Oilfield Services and Equipment Rental Company

Graystone International is currently selling a growing oilfield services and equipment rental company specializing in rental of flowback, separation, and related heavy equipment to assist oil and gas production, transportation, and construction customers during and following oilfield drilling construction operations. The company strategically operates in the Permian Basin, which is the primary driver of US oil output and is currently estimated to outproduce its pre-pandemic record this December, marking a significant turnaround in operations not experienced in other oil regions (https://www.reuters.com/business/energy/permian-basin-oil-output-surpass-pre-pandemic-record-2021-11-15/). In addition to the Permian Basin production projections, there are projections for crude prices to reach $120 per barrel by June 2022 (https://oilprice.com/Latest-Energy-News/World-News/Bank-Of-America-Sees-120-Oil-By-June-2022.html), making this business poised for growth due to the necessity for this equipment in sustained oilfield operations. The company recently added flowback and separation services in 2021, resulting in nearly a 10x increase in revenue from 2020 to 2021. The company has gained multiple Master Service Agreements with major exploration and production companies since diversifying available services, and has identified significant opportunities to expand its customer exposure in the Permian Basin as well as additional US production areas to generate increased revenue. General manager with 20+ years of experience supervising flowback field operations, is seeking to remain with the company to assist the new owner in growth and continued operations. Key Aspects • Diversified portfolio of service and equipment offerings • Ownership recently added flowback and separation service line in 2021, which has resulted in nearly a 10x increase in revenue from 2020 to 2021 • Strategic industry relationships in place with major exploration and production companies through providing timely and high-quality delivery of essential services and equipment • Master Service Agreements in place with major exploration and production companies to promote continued revenue and growth • Young fleet of equipment assets without notes or leases Opportunities • Strategic addition of company providing essential oil and gas service and equipment • Further capital investment in business development, website and marketing exposure, additional equipment, and expansion into auxiliary services and equipment offerings • Primed for expansion to provide services and equipment in other oil regions and with other major exploration and production companies Current Markets • The company currently provides services and equipment to exploration and production companies in the Permian Basin, but currently in discussions to provide services and equipment in other oil regions Ownership Objectives • Two of the three partners are seeking a full exit, while the other partner, the general manager, who provides management and supervision of operations and current relationships with customers is willing to stay to manage operations • All owners are willing to stay on for a transition and training period to ensure a smooth transition of company operations Should you have interest in the acquisition of this business, please do not hesitate to contact us. Location: Midland, Texas Year Established: 2016 Number of Employees: 30+ Relocatable: Yes Real Estate: Leased Building Sq. Ft.: 5,000 Rent: $7,700.00 Per Month Lease Expiration: 2/28/2028 Facilities: 5,000 SF Building/Shop 3 Acre Laydown/Storage Yard Market Outlook/ Competition: The company strategically operates in the Permian Basin, which is the primary driver of US oil output and is currently estimated to outproduce its pre-pandemic record this December, marking a significant turnaround in operations not experienced in other oil regions (https://www.reuters.com/business/energy/permian-basin-oil-output-surpass-pre-pandemic-record-2021-11-15/). In addition to the Permian Basin production projections, there are projections for crude prices to reach $120 per barrel by June 2022 (https://oilprice.com/Latest-Energy-News/World-News/Bank-Of-America-Sees-120-Oil-By-June-2022.html), making this business poised for growth due to the necessity for this equipment in sustained oilfield operations. Growth & Expansion: The company recently added flowback and separation services in 2021, resulting in nearly a 10x increase in revenue from 2020 to 2021. The company has multiple Master Service Agreements executed with major exploration and production companies generating monthly recurring revenue, as well as having significant opportunities to expand its customer exposure in the Permian Basin as well as additional US production areas to generate increased revenue.