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Case Studies
Southern Petroleum Labs
Professionalization and expansion helped transform SPL into
a next-level contender in its field.
Founded in 1944, Southern Petroleum Laboratories (SPL) provides a
comprehensive array of services enabling oil and gas operators to
accurately understand the volume and composition of produced hydrocarbons. From meter calibration and lab services to well testing, training and allocation, SPL has provided mission-critical support to 83% of the industry’s major operators. They had a solid foundation for future growth—but had plateaued in the years leading up to acquisition.
Challenges
Growing the company beyond where it had come in its 70-year history
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Ensuring no impact on the top line during one of the worst downturns in recent history
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Building a sustainable, organic growth strategy
Value Creation
Developed sales processes to build business development efforts and grow the customer base
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Implemented new sample tracking software to streamline lab processes and improve turnaround times
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Completed two add-on acquisitions to expand SPL’s reach into the Permian basin
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Developed a marketing strategy to align the brand with the growth strategy
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Established a Board of Directors including outside directors Ross Bartley, COO of Gulfport Energy and Rick Cargile, President of Energy Transfer
Conclusion
Realizing new potential through efficiency and expansion
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With a new lab management system in place to ensure scalable operations and a new marketing strategy showcasing SPL’s total lifecycle support, Hastings supported expansion into the Permian Basin.
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The growth strategy paid off: in 2016 Hastings Equity Partners helped navigate the sale of SPL to Industrial Growth Partners for 8x EBITDA, representing a 2.9x Gross MOI and 76% Gross IRR.