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Keystone Clearwater News
Keystone Clearwater announces acquisition by American Water Works Company, Inc.
By June 18 2015
Exciting News – Keystone Clearwater Solutions, LLC has announced that American Water Works Company, Inc. (NYSE: AWK), has announced that it has agreed to acquire Keystone Clearwater Solutions (Keystone) from Rex Energy Corporation.
American Water already provides water for several key oil and gas companies in its regulated footprint in Pennsylvania, supplying around 8 percent of all source water used for gas well hydraulic fracturing in the state.
To learn more about American Water and its Shale Gas opportunities – https://www.youtube.com/watch?v=BILcT5WDwoI
“Keystone Clearwater Solutions provides turn-key water solutions to the shale gas industry in a safe and environmentally responsible manner,” said Susan Story, president and CEO of American Water. “We are excited because Keystone’s offerings are in line with American Water’s core competencies – supplying, transmitting, pumping and storing water and building the infrastructure required to do so. Keystone’s commitment to its customers, its operational focus and its commitment to environmental responsibility and safety are also aligned with American Water’s values and has allowed Keystone to grow into a market leader in the shale gas water services segment in only a few years. We will continue leveraging the expertise of the talented team of Keystone employees who have built this successful organization.”
Story added, “This acquisition delivers on one of our growth strategies to develop complementary businesses. Coupled with our existing activity in shale, the Keystone acquisition will enhance our ability to provide additional water services solutions to shale development companies.”
American Water’s Shale related business is forecasted to provide 0-2% earnings per share growth in the next five years.
“Keystone is thrilled to become part of American Water” said Ned Wehler, Founder and Chief Executive Officer of Keystone, who will continue to lead the organization. Ned continues, “We look forward to continuing to serve the immediate and long-term needs of our customers with professional quality service and dedication to excellence. We, along with American Water, are committed to a seamless transition for our 350 employees and each customer. We also look forward to helping American Water achieve its long-term growth goals. We will continue to update employees as we work toward closing this transaction and the continued advancement of our market position and our ‘Keystone” brand, as a subsidiary of American Water.”
So what happens next? For the foreseeable future, Keystone will operate as an independent subsidiary of American Water Works Company, Inc., apart from the regulated business and the existing market-based business organization. Customers can be assured that their reliable service will continue with the people they already know and will not be impacted by this exciting news.
Please refer to the following press release, issued by American Water: