Hydraulic Fracturing Services
INVESTMENT AMOUNT: $7,000,000
INVESTMENT DATE: December 2013
“Believing CapX Partners would do a better job of meeting our needs, a traditional lender referred us to them. Working with CapX Partners, we were able to structure a financing package that allowed us to achieve our financing and business goals. Their approach to our business was hands-on and thorough. We look forward to a positive working relationship with the team at CapX Partners.”
— Christian Orms, CFA, Chief Financial Officer, GTUIT, LLC
INVESTMENT SITUATION
The oil-and-gas activity in the Bakken and Three Forks shale underlying western North Dakota and Eastern Montana is creating tremendous opportunity but has also generated significant concerns about pollution. Hundreds of natural gas flares have turned up in response to all of the related drilling. Pipeline companies are looking for solutions that allow these valuable liquids to be captured, stored, and trucked away from the wells, thus reducing flaring and potentially increasing profitability.
GTUIT is an oil and gas service company headquartered in Billings, Montana. The company installs patented mobile, modular gas plants that capture a high percentage of gases that can then be converted into NGLs (Natural Gas Liquids) and sold in the market. GTUIT’s systems are scalable making flare gas treatment possible in both shale oil and gas plays. In order to execute their fast-paced growth plan, GTUIT turned to CapX Partners for growth capital to allow them to capitalize on the significant opportunities ahead of them.
THE CAPX SOLUTION
Alongside additional equity contributed by the GTUIT’s sponsors, CapX designed a debt solution to address immediate capital needs of the company. CapX provided a $7.0 million equipment lease line of credit, which will fund GTUIT’s equipment growth. With the new funding, GTUIT will be able to accelerate the build out of its modular fleet in order to meet the market demand.
“GTUIT’s technology satisfies both an increasing state level environmental pollution control requirement and a highly profitable business model. CapX found this to be compelling for an early stage investment that was confirmed by the experience of GTUIT’s founding management and the depth of its oil and gas family office investors. We look forward to GTUIT’s growth and potential to be an industry leader. ” Jeff Pfeffer, Managing Partner, CapX Partners