Consistent top line and bottom line growth
This company specializes in coating portable hydraulic fracturing water tanks with a special type of insulation that prevents the water from freezing or cooling off (all fracturing water must be heated before going down into the well). Over the last 4 years, this company has only insulated approximately 10-15% of the region’s estimated 20,000 tanks. In that time the company has experienced consistent top line and bottom line growth. Now, as low oil prices are putting pressure on E&P companies to reduce costs, management expects increased demand for their services. What’s more, key customers are saying that the Bakken’s large backlog in completion work should keep the tanks in the field regardless of any slowdown in drilling. In addition, the company has significant growth opportunities available in insulating commercial and other oilfield structures which has accounted for roughly 10% of revenue in the TTM.
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