Frac Tech International, LLC Goes Public: Revenues, Customers and Competitors

Frac Tech International, LLC was started in the year 2000 and is based in Fort Worth, Texas. At that time, it was known as Frac Tech Holdings, LLC. It changed its name on 6th May 2011. The company is an independent provider of oil & natural gas well stimulation services to the companies in USA that deal with the exploration and production of oil & natural gas. It has expertise in high-pressure hydraulic fracturing. The company operates about 33 hydraulic fracturing fleets with an aggregate of 1,393,500 horsepower.


The company competes only in Oil & Gas Field Services and the competitors of this company are regional as well multi-national oilfield service companies. The names of the competitors are Schlumberger Ltd., Halliburton Company and BJ Services Company, Baker Hughes Incorporated and Calfrac Well Services Ltd. All these companies have more financial resources of Frac Tech International, LLC. However, based on the total horsepower of the fleets, this company is the 3rd largest hydraulic fracturing service company in theUSA.

Revenue & IPO Filing

The company reported $ 368.7 million profit on $ 1.29 billion in revenue in 2010. The company has filed withUSAregulators in September 2011 to raise up to $ 1.15 billion in an IPO of its common stock. Earlier, it has filed for an IPO worth exceeding $ 600 million in December 2010 but withdrew in March 2011. Goldman Sachs, BofA Merrill Lynch, Credit Suisse and Citigroup would do the underwriting of the company. The company said that it would list on the NYSE but did not reveal anything the amount of share it would release and the price of each share. It has been declared that the proceeds would be used to reduce debt.

Frac Tech International, LLC- Owners, Customers

Maju Investments owns 40% of this company whileChesapeakecurrently owns 30%. The major customers include Anadarko Petroleum Corp (APC.N), Marathon Oil Corp (MRO.N), El Paso Corp (EP.N), Range Resources Corp (RRC.N), BHP Biliton’s (BHP, AX) Petrohawk, Exxon Mobil Corp’s (XOM.N) XTO Energy.

The company is mainly focusing on unconventional oil & natural gas formations in the Marcellus Shale in Pennysylvania and West Virginia, Haynesville Shale in northwestern Lousiana and east Texas, the Permian Basin in west Texas and southeastern New Mexico, the Eagle Ford Shale in South Texas and the Bakken Shale in North Dakota and Montana. It does mining and supply sand to oil & gas companies as well.

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