GreenHunter Water LLC, a wholly owned subsidiary of GreenHunter Energy Inc, has completed the purchase of new rolling stock equipment assets to service oil and gas operators active in the Marcellus and Utica Shale plays located in the states of Pennsylvania, Ohio, and West Virginia. The equipment consists of 10 new Peterbilt 388 trucks (2012 model year), five new 150-barrel aluminum vacuum trailers, and five new 130-barrel steel vacuum trailers.
To facilitate the purchase, the Company expanded an existing commercial loan facility with an Appalachia regional bank. The loan was increased from an existing lending facility of $800,000 to $2.5 million. This loan facility is secured by future accounts receivable to be generated under a new long term contract with a large Texas based independent exploration and production company active in the Appalachian region. The equipment is scheduled to be delivered to the Appalachian region by the end of May and is anticipated to be 100% utilized by the middle of June.
Commenting on this business expansion, Jonathan D Hoopes, GreenHunter president and chief operating officer, says:“This most recent addition to our hauling and logistics fleet will help to right-size our asset base relative to current demand which will allow us to reduce our dependence on third-party operators. We anticipate continuing our trend of realizing improved margins as we fine tune our operations and integrate these new trucks with our barge terminal leases and bulk-storage facilities. Our customers remain very active in the liquids rich regions of the Marcellus and Utica Shale plays despite current natural gas price levels.”