Farmington, NM

Farmington is the largest city in San Juan County and the commercial hub of the San Juan Basin, a natural gas-dominated basin that has produced for decades and remains one of the longer-running active gas plays in the country. The basin's production profile is different from the oil-heavy Permian plays: gas and natural gas liquids dominate, compression is critical infrastructure, and the equipment cycle runs on gathering system economics more than crude price alone. Service companies working here have to understand that dynamic.

We finance equipment for gas compression operators, pipeline contractors, workover companies, and oilfield service businesses based in or running work in the Four Corners area. Minimum transaction is $50,000 and most of our deals in the San Juan Basin run between $100,000 and $1.5 million, covering everything from a single compressor package to a full pipeline construction spread. Funding generally completes in one to two weeks.

The San Juan Basin's maturity as a producing basin cuts both ways. Infrastructure is well-developed, which reduces some capital needs, but it also means equipment is older and needs replacement or upgrade more frequently than in newer plays. Companies here regularly come to us to refinance aging assets or finance replacements as older compression units and workover rigs cycle out. We work the full range of those situations.

Equipment Dominant in the San Juan Basin

San Juan Basin equipment needs tilt heavily toward gas production and gathering infrastructure. The mix looks different than you'd see in a crude-oil play:

Compression is the single largest equipment category in this market. The San Juan Basin's gas gathering systems depend on compression at the wellhead, at gathering station mid-points, and at the inlet to processing plants. Gas compression equipment runs on Waukesha, Caterpillar, and Ariel frames, and the replacement cycle for aging units keeps new and reconditioned compression financing active year-round. Operators running gathering contracts need reliable uptime, which means aging Waukesha or Caterpillar-powered units eventually have to be replaced, refurbished, or supplemented.

Pipeline construction equipment remains active as operators tie in new acreage and replace aging gathering lines. Pipeline construction equipment, including sidebooms, pipelayers, and trenching equipment, moves through the Four Corners area on both new-connection and replacement projects. Contractors working those jobs carry heavy iron and need financing that can move as fast as their job schedules.

Workover rigs are a constant in a mature basin. The San Juan Basin has thousands of producing wells, many of which require ongoing wellbore maintenance, pump changes, and occasional recompletions. Companies operating workover rigs in the basin run busy programs and are among the more consistent borrowers we see from the Farmington area.

Oilfield trucks and service vehicles support everything from equipment moves to hot oil work and vacuum operations. San Juan Basin terrain and distances between well sites keep a substantial service truck fleet active.

Pulling Equity Out of Basin Equipment

San Juan Basin operators have been running equipment in this play for a long time. Companies with roots in the basin dating back to the 1980s and 1990s often have iron that's paid off but still has real market value. That equity can be converted to working capital through a Equipment Sale-Leaseback without disrupting operations.

A sale-leaseback works by transferring title to us at the equipment's current appraised value. You receive that value as a lump sum and continue using the equipment under a lease arrangement. The equipment doesn't leave your yard or stop working. The capital can go toward buying another unit, handling a cash flow gap during a slow quarter, or funding an expansion into a new service area.

Cash-out refinancing works for equipment that has an existing loan with remaining equity above the payoff balance. We pay off the existing lender and issue a new loan against the full value of the equipment, with the difference between payoff and value going to you as cash. For San Juan Basin operators with older equipment at low or no leverage, this can be a meaningful capital event.

Our Financing Process for Farmington Operators

The application process is designed to fit oilfield scheduling, not bank scheduling. Start with a one-page application and three months of bank statements. That package is enough to issue a preliminary decision on most deals under $400,000, which covers the majority of single-unit compression, workover rig, and oilfield truck transactions. Credit review happens same-day in most cases.

For larger deals or when full financials are required, we gather two years of business tax returns, a current P&L and balance sheet, and an equipment description. If the equipment needs to be appraised, we coordinate that directly and it doesn't hold up the rest of the underwriting process.

Once terms are set and you accept, we generate documents electronically, you execute digitally or in-person, and we fund to the seller within a few business days. The whole sequence from application to funded check is typically one to two weeks, sometimes faster for straightforward deals with clean documentation.

Used equipment financing follows the same process. We value used assets using recent comparable sales and market data, so you're not penalized for buying smart in the secondary market rather than paying full dealer price.

Financing for the Four Corners Basin

Compressor down, rig deal on the table, or fleet expansion ready to go. Submit an application and we'll have terms back in days so you can move before the window closes.