Superior Drilling Products, Inc. operates as a drilling and completion tool technology company.
The company provides solutions that drive production efficiencies for the oil and natural gas drilling industry. Its drilling solutions include the patented Drill-N-Ream well bore conditioning tool (Drill-N-Ream tool or DNR) and the patented Strider Drill String Oscillation System technology (Strider technology or Strider). In addition, the company is a manufacturer and refurbisher of PDC (polycrysta...
Superior Drilling Products, Inc. operates as a drilling and completion tool technology company.
The company provides solutions that drive production efficiencies for the oil and natural gas drilling industry. Its drilling solutions include the patented Drill-N-Ream well bore conditioning tool (Drill-N-Ream tool or DNR) and the patented Strider Drill String Oscillation System technology (Strider technology or Strider). In addition, the company is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits. The company operates a state-of-the-art fabrication facility where it manufactures solutions for the drilling industry, as well as various customers' custom products in other industries. The company is also developing a Middle East repair center.
The company's subsidiaries include Superior Drilling Solutions, LLC, a Utah limited liability company (SDS), together with its wholly owned subsidiary Superior Design and Fabrication, LLC, a Utah limited liability company (SDF); Extreme Technologies, LLC, a Utah limited liability company (ET); Meier Properties Series, LLC, a Utah limited liability company (MPS); Meier Leasing, LLC, a Utah limited liability company (ML), and Hard Rock Solutions, LLC (HR).
The company innovates, designs, engineers, manufactures, sells, and repairs drilling and completion tools in the United States, Canada, and the Middle East. The company has three basic operations: Its PDC drill bit and other tool refurbishing and manufacturing service; the company's emerging technologies business that manufactures the Drill-N-Ream tool, its innovative drill string enhancement tool, the Strider technology and other tools; and the company's new product development business that conducts its research and development, and designs its horizontal drill string enhancement tools, other down-hole drilling technologies, and drilling tool manufacturing technologies.
Products
Drill-N-Ream Tool: The Drill-N-Ream tool is a dual-section wellbore conditioning tool which is located approximately 150 feet behind the bottom hole assembly, also known as BHA. Concurrently as the well bore is being drilled, the Drill-N-Ream tool conditions the well bore. It smooths and slightly enlarges the well drift in all sections of horizontal or directionally-drilled wells, in both oil and water-based mud. It reduces tortuosity resulting from the geo-steering drill bit, and the overcorrections and formation interactions that occur during directional drilling. With the well bore conditioned by the Drill-N-Ream, the drill string is then able to move through the conditioned well bore with less friction and stress.
The Drill-N-Ream tool accelerates drilling speed and extends the horizontal distance of the well bore. The Drill-N-Ream tool is available in multiple sizes and can be custom manufactured to accommodate most drill hole sizes.
Strider Technology: The Strider technology utilizes its unique patented design to reduce drill string friction on horizontal wells, resulting in improved rates of penetration and cost savings. The Strider technology is designed to help dissipate the inertial drag of a horizontal drill string by generating rhythmic pulses that break the frictional connection between the drill strings and well bore greatly enhancing drilling rates. Its revolutionary engineering provides a cost-effective alternative to conventional downhole vibration tools.
The Strider technology is composed of two main parts, a hydraulic channeling chamber (HCC) and a rhythmic pulsation chamber (RPC). The RPC contains a precisely engineered, high speed pulse-valve that systematically restricts flow area.
V-Stream Advanced Conditioning System (V-Stream): The V-Stream tool is an integral spiral blade stabilizer and is engineered to combine stabilization with reaming. A cavity or plenum in the middle of the blades facilitates enhanced fluid flow for cuttings transport and reduces torque when compared with typical stabilizers with similar overall blade length. Non-active cutters at gauge enable the V-Stream to remove formation and condition the hole while controlling deviation. With these unique features, the V-Stream will stabilize the bottom hole assembly and condition the hole simultaneously to optimize the drilling operations.
Strategy
The company's strategy for growth is to expand the global market penetration of its drilling tool solutions and to leverage its expertise in drilling tool technologies and precision machining in order to broaden its product offerings and solutions for the oil and gas industry, as well as other industries that require precision machining and quality.
The key elements of the company's strategy are to leverage highly advanced tool technologies; expand its channels to market and geographic reach; and seek strategic acquisitions to enhance or expand its product lines.
Research and Development
For the year ended December 31, 2022, the company's research and development costs were approximately $436,000.
Major Customers
The company has Vendor Agreements with Baker Hughes Oilfield Operations LLC (Baker Hughes), Weatherford U.S., L.P. (Weatherford), Odfjell Drilling, National Energy Services Reunited Corp. (NESR) and Schlumberger Oman & Co. LLC (Schlumberger).
Baker Hughes: The company has manufactured and refurbished PDC drill bits exclusively for Baker Hughes's oilfield operations in the Rocky Mountain, California and Alaska regions, as well as other areas as needed for since 1996. In 2018, the company re-negotiated its agreement with Baker Hughes whereby it refurbishes PDC bits for all of Baker Hughes's U.S. geographic areas. In 2020, the company further re-negotiated its agreement whereby it can refurbishes PDC bits for any PDC bit supplier. The company is in the process of renewing its contract.
International: The company is working with Weatherford, Odfjell Drilling, NESR, and Schlumberger to introduce and gain exposure of its Drill-N-Ream tool to large Middle East operators in Kuwait and Oman.
For the year ended December 31, 2022, two customers represented 88% of its total revenue, respectively.
Seasonality
The company's business is not significantly impacted by seasonality, although its fourth quarter (year ended December 2022) has historically been negatively impacted by holidays and its clients' budget cycles. In the past, some of the company's revenue in Alaska and Canada has declined during the second quarter due to warming weather conditions that resulted in thawing, softer ground, difficulty accessing drill sites and road bans that curtailed drilling activity.
Competition
Drill Bit Refurbishing. The primary competitors for the company's drill bit refurbishing services are the in-house units at Hughes Christensen, the division of Baker Hughes responsible for drill bits.
Drilling Enhancement Tools. The primary competitors for the company's Drill-N-Ream tool are several single-section reaming tool manufacturers, including Baker Oil Tools (a division of Baker Hughes), NOV, Schlumberger and Tercel, and one dual-section reaming tool manufactured by Stabil Drill.
Environmental, Health and Safety Regulation
The company is required to manage hazardous and non-hazardous wastes in compliance with the Resource Conservation and Recovery Act (RCRA) and its state counterparts.
The company is subject to a number of federal and state laws and regulations, including OSHA and comparable state statutes, establishing requirements to protect the health and safety of workers. In addition, the OSHA hazard communication standard, the EPA community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require that information be maintained concerning hazardous materials used, stored, produced or released in its operations and that this information be provided to employees, state and local government authorities and the public.
History
The company was founded in 1993. It was incorporated in 2013. The company was formerly known as SD Company, Inc. and changed its name to Superior Drilling Products, Inc. in 2014.
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