Wellhead and Equipment Rental Co. with Machine Shop
| Asking Price: | $11,000,000 |
| Gross Revenue: | $6,600,000 |
| EBITDA: | $3,000,000 |
| Real Estate: | $750,000 |
| Cash Flow: | $3,000,000 |
| Inventory: | $9,000,000 |
| FF&E: | $5,000,000 |
Please only strategic buyers, private equity and investment groups with the PROVEN wherewithal and resources inquire. We do not want to waste anyone's time. There is a third party valuation done on the business.
Project Wellhead is about a 25 year old Oilfield Service company located in the Texas Panhandle serving NW Texas, Western OK and SW KS. The company’s service lines consist mainly of providing fishing tool rentals, and Wellhead service/sales/installation of new and remanufactured Wellhead equipment. The company has a sizeable machine shop for the service and repair work, and the remanufacturing of equipment which is very high margin. Customers include independents and major Oil & Gas producers in these aforementioned regions.
Business Highlights:
- Company Growth: Management sees growth opportunities across several facets of the company. It does no advertising and marketing right now. This is highly scalable to add other operations in adjacent regions to increase scale, most likely the “STACK” of Oklahoma (OKC) or the Permian in West Texas (Odessa/Midland). There are complimentary service lines that can be added on, such as adding higher capacity pumps and swivels, “rig ups”, and torque and test. The company also used to provide air circulation equipment, and could introduce this again to the market.
- Market Channels: The company works with the independent and “major” Oil & Gas operators.
- Competitive Advantage: the company is a market leader and is well placed to capitalize on several Oil & Gas “plays” due to its geographical placement. Few competitors are in the region they currently serve. The company being a market leader, has an excellent reputation and provides impeccable service to customers and excellent relationship with all vendors. Having a machine ship makes the company very unique compared to its competition.
- Management: Current ownership would stay on to help as needed for a transition period. There are essentially “General Managers” over each division of the company (Tool side and Wellhead side), which would be intact going forward for new ownership.
- Industry Growth: Demand for the Oil & Gas industry has been very high of late, with commodity prices returning to levels not seen since 2014. The global oilfield services market size was $267.82 billion in 2019 and is projected to reach $346.45 billion by 2027, exhibiting a CAGR of 6.6%
- Financials: No customer over 20% of Revenue. NO debt, strong asset base and excellent candidate for financing. The company was resilient after 2020 “COVID year” and grew 40%+ in 2021 . Management expects that growth to continue into 2023 and 2024.
