Compressco Partners (NASDAQ:GSJK) is a TETRA spinoff that provides well-head compression services for oil & gas drilling & exploration companies.The company has the majority of its operations in Mexico and Canada with plans to expand to invest in Latin America, Asia Pacific and Eqstern Europe. Revenues are generated primarily from, drilling services including wellhead compression, liquid separation, gas metering, vapor recovery and sometimes well monitering services. Typically, the company's services are used for wells with low pressures to sustain production for mature sites.
For the full year 2010, Compressco Partners reported a total revenue of $81.4M and $1.6M in Net Income. This was 10% decrease in revenue and a 75% decrease in income from the previous year.
The company's initial public offering of stock on the NASDAQ occurred on June 14, 2011. The company offered 2.7M shares each for $20 right at the midpoint of the initial price range of $19-$21. The offering raised a total of $53M. The lead managers of the IPO were Raymond James Financial (RJF), J P Morgan Chase (JPM), RBC Capital Markets.
In the oil & gas drilling & exploration business, the vast majority of wells that could potentially use the services offered by Compressco Partners currently do not use any of these compressor services. In addition to this largely untapped market, there is an increasing market pressure to reopen existing wells. As oil prices continue to rise, these mature wells become profitable once again with the installation of Compressco-like services. .