Statesman DB
Clean Combustion, Inc. — Confidential Deal Room
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CONFIDENTIAL — Statesman Capital Advisors

Clean Combustion, Inc.

Project CCI  ·  Prepared by Statesman Capital Advisors  ·  February 2026
Pipeline Services & Combustion Houston, TX Founded ~2010 S-Corp · No Debt 3 Shareholders Accrual Basis
2025 Adj. EBITDA
$5.45M
Est. valuation range: $27M – $38M
2025 Revenue
$13.6M
▲ 15.8% vs 2024 ($11.7M)
2025 Gross Margin
98.2%
Service-led model, minimal COGS
2025 EBITDA
$4.55M
33.5% margin · Adj. EBITDA $5.45M
Balance Sheet
$0 Debt
Equity $8.25M · Cash $2.91M
Detailed Income Statement — Clean Combustion, Inc. (2022–2026 YTD) Accrual Basis · QuickBooks · All figures in USD
Line Item 2022 2023 2024 2025 2026 YTD
(Jan 1–Feb 26)
REVENUE
Sales (Equipment / Mfg.) 1,002,083 155,356 529,810 317,614
Sales – Services 9,880,898 10,628,487 10,170,640 11,839,046 1,174,499
Heater Sales 1,358,202 1,015,740 1,017,307 1,420,777 123,642
Total Revenue 12,241,182 11,799,583 11,717,758 13,577,438 1,298,141
YoY Growth –3.6% –0.7% +15.9% Partial
COST OF GOODS SOLD
Materials (249,479) (15,648) (15,831) (44,098) (2,764)
Contract Services (64,572) (64,874) (300,360) (193,286) (56,247)
Equipment Sales / Freight (3,411) (8,237) (6,235) (9,190)
Total COGS (317,462) (88,759) (322,426) (246,574) (59,011)
Gross Profit 11,923,720 11,710,824 11,395,332 13,330,864 1,239,130
Gross Margin % 97.4% 99.2% 97.2% 98.2% 95.5%
OPERATING EXPENSES
Salaries (3,036,094) (5,948,337) (3,095,445) (3,442,786) (53,938)
Payroll Taxes (448) (215,583) (269,759) (225,430) (248,115) (4,200)
401K & Employee Benefits (60,907) (97,670) (125,982) (113,649) (1,520)
Insurance — Auto (213,442) (213,782) (193,341) (249,608)
Insurance — General Liability (232,233) (231,489) (242,087) (335,731)
Insurance — Health (421,928) (369,566) (407,693) (408,199) (88,692)
Insurance — Officer Life AB (206,195) (214,163) (232,752) (202,848) (32,691)
Insurance — Workers Comp / Other (26,063) (52,447) (63,205) (90,383) (10,489)
Total Insurance (415 + 416 + 418) (1,088,009) (1,081,526) (1,159,204) (1,286,769) (131,871)
Repairs & Maintenance (1,207,010) (964,381) (1,445,481) (996,158) (140,319)
Rent Expense AB (438,600) (439,800) (549,200) (442,200) (30,550)
Business Meals & Travel (511,341) (609,840) (649,488) (730,307) (79,865)
Fuel — Vehicles (426,158) (328,183) (411,347) (429,489) (60,634)
Fuel — Equipment (57,462) (95,522) (59,528) (144,349) (6,578)
Contract Nitrogen (44,297) (90,966) (674,025) (176,563) (82,820)
Equipment Rentals (249,224) (107,446) (66,181) (164,036) (8,292)
Depreciation (754,156) (600,000) (480,000) (480,000)
Legal & Professional (68,238) (39,544) (25,569) (20,428) (285)
Marketing & Advertising (103,005) (69,083) (56,998) (82,339) (33,967)
Telephone (37,437) (35,323) (43,523) (48,610) (6,334)
Utilities (45,297) (55,762) (46,740) (56,222) (5,420)
Taxes — Other (76,771) (66,188) (64,809) (68,700)
Other OpEx (donations, dues, supplies, etc.) (161,243) (183,135) (314,672) (202,516) (80,172)
