August 18, 2011

Pinnergy, Ltd. receives minority equity investment from The Stephens Group, LLC and completes a partial recapitalization

Austin, TX, August 18, 2011
– Pinnergy, Ltd. (“Pinnergy” or the “Company”) announced today it has finalized an agreement under which The Stephens Group, LLC, a Little Rock, Arkansas based private equity firm, will make a minority equity investment in the Company. The transaction completes a partial recapitalization that will position the Company for the next stage of its growth and further expand its service capabilities for its customers.

Pinnergy, headquartered in Austin, Texas, is an independent oilfield services company. Founded in 1992 and led by current management since 2003, Pinnergy provides a suite of drilling and production related services from 16 operating locations throughout the Barnett Shale, the Freestone Trend, East Texas, the Haynesville Shale, the Eagle Ford Shale, and in basins throughout Oklahoma. Currently, the Company offers a wide array of drilling services, rental services, fluid services and oil & gas waste disposal services to the energy industry including: surface casing drilling, conductor drilling, cellars, rat & mouse hole drilling, water-well drilling, generator, light plant, frac tank, water line and pump rental, fluid hauling and vacuum trucks.

Since July 2003, the Company has assembled an experienced management team of talented individuals with over 350 years of combined industry experience. The Company has experienced significant growth over the past several years, extended its geographic territory and expanded and diversified its service offering. The investment by The Stephens Group will enable the Company to aggressively grow its suite of services in both its existing geographic areas as well as new ones.

“Partnering with The Stephens Group will enable us to continue our plans for the exciting growth opportunities ahead, as well as provide for increasing opportunities for promotion and advancement from within the ranks of our talented group of employees,” said Randy Taylor, chief executive officer and president of Pinnergy. “We have received investment requests from many groups over the years and have always been impressed with The Stephens Group. They will be a great partner because they understand the oil and gas business and share our sense of fairness in dealing with others.”

“We are truly excited about what lies ahead for Pinnergy and are looking forward to pursuing these opportunities with such a fine group as our partner,” said Wade Webster, chief operating officer and executive vice president of Pinnergy.

“We are excited to invest in and with the Pinnergy management team,” said Witt Stephens, Jr. chief executive officer and co-chairman of The Stephens Group. “The Company’s high quality drilling services and fluid handling business, experienced management team, and growing asset base position it well for continued growth. The corresponding service intensity of the resource plays provides a strong tailwind to our investment thesis. We have evaluated numerous oilfield service company investments over the years and the depth, experience, and professionalism of this management team is rivaled by few. This recapitalization will enable the Company to continue to execute its internal growth initiatives as well as explore accretive acquisitions. Furthermore, Pinnergy’s management team’s philosophy mirrors that of The Stephens Group - we are each dedicated to a long-term partnership that focuses on prudently capitalized value creation.”

Hunter Carpenter, a managing director at The Stephens Group is joining Randy Taylor, Wade Webster, Tom Cook and Jeannie Hollingshead on the board of managers along with Kim Eubanks, chief executive officer of CamWest – a company formerly affiliated with The Stephens Group. Mr. Eubanks has previously served as a director for several Stephens Group related investments.

Senior debt financing for the transaction was provided by Amegy Bank and Capital One Bank as joint lead arrangers. Growth Capital Partners, a division of Duff & Phelps, served as the exclusive financial advisor to the Company in the transaction.

About Pinnergy

Based in Austin, Texas, Pinnergy provides drilling and fluid handling services with an established presence in the Haynesville Shale, Barnett Shale, Freestone Trend, East Texas, Eagle Ford Shale, Woodford Shale and the Granite Wash. Pinnergy offers a wide array of drilling services, rental services, fluid services and oil & gas waste disposal services to the energy industry, including surface casing drilling, conductor drilling, cellar, rat & mouse hole drilling, water-well drilling, generator, frac tank, water-line and pump rental, fluid hauling and vacuum trucks. The Company currently owns and operates several saltwater disposal wells permitted by the Texas Railroad Commission, and Pinnergy is actively adding more disposal sites in various geographic regions.

About The Stephens Group, LLC

The Stephens Group is a private, family-owned firm based in Little Rock, Arkansas, that invests its capital in private and public companies with exceptional management teams working with outstanding partners across a broad platform of companies in multiple industries.


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