HOUSTON, TX–(Marketwired – December 04, 2014) – HII Technologies, Inc. (
“While we understand the market’s concern over falling crude oil prices, we note that business continues to grow rapidly at HII Technologies,” stated Matthew Flemming, CEO. “Our top five customers represent more than 50% of our current revenues and are comprised of Apache, Devon, Chesapeake, Pioneer, and American Energy Partners. Our geographic footprint in the Southwest United States, includes some of the most economically feasible basins such as the Eagle Ford Shale and Permian basins, which have lower production costs in relation to the rest of the US shale plays. New business activity has remained robust and we currently have seen no slowdown in customer demand or oilfield operators for our frac water management services.”
Below is a summary of important developments:
- HIIT’s customer base continues to expand rapidly; we have added ten new Master Service Agreements (MSA) since the end of September 2014.
- The Company’s customers continue to request new value-added services. We recently received a contract from a major US oilfield producer in West Texas for water facilities services. We believe this relationship will produce annual revenues of at least $6 million.
- Currently, HIIT is aware of customer pullback only in the Bakken where higher operating and transportation costs affect activity, and this does not affect HIIT’s business.
- Gas production is rising, which will also create rising demand for our services, and we expect this demand to remain stable.
- Evaporation technology product line has been commercialized in the last 90 days and customer demand has been highly receptive to this technology in lieu of high trucking and waste water disposal costs.
- The Rig Count activity grew from 900 rigs in Texas and 212 in Oklahoma in August 2014 to 901 and 214 respectively by the end of November, according to the Baker Hughes Rig Count.
- Our guidance for the full year 2014 remains unchanged at $50-53 million in revenues and $8-10 million in EBITDA (both figures pro forma for the Hamilton acquisition).
“Our core water transfer services remain in demand by operators and our technology continues to differentiate us in the marketplace adding lower cost alternatives and services to oilfield operators. Additionally, we have seen an increase in the number of accretive acquisition opportunities that are presented to us. The HIIT team is looking forward to another year of rapid growth in 2015,” concluded Mr. Flemming.
About HII Technologies, Inc.
HII Technologies, Inc. is a Houston, Texas based oilfield services company with operations in Texas, Oklahoma, Ohio and West Virginia. By focusing on the critical service areas of Water, Safety and Power, the Company is positioned to take advantage of the significant anticipated growth in horizontal drilling and hydraulic fracturing within the United States’ active shale and unconventional “tight oil” plays. The Company’s frac water management division does business as AES Water Solutions, Hamilton and AquaTex, its onsite oilfield contract safety consultancy does business as AES Safety Services, and its mobile oilfield power subsidiary does business as South Texas Power (STP). The holding company, HII Technologies’ objective is to bring proven technologies to these operating divisions to build a long-term competitive advantage for its stakeholders. Read more at www.HIITinc.com, www.AquaTexUSA.com, www.AESWaterSolutions.com, www.AESSafetyServices.com and www.Oilfield-Generators.com.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements as to matters that are not of historic fact are forward-looking statements. These forward-looking statements are based on HII’s current expectations, estimates and projections about HII, its industry, its management’s beliefs and certain assumptions made by management, and include statements regarding estimated capital expenditures, future operational and activity expectations, international growth, and anticipated financial performance in 2014. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these “forward-looking statements” are identified by words such as “expects,” “believes,” “anticipates” and similar phrases.
Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, but not limited to: risks that HII will be unable to achieve its financial, capital expenditure and operational projections, including quarterly and annual projections of revenue and/or operating income and risks that HII’s expectations regarding future activity levels, customer demand, and pricing stability may not materialize (whether for HII as a whole or for geographic regions and/or business segments individually); risks that fundamentals in the U.S. oil and gas markets may not yield anticipated future growth in HII’s businesses, or could further deteriorate or worsen from the recent market declines, and/or that HII could experience further unexpected declines in activity and demand for its hydraulic frac related water transfer business, its safety consultancy business or its generator and related equipment rental service businesses; risks relating to HII’s ability to implement technological developments and enhancements; risks relating to compliance with environmental, health and safety laws and regulations, as well as actions by governmental and regulatory authorities; risks that HII may be unable to achieve the benefits expected from acquisition and disposition transactions, and risks associated with integration of the acquired operations into HII’s operations; risks, in responding to changing or declining market conditions, that HII may not be able to reduce, and could even experience increases in, the costs of labor, fuel, equipment and supplies employed and used in HII’s businesses; risks relating to changes in the demand for or the price of oil and natural gas; risks that HII may not be able to execute its capital expenditure program and/or that any such capital expenditure investments, if made, will not generate adequate returns; and other risks affecting HII’s ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.
Because such statements involve risks and uncertainties, many of which are outside of HII’s control, HII’s actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Other important risk factors that may affect HII’s business, results of operations and financial position are discussed in its most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and in other Securities and Exchange Commission filings. Unless otherwise required by law, HII also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. However, readers should review carefully reports and documents that HII files periodically with the Securities and Exchange Commission.