Source Energy Services Ltd., a portfolio company of TriWest Capital Partners, has filed for a proposed initial public offering (IPO) and concurrent secondary offering.
Selling shareholders include TriWest Capital Partners, Sand Ventures, Source Energy Services New Partners Investment, Jim McMahon and McMahon Family Trust.
Source Energy Services is the second PE-backed oil & gas service company, filing for IPO in as many weeks. ARC Financial owned STEP Energy Services filed for IPO and secondary offering on February 9, 2017.
The offering is being underwritten and co-led by Scotia Capital Inc., Morgan Stanley Canada Limited, and BMO Nesbitt Burns Inc. Stikeman Elliott LLP and Blake, Cassels & Graydon LLP act as legal counsels to Source Energy Services and the underwriters respectively.
Source Energy Services is a fully integrated producer, supplier and distributor of high-quality Northern White frac sand, which is a preferred proppant used to enhance hydrocarbon recovery in the hydraulic fracturing of oil and natural gas wells.
In October 2013, TriWest Capital Partner IV acquired majority stake in Source.
For the year ended December 31, 2016, Source reported $139.2 million in sales, $43.4 million in net loss. Source employed over 220 employees as at December 31, 2016 in both Canada and the United States.
photo credit: Source Energy Services