Business Overview
About the Company
This North Texas Company is a 25+ year old company providing upstream and midstream oilfield roustabout, pipeline service & construction, oilfield pad-frac pond construction and residential-commercial excavation within a 50 mile radius in the North Texas area. The Company has a strong, experienced, trusted operating management team. The majority of work is negotiated pricing and the vast majority is direct to owner (versus through a general contractor). Work mix varies by year but, typically, Oil & Gas is ~30-40% Roustabout, ~30-40% Pipeline and ~4-7% Drilling Pads-Frac Ponds, ~10-15% Residential Excavation, 5-10% Commercial Excavation. Pipeline is primarily installing new lines, rerouting existing lines, or repairing leaks. Excavation includes dirt work for residential and commercial customers, including new construction, grading, pond construction, subdivision road and utility construction. Most revenue is currently generated from stable, ongoing production-related work but the construction side can be quickly ramped up as drilling activity increases.
The 135+ seasoned and skilled employees are primarily from the local area and do not require per diem pay (an advantage for the company in bid situations). All operational employees go through regular training and safety programs. The equipment is in excellent condition and maintained.
The Company has long-term management that runs all day to day operations. The employees are highly motivated, generally long-term tenure and experienced in what they do. As such, they are generally able to operate independently. The business is not dependent on owner relationships. Sales relationships are between customers and employees and supervisors. Although the owner is involved full-time in the business, they are able to take extended vacations and time away from the business, confidently knowing that the management team has all the bases covered! The owner's involvement relates to providing financial and managerial support, such as approving a large capital purchase to update equipment (eg add, upgrade or replace major equipment) and an alternate opinion on major projects.
Sales are primarily repeat, recurring due to excellent long-term relationships between employees and clients. The Company's various service niches generate repeat revenue streams with predictable and high margins. The business has ~100's of active, diverse customers with the top 10 customers accounting for approximately 87% of sales. The largest customer is typically ~27% of sales and is an oil and gas production company. The company has MSA’s with over 20 oilfield operators located across North Texas.
The owner plans to continue focusing on other business interests in preparation for retirement. The business has excellent books & records and can prove all sales & expenses.
Purchase Price: The asking price for the assets of the business is $20,000,000. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the Seller. All financing is to be personally guaranteed by the individual principals of a prospective purchaser. THE Seller Prefers to sell for all cash. The assets include inventory at cost of $0 (all materials are expensed to each job), NET working capital (Accounts Receivables less Accounts payables + Accrued Expenses) valued at $4,100,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $7,600,000. The price will be increased or decreased for actual inventory, work in process (WIP) and NET working capital as of the sale date.
Note: All statements, figures, and values are subject to a prospective purchaser’s due diligence.
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