Oilfield Construction Trucking Pipelining & Testing Business For Sale

Business description

CURRENT PRICING IS BASED ON 5X TRAILING 12 MONTH EBITDA. 2011 Cash flow is estimated at a minimum of $5,000,000. Google the Williston Basin, or Bakken Oil Field and you will find information like this: America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation in North Dakota could boost America’s Oil reserves by an incredible 10 times. With new horizontal drilling technology it is believed that from 25 to 50 billion barrels of recoverable oil are held in this 200,000 square mile reserve that was initially discovered in 1951. It was not until 2007, when EOG Resources of Texas started a frenzy when they drilled a single well in Parshal N.D. that is expected to yield 700,000 barrels of oil that real excitement and money started to flow in North Dakota. Marathon Oil is investing $1.5 billion and drilling 300 new wells in what is expected to be one of the greatest booms in Oil discovery since Oil was discovered in Saudi Arabia in 1938. What does all this mean? It means oilfield service companies like this one will be constructing new sites and servicing existing sites for many years to come. Another important note is the fact that in the Williston Basin, just like other oil fields around the world, the oil companies prefer to contract out these services rather than have their own crews so small businesses like this one will continue to thrive. IF you have Heavy construction, Welding, Management, Sales, Accounting or other experience you may be a good fit for this operation. PEG groups can also find this a good purchase especially if rolled up with one or more of the other service companies that we represent in the basin. PLEASE NOTE: No information on this business will be released without a signed NDA and documents from potential buyer showing their ability to financially complete a purchase.

Property information

Location:

Oil Field Hub

Premises details:

Current shop is owned by the seller and is available for purchase as a separate sale. Shop has Office, Restrooms, Mechanic bays, Parts rooms. There is adequate parking for all employees and the company equipment. Shop is a metal building with cement floor and reasonable insulation. Location is in town and only a few blocks from the main North / South Highway and the East / West Freeway.

Other information

Expansion potential:

Expansion at this time is limited by capital and employees. If you can obtain the capital or re-invest your profits in more equipment, and then find the employees to operate the equipment this business will grow. Demand exceeds supply and has been that way for the last 3 to 5 years.

Competition / Market:

This Roustabout company is of medium size in the Bakken / Williston Basin area. While there are some larger companies and many smaller ones the competitive nature of business in general is not felt due to the high demand for service. If you Google Bakken or Williston Basin you will find information that shows you how big an oil find this is and it is just in it's infancy. Many large oil companies are projecting aggressive drilling programs for the next 20 years and drilling could go on for 50 years or more. There is the potential to do a roll up with this firm and 4 or 5 others we represent in a 300 mile radius which would give even greater clout to the operation.

Support & training:

Seller will provide a transition period to buyer as negotiated in the Asset Purchase Agreement.

Reasons for selling:

Semi Retire

Financing available:

As negotiated in the asset purchase agreement

Furniture / Fixtures value:

$2,068,165 (included in the asking price)