The Company is a 6+ year old, Professional Engineer (PE) led regulatory and engineering consulting firm serving upstream oil and gas operators across Texas and New Mexico. Services include: 1) drilling permits, W-1 and plat certification, spacing and density exceptions (Statewide Rules 37 and 38), and field rule applications, 2) compliance audits plus resolution of violation notices, severances, seal-ins, H2S (Rule 36) and flaring issues, 3) injection and produced water disposal well permitting, step-rate tests, mechanical integrity test procedures, and pressure front calculations, 4) hearing testimony, expert witness, and litigation support, 5) well plugging procedures, groundwater protection letters, inactive well compliance, and organization report filings, and 6) regulatory records review for acquisitions and divestitures. Most regulatory service providers simply file forms. The Company solves problems. Clients rely on it for permitting strategy, rule exceptions, land and surface issues, and direct negotiation with agency staff, with work product signed and sealed by a registered PE when the agencies require it.
*** This business best fits an oil and gas services company (regulatory, land, production reporting and accounting, engineering, environmental, or water midstream) that wants to add PE-led regulatory capability and cross-sell its existing services to an established operator client base. ***
The client base is well diversified, ranging from small family operators to large independents and multi-national majors, plus midstream water and disposal operators, law firms, and landowners. ~80% of clients are ongoing, month-to-month relationships that produce recurring revenue. One-time projects, nearly all referred by current clients, make up the balance. The largest client, a very large independent operator, accounts for ~30% of sales and is served by a dedicated full-time contractor billed hourly, so that revenue does not depend on the owner's hours. Clients pay 99%+ of invoices billed. The business has no seasonality, and regulatory filings and compliance remain mandatory whether operators are drilling new wells or plugging old ones.
The owner leads client relationships, project management, and the most technical work and is supported by 5+ experienced independent contractors, including former state agency staff with 30+ years of experience each, consulting geologists (one a registered Professional Geologist), and research and filing assistants. Contractors bill their hours to specific clients and projects, and the Company invoices that time at a markup. A large share of revenue comes from work the owner does not personally perform. The Company has zero employees, zero debt, no office, no equipment, and no inventory. It operates 100% remotely and can relocate anywhere.
Nearly all new business comes from client word of mouth, and revenue more than tripled from 2021 to 2025 with no advertising. Demand exceeds capacity: for the past year, the owner has chosen to decline almost every new client request and refer that work to other firms while preparing for retirement. Today's revenue reflects the owner's chosen workload, not market demand. A buyer with staff in place can say yes to that work from day one. Few firms offer this level of service, and operators need it now.
A buyer does not need a PE license to deliver most of these services. After the transition, the owner is willing to sign and seal PE-required work and serve as a PT tech consultant on a contract basis.
NOTE: SELLER PREFERS TO SELL TO A STRATEGIC PURCHASER WITH EXISTING OIL AND GAS REGULATORY, ENGINEERING, LAND, OR OPERATOR SUPPORT SERVICES HOLDINGS.
Price for the assets of the business is NEGOTIABLE. Seller is also open to rollover equity and financing up to 10% of the Sale Price. THE SELLER PREFERS TO SELL FOR ALL CASH. Seller is also open to rollover equity.