Bulk trucker Quality Distribution purchased the operating assets of Dunn’s Tank Service and Nassau Disposal for $34.3 million, expanding its shale gas business.
The Oklahoma-based companies provide transport services to oil and gas hydraulic fracturing operators in the Woodford and Utica shale regions.
“Dunn's is well positioned to capitalize on these oil rich areas,” said Gary Enzor, CEO of Quality Distribution, the third-largest U.S. tank truck operator by revenue.
Quality Distribution reported a $28.8 million net profit in the second quarter, and a $6.5 million adjusted net profit after excluding a one-time non-cash benefit.
That compares with a $5.6 million adjusted net income a year ago. Revenue rose 12 percent to $212.7 million, including $24.1 million from new energy business.
The purchase of Dunn’s and Nassau follows the acquisition of Wylie Bice Trucking, RM Resources and Trojan Vacuum, fueling Quality’s expansion in energy logistics.
“We are now operating in five separate shale regions within the U.S.,” said Enzor.
Dunn’s, based in Velma, Okla., primarily hauls flowback and production water for gas and oil clients. Nassau operates salt water disposal wells used by Dunn’s.