What's Cookin' & The Lounge
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Lineal Star Holdings, LLC (“LSH”) is the parent company of 64 year old Lineal Industries Inc. (“Lineal”), located in Pittsburgh, Pennsylvania, and Lineal Star Incorporated, headquartered in Houston, Texas.
Lineal Industries has provided decades of upstream, midstream, and utilities pipeline maintenance, specialty construction and integrity services to major companies in the northeastern USA.
LSH is expanding Lineal by acquiring and developing complementary specialty engineering, procurement and construction energy infrastructure service businesses. Combined with technological efficiencies and centralized financial systems and controls, Lineal Star is building a dependable, diverse income stream resistant to the boom and bust cycles of other service businesses that are solely dependent on the production and price of oil and gas.
Overview
- Lineal Star Holdings, LLC, (“LSH”) acquired Lineal Industries pipeline and utility service business from Primoris in July 2018 with these primary objectives:
- Build on the Lineal Industries Fortune 500 client base business by acquiring profitable but smaller, capital deficient companies that provide complementary services to well-known customers
- Simultaneously grow organically and by acquisitions to expand geographic reach
- Improve margins with proven technology and processes/procedures necessary to consolidate inefficient general and administrative costs of smaller businesses
- Become an industry leader in prompt, efficient response to our customer requirements, dependably providing engineering, procurement, specialty construction and integrity services to upstream, midstream, downstream energy, power and civil infrastructure customers throughout the USA.
- Recently announced merger with NYSE listed Camber Energy, subject to shareholder vote by 12/19 and previously disclosed plans to settle Series C Convertible Preferred rights (Discover Growth Fund) upon shareholder approval
- Acquire smaller, independent engineering, procurement, construction, field services and midstream/downstream service companies that have positive cash flow and are capable of offering multiple service lines both inside and outside of the midstream space
- Key on the directive of our assembled experienced, well regarded industry leaders who have previous success in critical areas – acquisitions, driving organic growth, integrating the acquired companies, outsourcing back office operations to reduce fixed G&A costs, providing new services to acquired customer bases and increasing revenues while carefully controlling costs to generate increased net margins.
Partial Sample of Customer List
Our Customers include top-tier domestic and international energy companies, recognized as leaders in the gathering and transmission of hydrocarbons.
Principal Shareholders and Senior Management
Jerry Shanklin, Lead Investor
Former President and CEO of Nabors Offshore, Subsidiary of Nabors Industries (NYSE: NBR), retired in 2015. Jerry Shanklin was the Owner and Founder of Sundowner Offshore, Inc. which was purchased by Nabors and is now known as Nabors Offshore. Over 40 years of domestic and international experience as a C level executive.
Tim Connolly, President and Chief Executive Officer
Tim has more than 35 years of experience as a merchant banker and Chief Executive Officer, dealing with mergers, acquisitions and divestitures of both public and private companies. He has also acted as principal, lead shareholder, officer, director or advisor in for profit, non-profit and governmental organizations as an elected official. Tim has completed assignments for banks, hedge funds, insurance companies, non-bank institutions, trust companies and investor groups located in the USA, Mexico, Canada, and the EU in completing a wide variety of financial transactions, reorganizations and commercial real estate development in excess of $1.5 billion USD in value. Tim holds a BBA from Texas A&M University and an MBA from W. Texas A&M University.
Brian Shanklin, Executive Vice President
Brian has 25 years of fabrication and oil and gas service experience. Brian also serves as a principal and President of Lone Star Fabricators, a premier offshore/onshore fabricator. Prior to co-founding Lone Star, Brian was an executive with Nabors Industries. He also served as an officer in a number of progressively more responsible positions of Sundowner Offshore, a family owned Offshore Oil and Gas Drilling Contractor acquired by Nabors Industries and now known as Nabors Offshore.
