Sold – Producing Oil and Gas Well Service Business

While some drillers have taken a hit in today’s market, not every company in the O&G industry is feeling the downturn. Many of the less profitable wells have been temporarily idled, yet U.S. oil companies are expected to set a new record for production output in 2015 of 9.3 million barrels per day.

This company services producing wells in Colorado’s oil and gas industry. They clean and repair about 4,000 wells per year. Every time they add a rig, that capacity is immediately and fully utilized. If the price of oil remains low, the company’s services will remain critical for optimizing well production. When the price of oil goes up, more wells will come back online and the demand for cleaning service will expand further.

Started in 2011
15 full time employees

FacilitiesBusiness leases office space but equipment is almost always in the field.

Asking Price: $3,000,000
Included in the Asking Price: FFE and Inventory worth $1,500,000
Revenue: $2,450,000
Cash Flow: $775,000

Market Outlook
There are other well service businesses in the region, but this business competes well on reputation and service.
Growth and Expansion: The company has experienced strong growth over the past 3 years. They are still running at 100% even with the recent consolidation in the industry due to oil price and additional capacity brought online. Once the price of oil stabilizes at or above $65/barrel, the company has further expansion plans.

About the Sale
The owner willing to stay on as an employee and help the company grow for the buyer or investor.

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