Peak USA Energy Services Ltd.

As the economic crisis rattles the US oil and natural gas industry, one company is poised for peak performance when markets recover, reports Brendan A. Smith Peak USA Energy Services helps oil and gas firms reach optimum production levels. Specializing in rig moving, custom heavy hauling, crane and rigging services, general freight, hot shot deliveries, and oilfield transportation, Peak offers more than 20 years of experience backed by a world-class fleet of over 250 trucks. The oilfield service company focuses operations throughout the lower 48ÔÇömainly in the oil-rich regions of Texas, Louisiana, Oklahoma, and the Rocky Mountains.┬á┬á Operating in the mature North American oil and gas industry, Peak USA Energy Services is committed to operational superiority, first through a focus on highly technical heavy equipment such as 130-ton cranes outfitted in either crawler or rubber-tired models, and high-capacity fork-lifts. It also makes the most of information technology like Global Positioning Systems (GPS) and equips its fleet with units to help drivers and staff with DOT coordination. The firm provides a range of specialized services to clients and places resources throughout the country to ensure that its equipment is on the job as quickly as possible.┬á Strategically, Peak made a series of acquisitions in order to capture market share and foster growth, including Colbalt Rentals, Mighty Mats, Whitefox Environmental, and BF Oil Services, which allowed it to expand services by providing oil and gas customers with drilling and well completion, fluid handling, access matting, oil and gas equipment rentals, and wastewater treatment services. At the core of PeakÔÇÖs operations are rig moving and heavy equipment hauling. With 20 years of experience in hauling gas compressors, oversized vessels, and massive production equipment, its heavy hauling team has experienced just about everything a heavy hauling unit can. Recognizing that each project contains its own unique blend of challenges, its team utilizes experience on the job to make sure that the equipment it was hired to deliver arrives safely and on time. When contracted to move cumbersome rigs, Peak uses a group of well-outfitted trucks out of eight nationwide terminals. Complementing its other services is a maintenance department dedicated to avoiding downtime with its preventive maintenance program.┬á┬á┬á The United StatesÔÇÖ oil and gas field services industry is tremendously competitive, with roughly 8,000 companies vying for about $89 billion in annual revenue. As the US economy weakens, there is a direct negative effect on demand, which drives oil and gas prices downward. In times of economic contraction like these, companies like Peak USA have to return to the drawing board and revamp outlooks in order to better position themselves for both the economic lag and, even more important, the rebound. Peak has done precisely this by curtailing capital expenditure plans for 2009. Focusing on strengthening its cash flow and reducing its cost structure, PeakÔÇÖs executives have taken budgetary actions like implementing a mandatory five-day unpaid leave for all employees and suspension of incentive compensation plans for 2009. These, along with some unavoidable layoffs and other budgetary moves, are expected to reduce the cost structure by between $8 million and $10 million for the fiscal year.┬á┬á┬á┬á However, as the natural contraction of oil and gas production occurs, due to weakening demand and falling prices, supply will tighten and in turn drive prices higher. This scenario would enable Peak USA to take advantage of its restructured capital expenditure plans and invest in attractive opportunities that exist in markets where its products carry more value.┬á Peak is an operating subsidiary of Nabors Industries, experienced in every phase of oil and natural gas production with over 500 land drilling rigs, 763 land work over and well servicing rigs, and 37 offshore platforms. In 1989, Nabors began purchasing assets at a fraction of the original costs and has moved on to the strategic acquisitions of companies like Peak USA Energy Services, Ryan Energy Technologies, and Canrig Drilling TechnologyÔÇöto name a few. The competitive landscape in the oil and gas industry dictates that those with the best technology, technical experience, and efficiency of operations generally emerge from periods of economic downturn stronger and leaner than before. Despite the current recession, Peak USA Energy Services continues to show strength by retooling capital schedules, focusing on short-term sustainability, and most important preparing for the inevitable economic rebound. ÔÇô Editorial research by Jason Moore┬á