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Jun 2, 2020 — Project Camaro is an oilfield transportation service provider, focused on moving equipment, cement, and dry bulk materials such as barite, gel, and fly ash used in making drilling fluids (also known as “mud”), The Company’s services support oil & gas exploration activ-ities in the Permian Basin (West Texas) and the Eagle Ford (Central/South Texas) shale plays. The materials are transported in pneu-matic bulk trailers or on pallets via flatbed trailers. 40-70 loads per day are coordinated through a central dispatching team, which manages the activity of employee drivers and owner-operators (drivers who own their own equipment). The company’s business model is scalable within the geographic region and the established platform could also be expanded by adding complementary ser-vices. Current capacity, given the employee base and equipment array, will support in excess $15 million in annual revenue. This number could be significantly higher with modest capex! The experienced, highly regarded management team is open to staying with the Company following the close.
The key drivers of overall profitability at the Company are:
High customer-centered service;
Reliability / timeliness;
Centralized dispatch, tracking, customer communications; and
Core functions of logistics management, (safety protocols, training, incident response) which are typically found in much larger trucking operations.
Industry Information: According to the U.S. Energy Information Administration (EIA), the Permian formations have fueled a 60% in-crease in oil and gas output since 2007. That increase pushed it past the Gulf of Mexico as America's leading oil production basin. Cur-rently, the Permian accounts for about a quarter of the country's oil production. The Eagle Ford is also ramping up, taking advantage of the existing pipeline infrastructure for getting tight crude to Gulf refineries.
Financial: Management expects that the company will be back to pre-downturn levels by the end of the year. The balance sheet is very strong, with well-maintained equipment and very little debt.
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