Information on the Target

Bold Production Services, LLC, established in 2013, is a premier provider of contracted natural gas treatment solutions designed to facilitate downstream natural gas use while mitigating excess emissions and waste through innovative proprietary equipment. The company boasts a diverse asset base of over 700 owned units, including dehydration units, H2S treating units, and total flow coolers, servicing a distinguished customer portfolio across the Permian and Eagle Ford basins.

With its headquarters in Houston, Texas, Bold is committed to expanding its operations in response to the projected surge in natural gas demand over the next decade. The company is managed by a dedicated team led by Glen Wind (CEO), alongside Blake Maywald (President), Tim Burkett (CFO), and Austin Traweek (COO).

Industry Overview in the Target’s Specific Country

The U.S. natural gas industry is poised for significant growth, influenced by both domestic and global trends that drive demand for cleaner energy solutions. Key factors include the increasing reliance on natural gas for power generation, the expansion of liquefied natural gas (LNG) exports, and the sustainable development of data centers—all of which contribute to heightened consumption levels.

Furthermore, the ongoing industrial renaissance in the U.S. underscores the pivotal role of natural gas as an energy source that supports various emerging applications. Analysts predict that advancements in gas treatment technologies will be essential for enhancing production efficiency and reducing the environmental footprint of gas operations.

Natural gas has recently been identified as a bridge fuel in the transition towards a cleaner energy future, as it offers lower carbon emissions compared to other fossil fuels. This transitional phase has resulted in bolstered investments in gas infrastructure, creating opportunities for companies like Bold that specialize in gas treatment solutions.

In response to tighter regulations on emissions and sustainability practices, the industry is witnessing a shift in focus towards high-performance, environmentally-friendly practices. Companies that can provide scalable and efficient treatment solutions will likely lead the pack as market demand intensifies.

The Rationale Behind the Deal

The acquisition of a majority stake in Bold by Apollo Funds is strategically positioned to capitalize on the escalating demand for natural gas treatment solutions. With the expected acceleration in natural gas usage across various sectors, this investment aligns with Apollo's vision of supporting businesses that contribute to energy transition and sustainability.

By leveraging Apollo's extensive expertise in the natural gas value chain and significant capital resources, Bold is poised for substantial growth. The partnership is expected to foster innovation, enhance operational efficiencies, and ultimately meet the increasing demands of its customer base.

Information About the Investor

Apollo Global Management, Inc. is a leading global alternative asset manager with a focus on delivering excess returns across a diverse range of investment strategies, including yield, hybrid, and equity solutions. With over three decades of experience, Apollo's integrated approach facilitates innovative capital solutions to meet the unique growth needs of businesses.

As of December 31, 2024, Apollo manages approximately $751 billion in assets. The firm has a proven track record of supporting energy-related services and investing in climate and energy transition initiatives, making it a fitting partner for Bold in the ever-evolving natural gas sector.

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The acquisition of Bold Production Services by Apollo Funds represents a potentially sound investment opportunity in the burgeoning natural gas sector. With anticipated growth driven by industrial trends and demand for cleaner energy, Bold’s established operational capabilities and customer relationships position it favorably within the marketplace.

Moreover, Apollo's involvement signals a commitment to not only scaling Bold's operations but also enhancing its technological capabilities to meet evolving market demands. This partnership could lead to increased innovation in gas treatment solutions, driving higher production yields while aligning with global sustainability objectives.

However, it is important to consider the risks associated with market volatility and regulatory changes within the energy industry. While the outlook appears positive, the ability of Bold and Apollo to navigate these challenges effectively will be crucial in realizing the full potential of this investment.

In summary, if executed well, this deal could facilitate significant advancements for Bold amid a favorable market environment, holding promise for attractive returns for investors in the long term.

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