Superior Drilling Products, Inc. (ticker: SDPI) will be presenting at the EnerCom Dallas oil and gas investor conference. Superior is a drilling tool technology company based in Vernal, Utah.
Q3 2017 highlights
- Tool revenue increased 72% over prior-year period
- Revenue nearly doubled to $4.4 million over prior-year quarter
- Generated $1.7 million in cash from operations in the quarter
In Q3 2017, compared with the prior-year period, revenue increased 97% to $4.4 million. Higher tool revenue was driven by increasing repair and royalty revenue from its flagship technology, the Drill-N-Ream (DnR) well-bore conditioning tool. The larger fleet of deployed DnRs as well as new demand for SDPI’s other technologies drove the Q3 revenue increase, the company said.
Additionally, tool revenue, which is comprised of tool sales and rentals and other related tool revenue, grew to $3.2 million in Q3 2017, up 72% over the prior-year period. Higher tool revenue year-over-year was primarily the result of the increased numbers of tools deployed, which drove the $1.1 million increase in other related tool revenue, which is comprised of royalty fees and tool maintenance and repair.
Q3 2017 financial summary
| ($ in thousands, except per share amounts) | |||||||||||||||||||||||||
| Q3 2017 | Q3 2016 | $Y/Y Change | % Y/Y Change | Q2 2017 | $ Seq. Change | % Seq. Change | |||||||||||||||||||
| Tool sales/rental | $ | 2,012 | $ | 1,726 | $ | 286 | 16.6 | % | $ | 1,609 | $ | 403 | 25.1 | % | |||||||||||
| Other related tool revenue | 1,171 | 119 | 1,052 | 881.8 | % | 877 | 294 | 33.5 | % | ||||||||||||||||
| Tool Revenue | 3,183 | 1,845 | 1,338 | 72.5 | % | 2,486 | 697 | 28.0 | % | ||||||||||||||||
| Contract Services | 1,264 | 416 | 848 | 203.8 | % | 1,564 | (300 | ) | (19.2 | )% | |||||||||||||||
| Total Revenue | $ | 4,447 | $ | 2,261 | $ | 2,185 | 96.6 | % | $ | 4,049 | $ | 397 | 9.8 | % | |||||||||||
| Operating income (loss) | 720 | (963 | ) | 1,683 | NM | 421 | 298 | 70.8 | % | ||||||||||||||||
| As a % of sales | 16.2 | % | NM | 10.4 | % | ||||||||||||||||||||
| Net income (loss) | $ | 586 | $ | (1,173 | ) | $ | 1,759 | NM | $ | 307 | $ | 279 | 91.1 | % | |||||||||||
| Diluted earnings (loss) per share | $ | 0.02 | $ | (0.07 | ) | $ | 0.09 | NM | $ | 0.01 | $ | 0.01 | 90.6 | % | |||||||||||
The Drill-N-Ream (DnR) well-bore conditioning tool, is a dual-stage eccentric reamer. DnR increases the well bore drift by 1/16” or 1/8” over bit size while rotating during horizontal and vertical drilling operations. The two reamer stages, spaced approximately five feet apart, act in unison to force the cutting structure into the formation while efficiently reducing ledges, doglegs and well bore tortuosity.
Last month, Superior announced a joint market development agreement with Weatherford U.S. to introduce Drill-N-Ream to operators in the Middle East. Weatherford will demonstrate DnR in Saudi Arabia, Kuwait and Oman. Upon the technology being proven in the region, the parties plan to enter into a long-term commercial agreement, the company said.
EnerCom Dallas conference presenter details
Superior Drilling Products will be presenting at the EnerCom Dallas investment conference, Feb. 21-22 at the Tower Club in downtown Dallas. Institutional investors, portfolio managers, financial analysts, CIOs and other investment community professionals who invest in the energy space should register now.
