Oil patch cASE sTUDIES
FINANCING TRANSACTIONS
Family Owned OKlahoma Oilfield Services Business
Challenge: Overleveraged and $13MM in debt during the COVID energy downturn. Files Chapter 11 bankruptcy without a exit strategy.
Solution: Works with BSC & PPL on a creative plan
PPL conducts a series of webcast auctions to sell equipment
Equipment sales pay down the bank and facilitate a reorg plan for the company to retain 14 saltwater disposal wells
BSC finances the second generation to start their company by purchasing some of the equipment to service loyal customers and bring back longtime employees.
Testimonial: “Steve with PPL has handled this project perfectly. The best of the best.” “This has been the most stressful time of my life but working with PPL and BSC is the best thing that could have happened”.
Acquisition Financing for oilfield Trucking Company
Challenge: The owners of an oilfield trucking business were retiring, but their disorganized accounting practices threaten to scare off the potential buyer.
Solution: Equipment & AR Financing
We appraise the equipment and provide a $1.5MM loan
We bring in a second lender to provide AR financing
The loans help the new owners keep the entire staff of 70+ employees and continue operations uninterrupted
Testimonial: “Everything was there for the company to be successful except the capital to grow. With Big Shoulders we have what we need.” - New CFO
AUCTION TRANSACTIONS WITH OUR SISTER COMPANY, PPL GROUP
Best Well Services
Oilfield services including site excavation, water services, equipment transportation, pumping, general roustabout needs and workover rig demands.
In addition to the real estate, the assets were mostly highly specialized and expensive equipment specific to the oil and gas industry.
Auction results: all 480 pieces of equipment were sold – 600 buyers participated nationwide.
We sold the real estate to a local operator.
McDermott International
Large offshore fabrication yard - we made an eight-figure cash purchase and conducted a five-day auction consisting of approximately 2,500 lots.
The sales were so successful, PPL was invited back to undertake two additional rounds of sales at the facility.
Testimonial: “The team was easy to work with, and they managed the process in a safe, professional manner. Thank you for making what could have been a very difficult process, into a pleasure.” - Facility Manager
Tri-Point Oil & Gas Production Systems
Fabricated processing equipment for the oil and gas industry - View the Video Tour
Challenge: Bank forced a sale after going concern buyer walked away in the wake of Covid. Tri-Point needed to maximize sale proceeds of inventory, equipment, and IP to pay off creditors.
Solution: Comprehensive sale process including orderly liquidation, sealed bid, and webcast auction
Inventory: PPL developed discounted inventory liquidation program with Tri-Point’s sales staff to promote bulk sales through customers, competitors and vendors.
Equipment: 3 day public webcast auction for all machinery and equipment across 4 factories and 5+ field service locations.
Intellectual Property: PPL conducted a sealed bid process for the IP prior to the auction.
$10MM of sales realized in a 10 week window across multiple asset classes.