American Energy Signs Agreement to Acquire Energy Services Company
Rhea-AI Summary
American Energy Partners (AEPT) announced its plan to acquire a privately held energy services company in the OH, PA, and WV regions, aimed at enhancing environmental sustainability through oil and gas asset reclamation services. The acquisition is expected to add over $3 million to AEPT's annualized revenue, raising its projected fiscal year 2022 revenue to over $5 million. The deal will be funded with cash and conventional debt, and is anticipated to close on October 1, 2021. CEO Brad Domitrovitsch emphasized this move as a commitment to growth and shareholder value.
Positive
- Expected annual revenue increase of over $3 million from the acquisition.
- Projected fiscal year 2022 revenue exceeding $5 million.
- Focus on environmental sustainability aligning with ESG principles.
Negative
- None.
News Market Reaction – AEPT
In the trading session that priced this news, AEPT declined 0.37%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
ALLENTOWN, Pennsylvania, July 19, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire – American Energy Partners, Inc. (“American Energy”) (PINK: AEPT), a diversified energy company, is pleased to announce it has agreed to acquire (the “Acquisition”) a privately held energy services company (“Company”) operating in the OH, PA and WV region. The Company focuses on reducing customers' environmental footprint through the decommissioning, abandonment and reclamation services of oil and gas assets.
The Acquisition is expected to increase American Energy’s annualized revenue by over three (3) million dollars. American Energy’s fiscal year 2022 consolidated revenue is forecasted to top five (5) million dollars. Total consideration for the Acquisition will be funded through a combination of cash and conventional debt.
American Energy’s CEO Brad Domitrovitsch stated, “Today’s announcement shows our commitment to company growth and increasing shareholder value. In addition, this acquisition demonstrates American Energy’s assurance and contribution to a clean energy transition, with our focus on energy services that promote sustainability and environmental, social, and governance (ESG) best practices.”
The transaction is expected to close on October 1, 2021, subject to customary closing conditions.
American Energy Partners, Inc. (AEPT)
American Energy Partners, Inc. is a diversified energy company. Through its various subsidiaries, the Company engages in water treatment and distribution, oil and natural gas production, geotechnical consulting services, and energy education.
For additional information, visit: American Energy Partners, Inc.
Safe Harbor
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of AEPT, statements relating to goals, plans and projections regarding AEPT’s financial position and business strategy. The words or phrases “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think”, “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. AEPT cautions readers not to place undue reliance on such statements. AEPT does not undertake, and AEPT specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from AEPT’s expectations and estimates.
Company Contact:
Contact@americanenergy-inc.com