Business
Target Hospitality Renews and Expands Contracts with Four Key Customers
Broadens existing top tier customer relationships underpinned by unparalleled and growing Permian Basin lodging network Contract renewals encompass
About this update from Target Hospitality Corp.
[{"type":"text","content":"\n\nBroadens existing top tier customer relationships underpinned by unparalleled and growing Permian Basin lodging network\n\n\nContract renewals encompass multi-year term extensions, multiple renewal options, multi-basin coverage and exclusivity\n\n\nFour key customers represented about 20% of estimated 2019 revenue attributable to the energy end market\n\n\nContract commitments include incremental fixed room night volume\n\n\n THE WOODLANDS, Texas--(BUSINESS WIRE)--\nTarget Hospitality Corp. (Nasdaq: TH) (“Target Hospitality” or the “Company”) (NASDAQ: TH), the largest provider of vertically-integrated specialty rental accommodations with premium catering and value-added hospitality services in the U.S., today announced the extension and renewal of contracts with four major oil field services companies. These four major oil field services companies represented approximately 20% of Target Hospitality’s estimated 2019 revenue attributable to the energy end market.\n\n\nThe four key contract renewals represent a meaningful portion of the Company’s total revenue, provide increased visibility on recurring revenues from its blue-chip customer base, add incremental fixed room night volume, and further broaden the commercial terms that include exclusivity. The contract renewals also expand coverage to include all 20 communities within the Company’s Permian Basin lodge network for these customers. With these contract renewals and expansions, legacy agreements convert into comprehensive multi-basin network agreements with full suite of Target Hospitality’s turnkey offerings.\n\n\nBrad Archer, Target Hospitality’s President and Chief Executive Officer, stated, “We are continuing to see the benefits of investments we have made in our communities and in growing our network. Our strategy of partnering with our customers through our growing network and Target 12 value proposition is working. These renewals re-affirm the strength and loyalty of our top tier customers and the trust they put in us to deliver world class accommodations and hospitality services for their employees.”\n\n\n“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 saf...