Oilfield (Mobile) Pipe Testing Company (KS/OK)

Not Disclosed, KS

Kansas


Asking Price: Annual Revenue:
$690,000 $700,000

Manufacturing: Energy, Oil, Petroleum, Gas Production


Request More Information
Contact the Seller

RE: Oilfield (Mobile) Pipe Testing Company (KS/OK) Broker: Rex Reinhardt
Owner Financing is Available!

Quick Facts

Asking Price: $690,000
Annual Revenue: $700,000
Net Profit: $250,000
Cash Flow: $300,000
Total Debt: Not Disclosed
FF&E: $500,000
Real Estate: Not Disclosed
Year Established: 1970
Employees: 8
BBN Listing #: 670341672
Broker Reference #: Not Disclosed

Email, Print & Share

Request More Information
Contact the Seller


Business Overview:

Project Testing (S-Corp) is in the business of Hydrostatic Testing of oilfield tubing and casing at the well site The company is based in Kansas, but does serve customers in Oklahoma as well. “Hydrotesting” is vital to the oilfield customers as it’s the most effective as the last “stamp of approval” of pipe before going back into the well. The company 100% work-over related and there is ZERO tie to new drilling whatsoever, with oil prices of very little concern. In fact, pipe has to be tested for operators at $100 oil or $60 oil, as operators do not want corrosive pipe in their wells in any event. Further, in Kansas it is very cheap to drill. And production happens at very low levels compared to other regions given the refineries and infrastructure in place in our market.

Founded over 40 years ago, the business has been a stable player in the “oil patch”. Thus, Revenues have remained consistent over the years, i.e. 2010 Sales were higher than 2012 Sales. With 8 employees, 6 trucks with testing equipment and 3 crews, the business remains a mainstay for Kansas and Oklahoma E&P companies/operators. With close to 100 customers total, not one accounts for more than 10% of Sales.

In Kansas, it is very cheap to drill compared to other regions, so new drilling happens here even in the $60's and $70's/bbl. Also, according to Citi Group Kansas is one of the lowest production cost states for break-even, as low as $50/bbl and even lower in some areas of the state. Plays like the Niobrara, Permian, Eagleford and Bakken all operate closer to around $60/bbl for production break-even. The MS Lime play is one of the cheapest shale plays to boot. Only the Marcellus is cheaper of the major US plays.

The company MADE money in 2009 (was only down 15% for Sales from 2008), and had a $110k profit (not EBITDA) that year. Very few companies can boast this, and proves the company does well in any environment.

Company continues strong in a tougher oil climate.

Company has upgraded all of the equipment in the last few years – in fact, all hydrotesting units have received new pressure pumps. 2 of the three rack-testing units are new as of 2013. This has helped boost sales/business. In 2015 purchased a new truck for the hydro-tester that was inoperable so all 6 units now in working order.

Company employees have continued to gain experience and grow, generating revenue needed without owner's oversight. This making it almost able to run on its own without owner.

Company has been a beneficiary of all the new wells in NW KS and the MS Lime in South KS/North OK over the last several years now getting worked over and receiving upkeep which will last for years to come.

100% work-over related, meaning at crude $50/bbl or $100/bbl, operators will always getting pipe tested as a maintenance aspect of the well life. Going back to even 2010, the company produced MORE revenue than 2012, for example.

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Market Competition and Expansion:

Company has upgraded all of the equipment in the last few years – in fact, all hydrotesting units have received new pressure pumps. 2 of the three rack-testing units are new as of 2013. This has helped boost sales/business. In 2015 purchased a new truck for the hydro-tester that was inoperable so all 6 units now in working order. Company employees have continued to gain experience and grow, generating revenue needed without owner's oversight. This making it almost able to run on its own without owner. Company has been a beneficiary of all the new wells in NW KS and the MS Lime in South KS/North OK over the last several years now getting worked over and receiving upkeep which will last for years to come. 100% work-over related, meaning at crude $50/bbl or $100/bbl, operators will always getting pipe tested as a maintenance aspect of the well life. Going back to even 2010, the company produced MORE revenue than 2012, for example.

Reason for Selling:

Retirement

Additional Details:

  • The property is owned.
  • The owner is not willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

Relevant Links:

Request More Information
Contact the Seller



BusinessBroker.net is one of the largest business for sale marketplaces in the world that connects tens-of-thousands of business buyers and sellers every month. Sell a Business Online or if you’re a broker or a commercial agent sign up for a Business Broker Membership today!