Cerberus Capital Management, the private-equity powerhouse best known for its ownership of failed Chrysler, is looking to get into the fracking business in a big way. The New York company has quietly bought a small Pennsylvania fracking company, Keane & Sons Drilling, and is looking to use it as a base to build a full fracking business, the NY Post has learned.
“The overall plan is to build one platform and add complimentary businesses,” said Mike Stengle, senior vice president and principal of Capital Alliance, an investment bank, that last year sold Keane to Cerberus.
“The more services you can provide, the easier you can make it for the E&P companies,” that hire service providers to drill on their land, Stengle said. Acquisitions might include buying a trucking business that handles fracking wastewater.
While other private-equity firms, like Blackstone and KKR, have recently bought land from which they extract gas and oil using hydraulic fracturing, Cerberus is the only sizable PE firm doing the actual drilling, sources said.
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