Tuesday, 6 February 2018

NICHE OILFIELD FLOWBACK SERVICE COMPANY (and complimentary equipment rental: frac tanks, light towers, etc.) Permian Basin (North America)



Business Description: This company is a specialty provider of oil & gas well flowback testing services and related rental equipment (power generators, frac tanks, etc.) in a new and successful play in the Permian Basin. This combination allows the company to bundle services & rental products for a one-stop shop for onsite flowback.  There are no other flowback companies nearby and they have strong customer relationships.  The company has mobile process equipment (flow lines, manifolds, separators, gas busters, plug catchers, etc.) to measure and record/log performance of wells (pressures, temps., flow rates).  The company provides complete flowback analysis for new wells (70%) and production well recompletes (30%).

Distribution: Over 30 MSAs in place and adding companies rapidly due to this being a new area of drilling in the Permian Basin.

Operational Strengths: Management has invested in new equipment and new & existing well drilling will require equipment to support forecast 2018 revenue of $12 million on new drilling alone.  Customers are asking the company to supply additional complimentary services. Little to no competition. No other provider has the location and/or geology expertise to provide timely and quality services.  Existing wells need workovers every 9-12 months and this company provides all workover support equipment.  One-stop shopping for all equipment, labor & support. Tremendous profit margins.  Low Capex growth model (2 month payback on equipment investment).

The Transaction: Management is looking for a partner to help with the capital needs of the company’s growth or to sell to a group that has the capital to support the growth in both new drilling and production.
Financial Summary (000s)

2018 est
2017
2016
Revenue
12,000
4,372
2,327
Adjusted EBITDA
8,000
2,790
551

Other Highlights
Location
Financials
Management Team in Place
Years in business
SIC Classification
Permian Basin
Internal
Yes
11
1381, 1382, 1389, 3533, 7359

Direct All Inquiries to:

Gottesman Company
Refer to:  S-2432-23 DBN
Tel: 212-330-8010     Fax: 646-434-4557
                                               E-mail: office@gottesman-company.com