Target Hospitality makes Permian shale expansion moves

By Luke Geiver | January 14, 2020

Target Hospitality has secured contracts with four major oilfield service firms for 2020. The specialty accommodation and housing provider that operates in several major U.S. shale plays, said the four contracts represent roughly 20 percent of Target Hospitality’s estimated 2019 revenue attritubutable to the energy market.

According to the company, the contract renewals expand coverage to include all 20 communities within the company’s Permian Basin lodge network. With these contract renewals and expansions, legacy agreements convert into comprehensive multi-basin network agreements with full suite of Target Hospitality’s turnkey offerings. Part of the deal involves access to Target’s Permian Basin network of lodging offerings.

“Our customers need greater operational flexibility and efficiency in their spending today than ever before, while continuing to maintain focus on safety and well-being of their employees. Our mission critical services that minimize lodge-to-site travel in a safe environment deliver on these requirements. These contracts are a win-win—our customers garner greater choice, unparalleled access, and best-in-class accommodations; in turn, we earn our clients’ continued, long-term commitment for our services and visibility into our business going forward,” said Brad Archer, CEO.

This week, Target announced that in Orla, Texas, the company will invest roughly $4 million at the El Capitan facility. The investment will allow for an additional room count total to reach 400, a number necessary for a client that is expanding in the Delaware Basin, Target said. The expansion will be completed in the second quarter.