NexTier Announces the Launch of Its Power Solutions Natural Gas Fueling Services in the Permian Basin

Rhea-AI Summary

NexTier Oilfield Solutions (NYSE: NEX) has launched its Power Solutions division, aimed at providing natural gas fueling services to fleets in the Permian Basin. This initiative integrates compressed natural gas (CNG) technologies with existing services, significantly reducing fuel costs and emissions. Operations have begun with an 80% diesel displacement rate in its ESG Platinum frac fleet. A strategic partnership with EagleClaw Midstream ensures a reliable natural gas supply, enhancing operational efficiency and sustainability in the oil and gas sector.

Positive

• Launch of Power Solutions division targeting natural gas fueling in the Permian Basin.
• Achieving over 80% diesel displacement in ESG Platinum frac fleet operations.
• Strategic partnership with EagleClaw Midstream for a reliable natural gas supply.

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• None.

HOUSTON, Aug. 2, 2021 /PRNewswire/ -- NexTier Oilfield Solutions Inc. (NYSE: NEX) ("NexTier" or the "Company") today announced the commercial launch of its Power Solutions division, a business dedicated to providing comprehensive fueling services to natural gas-powered fleets in the Permian Basin. With today's announcement, NexTier takes another leap forward in our commitment to provide low-cost, low-carbon solutions to the oil and gas industry.

The addition of Power Solutions integrates the latest in compressed natural gas (CNG) supply and field-gas handling technologies with NexTier's existing portfolio of natural gas-fueled completion services. This helps to reduce fuel costs and improve the Company's overall environmental, social and governance (ESG) performance at the wellsite. It is accomplished by displacing a significant portion of carbon-heavy diesel with cleaner, more cost-effective natural gas fuel.

"As the only service company to provide alternative fuel supply as part of our integrated completions portfolio, NexTier's goals are more closely aligned with those of our customers," said Aaron Hilber, Vice President of Power Solutions at NexTier. "The key driver to achieving our mutual goals of reducing fuel costs and decreasing emissions is NexTier's ability to maximize diesel displacement."

Operations commenced with NexTier supplying CNG to one of its ESG Platinum frac fleets. The operation has been successful in achieving diesel displacement rates greater than 80% in the fleet's dual-fuel pumps during operations, driven by integrated efficiencies and improved coordination.  Also on-site is the Company's proprietary pressure reduction system (PRS), which safely manages the CNG that was delivered to the wellsite via NexTier's CNG trailers. This first-of-its-kind PRS skid boasts improved reliability and the highest capacity in the market, suitable for even the most demanding projects. The PRS also incorporates patent-pending technology to eliminate the traditional challenges associated with introducing field gas into the fuel supply. All Power Solutions equipment is outfitted with NexTier's MDT control system, enabling real-time visibility into every aspect of the operation via the NexHub® Digital Center.

To ensure reliability of these innovative services, NexTier has entered into an agreement to purchase natural gas from EagleClaw Midstream, the largest private midstream operator in the Delaware Basin, with established infrastructure throughout the Greater Permian. This strategic partnership provides NexTier with the distinct operational advantage of access to a high-quality natural gas supply. Compressed natural gas delivered to the wellsite originated from NexTier's recently constructed fueling station near Pecos, Texas.

"Today's announcement further cements our position as the provider of choice to deliver safe, efficient, low-emission completion operations," commented Robert Drummond, President and Chief Executive Officer of NexTier. "Integrating gas fueling into our operations creates an alignment across the wellsite that gives us the greatest opportunity to reduce emissions and decrease operational costs via efficiency improvements from integrated operations. We are delighted to partner with EagleClaw Midstream as our natural gas supplier."

"We are pleased to partner with NexTier on this innovative and exciting new venture," added Jamie Welch, President and Chief Executive Officer of EagleClaw Midstream. "Our combined resources and expertise will help make the transition to lower-carbon operations much easier for both NexTier and EagleClaw Midstream customers."

About NexTier Oilfield Solutions

Headquartered in Houston, Texas, NexTier is an industry-leading U.S. land oilfield service company, with a diverse set of well completion and production services across the most active and demanding basins.  Our integrated solutions approach delivers efficiency today, and our ongoing commitment to innovation helps our customers better address what is coming next.  NexTier is differentiated through four points of distinction, including safety performance, efficiency, partnership and innovation.  At NexTier, we believe in living our core values from the basin to the boardroom, and helping customers win by safely unlocking affordable, reliable and plentiful sources of energy.

About EagleClaw Midstream

EagleClaw Midstream is a fully integrated, private midstream company that safely, responsibly and sustainably operates in the heart of the Delaware Basin. The Company currently has more than 650,000 acres under long-term dedication. EagleClaw Midstream is headquartered in Midland, Texas, and has a significant presence in Houston. EagleClaw Midstream provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. The Company is the largest private gas processor in the Delaware Basin, with 1,320 MMcf/d of capacity and more than 1,400 miles of operated pipelines. EagleClaw Midstream has long-term dedications for gas, crude and water midstream services from approximately 30 successful and active producers in the Delaware Basin. EagleClaw Midstream is also a partner on the Permian Highway Pipeline project.

NexTier Investor Contact:

Kenneth Pucheu
Executive Vice President - Chief Financial Officer

Marc Silverberg
Partner (ICR)
marc.silverberg@icrinc.com

 

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SOURCE NexTier Oilfield Solutions

FAQ

What is NexTier's Power Solutions division?

The Power Solutions division provides natural gas fueling services to fleets in the Permian Basin, focusing on reducing fuel costs and emissions.

What are the benefits of NexTier's natural gas fueling services?

The services aim to reduce diesel usage by over 80%, resulting in lower operational costs and improved ESG performance.

When was NexTier's Power Solutions division launched?

NexTier announced the launch of the Power Solutions division on August 2, 2021.

Who is NexTier's partner for natural gas supply?

NexTier has partnered with EagleClaw Midstream to ensure a reliable supply of natural gas for its operations.

What technology does NexTier use in its Power Solutions division?

NexTier uses compressed natural gas technologies and a proprietary pressure reduction system to improve efficiency and reliability.