SAN ANTONIO, Oct. 3, 2012 /PRNewswire/ -- One of the largest domestic discoveries of oil in the past 40 years, the Eagle Ford Shale continues to gain momentum as a significant hydrocarbon producing formation. Servicing what may be one of the largest economic developments in the history of the state of Texas, The Tierra Companies (www.tierracos.com), a leader in midstream energy services including crude oil trucking and logistics as well as a player in marketing and pipeline infrastructures in Central Texas, is a trusted partner to producers, refiners and commercial end-users within the Eagle Ford Shale. The Tierra Companies today announces that it has secured financing from Comerica Bank that will allow the company to achieve its goals of growing and expanding its services to exceed expectations for its customers in the Eagle Ford Shale.
"Tierra is extremely pleased about our new relationship with Comerica Bank. This financing will ensure Tierra's ability to continue to provide service and value to our customers," explains Glen Gonzalez, CEO of The Tierra Companies. "As an integrated, full service provider of crude oil transportation, marketing services and forthcoming pipeline infrastructure for the Eagle Ford Shale, Tierra is uniquely positioned to capitalize on the dynamic activity within the play."
With the specific advance facility and revolving line of credit from Comerica Bank, Tierra Transportation, The Tierra Companies' transportation and logistics division, plans to partially replace as well as expand its fleet – through December 2013 – in order to enhance service to customers throughout the Eagle Ford Shale. The company will optimize its fleet with a total purchase of 35 new tractors. In addition, Tierra Transportation will expand its fleet of trailers by over 25%.
Kirby Sanford, Senior Vice President of Middle Market Lending for Comerica Bank, who worked with Gonzalez on the financing deal, said, "We think that Tierra has proven its ability to provide transportation and logistics services within the Eagle Ford Shale and we are pleased to provide this additional capital to help the company expand its business and provide enhanced services to its customers."
With the expansion of its fleet, Tierra Transportation will continue to deliver energy and value for its customers, which it has done since 2002. This business unit focuses on crude oil transportation services to producers who have historically been underserved by larger transporters. With its fleet of trucks and trailers specially outfitted with quality control technology, safety equipment and pumps designed for lease crude hauling, Tierra Transportation's dedicated team of 80 employees currently hauls between 12,000 to 15,000 barrels per day of Eagle Ford Shale production. Tierra Transportation also hauls refined products for area refiners.
A specific strength for Tierra Transportation is the company's ability to leverage its resources in Tierra Marketing to deliver distressed and specialty barrels. This service is particularly valuable for producers and end-users in the Eagle Ford Shale who are looking to increase their volumes but do not have resources in place to identify or transport the barrels.
Tierra Transportation has built a blue-chip customer base of steady, repeat customers, including Anadarko, Shell Trading, Enterprise Products Partners, Flint Hills, OGO Marketing, Goodrich Petroleum and NuStar.
All together, The Tierra Companies is putting its expertise and assets to work for customers. Providing a safe and complete array of services for companies working in the Eagle Ford Shale, Tierra has the commitment and strength to serve as the leading transportation and logistics company in Central Texas through its three business units – Tierra Transportation, Tierra Marketing and Tierra Pipeline.
The deal between Comerica Bank and Tierra closed in mid September and funded immediately. Gonzalez notes, "We appreciate Comerica Bank's objective approach in recognizing Tierra Transportation's opportunity in the midstream energy industry. We are delighted to have the bank's support and partnership, especially when other financial institutions were unwilling to see the same value in moving quickly to help growing energy companies to optimize their potential."
About The Tierra Companies
The Tierra Companies provides integrated midstream energy services. Its business units serve producers, refiners and commercial end-users within the Eagle Ford Shale. With divisions that specialize in crude oil trucking, marketing, logistics and pipeline infrastructures, Tierra is a leader in the market. The company has a strong asset base and an operational flexibility that allows it to serve a diverse mix of clients and use its crude oil distribution and marketing expertise to address market demands. Further, The Tierra Companies' management team has extensive industry and safety experience. More information can be found at www.tierracos.com.
On the Mark Communications
SOURCE The Tierra Companies; Glen Gonzalez, Houston