STW Resources Holding Corp and its subsidiary, STW Pipeline, announced today that it has received the capital expenditure allocations from customers for 2015. Additionally, STW Pipeline has won several multi-million dollar contracts for new pipeline construction. STW Energy announces entering into the oil and gas midstream sector by offering hydro excavation for trench digging and existing pipeline location services to maintain and build new pipelines.
STW Pipeline is well positioned to handle the recent decline in oil prices due to having already received their 2015 CAPEX allocations for pipeline maintenance, which exceeds last year’s total revenues. Additionally, the company has won two new pipeline construction contracts and is bidding on several more for additional work throughout the year.
STW Pipeline President Adam Jennings stated, “STW Pipeline is poised to grow with new projects and higher revenues this year. Even though the price of oil has declined, maintenance of the current pipeline infrastructure is ongoing daily and also many of the new wells that were drilled and completed in the previous few years still need to be connected to the sales pipelines. This is a very good opportunity for companies to 'catch up' as they have been drilling and completing new wells at an extremely fast pace.”
STW Energy has been working to further diversify services to increase revenues and margins. This year, Energy has already been awarded two new/additional master service agreements and is now offering midstream services. In an effort to maintain a defensive posture in the face of recently declining oil prices and increase sales, STW Energy has been making an aggressive push to capture master service agreements to diversify its customer base. Also, in an effort to capture midstream business from oil and gas producers, the company is now offering hydro excavation services. This process of digging is safer, takes less time and is cost effective by comparison to conventional trenching with a backhoe.
President of STW Energy Joshua Brown stated, “Hydro-Excavation is, hands down, the safest way to start, maintain or finish a small or large project. I am very excited to be adding this to my services offered with STW Energy and have been working round the clock to let my current and future customers know it is available by our company. Safer, faster, non-destructive digging methods are the future of keeping every work site a safe one.”
Adapted from press release by Hannah Priestley-Eaton