Jury Says No Breach, No Bad Faith, No $30M

When GR Energy Services sold its horizontal pump rental business to DistributionNOW subsidiary Odessa Pumps for $90 million in March 2021, the parties couldn’t agree on the true value of the company so they negotiated an earnout provision: if the pump business generated $15 million in earnings over the course of a year, GR would be entitled to an additional $30 million payday.

As part of the contract to purchase Flex Flow, which specializes in renting horizontal pumps used to dispose of saltwater produced in oil and gas operations, GR and Odessa Pumps also entered an agreement barring GR from competing with Flex Flow.