Bad Debt (295,802)
Total Operating Expenses (8,735,016) (11,757,365) (9,867,838) (9,258,510) (586,656)
Net Ordinary Income 3,188,704 (46,541) 1,527,493 4,072,354 652,474
OTHER INCOME / EXPENSE
Interest Earned 42,243 123,347 125,670 54,149 5,858
Life Ins. CSV Increase AB 178,697 185,705 193,251 203,500
Gain on Asset Sales 33,596 69,247 74,019 30,000
Other Income 15,380
Total Other Income 254,536 378,299 392,940 303,029 5,858
Texas Franchise Tax (31,500) (10,530) (12,000) (41,500)
Louisiana Income Tax 8,277 (2,454) (17,565) (24,000)
Other Expense (730) (2,159)
NET INCOME 3,420,017 318,774 1,890,138 4,307,724 658,332
Net Margin % 27.9% 2.7% 16.1% 31.7% 50.7%
AB = Add-back item included in Adj. EBITDA analysis
= 2026 YTD salary/payroll shows credit adjustments in progress (negative amounts normal for period-end accrual true-up)
2023 salaries elevated by ~$2.8M one-time bonus (Brian & Jeremy land purchase)
2024 includes $295,802 bad debt write-off
2026 YTD = 57 days (Jan 1 – Feb 26, 2026) — incomplete period
Income Statement Summary (2022–2025)
($) 2022 2023 2024 2025
Revenue 12,241,182 11,799,583 11,717,758 13,577,438
Total COGS (317,462) (88,759) (322,426) (246,574)
Gross Profit 11,923,720 11,710,824 11,395,332 13,330,864
Gross Margin % 97.4% 99.2% 97.2% 98.2%
Total OpEx (8,735,016) (11,757,365)* (9,867,838) (9,258,510)
Net Ord. Income 3,188,704 (46,541) 1,527,493 4,072,354
Depreciation 754,156 600,000 480,000 480,000
EBITDA 3,942,860 553,459 2,007,493 4,552,354
EBITDA Margin 32.2% 4.7%* 17.1% 33.5%
Net Income 3,420,017 318,774 1,890,138 4,307,724
* 2023 EBITDA depressed by ~$2.8M one-time owner bonus (land purchase). Normalized 2023 EBITDA: $3.35M (28.4%)
2025 Adj. EBITDA Bridge
Reported EBITDA
$4,552,354
+ Family / Non-Op. Salaries
Jessica H., Carmen H., Kaitlyn H., Jessica S., Mike N.
+ $106,000
+ MB House Rent & Utilities
$1,850/mo rent + $580/mo utilities to owners
+ $29,160
+ Hunting Camp & Personal Expenses
Camp rent $300K, Kelly/Miranda salaries, feed, utilities, taxes, insurance
+ $487,240
+ Personal Travel (Brian & Jeremy)
Airfare, hotels, hunting trips
+ $50,000
+ Hunting Trips
+ $20,000
+ Other (Starlink, Repairs)
+ $3,440
+ Officer Life Insurance (net premium)
Non-cash / personal benefit; premium ~cancels CSV increase
+ $202,848
Adjusted EBITDA
40.1% of 2025 revenue
$5,451,042
Indicative Valuation Range (5.0× – 7.0× Adj. EBITDA)
5.0× Floor
$27.3M
6.0× Mid
$32.7M
7.0× Ceiling
$38.2M
Cash Flow Summary (2022–2025)
($) 2022 2023 2024 2025
Operating CF 3,999,914 958,337 520,568 3,516,995
Investing CF 88,720 136,305 (166,503) (75,716)
Financing CF (1,900,000) (2,150,000) (2,622,988) (2,729,980)
Net Cash Change 2,188,634 (1,055,359) (2,268,923) 711,299
Cash — End of Year 5,520,911 4,465,553 2,196,630 2,907,929
Owner Distributions (1,900,000) (2,150,000) (2,622,988) (2,729,980)
Strong recurring distributions to owners 2022–2025. 2024 cash decline driven by $1.11M treasury stock buyback + $1.05M Coastal ROW note receivable. Cash recovered strongly in 2025.
