42 Year Old Oil and Gas Service Company - Workover Rigs
| Asking Price: | $9,000,000 |
| Gross Revenue: | $9,660,000 |
| Established Year: | 1982 |
| Cash Flow: | $1,571,000 |
| FF&E: | $5,500,000 |
Business Model - Oilwell Service: maintenance, completions and workovers.
A workover rig is a specialized type of rig used in the oil and gas industry to perform maintenance, repair, or completion operations on an existing oil or gas well. Unlike drilling rigs, which are used to drill new wells, workover rigs are employed after a well has been drilled, typically to restore or improve production, fix problems like leaks or mechanical failures, or to replace worn-out equipment.
Some common tasks performed by a workover rig include:
• Recompletion: Modifying the well to target a new production zone.
• Plugging and abandonment: Safely sealing a well at the end of its productive life.
• Tubing and packer replacement: Changing out damaged or corroded components.
• Well stimulation: Injecting substances like acids or other fluids to increase production flow.
Workover rigs are crucial for prolonging the productive life of a well and ensuring its safe operation.
Top Things To Know
• Services: Provide workover rigs for the oil industry
• Average Order Size / Billing: $4,500 daily per rig.
• Seasonality: There’s no seasonality in the business.
• Longevity: Established in 1982, the company has been an industry leader for 42 years
• Assets: $5,500,000 in fixed assets included in the asking price
• Working Capital: $1,600,000 of working capital included in the asking price.
• Turnkey Operations: Company is guided by well-defined systems and processes
• Established Brand: Excellent reputation for outstanding on-time and on budget work.
• Workforce: 56 Full-Time Employees / 3 Family Members work in the business
Key Strengths
• Well-Established Reputation
• Highly Experienced Staff
• Strong Safety Programs
• Reliable Performance
• Exceptional Work Ethics
Marketing Strategy
The company has two outside salespeople and no inside salesperson. 95% of the revenue is generated from the sales team’s efforts and the remaining 5% come from word of mouth and referrals.
Employees
The Company has a total of 56 full-time employees. The key employees are two salespeople, two crew chiefs and one safety coordinator. The average tenure of these key employees is 25 years.
Reason for Selling
The owner wishes to retire.
