Anderson Water Well Services, LTD. (AWW) provides water well drilling services for exploration and production companies in the Barnett Shale region of North Texas. These water wells provide the most economical source of water for the high volume fracs that have enabled this non conventional gas play to flourish. AWW, then a commercial water driller, was bought in 2003 by Jerry Peek and Jim Rowan, two oil and gas contract drilling industry veterans.
DAG knew Mr. Peek and Mr. Rowan well, as we represented them in the sale of Peek & Rowan, Inc., an oil and gas drilling contractor, in 1998. Because of this previous success, the owners contacted DAG and engaged for the sale of their second company. DAG performed an analysis of both strategic and financial buyers, and approached a select number of candidates. One of the candidates was Complete Production Services, Inc. (NYSE:CPX). AWW was a perfect strategic fit with Complete’s existing water well drilling operation in the area. Complete delivered a premium valuation comprised of cash and stock. Mr. Peek and Mr. Rowan satisfied their liquidity of objectives, and both now manage the combined water well drilling operations.