Superior Drilling Products Breakout Notes
Chris Cashion, CFO of Superior Drilling Products, Inc., (ticker: SDPI) presented today at EnerCom’s The Oil & Gas Conference® 22.
Superior Drilling Products is an oil and gas service company that designs and builds drilling tools for use in remediating down-hole problems. The company has several products that can be used both during and following the drilling of a well to remediate wellbore issues that occur during drilling.
During Q2, Superior reported $4.0 million in revenue, up from $2.9 million. The company’s net income was $0.3 million for Q2, up $3.4 million from its Q2, 2016 loss. The company’s tool segment grew, building up to $2.5 million in sales—which reflected growth of approximately 179%. The company was pursuing channel partners for its Coiled Tubing Strider completions systems tool.
During the company’s breakout session, management was asked the following questions:
- With the drilling ream tools, do some have more traction than others among the tools within different basins/locations?
- In regards to penetration rates, what are your comments on other rigs using different tools other than your tools to achieve better rates?
- The initial production (IPs) from your tools came from the gentleman that you bought out, with the other tools that are oncoming, will those be part of an in house production or will they be bought out in similar fashion from other prospective sellers?
- Can you discuss on the development efforts stirred by the three critical people involved?
- You mentioned there being different penetration rates in different regions, thus, what specific countries might be a good fit for your tools?
- Have your tools being used to drill within geothermal environments? What is the performance scale in metamorphic rocks typical of these geothermal reservoirs?
- There is a general sense that the rig day rate will change dramatically, can you shed some light on that?
- With your IPs, do you just have US patent or additional international patents?
- Do you see opportunity in applying the stabilizing tools in multiple drillstrings?
- With the strider technology, how far are you in allocating revenue?
- Was the strider technology developed within the hard rock company?
- What is the yearly breakdown of the payment structure going to the individual that the rights were bought from for $8 million?
- The does the additional $5.9 million loan come through?
- Which tool specialization will you introduced beyond the strider technology? Or are you solely focused on Strider for now?
- Do you currently have newer tools beyond strider to be introduced into the market place within the next eight years?
Superior Drilling Products presented at EnerCom’s 2017 The Oil & Gas Conference®.
You can listen to the company’s presentation by clicking here.
