Camber Energy Inc (NYSEAMERICAN: CEI) is having a strong start to the trading session this morning, trading on gains of more than 6% in the premarket hours. The gains come after the company announced that its subsidiary has won back a large, long term customer that was lost under previous ownership. Here’s what’s going on:
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CEI Stock Gains Big On Customer Win Back
Camber Energy issued a press release early this morning, announcing that it had won back a key client. The win back took place through its recently acquired Lineal Industries, Inc.
This particular customer is key as it is one of the largest wholesale distributors of refined petroleum products in the United States. These products are sold through strategically placed terminals in the Northeast, MidAtlantic and Southeast markets.
CEI said that in the past, this was one of the largest, most important clients at Lineal. However, the company’s previous owners decided to pursue larger, more complex pipeline projects instead of the customary long-term maintenance projects that it built its reputation on.
In the release, the company said that this door has now bee reopened. In fact, Lineal has been awarded several pipeline integrity projects by the customer, opening the door to opportunity to provide long-term maintenance and capital project services.
In a statement, Tim Connolly, CEO at the CEI subsidiary, Lineal Star, had the following to offer:
When we purchased Lineal Industries in 2018, we wanted to rebuild its 64-year-old business of integrity and pipeline services, rather than largely relying on large non repetitive capital projects. This new client work is a significant step in the right direction of executing our strategy of re-building Lineal Industries’ previous long-term business strategy. We believe that a business built on many singles and doubles will eventually bring in home runs, and our Lineal Industries team should be proud of winning back this well-known legacy customer.
We would also like to reassure our Camber shareholders that the pending audit and Form 8-K/A report concerning the Camber acquisition of Lineal Star and its subsidiaries is being pursued with all available resources and even with significant flooding in Houston last week, and additional unexpected documentation requirements from our auditors needed to complete the report, we are doing everything necessary to get this work completed as soon as possible.
Why This News Is Important
At the end of the day, there are several reasons that today’s news from Camber Energy is exciting for investors. Here are some that I find to be most important:
Click below to ready why this customer win back is such a big deal.