Cementing Companies

Primary cementing is the one job on a well that you cannot redo. Operators know this, and they choose cementing contractors whose equipment is reliable and whose crews are capable. Running that kind of reputation requires iron that is in good shape and a financier who understands why a cementing company cannot always wait out a bank's thirty-day approval cycle to respond to a contract opportunity.

Cementing units represent a significant capital investment. A primary cementing unit with dual 500-barrel mixing tanks, a triplex cement pump rated at 15 barrels per minute, and a blender system can run $600,000 to over $1.2 million depending on specification and whether the unit is truck-mounted or trailer-mounted. Remedial cementing equipment used for squeeze jobs and plug-setting is generally less expensive, but still represents meaningful capital for a company trying to grow its spread count.

We finance cementing equipment from $50,000 on the low end up through multi-million-dollar packages for larger operators. The sweet spot of our book is $100,000 to $500,000, which covers a wide range of used cementing unit transactions and some new light-duty equipment. We do not require a pristine credit file to get a deal done, and we have placed cementing equipment financing for contractors operating in the Eagle Ford, Haynesville, Anadarko, and Permian basins.

Cementing Equipment We Finance

A cementing spread is more than the pump unit. We structure financing for the full package of assets a cementing company relies on, which lets you cover multiple pieces in one application instead of going back to a lender for each truck separately.

• Primary cementing units, truck-mounted and trailer-mounted, with integrated mixing and pumping systems
• Batch-mixing systems for large-volume cement slurries required on long-string and surface casing jobs
• Pump trucks used for remedial cementing, squeeze work, and plug-setting operations
• Bulk cement transport trucks for hauling dry cement to remote or multi-well pad locations
• Service bodies and support trucks used to carry tools, additives, and crew to location
• Computerized data-acquisition and density-measurement systems paired with the pump unit

Condition ranges from new builds from specialized fabricators to five- to eight-year-old units with documented service records. Used equipment makes up a substantial portion of the market; a well-maintained cementing unit with a rebuilt pump end can work another decade. We finance both new and used without a bias in either direction.

Cementing companies that own units outright should ask about a sale-leaseback structure on paid-off iron. Converting owned equity into operating cash is a strategy many service contractors use during fleet expansion, and a cementing unit with two to three years of remaining productive life has real market value to a lender.

New Versus Used Cementing Equipment

The decision between new and used cementing equipment usually comes down to capital availability, contract type, and how quickly you need to mobilize. New equipment carries a full OEM warranty, allows you to specify the exact pump rating and mixing system, and is often required by E&P operators who have equipment standards for primary casing jobs on deep, high-pressure wells. New units are financeable with lower down payments, typically 10 to 15 percent, and lenders are comfortable with longer terms (60 to 84 months) because the collateral holds value.

Used cementing units are the more common transaction in our book. A three- to five-year-old unit from a larger service company restructuring its fleet can save a contractor $300,000 to $500,000 versus a comparable new build, and that unit can often be purchased and deployed in less time than a new order takes to deliver. Lenders on used equipment typically want 15 to 25 percent down and shorter terms (48 to 60 months), but the lower purchase price often means the payment is comparable to a new-unit deal.

For companies buying from a private seller rather than a dealer, our private-party financing program handles that transaction type directly. You bring us the purchase agreement, we run the lien search and value the equipment, and we fund. Private-party cementing unit transactions are common when a competitor exits a basin or a company reduces its cementing business to focus on other services.

Cementing Work in Active Basins

Cementing demand tracks the rig count closely. In high-activity basins like the Permian, where multi-well pad drilling requires precise casing programs on horizontal wells with complex frac designs, cementing contractors with modern equipment and good data systems win the preferred-vendor slots with major operators. Smaller independent E&P companies in plays like the Arkoma, Williston, or Piceance also require cementing, often from regional contractors who know the local formations and fluid chemistry.

Cementing companies working the Midland and Delaware sub-basins of the Permian regularly handle primary jobs on horizontal laterals exceeding 10,000 feet. That work requires equipment rated for both high pump rates and large slurry volumes, and the companies that have that capability get the repeat work. We have helped cementing contractors in the Midland Basin and the Odessa area finance the equipment upgrades that moved them into that tier of work.

Cementing also intersects with other oilfield service segments. Many cementing contractors also operate pressure pumping equipment or run nitrogen and acidizing services alongside their primary cement business. We finance all of those asset types and can handle a multi-service company's full equipment portfolio through the same process.