Reliable One’s Trucking Assets
As an emerging leader in the industrial water treatment space, Reliable One Resources has targeted the acquisition of trucking assets, both as a revenue stream and to secure consistent supplies of wastewater from oil and gas producers as feedstock for its planned water treatment facilities.
The first step in this strategy was the acquisition of a controlling interest in BBU Services, Inc., B&S Leasing, LLC, and Mountain States Environmental, LLC, which together provide comprehensive trucking services – including water hauling, roll-off services, vacuum trucks, containment, and emergency spill response – to oil and natural gas operators in the Marcellus and Utica Shale regions.
Reliable One has targeted the acquisition of 3 additional trucking companies in the Marcellus Shale and expects to close the purchase in the first quarter of 2019. These acquisitions, coupled with the recent purchase of an operating water disposal facility in Athens County, Ohio, further Reliable One’s mission to collect and treat produced and flowback water for oil and gas operators throughout the United States.
Like the disposal well facility, the trucking companies have current contracts with area oil and gas producers. Securing this new water supply adds to the amount of produced and flowback water committed to Reliable One. With an operating history dating back to 1988, the purchased companies’ staff is well-trained to handle the complex and evolving demands of the oil and gas field industry, specifically as it relates to wastewater hauling.
Reliable One’s broader strategy is to develop regional water recycling facilities throughout the United States to serve oil and gas operators, who have become increasingly desperate for cost-effective wastewater hauling and disposal services. Reliable One’s initial acquisitions have secured trucking assets, disposal capabilities and, most importantly, a supply of produced and flowback water that can be treated using the company’s water recycling services.
When the purchase was announced, Kenneth Wiedrich, President of Reliable One Resources, Inc., commented, “Trucking is a critical element in our plans to serve the oil and gas industry in the Marcellus region, since there is an increasing demand for both hauling and water disposal services.”
Produced water from drilling (brine water) and frac water must be transported to disposal wells. Because of the massive amount of water used by the very largest drillers and operators, these drillers and operators often have their own fleet of water trucks to transport brine and frac water to disposal facilities with which they have contracts. However, the mid- and smaller size drillers and operators typically do not have their own fleet of water trucks to transport their brine and frac water to disposal wells and must hire independent trucking subcontractors to perform this service, usually at a significant cost.
Reliable One’s fleet of water trucks will service drillers and operators that do not have their own trucking fleet. Having its own fleet will make it even easier for drillers and operators to choose Reliable One as their complete water disposal solution, because operators will not have to make arrangements for subcontractor trucking companies to pick up their water and take it to a disposal facility.