Statesman DB
Clean Combustion, Inc. — Confidential Deal Room
Enter passcode to access
Incorrect passcode. Please try again.
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.