STW Resources Holding Corp.
April 7, 2014 Issue
The Most Powerful Name In Corporate News and Information
Oil Field and Reclamation Services for Produced, Flowback and Brackish Water
Interview conducted by: Lynn Fosse, Senior Editor CEOCFO Magazine, Published – April 7, 2014
CEOCFO: Mr. Weiner, what is the concept at STW Resources Holding Corp?
Mr. Weiner: Oil field services and water reclamation for produced water and flowback water and brackish water.
CEOCFO: What do you understand at STW about these processes that perhaps others do not understand quite as well?
Mr. Weiner: We have qualified chemists on board that know how to remove certain contaminants from these waters. We know all of the technologies that are available in the world for cleaning certain contaminants out of the water. That is the main thing. Many people do know that, but we have been at this eight years and understand it very well.
CEOCFO: Who is using your services today?
Mr. Weiner: We are working with several oil companies. We have a municipality golf course that we have worked with. On the oil field services side, we do work for most of the corporations, the oil / gas companies in the West Texas oil fields. We provide maintenance and service to most of the oil companies and the mid stream pipeline companies.
CEOCFO: That is quite a range! Why are they using STW?
Mr. Weiner: That is because we have excellent qualified hands that have been in the business a minimum of twelve to fifteen years each. We also have a superior A rating safety and quality with the different services that we have to be a member of in order for the oil companies and the mid stream companies to hire you. We give good prices and we do not have to gouge anybody. We make a little money on our services and give excellent service as well.
CEOCFO: Would you give us one or two examples of typical engagements?
Mr. Weiner: With the pipelines, we go out and we walk though the projects. We follow the ten or fifteen miles of pipelines; it could be steel or poly pipe. We go out and walk the project. We see what it is and they give us a chance to bid on it against our competitors. Then the bids are awarded. On one of the biggest bids that we have had so far, we actually got it, then in the middle of that and they said, “We like how you guys are working, lets go ahead and put you on some other ones”; we did that with no bid! Therefore, it is all relationships; who you know and if you did good work.
CEOCFO: When you are hired by a company do they know what technique they want you to use or do they just tell you, “This is what has to be accomplished” and then you can figure out the best way to get it done?
Mr. Weiner: They tell us exactly what they want and we have to meet those specs.
CEOCFO: What if you think there is a better way? Does it matter?
Mr. Weiner: Yes! We will tell them. If we can get to the same end with a different technique they do not care, as long as we get it done correctly.
CEOCFO: How do you keep up with all of the new ideas and new technologies in dealing with water and dealing with the whole industry?
Mr. Weiner: I hire the smartest people and let each one run the business; we have five divisions. I hire the smartest guys out there that have been at it the longest and have good reputations.
CEOCFO: You make it sound very simple and easy, but I suspect that it is not.
Mr. Weiner: There are many companies that want to hire people that we have, but we pay well and have full health benefits. They all have ownership in the company and employee stock options. That is the way that we create loyalty. They all own part of the work they are doing.
CEOCFO: How do the divisions break down? Are some more active than others? Is some more revenue producing than others?
Mr. Weiner: The pipeline is obviously a higher revenue topic of business. We are also in dirt construction where we use big, heavy machinery like bulldozers and big excavators and things like that. That is a good revenue producer. The water is put in the system and it just keeps creating revenues out of the process in the water—our rig washing business. There are a smaller number of jobs, but there are a smaller monetary number of jobs that are consistent. We also take the waste products from oil field operations and clean them up for reuse. That is basically environmentally sound stuff.
CEOCFO: Is the environmentally sound concept becoming more and more important or is it still because is has to be?
Mr. Weiner: No, it is important to these companies. They are interested in the environment and they will do what is right. It is cost based and if it is way too high and they cannot afford to drill the wells if the services that we provide are too high.
CEOCFO: What is going on today in the oil community? What is different than a year ago?
Mr. Weiner: We have four hundred and fifty rigs out here working, drilling and completing an average of two wells a month. Most of them are hitting because they are in blanket formations and when the wells hit and they have got to be connected to sales pipelines or the product has got to be trucked out; the oil does. However, with the worldwide market we have an increasing demand for oil and gas products. As long as you have demand out there, someone is going to try to fill the void.
CEOCFO: What is the key to keeping on top of the new techniques and what is your role, day to day as CEO? How do you focus your time?
Mr. Weiner: I read everything there is about the kind of businesses that I am in. I have friends in the businesses. We talk to each other about what is going on and if there is something new, we will try it out.
CEOCFO: What surprised you as techniques have changed as ways to reclaim water as changed? You have been in the business for a long time. What do you see as some of the major changes?
Mr. Weiner: To clean up produced waters, which is heavily contaminated water from formations five, ten to fifteen thousand feet that have not been in our ecosystem. In addition, there were not very many companies bearing down or doing R&D on techniques to clean it up. Then we started having droughts and shortages of fresh water and everyone started figuring out how to clean up the dirty water. There are some really good new technologies out there.
CEOCFO: How is business today at STW?
Mr. Weiner: Excellent!
CEOCFO: How do you continue on the same trajectory?
Mr. Weiner: We only hire people when we have got jobs for. We may add two more crews of five people each and each one of them requires a backhoe and pickup trucks and tools and welders and all of that. Therefore, each time we want to bid, we go out and if we do not have the people already on line or in the company, then we go and hire them from the other companies. Many of these people out there come to us tell us that when we are ready they will come to work. That is because the management team that we have in place has all worked together someplace in the business.
CEOCFO: Why should people pay attention to STW Resources Holding Corp?
Mr. Weiner: They should pay attention to us because we are on a super, exploding course right now. We are adding two to three new crews every week to two weeks in the pipeline division. We are at one to two crews every month in the heavy duty construction, building roads. You have got four hundred and fifty very rigs completing at least two wells a month. Each one of those rigs has to be washed down and steam washed, so that they do not contaminate a drop of oil on the road when they are travelling to the next location; they do not cross contaminate from one location to another. The more our people are out there it is good salesmanship. We had good sales people going out and telling them what we can do. Last year at this time I had two employees. I have got well over one hundred and twenty now.
CEOCFO: How were you able to put it all together so quickly?
You have just
got to pay attention! I grew up in the business. I am third general oil and
gas. I understand what needs to be done.
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