BJ Services Company was a oil and gas equipment and services company that is now a subsidiary of Baker Hughes.
It was founded in 1872 as the Byron Jackson Company by inventor Byron Jackson and at its peak operated in more than 50 countries worldwide.
BJ Services Company is a leading worldwide provider of pressure pumping and oilfield services for the petroleum industry. Pressure pumping services consist of cementing and stimulation services used in the completion of new oil and natural gas wells and in remedial work on existing wells, both onshore and offshore. Oilfield services include completion tools, completion fluids, casing and tubular services, production chemical services, and precommissioning, maintenance and turnaround services in the pipeline and process business, including pipeline inspection.
On April 28, 2010, the company was bought by Baker Hughes in a $5.5 billion stock and cash deal. Greenhill & Co. advised on the transaction.
BJ Services Company is a provider of pressure pumping and oilfield services for the petroleum industry. Pressure pumping services consist of cementing and stimulation services used in the completion of new oil and natural gas wells and in remedial work on existing wells, both onshore and offshore. Oilfield services include casing and tubular services; precommissioning, maintenance, turnaround and pipeline inspection services in the process and pipeline services business, chemical services, completion tools, and completion fluids. The Company conducts its operations through four segments: U.S./Mexico Pressure Pumping Services; Canada Pressure Pumping Services; International Pressure Pumping Services, and Oilfield Services Group. In April 2010, the Company acquired BJ Services Company.
U.S./Mexico Pressure Pumping Services includes pressure pumping services derived from the Company’s activities in the United States and Mexico. Canada Pressure Pumping Services includes pressure pumping services derived from its activities in Canada. International Pressure Pumping Services includes pressure pumping services derived from its activities outside of the United States, Mexico and Canada. Oilfield Services Group includes oilfield service divisions, such as casing and tubular services, process and pipeline services, chemical services, completion tools, and completion fluids.
Pressure Pumping Services
The Company’s pressure pumping services consist of cementing services and stimulation services, and accounted for 79% of its total revenue during the fiscal year ended September, 30, 2009 (fiscal 2009). Stimulation services include fracturing, acidizing, sand control, nitrogen services and coiled tubing services. It provides pressure pumping services to major and independent oil and natural gas producing companies, as well as national oil companies. Pressure pumping services are used to complete new oil and natural gas wells, maintain existing oil and natural gas wells, and enhance the production of oil and natural gas from producing formations in reservoirs. These services are provided both on land and offshore on around-the-clock, on-call basis through regional and district facilities in approximately 200 locations worldwide.
The Company’s cementing services, which accounted for approximately 31% of total pressure pumping revenue, during fiscal 2009, consisted of blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped into a well between the casing and the wellbore. It provides central, regional and district laboratory testing services to evaluate cement slurry properties, which can vary by cement supplier and local water sources. The principal application for cementing services used in oilfield operations is primary cementing, or cementing between the casing string and the wellbore during the drilling and completion phase of a well.
The Company’s stimulation services, which accounted for approximately 69% of total pressure pumping revenue, during fiscal 2009, consisted of fracturing, acidizing, sand control, nitrogen services and coiled tubing service. Stimulation services are provided both onshore and offshore. Offshore services are provided through the use of skid-mounted pumping units and the operation of several stimulation vessels. Fracturing services are performed to enhance the production of oil and natural gas from formations where natural flow is restricted due to low permeability. The fracturing process consists of pumping a fluid (fracturing fluid) into a cased well at sufficient pressure to fracture the producing formation.
Acidizing entails pumping large volumes of specially formulated acids into reservoirs to dissolve barriers and enlarge crevices in the formation, thereby eliminating obstacles to the flow of oil and natural gas. Sand control techniques are used to either bind the formation sand or filter it, such that the oil and natural gas can move freely into the wellbore. Sand control services include gravel pack tools, well screens, chemical consolidation treatments, gravel packs and frac packs. Nitrogen services involve the use of nitrogen, an inert gas, in various pressure pumping operations. Coiled tubing services involve injecting coiled tubing into wells to perform various well-servicing operations.
