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Conroe drilling tools company makes record profit
By T.L. Hamilton
Wenzel Downhole Tools, whose U.S. operations are headquartered in Conroe, reported a record $17.7 million profit for its second quarter, up 62 percent from last year.
The company manufactures, sells and rents tools that aid in vertical and horizontal oil drilling.
Dave Aitchison, vice president of the company’s U.S. operations, said the record is the result of an increase in revenue as well as some cost-cutting.
The company has taken steps to increase its efficiency and lowered the costs of running its manufacturing machinery, he said.
Not only are oil companies drilling more now than ever in response to higher oil prices, Wenzel is becoming a more well-known company.
The revenue increase can be attributed to an “increase in opportunities and an increase in market share as well,” he said.
Wenzel has customers across the globe, but its largest customer base is in the United States and Canada.
According to the company’s second-quarter report, its U.S. revenues for the second quarter of 2008 were $8.29 million, an increase of 46 percent, or $2.6 million, over the same period in 2007.
Revenues increased 38 percent from the first quarter to the second quarter of 2008, or $2.3 million.
“This quarter-over-quarter and year-over-year improvement in revenues reflects increased knowledge within the industry of Wenzel’s products and service, growing drilling activity and an increase in directional and horizontal drilling,” the report states.
Aitchison said the company is catching on because of its “technology and people.”
“Our mud motors, for example, are able to handle increased torque requirements,” he said.
“They’re much more powerful.”
The company employs more than 100 people, and its U.S. headquarters and service facilities are in Conroe, with a service and sales office in Casper, Wyo., and a sales office in Oklahoma City.
In Canada, the company has its manufacturing and servicing facilities in Edmonton, Alberta and its corporate offices in Calgary, Alberta.
On Friday afternoon, Wenzel’s stock was trading at $1.40 on the Toronto Stock Exchange, down 26 percent from its 52-week high of $1.89.
The company manufactures, sells and rents tools that aid in vertical and horizontal oil drilling.
Dave Aitchison, vice president of the company’s U.S. operations, said the record is the result of an increase in revenue as well as some cost-cutting.
The company has taken steps to increase its efficiency and lowered the costs of running its manufacturing machinery, he said.
Not only are oil companies drilling more now than ever in response to higher oil prices, Wenzel is becoming a more well-known company.
The revenue increase can be attributed to an “increase in opportunities and an increase in market share as well,” he said.
Wenzel has customers across the globe, but its largest customer base is in the United States and Canada.
According to the company’s second-quarter report, its U.S. revenues for the second quarter of 2008 were $8.29 million, an increase of 46 percent, or $2.6 million, over the same period in 2007.
Revenues increased 38 percent from the first quarter to the second quarter of 2008, or $2.3 million.
“This quarter-over-quarter and year-over-year improvement in revenues reflects increased knowledge within the industry of Wenzel’s products and service, growing drilling activity and an increase in directional and horizontal drilling,” the report states.
Aitchison said the company is catching on because of its “technology and people.”
“Our mud motors, for example, are able to handle increased torque requirements,” he said.
“They’re much more powerful.”
The company employs more than 100 people, and its U.S. headquarters and service facilities are in Conroe, with a service and sales office in Casper, Wyo., and a sales office in Oklahoma City.
In Canada, the company has its manufacturing and servicing facilities in Edmonton, Alberta and its corporate offices in Calgary, Alberta.
On Friday afternoon, Wenzel’s stock was trading at $1.40 on the Toronto Stock Exchange, down 26 percent from its 52-week high of $1.89.
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