Pilot Flying J Acquires Wellsite Services Company

(BRK.A), (BRK.B)

Berkshire Hathaway’s newest acquisition, the largest operator of travel centers in North America, Pilot Flying J, has announced that it has taken an equity interest in Equipment Transport, LLC, a wellsite services company.

In addition to its travel center business, Pilot Flying J runs the fourth-largest tanker fleet in the U.S.

Pilot’s subsidiary, PDPS LLC, which does business under the name PWT, announced the purchase of equity interests in Equipment Transport, LLC from CIVC Partners, LP.

The acquisition is one of many strategic partnerships made by Pilot Flying J this year to extend its core logistics business and grow its service offerings in the exploration and production sector.

“ET is an exceptional wellsite services platform with a strong reputation for outstanding customer service,” said Shameek Konar, chief strategy officer at Pilot Flying J. “Incorporating ET into our Oil Field Logistics platform provides comprehensive, reliable and cost-effective logistical solutions to the Oil and Gas industry. With Pilot Flying J’s fleet size, safety record, balance sheet and geographic reach across all major oil and gas basins, we hope to enhance ET’s ability to grow its customer base across multiple basins.”

CEO and founder Dave Florance and the rest of ET’s management team will continue to lead the Company as it serves its customers as a one-stop provider of reliable, safe and fully compliant services.

ET, founded in 2007, is a Carlisle, PA-based provider of critical services supporting the drilling, completions, and production programs of exploration and production companies. The Company brings significant value to its customers in the Marcellus and Utica Shales and the Permian Basin through a broad service offering that includes fluid transportation, waste management, and ancillary pad support services. Collectively, ET serves its more than 70 customers through six locations with a highly trained workforce of over 500 employees.

“Since its founding, Dave Florance and the ET management team have grown the business into a best-in-class provider of critical wellsite services, while outperforming the broader oilfield services industry and delivering exceptional organic growth,” said Keith Yamada, partner at CIVC. “We have built a strong partnership over the last six-plus years and know we’ve found the right partner in Pilot Flying J to continue to support ET’s future expansion.”

In June of this year, Pilot Flying J entered into a JV with Produced Water Transfer LLC to form PDPS, operating under the name PWT, and in July acquired Bridger Environmental Services LLC a water disposal platform and the crude transportation assets of Bridger Transportation.

Today, Pilot Flying J and its subsidiaries operate more than 500 trucks and a dozen saltwater disposal wells, providing logistics and disposal services to customers in the Permian, Eagle Ford, Marcellus and Haynesville shales as well as in Wyoming and Utah.

Berkshire Hathaway and Pilot Flying J

In October 2017, Berkshire Hathaway made a $2.76 billion investment in Pilot Travel Centers. Under the terms of the agreement, Berkshire will become the majority owner in five years.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.