The Company competes with Halliburton Company, Schlumberger Ltd., Weatherford International Ltd., Calfrac Well Services Ltd., Trican Well Service Ltd., San Antonio, Superior Well Services and Frac Tech Services, Ltd.
Oilfield Services Group
During fiscal 2009, the Company’s oilfield services group accounted for approximately 21% of its total revenue. Oilfield services group segment consists of casing and tubular services, process and pipeline services, chemical services, completion tools and completion fluids services in the United States and select markets internationally. Casing and tubular services comprise installing or running casing and production tubing into a wellbore.
The Company provides a range of services to the process industry, which includes oil and natural gas production, refineries, and gas and petrochemical plants. These services, which include testing, cleaning, drying and inerting pipework and pipelines, are primarily used in the precommissioning of new plants and in performing maintenance to existing plants. Its pipeline inspection business uses intelligent pigs to assist pipeline operators in assessing the integrity of their pipelines. Chemical services are provided to customers in the upstream and downstream oil and natural gas businesses. These services involve the design of treatments and the sale of products to optimize production, unload wellbore fluids, and reduce the negative effects of corrosion, scale, paraffin, bacteria, and other contaminants in the production and processing of oil and natural gas.
The Company designs, manufactures, assembles and installs downhole completion tools that use gravel and sand control screens to control the migration of reservoir sand into the well and direct the flow of oil and natural gas into the production tubing. It sells and reclaims clear completion fluids and performs related fluid maintenance activities, such as filtration and reclamation. Completion fluids are used to control well pressure and facilitate other completion activities while minimizing reservoir damage. It also provides drilling fluids and related technical services to drilling projects in limited geographic markets.
The Company competes with Weatherford International Ltd., Frank’s International Inc., General Electric, Tuboscope, H. Rosen Engineering GmbH., Baker Hughes Incorporated, Champion Technologies, Nalco Energy Services, Clariant, Halliburton Company, Schlumberger Ltd, Smith International, Inc. and Tetra Technologies, Inc.
OVERALL
Beta: 1.35
Market Cap (Mil.): $3,888.40
Shares Outstanding (Mil.): 293.72
Annual Dividend: --
Yield (%): --
FINANCIALS
BJS.MX Industry Sector
P/E (TTM): 1,092.37 31.79 11.65
EPS (TTM): -98.95 -- --
ROI: 0.16 7.31 4.74
ROE: 0.20 8.27 6.03
Name Age Since Current Position
Stewart, J. 67 2010 Chairman of the Board, Chief Executive Officer
O'Donnell, John 62 2010 President
Smith, Jeffrey 47 2008 Chief Financial Officer, Executive Vice President - Finance
Dunlap, David 49 2007 Chief Operating Officer, Executive Vice President
Keifer, Alan 56 2010 Vice President, Chief Accounting Officer
Yust, Paul 56 2007 Vice President, Chief Information Officer
Shannon, Margaret 60 1994 Vice President, General Counsel
Biar, L. Scott 46 2007 Vice President, Controller
Hill, Susan 49 2007 Vice President - Human Resources
Buchanan, Alasdair 49 2007 Vice President - International Pressure Pumping Services
Wells, Bret 44 2010 Vice President, Chief Tax Officer
Coleman, Ronald 54 2007 Vice President - North America Pressure Pumping Services
Hibbeler, Jeffrey 44 2007 Vice President - Technology and Logistics
van Gaalen, Jan Kees 53 2010 Treasurer
Huff, John 65 2009 Lead Director
Heiligbrodt, L. William 68 1992 Director
Payne, James 73 1999 Director
Patrick, Michael 67 1995 Director
Jordan, Don 77 1990 Director
White, William 55 2003 Director
COMPANY ADDRESS
BJ Services Co LLC
4601 Westway Park Blvd.
Houston TX 77041
It was founded in 1872 as the Byron Jackson Company by inventor Byron Jackson and at its peak operated in more than 50 countries worldwide.
