Houston-based Cadre Energy Solutions, natural gas compression services provider to upstream and midstream operators, said Wednesday it raised additional equity capital from Kirkland, Wash.-based Progeny 3. Progeny 3 joins existing equity partner Intrepid Investment Management.
The proceeds from the capital addition will be used to fund expansion of the fleet of Permian-focused Cadre and pursue other potential opportunities as demand for gas compression continues to increase. Compression capacity is critical as operators manage rising gas volumes.
Craig Collins, CEO of Cadre, said, “This investment accelerates our ability to expand our fleet, serve more operators, and strengthen our position as a premier compression partner.” Danny Knight, portfolio manager at Progeny 3, added, “We believe in strong industry fundamentals supporting the business and have been impressed by the leadership team’s ability to consistently execute and deliver for Cadre’s customers.”