Balance Sheet Snapshot (Dec 31, 2025)
Assets 2024 2025
Cash & Equivalents 2,196,630 2,907,929
Accounts Receivable 1,542,690 2,259,006
Prepaid & Other Current 1,593,254 1,617,077
Total Current Assets 5,332,575 6,784,012
Net Fixed Assets 901,428 773,644
Life Ins. CSV 909,938 1,113,438
Note Rec. – Coastal ROW 1,054,056 1,054,056
Total Assets 7,143,941 8,671,094
Liabilities & Equity
Total Liabilities 469,056 418,466
Total Equity 6,674,885 8,252,629
Debt $0 $0
Zero Debt — Fully Equity Financed
Note Rec. – Coastal ROW (~$1.05M) + Life Insurance CSV (~$1.11M) = ~$2.16M in non-op assets not included in EBITDA valuation
Revenue & EBITDA Trend (2022–2025)
2022
Rev
EBITDA
$12.2M
EBITDA $3.9M · 32%
2023 1×bonus
Rev
EBITDA
$11.8M
EBITDA $0.6M · Norm. $3.4M
2024
Rev
EBITDA
$11.7M
EBITDA $2.0M · 17%
2025 LATEST
Rev
EBITDA
Adj.
$13.6M
EBITDA $4.6M · Adj. $5.5M (40%)
2026 YTD Performance (Jan 1 – Feb 26)
57-Day YTD Revenue Run Rate
$1,298,141
Annualized ≈ $8.3M+ (seasonality note: Q1 typically lower)
Sales – Services 1,174,499
Heater Sales 123,642
Total Revenue 1,298,141
Total COGS (59,011)
Gross Profit 1,239,130
Gross Margin 95.5%
Total OpEx (586,656)
Net Income (YTD) 658,332
Note: 2026 YTD data as of Feb 26, 2026 is incomplete. Salaries show credit adjustments in progress.
2025 Key Expense Categories
CategoryAmount% Rev
Salaries & Payroll Taxes 3,690,901 27.2%
Insurance (all types) 1,286,769 9.5%
Repairs & Maintenance 996,158 7.3%
Rent Expense 442,200 3.3%
Travel & Meals 730,307 5.4%
Fuel (Vehicles + Equipment) 573,839 4.2%
Depreciation 480,000 3.5%
Contract Nitrogen 176,563 1.3%
Equipment Rentals 164,036 1.2%
Total OpEx 9,258,510 68.2%
Ownership Structure (as of Jan 2026)
71.03%
22.52%
6.45%
Brian Harless
President
71.03%
Eddie Walters
Technical Manager
22.52%
Jeremy Stringer
Sales Manager
6.45%
Key Man Risk
Brian Harless holds 71% and drives primary client relationships. Retention / earnout structure recommended post-close.
Top Customers — Revenue by Account (2023–2025)
All figures in USD  ·  Sorted by 2025 revenue  ·  NEW = added via MSA in 2025/2026
# Customer 2023 2024 2025 % of '25
1 Enterprise Products 531,137 1,209,677 3,089,980 23%
2 ExxonMobil Pipeline 2,420,723 1,807,150 1,819,581 13%
3 Koch Pipeline Co. 775,548 605,183 1,475,459 11%
4 Energy Transfer 1,335,297 1,685,907 1,133,768 8%
5 Boardwalk LA Midstream 1,168,969 1,658,936 1,094,440 8%
6 Motiva Enterprises 199,934 258,229 718,746 5%
7 Chevron Pipeline NEW '25 648,947 5%
8 ONEOK Hydrocarbon 196,050 576,954 530,457 4%
9 Shell Pipeline 1,190,994 981,834 440,386 3%
10 Eastman Chemical 75,040 280,999 2%
11 Phillips 66 Partners 304,738 307,866 264,473 2%
12 Coastal ROW 243,346 242,482 2%
Top 12 Subtotal 8,198,430 9,335,081 11,739,718 86%
All investment-grade midstream & petrochemical operators. Enterprise Products surged from #8→#1 in 2025 (+156% YoY). Chevron added via new MSA in 2025. Targa added Feb 2026 — not yet in financials.
Investment Thesis & Key Strengths
Exceptional 2025 Performance
Revenue grew 15.8% YoY to $13.6M with EBITDA expanding to $4.6M (33.5%) — strongest year on record. Gross margin consistently >97%.
Zero Debt, Strong Balance Sheet
Fully equity-financed with $8.25M equity, $2.9M cash. ~$2.16M in non-operating assets (Coastal ROW note + life ins. CSV) not yet monetized.
Blue-Chip, Sticky Customer Base
ExxonMobil, Enterprise Products, Energy Transfer, Shell, Koch, Chevron, Motiva — top-tier investment-grade counterparties with recurring service needs.
High-Margin Service Business
~98% gross margin is exceptional for an industrial services company. Asset-light model with specialized combustion/pipeline expertise difficult to replicate.
