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Cypress Energy Partners, L.P. Announces Acquisition of Controlling Interest in Pipeline Hydrostatic Testing Company

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Cypress Energy Partners, L.P. (NYSE:CELP) (“Cypress”) today announced the acquisition of a 51% controlling interest in Brown Integrity LLC (“Brown”), which owns Pipeline Services International, LLC. Brown is an industry leader in the hydrostatic testing business. Brown’s co-founder Charlie Brown is among the sellers that will retain the remaining 49% interest.

The accretive all cash $11.2 million acquisition (subject to working capital and other customary adjustments) includes a multi-year earn out and Cypress will have the right to acquire the remaining 49% interest in the future. Peter C. Boylan III, CELP’s Chairman, President and Chief Executive Officer stated, “We are pleased to announce this strategic transaction with Brown and are delighted to have an opportunity to work with Charlie and the rest of the team building the company. Hydrostatic testing is a critical aspect of the pipeline industry and the acquisition is consistent with our previously stated goal of broadening the suite of services we offer our blue chip customers in the pipeline industry. Brown has an outstanding reputation and we believe that our pipeline inspection subsidiary, Tulsa Inspection Resources, can help grow their business dramatically.”

Charlie Brown co-founder, President, and Chief Executive Officer of Brown, added “We are thrilled to join the Cypress family of companies and the expanded opportunity to grow our business serving the dynamic pipeline industry. We have been approached by dozens of suitors over the last few years and Cypress was the only party we considered for this strategic relationship. I look forward to working with Cypress and the Tulsa Inspection Resources team providing best-in-class services to our industry.”

Boylan added, “The Brown acquisition demonstrates our commitment to growth. We continue to evaluate a number of interesting opportunities, while being very disciplined regarding valuations, and hope to complete one or more of such additional opportunities in the next several months. We continue to remain focused on building a great company that will create long term value and distributable cash flow growth for our unitholders.”

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While CELP believes its expectations as reflected in the forward-looking statements are reasonable, CELP can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in CELP’s Annual Report filed on Form 10-K and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” CELP undertakes no obligation to publicly update or revise any forward-looking statements except as required by law. For more information please visit

About Cypress Energy Partners, L.P.

Cypress Energy Partners, L.P. is a growth-oriented master limited partnership that provides saltwater disposal and other water and environmental services to U.S. onshore oil and natural gas producers and trucking companies in North Dakota and west Texas. Cypress also provides independent pipeline inspection and integrity services to producers and pipeline companies throughout the U.S. and Canada. In both of these business segments, Cypress works closely with its customers to help them comply with increasingly complex and strict environmental and safety rules and regulations and reduce their operating costs. Cypress is headquartered in Tulsa, Oklahoma.

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