An operating company’s supply chain is complex with oilfield inventory that includes thousands of pieces of OCTG components, wellsite equipment, and materials. Without an intimate understanding of the oilfield supply chain and markets for disposition, monetizing surplus can be like looking for a needle in a haystack.
Yet holding on to surplus oilfield inventory poses multiple risks to organizations. Significant capital is likely tied up right now in unused and aging equipment, tubular goods, and fixed assets, often to the tune of hundreds of thousands or even millions of dollars. And depending on what hazardous and degrading surplus is sitting in your yards, you may be putting regulatory compliance at significant risk.
At least 5% of an energy company’s oilfield inventory is surplus as Stonebridge supply chain experts have found working with clients up and down the value chain. This represents significant value to organizations of any size, capital that could otherwise be redeployed or dropped to your bottom line.
Optimize your cash flow and drive risk out of your inventory today with Stonebridge Surplus Solutions.
Do it yourself with Stonebridge’s online marketplace that connects your surplus goods with a qualified network of buyers, curated by Stonebridge over many years.
Whether you are overstocked on drill pipe, casing, tubular goods, compressors or even want to divest an entire frac spread, you can now rapidly connect with the right buyers today through direct offers at SBSurplusSolutions.com.
One of the toughest questions you may be asking right now though is where to begin in monetizing your surplus assets. Stonebridge’s proven supply chain management playbook draws on decades of experience in oil & gas supply chain management and the vast experience of our experts to understand where your inventory is overstocked the most, identify high value surplus sales opportunities, and start boosting your cash flow today.
Stonebridge offers an “easy button” solution: just give us a list of sites or yards and we’ll seamlessly perform a full inventory, value assets, and quickly guide you to the right types of surplus that yield the best upside. Then qualify buyers, manage approvals, and send you a check. With an average of 5% or more surplus for most companies, the service pays for itself multiple times over while increasing capital for redeployment.
Benefits of Stonebridge’s DIY or fully managed surplus sales include:
- Leverage existing assets to create more profit
- Maximize realized asset value across inventory
- Assess fair market value with COPAS guidelines
- Identify hazardous materials for disposition to avoid regulatory risks
- Continuously optimize inventory and cash flow
- Instantly monetize surplus assets yourself online
Stonebridge conducts physical asset audits that provide detailed inventories and valuations of well site locations, third-party yards, company locations, fixed assets (IT, fleet, office equipment), and properties. Our valuations are based on oil and gas accounting guidelines and fair market value. We also facilitate disposition of equipment and materials through multiple channels to maximize asset value and/or for immediate cash requirements.
There’s also a risk management component to our surplus sales audit. State regulations determine what types of hazardous materials and equipment can be stored on the well site, in yards, or at third party locations. Through our exhaustive asset audit process, Stonebridge clients also identify end-of-life materials and equipment, prioritize their disposition, and ensure compliance.
For example, a Permian operator wanted to right size its inventory and free up cash flow by identifying surplus and end of life equipment or material for disposition across well sites, company yards and 3rd party locations. Leveraging our battle tested supply chain playbook, Stonebridge rapidly high graded 14 equipment types for physical inventory using valuation methods consistent with COPAS guidelines across 229 sites in less than 6 weeks. Stonebridge’s audit of wellsite and third-party yards identified 8,826 pieces of equipment valued at $23M and 211 pieces of surplus or scrap equipment valued at $1M which the operator could immediately prioritize for disposition.
Just one way Stonebridge is helping transform surplus into capital that oil & gas teams can redeploy, reinvest, or extend more value to their shareholders. Have questions or want to start a conversation on your oilfield supply chain or surplus inventory challenges? Reach out today to speak to our leading energy business advisory team.