Pennybacker Capital Management, LLC, a real assets investment manager, today announced the acquisition of Baseline Energy Services, LP, a provider of low-carbon, mobile distributed power generation solutions, to grow its fleet in the data center, industrial and energy sectors during a period of significant electrical load growth in the U.S.
Founded in 2012, Baseline owns and operates ~210 MW of natural gas power generation assets across ~1,200 mobile units, providing cost-effective and reliable power solutions to a diverse set of customers including oil and gas, data centers, industrial manufacturing and utilities. Its low-carbon fleet is capable of operating on a variety of fuel sources, including natural gas, CNG/LNG, RNG, and propane, making it a flexible and environmentally responsible alternative to traditional diesel generation. With an established operational footprint across eight states and key U.S. power markets, Baseline is well-positioned to support industries facing increasing power demand, grid reliability challenges and electrification trends.
The existing Baseline management team, including Graham Radler (Chief Executive Officer), will continue to lead the company. Their deep industry expertise, operational excellence, and commitment to innovation will be instrumental in driving the company’s continued growth and delivering best-in-class power solutions for its customers.
“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,” said Tim Berry, Founder, CEO and Co-Chief Investment Officer of Pennybacker. “This transaction showcases Pennybacker’s ability to identify compelling portfolio company partners by combining deep industry relationships with data-driven underwriting.”
“We look forward to partnering with Graham and the Baseline team to build on its legacy of delivering cost-effective and reliable distributed power generation solutions for its customers, as well as to expand its capabilities and equipment offerings to serve new customers across the data center, industrial and energy sectors,” added Sam Warfield, Managing Director and Head of Critical Infrastructure at Pennybacker.
Graham Radler, the CEO of Baseline, commented, “Baseline’s distributed power generation services provide significant value for energy, data center, and industrial customers through rapid “time to power” project delivery and affordable costs per kilowatt
hour compared to traditional utilities. The new partnership with Pennybacker brings industry expertise and significant capital resources that will seek to allow Baseline to increase its total fleet up to 1 GW and expand into new markets facing severe power supply constraints. Our executive team, our talented staff and I are excited to take the business into this new chapter as we grow our power generation fleet and geographic footprint.
Thank you to our prior long-term investors, Tug Hill Capital, Alturus Capital Partners, and Donovan Ventures for your valuable partnership.”
About Pennybacker
Pennybacker Capital Management, LLC (Pennybacker) is a real assets investment manager based in Austin, Texas with offices in Denver, New York, Dallas and Charlotte with approximately $4 billion in assets under management as of December 2024. The firm pursues real estate and infrastructure strategies, investing across the capital structure. For more information, visit https://www.pennybackercap.com
About Baseline Energy Services
Founded in 2012, Baseline Energy Services is a leading provider of mobile electric power solutions for the energy and mining industries. By utilizing raw and refined natural gas to generate on-site electricity, Baseline helps customers reduce power costs, improve equipment uptime, and lower carbon emissions. Committed to delivering exceptional service and support, the company leverages reliable equipment, advanced technology- driven solutions, and a team of experienced power professionals dedicated to safety and continuous improvement. For more information, visit https://www.baseline-enserv.com
