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Boots & Coots Intl. Well Inc.

Tue, 2 Dec 2008|



As their body weight. Some new vector trying to. Back grows so. Anyway we'll see if we can't we can't get through this. On time and -- -- -- but about the sworn -- -- what a difference a year makes last year this conference was like jam. To relieve some of the front this year was coming -- he's been here at the back so what. But in this town and all beauties you store detail retains includes Matthews were the first two employees berated him. I think most people on here have at least some knowledge. Of that -- or business. You were celebrating our thirtieth year. And that's. Yes -- a milestone for -- for us in the company. Especially when you look at the company you work came from it's purely a response. Mercury -- company. To wear -- today totally different told different model and -- name will talk a little bit about that. That were headquartered here in Houston and actually we've got over 600 police today so but three years ago we gotta think 65. So -- give you some idea of where -- where we're going. Originally had location here in Houston one in Venezuela -- now. Worst stretch out and most of did you Pritchard areas. Especially through nor staff go were. LNG is very prevalent and a little bit of -- break -- on -- revenue mix. We've also in 06 march 06 record. Hydraulic well control from will states. Middles of small stemming acquisition. Last year -- There's more gimmick start a business. When you look and especially I'm finishing my hand here next -- helped them -- seniors. And when I -- you know the orange part of this -- I was pretty much what we did. It was you know -- People had problems like call than we've left we've dealt with that stuff than that which is good from a standpoint -- your little -- company. This privately held and nobody has -- -- expectations from you but it's a public company. With -- sit in the back room wanna know that our revenues not along the Mets you know you can't or we get there. In that thing so we needed to change our strategy needs change how we do our stuff -- win. And and we did we wanted to ultimately be a pressure control company. You -- pressure we gotta pressure out of control companies we had that -- we needed to control part of that. And we started really and -- 2000 making that transition. And you -- see. As a response -- and -- -- because our response revenues have gone down I think we annually plug those of about fifteen million. But what's happened is we've grown the world and reach inside that significantly. To -- the lumpiness of response -- If there's a little less. -- for us. Breakdown of revenues. -- this market this is pretty telling -- is if you look 80% of our revenues. And this country. And the remaining 40%. About 5% the Gulf of Mexico which is generally work over type work. With the F 15% this North America land. And that's mostly or snubbing and I brought or covert segments. You can see the -- talking about the impact of gas analogy. On our business and then the onshore offshore portion of that as well. Client base would work for lots of folks mom here in town a lot of that are not here in town. Stayed on the -- computer of particular interest. That's the group that can really benefit -- -- by our prevention services some things that we do. Looking at the -- -- -- you'll see we made that a pretty good investment in notes that in our business widgets -- tender offering. In the spring. We've got to be. Pressure control room who business as an organic start. Sort through three additional locations -- some equipment and you can kind of see the impact that that's head in you know way. The service -- we have we talk a little bit about responsible will go -- and see via. The rest of this is obviously what we're best known for a great group -- guys -- do this work every day you'll see him -- but if you're here in Houston that. On the news and in various. Things. The best in the world what we do when it comes to doing this particular thing. Absolutely there's nobody does it any better or or any quicker. That we do. And you've got to see the the -- of the -- Excuse me the revenues there on the bottom left hand side. The prevention business was real curious for us you know when we started. Especially -- -- the company ten years ago a public this is a great thing I -- and had my business card. -- you know deployment there all the stuff talked about carruthers our customer cannot -- my cardinal men who succeeds president -- look at my card in this. -- I hope on him. And almond tea that's a crappy business Mark. -- your customers want to call you and we needed to change that. And so we simple want to our customers really want from must -- don't wanna have -- -- -- -- -- -- we make money for them up all of us. We -- the prevention business because ultimately they don't wanna have problems. So. We said hey let's get in that business. And everybody said. That's -- -- you know you get paid for doing this work here why do you wanna go on engine in business to keep you from it could impact your work. Biggest revenue sources -- because that's what the customers more. And so we did in the first year where we did about 200000. And this is a pretty good internal. Discussion at our place because we had about half or groups that. This is great this is you know it's -- -- deal listed. We -- 200000 revenue miss it you'll never do more to themselves more than we