Enteq offers investor opportunity through addressing an increasing portion of a large, long term market, growing market share and increasing market presence in regions beyond North America.
The vast majority of Enteq revenue has historically been derived from North America, where the addressable market size for tools such as those supplied by Enteq has been approximately $200m.
Recent penetration of markets outside North America in parallel with introduction of new technologies, both through in-house development and partnerships, has significantly increased the addressable market, potentially to $1bn of the full $4bn ‘down-hole tools’ market.
A recent technology licensed exclusively by Enteq from, and supported by, Shell is for a ‘Rotary Steerable Solution’ for drilling. The operational market for RSS is currently approximately $1bn and is dominated by a small number of large operators.
Despite the volatility of commodity markets and direct reaction in North America through fluctuations in the rig count, the medium to long term demand for oil and gas production will continue to increase requiring on-going drilling demands.
Enteq also addresses the drilling of Geothermal wells.
Enteq is managed by a team that successfully grew, by a buy and build as well as organic growth strategy, a similar technology based business from an equivalent scale to Enteq today through to an ultimate sale to GE for $600m.
Management fortitude has been demonstrated through the managing of the business, and protecting cash reserves through a severe down-turn in the oil and gas markets during 2013-2015 and again reacted quickly to a re-size and re-positioning of the company during early 2020.
Enteq has continued to invest in new product development, and through both in-house engineering and through partnerships, now has a product line with which to address more markets and new applications, outside North America. Enteq will continue to develop technology designed to give more efficiencies in drilling.