Argonaut Private Equity Sells Falcon Flowback Services

TULSA, Okla.–(BUSINESS WIRE)–Argonaut Private Equity, a middle market private equity firm, announced
it has completed the sale of Falcon Flowback Services, LLC to Oil States
International, Inc. (NYSE:OIS). Falcon is a full-service provider of
flowback and well testing services for the separation and recovery of
fluids, solid debris and proppant used during hydraulic fracturing
operations.

Argonaut acquired Falcon in November 2015 during the energy downturn to
serve as a growth platform to provide mission critical flowback services
in the most economical and active onshore oil and gas basins.
Subsequently, Falcon completed the strategic acquisitions of Erick
Flowback Services and Rod’s Production Services in April 2016, which
expanded Falcon’s presence into nearly every major oil and gas basin in
the Lower 48 and significantly increased its asset base.

“Argonaut’s partnership with the founders of Falcon meant we could
deploy our disciplined strategy of investing in well-positioned
companies with strong management and significant growth opportunities,”
Steve Mitchell, Argonaut’s CEO and managing director said. “Through this
collaboration, we acted decisively to capitalize on strategic
opportunities presented during the industry downturn which propelled
Falcon from a start-up, regionally-focused flowback provider into an
industry leader. Together, with the Falcon founders and management team,
we were able to transform the company and position it to enter the next
stage of growth with Oil States.”

Founded in 2002, Argonaut has deployed more than $3 billion of capital
in over 100 direct investments with a focus on key industry sectors
including: energy services, manufacturing and industrials. Headquartered
in Tulsa, Argonaut is one of the largest private equity firms in the
central United States.

“Argonaut has been a true partner to Falcon and integral to our
success,” Brandon Crossley, Falcon’s co-founder said. “For the last
several years, they have worked closely alongside us to support our
growth efforts and provide strategic guidance for managing our unique
industry dynamics.”

In July 2016, Argonaut raised $600 million in its Argonaut Private
Equity Fund III. The fund focuses on a three-pronged approach of
aligning the interests of investors, deploying capital and expertise,
and transforming mid-market companies into much larger businesses.

Simmons & Company International, Energy Specialists of Piper Jaffray,
acted as exclusive financial advisor and Frederic Dorwart, Lawyers, PLLC
acted as legal advisor to Falcon and Argonaut during the sale process.

About Argonaut Private Equity

Founded in 2002, Argonaut Private Equity is a Tulsa-based private equity
firm that manages investments across multiple asset classes with $3
billion of capital deployed in direct investments. With more than 100
investments, Argonaut has fostered an ongoing network of global
relationships to discover and partner with best-in-class management
teams, applying its experience and strengths to deliver solutions,
generate value and propel growth.

Argonaut understands the unique needs of individual businesses that
operate in the central region of the United States and other underserved
markets. Argonaut partners with companies to develop a strategy for
accelerating growth and enhancing operations. Leveraging the collective
strength of its historical investment experience, industry advisors,
current portfolio companies and affiliates, Argonaut looks to share
resources, best practices and key relationships between investments to
create synergistic opportunities across the following sectors: energy
services, manufacturing and industrials.

In July 2016, Argonaut raised Argonaut Private Equity Fund III, a $600
million-dollar fund that focuses on investing in growth and mature
companies looking for capital to unlock accretive value creation
opportunities, with the aim of generating attractive investment returns
through a disciplined approach and aligning interests of its investors
and business partners.

For more information, visit www.ArgonautPE.com.

Contacts

for Argonaut Private Equity
Sheila A. Curley, APR, 918-830-3268
[email protected]