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In March 2024, Drilling Tools International (DTI), a leading provider of downhole drilling tools, announced its acquisition of Deep Casing Tools (DCT), a technology development company. Based in the UK, Deep Casing Tools is known worldwide for its innovative solutions across the well life cycle – including well construction, completion, plug and abandonment and casing recoveries. This strategic move aimed to strengthen DTI's offerings by integrating DCT's cutting-edge technology into its portfolio, enhancing its ability to provide more efficient, reliable solutions to the oil and gas industry.
As a newly formed division of Drilling Tools International, Deep Casing Tools has already benefitted from DTI's global reach and established customer base. At the same time DTI has leveraged DCT's specialized tools to push forward its innovative agenda. Today, DTI spoke with Grant Robertson, Business Operations Manager at Deep Casing Tools, to gain his insights on the acquisition, its impact on both companies, and what the future holds.
How has joining Drilling Tools International impacted how you manage production schedules, inventory, and supply chain processes to meet global demand?
"The integration with Drilling Tools International (DTI) has allowed Deep Casing Tools (DCT) to align our production and supply chain strategies to support a unified, global vision. As part of the integration, we can share where applicable best practices and processes across both organizations benefitting both parties and ensuring we continue to meet global demand. Deep Casing Tools and Drilling Tools International each bring unique strengths, and together, we’re better able to coordinate across regions, making our processes more efficient without compromising on the quality service and innovative technology we’re known for in the oil and gas industry."
What steps have you taken to ensure DCT's quality, safety, and cost goals align with Drilling Tools International's standards post-acquisition?
"Quality, safety and cost efficiency has remained a priority for DCT, and joining DTI has given the opportunity to enhance alignment between both companies' QHSE standards. We've merged our health and safety objectives and fully aligned with DTI's established annual safety programme taking into consideration differences between UK and US health and safety legislation. This has allowed us to fully participate as one company in our quarterly QHSE performance reviews. A mutual alignment reinforces both DCT and DTI’s commitment to providing high quality, safe products and processes in the most cost-effective way, reflecting the strengths of both organizations."
Since the acquisition how have you approached budget planning and cost management including adjustments in capital expenditures and operational costs?
"The acquisition has led to a common approach in budget planning and cost management, allowing us to strategically allocate resources for joint priorities. This has resulted in our ability to increase sales inventory globally specifically across the Middle East positioning us to better serve our customers across the region. As well as an increase in sales inventory we have been able to strategically allocate rental assets with our global partners further increasing our global offering.
Cost control measures, now coordinated across DCT and DTI, ensure that we’re achieving operational efficiency on both sides of the world, both Western and Eastern hemisphere, where a strong focus on maximising value for our customers remains our priority."
How has the acquisition influenced your work with the engineering team, especially regarding the introduction of new technology and production planning?
"With DTI's support we can now access additional resources to speed up the testing and implementation of new technologies. When introducing new tools, such as the next generation TurboCaser, the engineering and operations teams work together through the product development life cycle from concept to production to ensure each solution is optimized for usability on the field and cost-effectiveness. Having access to these additional resources when needed can only help improve the process. This approach not only brings innovative technology to our customers more efficiently but also enhances the quality and reliability of our technologies."
As a person overseeing technology orders and global product supply, how has the acquisition changed the ordering process between locations and the Aberdeen facility?
"The acquisition has streamlined and enhanced our technology ordering process between the Aberdeen facility and other global locations, making it more coordinated and efficient. By further establishing DCT's Financial and ERP systems, we’ve developed a sound process that allows us to efficiently manage orders based on demand and product availability across all regions.
With this integration, we have a shared view of inventory and production schedules across both DCT and DTI facilities, which improves our ability to anticipate and fulfil global supply needs quickly and accurately."
Drilling Tools International (DTI) is proud to announce its participation in this year’s ADIPEC 2024 – one of the largest and most influential gatherings for oil, gas and energy professionals worldwide. Taking place in Abu Dhabi from November 4th to 7th, ADIPEC will host industry leaders from over 160 countries. This prestigious event offers DTI a prime opportunity to showcase its innovative technologies particularly from valued divisions Wellbore Optimization and Deep Casing Tools who continue to provide quality solutions to clients across the globe.
