(WEL) "Boots & Coots may be best known for its significant role in extinguishing the Gulf War Kuwaiti oil well fires set by the Iraqis. This year, the company responded to a major oil well blowout in the Hassi-R Mel region of Algeria for Sonatrach.
Typical customers include single well owners, billion-dollar energy companies and government entities. The company is one of the few capable of handling oil and gas fires on offshore drilling platforms. Boots & Coots' fire control services potentially save millions of dollars in lost production, clean-up, and restoration costs.
Boots & Coots responds to more than 50 critical well control calls a month. Pre-positioned well control specialists mobilize within an hour to respond anywhere in the world. Halliburton routinely assists in getting needed equipment mobilized within 24 hours. Once onsite and equipped, the Boots & Coots response team quickly assesses the situation, removes the debris, extinguishes the blaze, caps the well, and coordinates environmental monitoring, clean-up and recovery.
Prevention Services
WELLSURE (R) is Boots & Coots' unique and proactive blowout prevention program offering a combination of traditional oil and gas well control insurance with unique prevention measures, training, response and post-event restoration services. The company is paid an ongoing service fee for pre-event consultation and training, and acting as the lead contractor in emergencies.
The highly accepted WELLSURE (R) program is expanding rapidly with an astounding 100 percent renewal rate from such program participants as Pennzoil (NYSE: PZL) and Chesapeake Energy (NYSE: CHK). Risk management and mitigation services are now well established in North and South America, as well as the Middle East, Kazakhstan, and North Africa.
By 1991 Boots & Coots was so well recognized by the energy industry, it was called upon to put out over 230 of the most difficult Kuwaiti well fires during the Gulf War in a nine month period. When Adair retired, his company was sold and his senior management team formed International Well Control(IWC). IWC acquired Boots & Coots in 1997 reuniting the world's most experienced well control specialists and firefighters..
The Outlook
In the last year Boots & Coots has reduced sales, administrative and general expenses by 30 percent. Gross margins through the second quarter ending in June had increased 67 percent compared to the previous year.
Considering the more than 1,000 drilling rigs operating worldwide a 40 percent increase over last year, another 27 percent growth in energy exploration expected in the coming year, anticipated continuing higher energy prices, and the ever-present need to protect the energy industry's multi-billion dollar infrastructure and reserves, Boots & Coots is positioned to significantly improve its earnings picture, according to Ramming.
"Boots & Coots is unique. We are a one-of-a-kind business with a legacy of success and tenacity," says Ramming, who believes the company has created a successful unique business model of proprietary risk management and crisis response that sets the standards for our industry to get paid for fires that never happen and get paid well when a blowout does occur. |
