by Matthew Johnson
You can get an idea of how service companies are dealing with a challenging environment by looking at our data on specific companies, like Texas-based Pumpco Services. The company has consolidated its operations near its home and it appears to be thriving.
A Leading Pressure Pumping Service
Pumpco Energy Services, Inc. was founded in 1982 by Ronny Ortowski, who had worked for many years in pumping. The company provides fracturing services, using its high-pressure pumping equipment to fracture rock formations. It also offers acid and other treatment additives to enhance production. Finally, Pumpco offers miscellaneous pumping services, such as pump downs between well completion states. It brags that its focus on service and controlled growth sets it apart from other service companies.
When the shale boom took off, Pumpco became a hot commodity. It was acquired by Complete Production Services in 2007. At the time of the merger, Pumpco had an estimated revenue of $96 million and three pressure pumping fleets in the field, with one more on the way. Complete Production was, in turn, swallowed up by Superior Energy Services in 2012. The deal was reportedly worth approximately $554 million in cash. Pumpco has continued to operate under its own name, however, as a subsidiary of Superior.
Consolidation and Stable Activity
Pumpco’s controlled-growth strategy was probably not controlled enough, as during the boom years it moved a significant operation into the Bakken. That operation, based out of Minot, North Dakota, was forced to shut down in September 2015. The company closed up its Bakken shop, laying off 70 people and simply stating that the decision was forced by “economic conditions caused by falling oil prices.”
Since 2015, Pumpco has operated almost exclusively in Texas, with some operations also conducted in New Mexico. The company had A MAX OF six frac spreads running every week at it peak in 2015, but in 2016 it ran between two and four most weeks. That said, the company seems to have had a good 2016. It has had several months with as many as nine frac jobs per month, after never exceeding eight in 2015. The trend lines suggest 2017 could be a good year.
Primary Vision Has the Details
Keeping abreast of industry trends can be made so much easier by subscribing to the encyclopedia of data developed by Primary Vision. Service companies do not provide this data to the public in real time, or in some cases ever. We have developed sophisticated methods for collecting the available public filings and private announcements and using sophisticated models to predict real-time data. Our extensive data on hydraulic fracturing in the United States and Alberta, Canada is now available for in our new National Frac Spread Count Report. To learn more, visit www.fracspreadcount.com or contact us at info@pvmic.com.
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