OK/KS Oilfield Testing and Inspection Business

Not Disclosed, OK

Northern Oklahoma

Asking Price: Annual Revenue:
$600,000 $700,000

Services: Non-classifiable

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RE: OK/KS Oilfield Testing and Inspection Business Broker: Jake Boyd

Quick Facts

Asking Price: $600,000
Annual Revenue: $700,000
Net Profit: Not Disclosed
Cash Flow: $200,000
Total Debt: Not Disclosed
FF&E: $586,000
Real Estate: Not Disclosed
Year Established: Not Disclosed
Employees: Not Disclosed
BBN Listing #: 111441672
Broker Reference #: Not Disclosed

Email or Print Listing

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Business Overview:

Overview: Project Testing is a 3 location company that works in both KS/OK. One location in northern OK, one in southern KS and one in Central KS . The new owner could run the operation from Oklahoma or Central KS branch. Really any of them. It is in the business of Hydrostatic Testing and Rack-testing of oilfield tubing and casing at the well site or pipe yards. “Testing” is vital to E&P customers as it’s the most effective as the last “stamp of approval” of pipe before going back into the well. It’s a Maintenance item that a good operator will typically do to avoid corrosion and other concerns with their piping/tubing. Founded over 40 years ago, the business has been a stable player in the “oil patch”,and is not tied to new drilling (100% work-over and production related). Thus, Revenues have remained consistent over the years. With 6 employees, 6 total testing units (4 rack testers, 2 downhole or “hydro” testers), the business remains a mainstay for Kansas and Oklahoma E&P companies/operators.

Business Highlights:
• Competitive Advantages: Being a mobile tester vs. an actual plant has tremendous advantages in servicing customers at the well site – saving time and money. Reputation and brand are very strong.
• Customers/Market Channels: Some of the largest producers in the KS/OK area highlight the customer base, but with not one dominating Sales. Customers are predominantly E&P/operators, and the company has several MSAs in place.
• Growth Opportunities: Expansion into other markets/regions – Eastern CO/NW Kansas, further south in OK and the TX Panhandle where the reputation/brand still reaches. Increasing employee base/sales force would be important and purchasing an EMI unit for NDT testing. Also, going into Midstream could be interesting for pipeline testing. Current owner does no advertising, so marketing and advertising could benefit the company. The uptick of the MS Lime at the KS/OK border has added business, and the company also gets some work in the Oklahoma STACK region.
• Financials: See summary below. Consistently profitable for decades. All equipment and units have been upgraded in the last few years. One tester unit was just built brand new in 2017. Most Revenue is from 20-30 customers, and not one accounts for more than 20% of Sales. The company has produced Revenue in the range of $600,000 - $800,000 over the last few years, generating adj. EBITDA in the $200,000 - $300,000+ range.

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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.

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