Oil Natural Gas Well Repair and Installation Business For Sale

Business description

This “For Sale by Owner” has been under current ownership since 1997. 80% of the revenues come from well repair services while the other 20% comes from new well installation. This business is 100% service based with no retail component. They have a long standing (30 year) relationship with a major energy company that keeps 5 of their rigs busy year round and accounts for around 60% of their revenues. The company is currently being overseen in a hands off manner with capable management already in place that will stay on after the transfer of ownership. It is currently being run as a limited liability company with two locations in Southern Kansas. This business services oil wells and fields in southwest Kansas, the Oklahoma pan handle, and parts of Colorado and New Mexico.

Property information

Real Estate:

Real Property Included

Location:

2 Locations with facilities both owned and included in the sale that serve as bases of operation for the 9 rigs, the office and storage for equipment.

Other information

Expansion potential:

Sales are anticipated to increase by up to $1 million in ’08 due to the recent addition of a 9th rig and an increase in rates. Further additions of operational rigs would significantly increase revenues.

Competition / Market:

While there is some competition for the services provided, this company has seen consistent growth under its current ownership and has more work coming in than can be handled at current capacity.

Support & training:

Owner agrees to stay through a reasonable transition period.

Reasons for selling:

The current owners are interested in retirement in order to spend more time with their aging parents and children.

Furniture / Fixtures value:

$32,000 (included in the asking price)