BJ Services Company is a leading worldwide provider of pressure pumping and oilfield services for the petroleum industry. Pressure pumping services consist of cementing and stimulation services used in the completion of new oil and natural gas wells and in remedial work on existing wells, both onshore and offshore. Oilfield services include completion tools, completion fluids, casing and tubular services, production chemical services, and precommissioning, maintenance and turnaround services in the pipeline and process business, including pipeline inspection.
On April 28, 2010, the company was bought by Baker Hughes in a $5.5 billion stock and cash deal. Greenhill & Co. advised on the transaction.
BJ Services Company is a provider of pressure pumping and oilfield services for the petroleum industry. Pressure pumping services consist of cementing and stimulation services used in the completion of new oil and natural gas wells and in remedial work on existing wells, both onshore and offshore. Oilfield services include casing and tubular services; precommissioning, maintenance, turnaround and pipeline inspection services in the process and pipeline services business, chemical services, completion tools, and completion fluids. The Company conducts its operations through four segments: U.S./Mexico Pressure Pumping Services; Canada Pressure Pumping Services; International Pressure Pumping Services, and Oilfield Services Group. In April 2010, the Company acquired BJ Services Company.
U.S./Mexico Pressure Pumping Services includes pressure pumping services derived from the Company’s activities in the United States and Mexico. Canada Pressure Pumping Services includes pressure pumping services derived from its activities in Canada. International Pressure Pumping Services includes pressure pumping services derived from its activities outside of the United States, Mexico and Canada. Oilfield Services Group includes oilfield service divisions, such as casing and tubular services, process and pipeline services, chemical services, completion tools, and completion fluids.
Pressure Pumping Services
The Company’s pressure pumping services consist of cementing services and stimulation services, and accounted for 79% of its total revenue during the fiscal year ended September, 30, 2009 (fiscal 2009). Stimulation services include fracturing, acidizing, sand control, nitrogen services and coiled tubing services. It provides pressure pumping services to major and independent oil and natural gas producing companies, as well as national oil companies. Pressure pumping services are used to complete new oil and natural gas wells, maintain existing oil and natural gas wells, and enhance the production of oil and natural gas from producing formations in reservoirs. These services are provided both on land and offshore on around-the-clock, on-call basis through regional and district facilities in approximately 200 locations worldwide.
The Company’s cementing services, which accounted for approximately 31% of total pressure pumping revenue, during fiscal 2009, consisted of blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped into a well between the casing and the wellbore. It provides central, regional and district laboratory testing services to evaluate cement slurry properties, which can vary by cement supplier and local water sources. The principal application for cementing services used in oilfield operations is primary cementing, or cementing between the casing string and the wellbore during the drilling and completion phase of a well.
The Company’s stimulation services, which accounted for approximately 69% of total pressure pumping revenue, during fiscal 2009, consisted of fracturing, acidizing, sand control, nitrogen services and coiled tubing service. Stimulation services are provided both onshore and offshore. Offshore services are provided through the use of skid-mounted pumping units and the operation of several stimulation vessels. Fracturing services are performed to enhance the production of oil and natural gas from formations where natural flow is restricted due to low permeability. The fracturing process consists of pumping a fluid (fracturing fluid) into a cased well at sufficient pressure to fracture the producing formation.
Acidizing entails pumping large volumes of specially formulated acids into reservoirs to dissolve barriers and enlarge crevices in the formation, thereby eliminating obstacles to the flow of oil and natural gas. Sand control techniques are used to either bind the formation sand or filter it, such that the oil and natural gas can move freely into the wellbore. Sand control services include gravel pack tools, well screens, chemical consolidation treatments, gravel packs and frac packs. Nitrogen services involve the use of nitrogen, an inert gas, in various pressure pumping operations. Coiled tubing services involve injecting coiled tubing into wells to perform various well-servicing operations.