As a trusted leader in the energy industry, DTI’s participation in ADIPEC strengthens the company’s growing presence across the globe highlighting its commitment to optimizing drilling operations and enhancing well integrity. Visitors to the DTI stand can explore the cutting-edge solutions offered by two of DTI’s more specialized divisions:
Both divisions are set to demonstrate their contributions to safer, more efficient drilling operations that continue to deliver time savings, cost efficiencies and reduce emissions worldwide.
DTI's Wellbore Optimization division is renowned for delivering cutting-edge drilling solutions that boost efficiency and mitigate operational risks. By conditioning the wellbore and optimizing wellbore drift diameter, the team provides smarter, more efficient drilling that enhances performance and lowers costs. At ADIPEC, the team will showcase the latest advancements in technology, featuring the Drill-N-Ream® (DNR) and Fixedblade Stabilizer. With a focus on minimizing non-productive time (NPT) and maximizing rate of penetration (ROP), these tools are engineered to streamline operations and deliver substantial cost savings.
Attendees at ADIPEC can expect to see demonstrations and detailed discussions on:
DTI's wellbore optimization solutions have been tested in the world’s most challenging formations, ensuring reliability and superior performance across diverse drilling environments.
The Deep Casing Tools (DCT) division is another key highlight of DTI’s presence at ADIPEC 2024. Specializing in tools for every stage of the well life cycle—including well construction, completion, plug and abandonment, and slot recoveries—DCT helps global operators achieve safer, more efficient operations through simple, sustainable innovations. Their suite of technologies is essential for addressing today’s energy challenges.
At ADIPEC, the DCT team will showcase:
DCT's focus on reliable, cost-effective solutions across the well life cycle ensues that oil and gas operators can maintain well integrity throughout the life of the well, minimizing risks and improving efficiency.
By visiting the DTI stand at ADIPEC 2024, attendees will have the opportunity to:
As the energy landscape changes, so too does the need for cutting-edge tools that can help operators overcome operational challenges while driving toward more sustainable and efficient practices. DTI remains at the forefront of this evolution by continuously investing in research and development to produce next-generation tools from divisions such as Wellbore Optimization, Deep Casing Tools and more.
With a proven track record of success in some of the world’s most challenging drilling environments, DTI is committed to supporting the global energy industry in meeting future demand.
DTI is excited to share its vision, innovation, and expertise at ADIPEC 2024. Whether you're looking for solutions to optimize your drilling performance or secure your well casing, DTI offers the cutting-edge technology and trusted expertise you need.
Visit us at Hall 4, stand number, 4110 and discover how DTI's Wellbore Optimization and Deep Casing Tools divisions can transform your drilling operations.
For more information or to schedule a meeting, click here.
John, you joined the company around 14 years ago. What was your first role at Directional Rentals and where were you based?
"I joined Directional Rentals on October 1, 2010, so this month marks 14 years with the company. I was initially hired as a dispatcher in Houston, Texas."
What type of clients did you serve in the early years and how did that change with the Drilling Tools International re-branding and company growth?
"I served the directional drilling companies drilling wells in the Barnett Shale, Gulf Coast and Haynesville areas. As the company grew and more products were acquired, I got involved with the Drill-N-Ream™ product line. My clients expanded from directional drilling coordinators and managers to also including drilling engineers, superintendents, and company men who were looking for solutions to help them achieve their drilling targets and goals."
What were some of the biggest challenges you faced during this change, and how did you overcome them?
"We were always known as a directional drilling rental iron provider and had little direct communication with the E&P operators. It was tough to change the mindset of E&P companies that we offered more than just traditional directional drilling iron. Staying consistent, professional, and promoting the benefits of the new technology finally started to open doors so that eventually, we were able to become successful in engaging with new clients and operators."
You made a big move when you relocated with your family to the Midland area. Describe this move. How did the relocation impact your role?
