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Tell us about the history of DTI’s inspection division.
"Downhole Inspection Solutions began operations in 2017 to provide internal inspections primarily for DTI. We developed and implemented a Safety and Quality program as a foundation to build upon. With a strong base, this evolved over time into providing inspection and ancillary services to external clients. Today, we offer these critical services from multiple locations across the US and Canada."
Who is your primary customer?
"We provide services to DTI customers across North America. These include oil and gas operators and directional drillers, from the Quality Coordinator to the Asset Manager to the Rig Manager."
Why is the inspection of downhole tools such a critical service?
"Inspectors are tasked with providing good faith results based upon client-specific requirements, procedures, and criteria provided by that client. If all those processes and procedures are in place and fulfilled, an accurate assessment of the tool in question can be made, and the client can then decide to proceed as planned or change course. We provide clients with critical information they need to make decisions."
Describe some of the technical advancements in inspection services.
"For decades, oil and gas tubular inspection methods had reached a plateau compared to other industries. While the inspection techniques and applications themselves still haven't changed much, the most significant improvements I have seen are in efficiency upgrades/automation and traceability of inspection results, which are driven by customer requirements and intersect with new and emerging technologies. These improvements will continue to evolve as turnaround requirements decrease and technology grows."
What's the most exciting inspection job you can remember?
"With 20 years in the field, you can build up quite a repertoire of funny and exciting stories and situations. The one that stands out the most vividly for me is probably my first offshore inspection job circa 1999. At that time, few safety protocols were in place, and I had no idea what to do once I got on the rig! The helicopter flight was terrible! The pilot was not in the best shape, and I was a nervous wreck! My equipment showed up the next day, and I was able to complete the job somehow. I was "lucky" enough to have a 6-hour boat ride back in 8-foot seas. I never complained about a helicopter ride again. Lessons learned."
Any thoughts on the future of inspection?
"I believe that inspection will always require a human being to provide accurate results. However, over time, I think you will begin to see AI (artificial intelligence) fill in some of the gaps in analyzing the findings as more of an assistant to determining the acceptance or rejection of a part."
One year ago, Drilling Tools International (DTI) reached a significant milestone in its journey by becoming a publicly listed company on Nasdaq. This occasion not only underscores the company’s growth and achievements to date but also paves the way for new opportunities and expansion as a leader in the oil and gas industry. As DTI celebrates this momentous first anniversary, we reflect on the journey, share our accomplishments from the last twelve months, and look ahead to a promising future for DTI.
Since 1984, DTI has been a leading provider of downhole tools to the land and offshore drilling markets, offering high performing products and services to multiple segments in drilling, completion, and production. Founded on a commitment to a safe environment for employees via our three tenets of strength, innovation and performance, DTI has remained at the forefront of innovative technology and exceptional service within the industry.
The decision to go public was driven by our desire to accelerate growth, enhance visibility, and attract a broader investor base. The transaction was a resounding success, reflecting strong investor confidence in DTI’s business model, market position, and growth prospects.
Since its listing, DTI has delivered robust financial performance, resulting in meeting – and often exceeding – market expectations. Our growth has been driven by continuous demand for drilling services and tools, our international expansion, and strategic investments in new technology and infrastructure.
Innovation remains at the heart of DTI’s operations. Over the past few years, through strategic business acquisitions, DTI has introduced several new products designed to enhance drilling efficiency. These unique advancements have not only strengthened DTI’s competitive edge but have also reinforced our solid reputation as a pioneer in drilling technology. These new technologies include:
The Drill-N-Ream tool represents a significant advancement in reaming technology, conditioning the wellbore while drilling. The Drill-N-Ream is effective in both vertical and horizontal drilling applications, enhancing overall drilling performance. DTI has been the sole North America Distributor of the Drill-N-Ream tool since 2016. DTI recently announced the acquisition of the manufacturer, Superior Drilling Products, and plans to further expand the Drill-N-Ream to serve clients on a global scale. To find out more about the Drill-N-Ream, click here.
The RotoSteer tool is positioned above an existing steerable Bottom Hole Assembly (BHA) to drive the BHA independently from the drill string. Developing torque from drill string rotation, RotoSteer enables the continuous rotation of the drill string during all drilling operations. It eliminates the need for agitation tools while attaining the benefits of a continuous rotation in extended reach applications The RotoSteer in conjunction with the steerable BHA acts as a "Point the Bit" system and is a cost-effective option for drilling longer reach horizontal wells. To find out more about the RotoSteer, click here.
Since going public, DTI has executed on its stated goal of targeting selective oilfield service consolidation, pursuing new acquisitions and increasing its global footprint. Our recent acquisition of Deep Casing Tools, a UK-based technology development company, has expanded our reach to new markets and opportunities. Plus, as mentioned earlier, DTI has also entered into a definitive agreement to acquire Superior Drilling Products, Inc. (NYSE American: SDPI), and expects to close the transaction in Q3 of 2024. These strategic acquisitions are already delivering positive results and contributing significantly to the company’s overall growth strategy.
As DTI embarks on its second year as a public company, we are confident that the future looks brighter than ever. We are poised to continue building on our recent momentum, driven by a clear vision, a robust expansion plan, a commitment to deliver safety and high-quality service to our customers, and execute a thoughtful and strategic M&A blueprint.
DTI remains committed to fostering innovation. Not only will we continuously improve on our existing product and technology offerings, but we are also focused on developing more advanced drilling solutions. This focus on generating new and innovative groundbreaking ideas will ensure that DTI continues to lead the market with cutting-edge technology that meet the evolving needs of its blue-chip customers.
Geographic expansion remains a priority to DTI. We plan to further penetrate our existing footprint while also exploring new regions with high growth potential by leveraging our global footprint of distribution and sales channels. This expansion strategy will be supported by targeted acquisitions and partnerships that are synergistic and complement our strong core competencies.
Make no mistake about it, DTI's Nasdaq listing is an important milestone. As we celebrate our past and our future, we would like to extend our heartfelt gratitude to our employees, customers, partners, and shareholders. Your support, trust, and dedication have been instrumental to our success. Together, we have achieved great things, and together, we will continue to reach new heights.
In closing, the past year has been a remarkable journey for Drilling Tools International, showcasing our growth, innovation, and new opportunities. As we announced on June 10th, we expect to be added to the Russell 2000®, Russell 2500®, Russell 3000®, Russell Small Cap Completeness® Index and Russell Microcap® Index as part of the Russell Indexes' 2024 Annual Reconstitution later this month. We are thrilled to be considered for inclusion in these widely tracked Russell indexes, reflecting another important milestone for the company.
As we look to DTI's future, we are excited about the possibilities that lie ahead and are committed to building on our past successes. Here’s to many more years of strength, innovation and performance!
