Houston Oil Services Company Indicates Fracking Could Resume this Summer
HII Technologies, Inc, a Houston-based oilfield service company with a core focus on frac water management, is optimistic about plans for the second half of 2015. On a corporate update call Friday morning, company CEO Matthew Flemming shared the effects the low oil costs had on company operations and how the company plans to move forward later this year.
While the company closed service locations in Oklahoma and South Texas for “not performing adequately,” Flemming said some are being redeployed to other parts of Texas where prices are more robust and should contribute profitably to the company’s future.
“Eighty percent of the company’s revenues in 1Q 2015 came from our frac water management division,” said Flemming. “Our geographic focus is now primarily the Permian and areas located in West Texas and New Mexico … we believe there is a chance for our company to grow substantially from current levels and focus on this region as the industry recovers.”
Regarding the company’s mobile oilfield power subsidiary Sage Power Solutions, Flemming said they are looking at “strategic options” which include its potential divestiture because it’s “not operationally aligned with [HII’s] core focus in the water management business.”
On a more promising note, Flemming said some of HII’s smaller oilfield customers have indicated that they would resume fracking schedules as soon as the end of July or August of 2015.
“We believe the recent declines in customer activity are at or near the end,” he said. “We have identified specific opportunities for incremental activities in the second half of the year which we are excited about.”
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.