Information on the Target

BOLD Production Services, LLC ("Bold") is a U.S.-based company specializing in contracted natural gas treatment solutions aimed at enhancing the efficiency of natural gas usage while minimizing waste and emissions. Since its inception in 2013, Bold has established a robust fleet of over 700 assets, which includes dehydration units, H2S treatment units, and total flow coolers, catering to a distinguished clientele in the Permian and Eagle Ford basins.

Under the leadership of CEO Glen Wind and his team, Bold is dedicated to providing high-performance gas treatment services that meet growing market demands. The company's strategic approach positions itself at the forefront of an industry poised for significant expansion, driven by escalating natural gas requirements from various sectors.

Industry Overview in the U.S.

The U.S. natural gas industry is currently experiencing a renaissance, with demand steadily increasing across multiple sectors such as power generation, liquefied natural gas (LNG) exports, and data centers. These trends are expected to create a favorable environment for companies like Bold that optimize natural gas use through innovative treatment solutions.

As the U.S. shifts toward cleaner energy sources, the role of natural gas is becoming increasingly prominent as a bridge fuel. The industry’s growth is backed not only by domestic consumption but also by rising international demand for LNG, driving infrastructure development and creating ample opportunities for service providers in the sector.

Furthermore, regulatory emphasis on reducing greenhouse gas emissions has led to more stringent requirements for natural gas processing. Companies must adapt by devising efficient solutions that align with sustainability goals, positioning demand for effective gas treatment services like those offered by Bold.

The landscape of the natural gas treatment sector continues to evolve with technological advancements and increased investments aimed at enhancing operational efficiency and environmental compliance. This trend underlines the potential for growth in the industry, benefiting well-structured companies capable of adapting to these changes.

The Rationale Behind the Deal

The acquisition of Bold Production Services by Apollo Funds seeks to leverage the anticipated surge in natural gas demand over the coming decade. With a strong customer base and a scalable operational model, Bold is well-positioned to capitalize on these market dynamics. Investors recognize the strategic importance of partnering with a company that provides essential solutions in a shifting energy landscape.

Apollo's investment will not only support the expansion of Bold's operations but also enhance its capability to deliver innovative and efficient gas treatment solutions that align with evolving industry standards and environmental regulations.

Information About the Investor

Apollo Global Management, Inc. is a prominent alternative asset manager with a focus on delivering superior returns across various investment strategies, including yield, hybrid, and equity. With over three decades of experience, Apollo has developed a comprehensive platform that supports businesses with innovative capital solutions aimed at fostering growth.

As of December 31, 2024, Apollo has approximately $751 billion in assets under management and has made significant commitments towards climate and energy transition investments. Through this strategic approach, Apollo is well-equipped to assist companies like Bold in realizing their growth potential within an increasingly competitive marketplace.

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This acquisition represents a strategic move in an industry characterized by rising demand for natural gas treatment solutions. From an investment perspective, Bold's strong asset base, coupled with the expertise and capital provided by Apollo, positions the company for robust growth. Investors can expect a favorable return on investment, especially as clean energy initiatives gain traction.

Moreover, Bold’s alignment with market trends—such as the industrial shift towards cleaner energy—enhances its attractiveness. Apollo's commitment to supporting sustainable practices strengthens the long-term viability of this investment.

However, potential investors should remain cognizant of market volatility and regulatory challenges that could impact the broader natural gas sector. Nonetheless, given the well-defined strategies and operational capabilities of Bold, this acquisition could lead to significant value creation over time.

Overall, the partnership between Apollo and Bold demonstrates a shared vision for tackling the challenges of the natural gas market while fostering sustainable growth, positioning it as a potentially lucrative opportunity within the energy sector.

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