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Case Study 1

Southern Petroleum Laboratories

Professionalization and expansion helped transform SPL into a next-level contender in its field.

Founded in 1944, Southern Petroleum Laboratories (SPL) provides a comprehensive array of services enabling oil and gas operators to accurately understand the volume and composition of produced hydrocarbons. From meter calibration and lab services to well testing, training and allocation, SPL has provided mission-critical support to 83% of the industry’s major operators. They had a solid foundation for future growth—but had plateaued in the years leading up to acquisition.

Challenges

Growing the company beyond where it had come in its 70-year history

Ensuring no impact on the top line during oneof the worst downturns in recent history

Building a sustainable, organic growth strategy

Value Creation

Developed sales processes to build business development
efforts and grow the customer base

Implemented new sample tracking software to streamline lab processes and improve turnaround times

Completed two add-on acquisitions to expand SPL’s reach into the Permian basin

Developed a marketing strategy to align the brand with the growth strategy

Established a Board of Directors including outside directors Ross Bartley, COO of Gulfport Energy and Rick Cargile, President of Energy Transfer

SPL

Realizing new potential through efficiency and expansion

With a new lab management system in place to ensure scalable operations and a new marketing strategy showcasing SPL’s total lifecycle support, Hastings supported expansion into the Permian Basin. The growth strategy paid off: Hastings Equity Partners purchased SPL in 2014 for $45M with oil at $106/bbl, and just two years later sold it for $78M, even after oil prices had plummeted to $48/bbl.

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