Morgan Stanley invests in Catalyst Energy Services

Investment funds managed by Morgan Stanley Energy Partners (MSEP) has purchased a majority equity stake in US-based Catalyst Energy Services to support the growth of the latter’s services in oil and gas basins in the country.

The investment will give Catalyst the required capital and resources to expand its equipment fleet and service portfolio.

Catalyst Energy Services CEO Bobby Chapman said: “Our partnership with Morgan Stanley Energy Partners provides Catalyst with a strong sponsor and the world-class resources to build an industry-leading oilfield services franchise.

“In light of the high demands and specifications required in today’s state-of-the-art completion techniques, we see a unique opportunity to provide our customers with the industry’s newest equipment and differentiated services that will drive efficiency in their completion operations.”

Catalyst will use the proceeds to buy new Tier IV pressure pumping equipment, which has been designed to increase pumping efficiency.

During the third quarter of this year, the company plans to launch new pressure pumping and pump down equipment into the Permian Basin.

It also plans to expand its service offerings and geographic footprint to support its customers.

Morgan Stanley Energy Partners managing director and head John Moon said: “We are delighted to be partnering with Catalyst to grow the company into a leading provider of high-end pressure pumping services.

“We believe this is a compelling opportunity for us to invest alongside an experienced management team to build a leading energy services business across the most attractive oil and gas basins in the US.”

Catalyst offers pressure pumping and other complementary services to upstream producers in the US oil and gas basins.