did. Upwards of a million the -- you've got the wrong all of this out your -- yet. A million -- then it got to five and it went -- And then it wanted to -- for him if you look this year rewrote we will all over doubled that revenue. In the last year. Maybe the customers -- right that's what they wanted -- certainly shown a willingness to pay for it. And. And we've shown willingness to grow it and deliberate. And it looks like a lot different things for our company but it is. Just a huge upside growth potential for us if you're gonna be -- departure -- business you need some things to do that we. Nothing and I thought corporal equipment was just -- natural extension of -- we did. And and how we did. What we've been able to do from our first acquisition which won't do what states. We basically took a little entity that was due in about thirty to -- utilization about 49 million. -- revenue. In the first -- ran the utilization of the Soviet troops and about 65 million and you'll see this year. That we -- our utilization is. What about which we think that the max for that it's a more than 657. Given mix of the contracts we but the most important thing is that in these two years we've been double. The size of this business. Analog that's just. Giving more of access I think when you look at our competitors in this business particularly. We -- the fourth mortgages by number but just the sheer amount of equipment. But we are are. The way it did when it comes to revenues and what we're giving them the efficiencies and we're giving out of this stuff and you look at the contracts were. So everybody says what -- we did what it's not built and really that's machinery -- the act of putting I've. In the well under pressure you say what would you wanna do that will look. The present and it wasn't part of me when you're talking about working in -- in an unconventional gas along wells. They wanna complete they wanna complete them under balance which means they want to -- the completion and or as we go along that you see in the the talk. Picture there that's a simultaneous operation. In the Wyoming where they've got a pad they just moved the -- over. An argument just moves over and we run the completion of this thing we've got a bit we're throwing clogs up so all those staged for maximum or small section. We drove -- plug out walk to send out -- plug out. Until we get that we finished all but we dropped the ball on -- -- -- rat -- Pull up and -- the completion we're -- -- well. Very efficient we think this is say yeah a lot of customers especially in the Marcellus Shale. Or very interested in this quick -- Gibson -- unit. Configuration we've got that's the bottom -- and -- And of the small subnet so to assume for a -- The reduces business. We're talking about the reynolds' side being another natural extension of where racked. We raise the money for that we thought we'd put about seven million and it it's part skeptics. We do about two million in the first you're you can see there on the -- recorder reported dead -- it will probably be watchful we thought -- we would do. And again this is equipment that we. Rigged up on what we've got the bad stuff out there so which we use it we have the ability to drive revenue to it. Customer -- -- you know. A lot of times they don't care what your -- up on him if they don't care than we don't hear about to bring our own stuff out there in doing that as well and we use it for well control work. And the other part of that is -- -- record for flight 480% of our business is international having things that you can take you know nationally to other customers. It's just -- really knives. Business platform for us because as we acquire it in -- things here it makes it very easy to hide those to some or businesses that. Internationally in of that 80% that's out there more than 40% of it is contract driven every day we were its not like the call markets you. That you typically -- in North America. -- there's -- -- shots on the equipment that we have -- bit of it was knew we had built in. The best opportunity and bottom right hand side -- And that source -- -- unit and all our. Pressure control equipment and welcome -- -- -- on bouncing off. You know brought our business we've liked the -- -- birth control. It's a great place forces but a couple of companies that it could have done well in this niche. And they got along at some point they felt they need -- for a -- in business and so. You don't want to -- that who laid you never go back its tactics you know you're just continues -- in your body and then what happened to your focus goes all the partial control goes to -- other things like that. Make no mistake we lost opportunities to invest in other things it's solely -- -- control. For -- that's what we focus on that's what we spend all our time on is that strategy and making sure that we're hearing that. To customers and also because we're able to attract people to -- for it. It's in -- for patrols no different than if you're a football team and you've got a quarterback and he's great -- he doesn't want to play for teams and ball. And that's what -- -- do attracting. Very talented people they want to go to a point -- today and exhibit there steals in the best manner possible in and when you're working with pressure especially in in the -- That's where the differentials with the different to -- a into different tools that people you know just you know you just don't. You're down here to the performance