The Company competes with Halliburton Company, Schlumberger Ltd., Weatherford International Ltd., Calfrac Well Services Ltd., Trican Well Service Ltd., San Antonio, Superior Well Services and Frac Tech Services, Ltd.
Oilfield Services Group
During fiscal 2009, the Company’s oilfield services group accounted for approximately 21% of its total revenue. Oilfield services group segment consists of casing and tubular services, process and pipeline services, chemical services, completion tools and completion fluids services in the United States and select markets internationally. Casing and tubular services comprise installing or running casing and production tubing into a wellbore.
The Company provides a range of services to the process industry, which includes oil and natural gas production, refineries, and gas and petrochemical plants. These services, which include testing, cleaning, drying and inerting pipework and pipelines, are primarily used in the precommissioning of new plants and in performing maintenance to existing plants. Its pipeline inspection business uses intelligent pigs to assist pipeline operators in assessing the integrity of their pipelines. Chemical services are provided to customers in the upstream and downstream oil and natural gas businesses. These services involve the design of treatments and the sale of products to optimize production, unload wellbore fluids, and reduce the negative effects of corrosion, scale, paraffin, bacteria, and other contaminants in the production and processing of oil and natural gas.
The Company designs, manufactures, assembles and installs downhole completion tools that use gravel and sand control screens to control the migration of reservoir sand into the well and direct the flow of oil and natural gas into the production tubing. It sells and reclaims clear completion fluids and performs related fluid maintenance activities, such as filtration and reclamation. Completion fluids are used to control well pressure and facilitate other completion activities while minimizing reservoir damage. It also provides drilling fluids and related technical services to drilling projects in limited geographic markets.
The Company competes with Weatherford International Ltd., Frank’s International Inc., General Electric, Tuboscope, H. Rosen Engineering GmbH., Baker Hughes Incorporated, Champion Technologies, Nalco Energy Services, Clariant, Halliburton Company, Schlumberger Ltd, Smith International, Inc. and Tetra Technologies, Inc.
OVERALL
Beta: 1.35
Market Cap (Mil.): $3,888.40
Shares Outstanding (Mil.): 293.72
Annual Dividend: --
Yield (%): --
FINANCIALS
BJS.MX Industry Sector
P/E (TTM): 1,092.37 31.79 11.65
EPS (TTM): -98.95 -- --
ROI: 0.16 7.31 4.74
ROE: 0.20 8.27 6.03
Name Age Since Current Position
Stewart, J. 67 2010 Chairman of the Board, Chief Executive Officer
O'Donnell, John 62 2010 President
Smith, Jeffrey 47 2008 Chief Financial Officer, Executive Vice President - Finance
Dunlap, David 49 2007 Chief Operating Officer, Executive Vice President
Keifer, Alan 56 2010 Vice President, Chief Accounting Officer
Yust, Paul 56 2007 Vice President, Chief Information Officer
Shannon, Margaret 60 1994 Vice President, General Counsel
Biar, L. Scott 46 2007 Vice President, Controller
Hill, Susan 49 2007 Vice President - Human Resources
Buchanan, Alasdair 49 2007 Vice President - International Pressure Pumping Services
Wells, Bret 44 2010 Vice President, Chief Tax Officer
Coleman, Ronald 54 2007 Vice President - North America Pressure Pumping Services
Hibbeler, Jeffrey 44 2007 Vice President - Technology and Logistics
van Gaalen, Jan Kees 53 2010 Treasurer
Huff, John 65 2009 Lead Director
Heiligbrodt, L. William 68 1992 Director
Payne, James 73 1999 Director
Patrick, Michael 67 1995 Director
Jordan, Don 77 1990 Director
White, William 55 2003 Director
COMPANY ADDRESS
BJ Services Co LLC
4601 Westway Park Blvd.
Houston TX 77041