"There was a lot of anxiety in the beginning with reflection and debating whether I was making the right decision to pick up my family and relocate to West Texas. I was told by some folks about their negative experiences and opinions on schools, the city, and the workforce. I made up my mind that I would give my best effort to make it a good experience and keep an open mind on those topics which helped with the transition. Also, my wife went to work as a schoolteacher, and that helped her meet people, stay engaged, and be active in our girls' school."
Was it difficult to make the switch from sales to CSM or was it a natural transition?
"It was very natural because I engaged more with clients but just in a different aspect. In my previous sales role, I would sell the work and make sure our team had the information needed to be successful. With my CSM position, it is my job to take that information and find the solution to deliver the product and communicate with the client throughout the entire process from start to finish and then put it on repeat."
How have the relationships you built during your sales days influenced your current role as Customer Service Manager?
"Relationships I made in my sales role have been the most beneficial influence in making this transition smooth. When I need to get information or make tough inventory decisions, I can pick up the phone and get honest and transparent feedback. This allows me to make informed, responsible choices with confidence. Also, when challenging situations arise, it is always good to have those relationships so that clients are more likely to communicate openly to reach a solution."
What is a typical day like for you as Customer Service Manager? Who you are the key people you interact with, and what are your main responsibilities in these interactions?
"This position is very dynamic and highly active. The main people I interact with are our CSR employees who are the individuals that receive the tool orders from our clients and put the orders in progress from start to shipping tools to location. Also, I interact with clients on forecasts and any challenges that need to be addressed, whether it is BHA design, tight timelines, or quality assurance. I meet with them to not only ensure these issues are resolved but also work to build and strengthen relationships between organizations and enhance our overall customer service."
How do you follow up with clients to ensure they are satisfied with the tools and service provided?
"I think the best way to follow up is with a phone call or face to face discussions to get that feedback. Of course, in today’s world you also must communicate via text, email, and social media. Having a clear understanding of our clients’ challenges and needs enables us to tailor our services in a way that stands out. It also shows our clients that we are invested in their success and committed to supporting their business."
Having been with the company for 14 years, what motivates you to stay at DTI, and what aspects of your role are you most passionate about?
"I have always felt that we had superior leadership and a growth mindset at DTI that translates into further opportunities as we continue to stay relevant and provide sustainable solutions to the energy industry. In my current role I am passionate about mentoring fellow employees and developing their skills so they can continue to grow in their personal lives and professional careers."
What strategies do you use to maintain a healthy work-life balance, particularly after relocating and transitioning to a new role?
"The two things I do to keep myself focused are to take care of my body with diet and exercise, ensuring I have plenty of energy to play with my kids, along with finding quality time with my wife to connect and reflect on our goals and ambitions for our family."
What do you look forward to most when starting a new day at DTI?
"I look forward to working with my team to come together and put our best foot forward to give our customer the service they expect. This type of attitude is what helps give DTI a distinguished reputation in the industry, driven by our leadership, operations, and sales teams."
Congratulations on Drilling Tools International's 40th anniversary! Wayne, how does it feel to reach such a significant milestone?
"It feels great. It’s an opportunity to celebrate our past, reflect on how we arrived where we are today, and share our plans for the future. We went from a local provider of rental tools to a market leader in North America, to a public company with diverse product offerings on a global scale. We are pleased with our progress and are very optimistic for the future of Drilling Tools International."
Mike, as someone who has seen the company evolve over the years, can you share your historical perspective from the early years?
"It’s a great story. It started with the founder, a gentleman named Ronnie Russo. He started the company in 1984 and focused on renting subs and non mag equipment to directional companies in the Gulf Coast. He established a strong foundation based on his knowledge and experience, client relationships and the quality and service that he demanded. I worked there through college starting in 1993, then joined full time in 1997. We expanded to offer steel products and stabilizers around 1998. We grew the business by expanding our offshore presence and the emerging shale plays. We opened new locations in Houston, Texas and Casper, Wyoming and were able to translate the company’s strong reputation into new markets.
