This oilfield service company is the leading provider of oilfield service labor in the United States. The Company provides all of its employees with free housing, food and transportation as well as health insurance and 401k benefits. This healthy benefit package has created in effect a captive labor force of over 320 employees currently, and growing (low turnover rate) that focuses on individual continuous improvement thru training and safety education. The Company has four offices, each with a full-service man camp, equipment yard, offices, and maintenance & repair facilities. In addition to providing labor on a temporary basis, the Company is a one stop shop for specialized drilling rig, completion sites, frac sites, etc. and specialty pressure washing, supersucker trucks (cleanouts & hydroexcavation) and misc other services (a lot of equipment is rented so the opportunity exists to acquire equipment and increase EBITDA by over $1 mm). It is very difficult for any oilfield service company to find qualified workers these days, following Covid, yet this Company excels at maintaining and growing its labor force because of the benefits it provides. The size of its workforce is one of its strongest competitive advantages as many customer projects require the deployment of many specialty trained employees. Competitors without a similar workforce size cannot service larger customers looking for one stop vendors.
The Company services an enormous customer base of approximately 160 annually. Customers include oil & gas upstream, midstream and downstream companies including E&P, drilling, equipment rental and other oilfield service, and environmental, water, and construction companies. Blue chip customers include Endeavor, Pioneer, Oxy, XTO, Marathon, BP, Conoco Philips, and the like. The Company has strong customer diversification with its top three customers representing 14%, 11% and 7%. The Company has over 50 MSAs but does not require MSAs for the majority of its work.