HydroEdge Closes $8 Million Financing
MCMURRAY, PA–(Marketwired – November 09, 2017) – HydroEdge Solutions, a privately held leading turnkey water solutions provider to the U.S. energy marketplace, today announced that it has completed an $8 million round of debt financing with an independent, third party lender. Under the terms of the transaction, the Company has received a $3 million revolving line of credit and a $5 million one-year term loan.
HydroEdge, along with related affiliates, provides water solutions to oil & gas, municipal, mining, and other industries. Leveraging key customer and supplier relationships in an otherwise highly fragmented industry, the Company’s strong customer retention drives recurring project revenue that provides excellent visibility to its new-business pipeline. In a domestic energy market that is in recovery mode, HydroEdge is experiencing out-sized growth, robust profitability, and cash flow.
The capital raised in this financing will be used to fund rapidly growing operations, receivables, capex and as general working capital.
HydroEdge, which maintains a deep base of global blue-chip customers in both the private and public sectors – including EQT Corp., CNX Gas Company, LLC – a subsidiary of Consol Energy, Rice Energy, Statoil, and EdgeMarc Energy – boasts an attractive financial growth profile. HydroEdge is on track to increase its 2017 revenue 67 percent to approximately $13.2 million with $2.7 million in EBITDA. It is projected to organically grow revenue another 40 percent in 2018 to $18.5 million with $4.4 million in EBITDA.
“Aggressively expanding our product and servicing offering, while maintaining lean operations, are key components of our strategy,” said Matt Brewer, Chief Executive Officer of HydroEdge. “This financing validates our business model and enables us to rapidly expand our customer base and diversify revenue sources while ensuring the best-in-class service and reliability upon which our growing reputation is built.”
About HydroEdge Solutions
HydroEdge is a leading turnkey water solutions provider to the U.S. energy marketplace. Its growing, diversified customer base includes Chevron, Eclipse Resources, Consol Energy, Statoil and many others. The Company, founded in 2013 and based in Pittsburgh, PA, provides custom-designed, engineered, and managed supply chain solutions capable of reaching the most remote well locations throughout the Appalachian Basin. HydroEdge supplies high-volume, controlled supply of water directly to destination, free of leaks and service interruption. For more information about the company, please visit www.hydroedgesolutions.com.
Safe Harbor/ Forward-Looking Statements
This press release contains forward-looking statements which describe HydroEdge Solutions’ current expectations of future events. Statements including objectives, expectations, and valuations are predictive in nature, and involve risks and uncertainties which may cause results to differ from statements included herein. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: results of operations and financial condition, future legislation and changes in regulations or governmental policies or changes in enforcement or interpretations thereof; changes in energy policy; increases in energy conservation efforts and technological advances. Forward-looking statements included in this document represent the views of HydroEdge Solutions as of the date hereof and are provided with the goal of assisting potential investors in understanding the Company’s business objectives. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements.
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