Significant Owner Add-Backs (~$900K)
~$673K confirmed in 2025 add-backs per seller notes (within ±5%). Includes hunting camp, personal salaries, and life insurance. Adj. EBITDA of $5.45M provides strong valuation support.
Seller Notes & Deal Considerations
Add-backs for 2025 estimated at ~$673K (within ±5% accuracy per seller). Similar add-backs expected going back to 2021.
2023 includes a one-time ~$2.8M bonus taken by Brian & Jeremy to purchase land adjacent to their hunting camp property. Must be normalized in any EBITDA analysis.
~$2M–$2.5M Money Market Account — sellers plan to pay off hunting camp with this cash and keep balance. ~$600K for normal operating expenses.
Note Receivable – Coastal ROW (~$1.05M on balance sheet) — should be treated as a non-operating asset in any deal structure.
Life Insurance CSV — whole life policies with cash surrender value (~$1.11M). Value accrues to shareholders; to be addressed in deal structure.
Assets not included in deal may be retained by sellers (hunting camp, money market, life insurance policies, Coastal ROW note).
Recommend earnout / retention package for Brian Harless given 71% ownership and client relationship concentration.
Growth Opportunities (Seller-Identified)
Equipment Manufacturing — Flare Stacks
CCI manufactures permanent & trailer-mounted flare stacks (≤50') for existing service clients. Generates $200K – $1M+ annually, typically 2–6 units/year. Permanent units ~$60K; trailer-mounted ~$200K. Sold exclusively to recurring service customers — strong cross-sell dynamic.
Geographic Expansion — 30–40% Untapped Market
Seller estimates 30–40% of the regional market is not being captured. Three high-potential expansion geographies: West Texas, Western Pennsylvania, and Oklahoma. CCI has not pursued due to preference for local work — an acquirer with field operations in those regions could unlock meaningful incremental revenue.
MSA Momentum — New Contracts 2025–2026
Master Service Agreements added with Chevron (2025) and Targa Resources (Feb 2026) — both expected to generate recurring service revenue. Chevron already contributed $648K in its first partial year. Targa not yet reflected in any financials.
Deal Structure Considerations
Zero-Debt Transaction
No debt to assume or retire. Clean balance sheet simplifies deal structure.
Key-Man Retention (Brian Harless, 71%)
Earnout or employment agreement strongly recommended. Primary client relationships reside with Brian. Roll-over equity option may align incentives.
Facility Lease — Related Party
Office & shop leased from Brian's mother's LLC. No real estate owned by CCI. Arm's-length lease terms to be verified in diligence.
Personal Assets — Farm Equipment (~$150K)
Farm tractors & UTVs on asset list to be retained by sellers for hunting camp. Confirm carve-out in APA schedule.
Cash / Money Market (~$2M–$2.5M) Retained
Sellers plan to use cash to retire hunting camp debt; retain ~$600K for ops. Working capital peg in deal should reflect normalized cash (~$600K).
Life Insurance & Coastal ROW — Non-Op. Assets
Life ins. CSV (~$1.11M) and Coastal ROW note (~$1.05M) to be excluded from enterprise value. Structure as dividend / distribution pre-close or separate consideration.
2025 Revenue Concentration — Top 12 Customers = 86% of Revenue
Enterprise Products$3,090K · 23%
ExxonMobil Pipeline$1,820K · 13%
Koch Pipeline Co.$1,475K · 11%
Energy Transfer$1,134K · 8%
Boardwalk LA Midstream$1,094K · 8%
Motiva Enterprises$719K · 5%
Chevron Pipeline NEW$649K · 5%
All others (7 more shown)$1,838K · 14%
Customer Highlights
📈 Enterprise Products surged +156% YoY (was #8 in 2024, now #1)
🆕 Chevron added via MSA in 2025 — $649K first year
🆕 Targa added via MSA in Feb 2026 — not yet in financials
🔁 Top 3 customers = 47% of revenue
📋 All top customers are investment-grade counterparties
Concentration Risk Note
Top 5 customers = 63% of revenue. Any loss of ExxonMobil, Enterprise, or Koch would be material. Buyer due diligence should confirm contract terms and renewal status for each.
CONFIDENTIAL — Prepared by Statesman Capital Advisors  ·  February 2026
This document is for discussion purposes only and does not constitute an offer to buy or sell securities.
Source: CCI QuickBooks accrual financials (2022–2025), seller-provided add-back schedule, CCI ownership records.