Craig Crawford, Chief Operating Officer
Craig currently serves as LSH’s COO at the Holding company level and President of Lineal Industries. Craig brings with him over 30 years of midstream and downstream construction and services experience. Craig has held executive positions in both public and private corporations including Brown & Root, Jacobs, CH2M Hill, The Project Group and Texas Gulf Energy, Inc. Craig attended the Colorado School of Mines and earned his BBA in Business from North Carolina State University. Craig was the former Chairman and a Board Member of APICC (Alaska Process Industry Careers Consortium)
Manuel Mondragon, Chief Financial Officer
Manuel has more than 20 years of experience in finance. Over 15 years of C-suite experience at both private and publicly-traded companies. Extensive experience raising public (including IPOs) and private equity and debt, as well as mergers and acquisitions; executed $4.0+ billion in capital markets and merger and acquisition transactions. Manuel holds a B.S. Management and Masters of Business Administration from Tulane University.
Investment Thesis
- The Oil and Gas (“O&G”) upstream service industry operates in a market that is largely commodity price driven. As such, the majority of small to medium size service companies are at the mercy of the price of oil/gas, market supply, consumer demand, and service companies’ client reactions to volatile market conditions. As such, these upstream, narrowly focused service businesses tend to offer low rates of return or even struggle to survive over the length of the cycle.
- We believe the key factor in generating long term value for our shareholders is to expand our current services outside of the cyclical earnings of the upstream service business by providing additional engineering, procurement and specialty construction services to our stable midstream/downstream pipelines, utilities and civil infrastructure clients while also diversifying geographically. We intend to do this by acquiring smaller, profitable private companies ($5MM to $10MM in current revenues) who service well known customers but are capital deficient, are using dated, inefficient systems and are unable to grow beyond their current revenue base due to a lack of capital and experienced, capable human resources.
- Another key factor consistent with long-term value creation, Lineal maintains a disciplined approach to its acquisition strategy. In the past year alone, Lineal’s management has reviewed and rejected over 20 potential consolidation candidates.
Our mission is to acquire, diversify and build on Lineal Star Holdings LLC to develop a consistent, profitable, sustainable income stream, focused on long term infrastructure services that are resistant to near term commodity price swings.
About Camber Energy, Inc. and Lineal Star Holdings, LLC
Based in Houston, Texas, Camber Energy’s (NYSE American: CEI) primary focus is midstream and downstream pipeline specialty construction, maintenance and field services via its recently announced acquisition of Lineal Star Holdings LLC, the owner of Lineal Industries, Inc., as described in greater detail in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission (SEC) on July 9, 2019 (as amended). For more information, please visit the Company's website at www.camber.energy.
Safe Harbor Statement and Disclaimer
This press release may include “forward-looking statements” which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward- looking words including “will,” “may,” “expects,” “projects,” “anticipates,” “plans,” “believes,” “estimate,” “should,” and certain of the other foregoing statements may be deemed forward-looking statements. Although Camber believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. These include, but are not limited to, risks relating to the absence or delay in receipt of stockholder approval of the issuance of shares of our common stock in connection with the acquisition of Lineal and related transactions; change orders that are subject to change or cancellation, which may reduce the value expected from projects, or the timing of such projects; government approvals or third party consents; risks relating to funding we may never receive and/or the terms of such funding, if received; the risks of substantial and significant ongoing dilution of common stockholders pursuant to conversions of our Series C Preferred Stock, conversion premiums associated therewith and true-ups thereon; risks related to over-hang and significant decreases in our common stock trading prices as common stock shares issued upon conversion of our Series C Preferred Stock are publicly sold, compounded and exacerbated by successive conversions and sales; risks relating to the liquidation preferences and rights of our preferred stock; risks relating to the redemption rights of our preferred stock; risks relating to extensions and approvals provided by the NYSE American; risks relating to our ability to maintain our NYSE American listing due to falling stock prices and other matters; risks relating to significant downward pressure on our common stock trading prices caused by sales of our common stock by our Series C Preferred Stock holder and others; risks related to potential future acquisitions or combinations, the risks of not closing such transaction(s) and the ultimate terms of such acquisition(s), if closed; and other risks described in Camber’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC, available at the SEC’s website at www.sec.gov. Investors are cautioned that any forward-looking statements are not guarantees of future performance, actual results or developments may differ materially from those projected and investors should not purchase the stock of Camber if they cannot withstand the loss of their entire investment. The forward-looking statements in this press release are made as of the date hereof. The Company undertakes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the Company. The Company's SEC filings are available at www.sec.gov.
SOURCE: Camber Energy, Inc.
Media Contact: Interdependence
PRcamber@interdependence.com