In 2012, after 28 years in business, Ronnie sold the company to a private equity firm, and I remained with the company with a senior role leading the Directional Tool Rentals effort. "
Thanks, Mike. Now turning to Wayne, how has the leadership vision at Drilling Tools International evolved over the years to adapt to industry changes and challenges?
"As Mike mentioned, he led the new growth of the company after joining Ronnie then again after Hicks Equity Partners purchased Directional Rentals in 2012.
Mike, in 2012-13, you made some strategic asset acquisitions that enabled the company to rapidly grow into a market leader in North America. Then I joined the company in 2013 along with additional key team members.
In addition, we understood that customer performance requirements, accelerated drilling rates, and geometric designs of our rental fleet would rapidly evolve, and we needed to get ahead of that evolution by being proactive with investments in specialized raw material, premium connections, next generation stabilizers, and best in class quality programs.
We also knew we needed to diversify our product and technology offerings and added reaming tools, wellbore conditioning technology, Premium Pipe Rentals tubing, as well as other specialty tools for horizontal and directional drilling.
We continued making acquisitions of assets and companies and diversifying product lines. After doing so for many years, in 2023 we became a publicly traded company, and we've continued that path of growing and expanding globally."
This question is for both of you. Where does Drilling Tools International stand in the market today, and what differentiates the company from its competitors?
Mike: "In addition to the product evolution just mentioned, I think the culture of our company differentiates us from others.
Our employees are focused on safety, quality, reliability, and the service to support our customers' needs.
But it starts with safety and quality. Our leadership team implemented an internal Safe Inspired and Productive or SIP program a few years ago, and it is the guiding management principle by which we operate the business. This program is complementary to our core external tenets of Strength. Innovation. Performance."
Wayne: "Mike is right. We began the SIP program in Mike's division, and it is now implemented across the company. We designed our workflow to meet and exceed our customers' requirements and established work policies that met the expectations of the company but also aligned with the current and future generation work force.
Each employee is graded regularly on their safety behavior and adherence to our quality standards. This sets the tone for everything else and creates an inspiring place to work which results in high productivity and performance for our customers.
We conduct a quarterly town hall style SIP meeting with all employees online, and each facility shares its progress and continuous improvement initiatives.
We measure our progress and rewards system quarterly. This way, our team gets more real time feedback and rewards to enable improvements and adjustments in the rapidly changing industry where we compete.
We also have a leadership training program that impacts our management team and enables them to connect with leadership skills that will be effective at work and in daily life."
How has technology changed the landscape of DTI's industry, and how has DTI adapted to these changes?
Wayne: "More complex well profiles require better equipment with higher performance standards. As I stated earlier, we accomplish this by transforming our fleet to meet the demands of our customers. This requires continuous innovation and structuring of our organization to be flexible and adaptive."
Mike: "Over the past couple of decades, the drilling dynamics have changed quite dramatically. The rise of extended reach wells, rotary steerable applications, and increased DS-1 requirements have reshaped the criteria for success. So, how have we adapted?
We've enhanced much of our non-magnetic equipment to deliver high-strength capabilities. To withstand the demands of modern drilling, we've introduced proprietary threads and high-torque connections. Additionally, many wells today require higher flow rates, so we’ve enlarged the inner diameters (IDs) of much of our technologies to accommodate these needs.
Crucially, we've also prioritized the integration of new technology. Last year, we introduced a new generation of stabilizers in the Gulf of Mexico specifically designed to address vibration issues. These innovations have allowed us to mitigate vibrations and improve flow rate capabilities while optimizing wellbore geometry. We’ve even worked with certain operators and developed tools for their specific needs.
In essence, we're committed to evolving with the industry and doing our part to meet the challenges of today's drilling environment."
Wayne, what are the long-term goals for Drilling Tools International as you look towards the next decade and beyond?
"We will continue to expand our global reach by adding more product offerings through development of new ideas along with our stated goal of growth through mergers and acquisitions. And:
Thank you for joining us for our 40th anniversary. We look forward to the next ten years, and we’ll see you on our 50th."
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!