Pennybacker Capital Management Strengthens Infrastructure Portfolio with Baseline Energy Acquisition

Pennybacker Capital Management Enhances Infrastructure Portfolio

Pennybacker Capital Management, LLC, a prominent player in the real assets investment sector, is taking a significant step forward with the acquisition of Baseline Energy Services, LP. This strategic move aims to bolster Pennybacker's capabilities in the energy sector, particularly during a time when electrical load demands are surging across the United States.

Founded in 2012, Baseline Energy Services has established itself as a key provider of low-carbon, mobile distributed power generation solutions. With its impressive portfolio, which boasts about 210 MW of natural gas power generation assets spread across roughly 1,200 mobile units, Baseline has successfully catered to a diverse clientele. This includes sectors such as oil and gas, data centers, industrial manufacturing, and utilities. Their innovative fleet of power generation not only offers reliable energy solutions but also operates on various eco-friendly fuel sources, including natural gas, compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas (RNG), and propane.

Pennybacker's acquisition comes at a crucial time as industries navigate increasing demands for power and face challenges related to grid reliability and electrification. Baseline's operational footprint already includes eight states and is strategically aligned with key U.S. power markets, making it a well-positioned partner for the future.

Tim Berry, Founder, CEO, and Co-Chief Investment Officer at Pennybacker, expressed enthusiasm regarding Baseline’s operational expertise. Berry stated, "We are extremely impressed with the business the Baseline team has built and the operational expertise the team exhibits, a competency we believe will drive outperformance in this market." This sentiment underscores Pennybacker’s dedication to identifying and empowering compelling partners in the sector.

The management team at Baseline, led by Graham Radler, will remain in their roles, providing continuity and leveraging their industry knowledge to foster growth. Radler emphasized that the new partnership with Pennybacker will enhance Baseline's already significant impact on the industry, with aspirations to expand their fleet up to 1 GW. This growth is geared toward meeting the severe power supply constraints that numerous markets are currently experiencing.

Baseline's emphasis on providing rapid project delivery and cost-effective power generation solutions will continue to be crucial as they move forward. The collaboration with Pennybacker not only brings substantial capital resources but also deep industry insight that can help steer Baseline into new territories and customer bases.

In highlighting its commitment to sustainable practices, Baseline is poised to differentiate itself in an energy landscape increasingly focused on reducing carbon footprints. As they work toward expanding their capabilities, they aim to uphold their legacy of delivering high-quality, environmentally friendly energy solutions.

For Pennybacker, this acquisition signifies a testament to their ability to integrate innovative companies into their portfolio, ultimately reflecting their overarching strategy of diversifying their investments across real estate and infrastructure. With approximately $4 billion in assets under management as of December 2024, Pennybacker is well-equipped to foster the growth and sustainability of Baseline Energy Services.

This partnership marks a promising new chapter for both companies. Pennybacker looks forward to working alongside the dedicated team at Baseline to deliver exceptional power solutions that benefit a wide array of customers and drive growth in the energy sector.