Our primary business objective is to grow our operations and create value for stockholders through organic growth opportunities and accretive acquisitions. We intend to achieve this by the successful execution of our business plan to strategically deploy our equipment and personnel to provide drilling, completion and production services and remote accommodation services in unconventional resource plays. We believe these services optimize our customers' ultimate resources recovery and the present value of hydrocarbon reserves. We also believe that our services create cost efficiencies for our customers by providing a suite of complementary oilfield services designed to address a wide range of our customers' needs. Specifically, we intend to:
- Capitalize on the recovery in activity in the unconventional resource plays. Our equipment is designed to provide a broad range of services for unconventional wells, and our operations are strategically located in major unconventional resource plays. During the first six months of 2016, oil prices rose from a low of $26.19 per barrel on February 11, 2016, to a high of $51.23 per barrel on June 8, 2016. During August 2016, oil prices ranged from $39.50 to $48.48 per barrel. As commodity prices began to recover, we experienced an increase in activity. If near-term commodity prices stabilize at current levels and recover further, we expect to experience a further increase in demand for our services and products. We intend to capitalize on the anticipated increase in activity in these markets and diversify our operations across additional unconventional resource basins. Our core operations are currently focused in the Utica Shale in Ohio and the Permian Basin in West Texas. We intend to continue to strategically deploy assets to these and other unconventional resource basins and will look to capitalize on further growth in emerging unconventional resource plays as they develop.
- Leverage our broad range of services for unconventional wells for cross-selling opportunities. We offer a complementary suite of oilfield services and products. Our completion and production division provides pressure pumping services, pressure control services, and flowback services for unconventional wells. Our natural sand proppant services division sells and produces proppant for hydraulic fracturing. Our drilling services division adds drilling capabilities to our other well-related services. We intend to leverage our existing customer relationships and operational track record to cross-sell our services and increase our exposure and product offerings to our existing customers, broaden our customer base and expand opportunistically to other geographic regions in which our customers have operations, as well as to create operational efficiencies for our customers.
- Expand through selected, accretive acquisitions. To complement our organic growth, we intend to actively pursue selected, accretive acquisitions of businesses and assets, primarily related to our completion and production services and natural sand proppant services, that can meet our targeted returns on invested capital and enhance our portfolio of products and services, market positioning and/or geographic presence. We believe this strategy will facilitate the continued expansion of our customer base, geographic presence and service offerings. We also believe that our industry contacts and those of Wexford, our equity sponsor, and largest stockholder, will facilitate the identification of acquisition opportunities. We expect to use our common stock as consideration for accretive acquisitions.
- Maintain a conservative balance sheet. We seek to maintain a conservative balance sheet, which allows us to better react to changes in commodity prices and related demand for our services, as well as overall market conditions.
- Expand our services to meet expanding customer demand. The scope of services for horizontal wells is greater than that for conventional wells. Industry analysts have reported that the average horsepower, the length of lateral, and the number of fracture stages has continued to increase since 2008. We consistently monitor market conditions and intend to expand the capacity and scope of our business lines as demand warrants in resource plays in which we currently operate, as well as in new resource plays. If we perceive unmet demand in our principal geographic locations for different service lines, we will seek to expand our current service offerings to meet that demand.
- Leverage our experienced operational management team and basin-level expertise. We seek to manage the services we provide as closely as possible to the needs of our customer base. Our operational division heads have long-term relationships with our largest customers. We intend to leverage these relationships and our operational management team's basin-level expertise to deliver innovative, client-focused and basin-specific services to our customers.