and the quantities to -- -- whole problem. Snubbing units in expected it's not going to be a rocket off about him that. If you look at. And I hope it slows them better than than the monster -- -- -- -- well -- some problems -- -- all the way to plug and abandonment. If the gray box itself represents the toolbox. -- war. Potential. When when -- came to work. We did well until March in response that was -- we had a very singularly focused -- in the box and and that's all we did shortly after that we add some engineers -- engineering capacity of that. And you can see still growing completion widgets for -- far from that. We added the prevention now will certainly -- a few more bar tools in the box were able to generate little bit more do some additional things. We -- the hydraulic -- -- -- portion of that we really starts in the impact of that because now not only are we working and drilling completion. We're down through work over in all the way to plug -- men and a lot of people and let's hope -- and would want to. You know what you honor thing that is an -- -- When you're able to -- what do you make some of these walls -- on it registering you they've got problems we finished one in it in Bangladesh now. Well it. -- -- I can stand. And better. They're in a lot of places that you see people have not put money into work -- over they've not put money into. To change in the to bring out you don't change it to bring out. He gets holes and -- -- on the outside of that before long you have holes in the casing before that it's low moment -- Tokyo the ground out here and when they call us didn't. You know -- moment is that we have to fix it and that's the Sonics -- agency and those and operations. We had the first patrol schools so that gives us flow back capability. Gives a stuff that we rig up on the -- valves that we've got some via via. Some equipment -- -- -- so you -- what else you need to do to to have all the virtual console stuff lined up. The stuff you see in the orange. References. These are things that we will acquire. Or things that we can organically. Growing -- you know you wouldn't say what well tested. You know if you're doing flow back work you've got all -- and all the pieces like that. You or accuse operators that acquisition of what went from being abused them and that. And of course people so -- -- look at that we look at it. Opportunities obviously the biggest warning in there that there -- residents. As far as Activision offices schools and that. Not did and that's because we're what's that you were moving jolted -- In the well under pressure if you get -- a quick trip -- -- that the other tools that you need to do that is. Is cool too because now you you could continue -- Well and -- -- so what strategy to win so. You're not gonna give you a look at the -- -- you look at the that you the map. The red flags put our closest we have existing operations. And the yellow flags represent what's his work customers have us working we don't necessarily have -- full office. Because we've looked at the strategy to -- we so that customers will tell us. Walk -- bought from us and they'll tell us where they will -- So if were an Algerian -- worker per customer there. -- -- I like what you're -- for me here you know I have operations in south American supports Clinton and they pay cuts there. And usually what happens as we get to that area -- which is a great example. We went over -- for -- customer. And then before long two -- three the other customers are so it. -- -- as long as you're here you're doing this to you do these services are. You do that before long working for Barbara please customers and we don't want them that's -- -- movement with people that it. We've just -- going -- so. That that focus on that area and I think or are really good examples. That strategy. Deliver what's the customer the paper go -- -- whereby. And tell us that -- bi directional road stuff from us or not gonna get rid bill and it works for them. And their that and and so we're not stolen and -- out of -- strategy and movements of what's happening of the shingles -- say a word here policy needs we like the other way. Call us we don't need us we build for math and we've had several in the last year due to -- presentation a year ago. There were more yellow flags but as we've gone on obviously -- -- -- them into -- red flag. India has done the same thing will probably have a couple if you look. Of them ourselves we want awkwardness of being here now we've -- customers. Take us up there. You give us war. And and so we get their work and now work -- will. In that particular period we feel there's a slowdown in North America. Most likely the two least affected news on the unconventional gas. Marcellus and things. Posted when you look at the numbers for you know what what we're -- needs to be -- the what you almost on wells. Revenue growth. It's hard to believe. That. We finish last year -- understand what about a 105 million we will double that. In years. -- set it up real quick but when you double. Your revenues in the year that's a pretty good for. And it's and I think it's it's it's indicative of the right strategy. I think it's indicative of -- and people that believe in that. And going out and and and -- the business development team together that allows us to go out -- the long term contracts. And in book and then we go with utilization. When we started the year we had all of these things were on that actually the result -- blow this it says -- elect. But control away -- did not want -- that you saw some potential 08. Opportunities. Every one of those schism. To be reality. And several of those -- want on there that is you know you're really smart and all of those seventh and you. Which -- playing together and and you look and finished the year you -- about two you know the things we've got planned release backed off and all the other stuff -- good you know you were positioned to get. But I wish we -- -- to seem all -- stuff coming but. Public -- worst moment was to position ourselves well enough to take advantage of that. And when you look at these these contracts a lot of those especially in the safeguard. -- jury reached -- you know Libya and North Africa those are long term. 234 year project that we get paid on UW affection for that that equipment is every day. It's a hundred person. It's just like I tell my daughter from her and her homework yet for so mean -- you don't want averages he wrote in your grade. When you go to average and hundreds and you're very human you make a difference -- -- -- they'll -- every day. It's about you the most. Invested that would get out there so I think they've done a relatively good job that. This drink for the company I think. -- the reputation we've got a really strong name brand. When you go your ideas presentation New Yorker rice's boots and couldn't man that's -- -- -- -- Puerto. Strange fuel company that is is that a western -- store and Houston us -- no. And I think what it comes down to. Is that we've had several people mention this that's it you know for company your size with the -- you've -- you test it lord. In the industry and energy industry. And I think that's the opportunity that we have we've got to name recognition. Recently I I was -- in south Texas deplorable -- -- -- guys who wrote the customer. And and he says kind of a new guy and so were rotten. Wanna tell run pickup truck possible New York -- the company's you know discover. -- -- when the guy out see what he what he had -- on. Peace and I'm gonna tell -- I work for companies leave for fourteen years and peace and I had customers. -- we work for every day enacted now. You know we did didn't recognize what we did didn't have any sense of that -- that I go to work will be institutes argument or what are called earthly. You know. You know. Joe -- would -- and here's your testimony and he gets in he gets to see people who gets to visit with them and gets in front of them to talk about work to do you can't. Under estimate. Name recognition and if we get we get calls from overseas from companies to compete -- off work. I never have. Literally whenever all of them they looked on the Internet and I remembered -- -- -- -- -- problem that call in and also and we take that -- off world. We turn that into prevention work. And then wandered on the prevention work we turn it into service. To great -- for. You know the when you say you look at that the second bullet on that high growth and that -- -- you in the last three years. Unconventional gas and certainly this local subdivisions which has been -- growth were also think you're what it's been apparent through all the all the data. I think 409. Were very well positioned with the amount of work we have internationally. And that's usually because a lot of those things they don't have the knee jerk reaction to. The -- Fries or whether tendencies or from -- market conditions stuff you see in North America -- quickly deliberately re definitely. They have a reaction that they look at that more from the standpoint of much longer -- -- stay engaged in those projects. A lot longer so we've been through several cycles with those groups and we feel that that being diversified both animal product standpoint from our presence there -- work and that. Really helps and will help us weather. Any prevention and everybody says -- it's coming it's come -- you know we're just coming off or. Fifth quarter record earnings will have a record year. You know we'll have -- fourth quarter. I believe they tell me it's come on I believe I'm not don't want you but did say that you know we're gonna we're gonna struggled -- -- frozen North America. In you know. But we have. Hopefully you'll hear from but he did provisions that exploit has any service components that their whole well positioned to deal with -- well. Good luck -- just North America artists that our exposure about 15% of what we do. It's and we can get some some more sure thing. When you look at the capitalization for the company were -- were good days. We've got and it in with me today -- procured Bates is that it is backer of in the workout -- -- and that. And he's done a he's pretty new with a company but is -- a great job working through. Making sure we've got the right amount liquidity and we've got the right banking agreement and arrangements. So that we can we -- move on through through nine and hopefully sustained some more businesses and -- on the others. And you can see the the -- me ownership and all -- pieces of that what that looks like so. We appreciate. Everybody's. Participation I know what's rough. Rough on the market but -- -- -- what I think. Four yes we we like -- were like what we've done. Were excited about the opportunities and certainly. In the workouts that. Anytime you infectious. You never fought with the loss talk about it. Thanks for coming in -- Richard.

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