Superior Drilling Products, (NYSE American: SDPI) is a creative state-of-the-art tooling manufacturer offering cost-saving technologies that accelerate oil and gas drilling production efficiencies. Its shares were up and roaring in the extended-hours session with a surge of 44% to $1.08.
What are they good at…
Designing, manufacturing, repairing, and selling drilling tools is the Company’s business. SDP offers patented wellbore conditioning tools such as Drill-N-Ream and proprietary systems such as Strider oscillation. A leading oil field service company also uses SDP as a manufacturer and refurbisher of polycrystalline diamond compact drill bits. SDP manufactures its drill tools and custom products custom to its customers, at a state-of-the-art fabrication facility.
- On January 10, 2020, the Company announced that AS9100D with ISO 9001:2015 certification had been awarded to its quality management system (QMS) for meeting the specific requirements of the aviation, space, and defense industry.
- On January 8, 2020, the Company announced it had closed the sale-leaseback agreement for its Vernal, Utah facilities, netting the Company an additional $1.6 million in cash.SDP entered into a 15-year lease for $4.5 million in exchange for selling its facilities and previously announced the sale on November 12, 2020. The company received net proceeds of approximately $4.2 million after fees, of which $2.6 million was used to pay off its outstanding mortgages. The monthly payment is $17,000 less than the current mortgage payment.
Several mature companies make up the Oilfield Services and Equipment industry. Their fortunes depend on drilling expenditures by oil and gas producers. Oilfield services stocks are considered cyclical due to the cyclical nature of the demand for these fuels.
Stocks are driven in the short term by the price trend of oil and gas, with earnings becoming increasingly significant in a long time. Although some companies make special payouts, regular dividends are usually nominal here.