pipestats

Expectations Powered by Data

PipeStats™ reports provide valuable market intelligence covering demand, known alternatives, market trends, and pricing.

PipeStats leverages this information to set return expectations, enabling sellers to decide the best course for handling their cra OCTG investment.

Pipe Stats PipeSearch Process

PipeStats™ Summary

PipeStats uses data to estimate your cost recovery options. We deliver multiple options based on a function of time.

Below we detail a portion of the data we consider when giving operators the highest return on their cra OCTG investment.

Carrying Costs
Alternative Options
Commercial Cycles
Location
Competition
External Demand Report
External Demand Analysis
Internal Demand
PipeRecover™ Target
Taxes / Duties
Maintenance
Storage
Movement
Cost of Capital
Obsolescence
Opportunity Cost

Carrying Costs

The all-in cost of material ownership is one of the most overlooked financial realities of inventory ownership.

Carrying costs frequently range between 18-25% of the original material purchase price on an annualized basis.

Item

Quantity

Price/Ft.

Total

Annual at 20%

3 Years

5 Years

Total

7" 35# 25CRW-125 Vam Top HT R2

28,678 FT

$412.30

$11,823,939

$2,364,788

$7,094,364

$11,823,939

$23,647,879

3.5" 9.20# G3-125 Vam Top R3

17,316 FT

$137

$2,373,677

$474,735

$1,424,206

$2,373,677

$4,747,355

$14,197,616.68

$28,395,233

*Sample information only

The total cost of holding these two idle assets over a short period adds up quickly.

Alternative Seller Services

Traditional options for recovering value are through liquidation services with a wide breadth of product lines. These are distressed sales through auctions.

Auctions are time-boxed and force a prospective buyer to hedge future demand, significantly increasing risk and lowering asset valuation.

This section outlines our purchase experience through distressed sales.

Our recent auction purchase history above, all of which the seller is an operator.

Item

Sales

Total FT

Avg. Return

7" 35# 25CRW-125 Vam Top HT R2

17

17,634 FT

$36.40

3.5" 9.20# G3-125 Vam Top R3

6

32,789 FT

$27.69

*Sample information only

Location Analaysis

The material location, the ease of shipment, and the availability of local services impacts OCTG recovery value. For Example:

7" 35# 25CRW-125 Vam Top HT R2

Houston is convenient for international logistics, accessory manufacturing, and is close to a majority of the consumption of this item.

Market Alternatives

PipeStats monitors known alternative inventory in the market for every item. Below is a summary of the state of supply.

Item

Quantity

Location

7" 35# 25CRW-125 Vam Top HT R2

28,678 FT

Houston

There is approximately 11,882' of known alternative inventory in the market.

3.5" 9.20# G3-125 Vam Top R3

17,316 FT

Dubai

There is over 20,000' of known alternative inventory in the market.

*Sample information only
7" 35# 25CRW-125 Vam Top HT R2
2,532.70 FT
8,350 FT
Avg. Qty / Cycle
33
MONTHS

Commercial Cycles

We define commercial cycles as the average time it takes to execute a sale from the first engagement with a prospective customer.

Typically, the higher the alloy or the more unique the specification, the more time it takes to engineer items into end-user applications. 13 Chrome by nature is more commoditized and tends to turn faster if it is in standardized sizes with acceptable threads. In contrast, duplex, super duplex, and nickel can take longer.

External Demand

7" 35# 25CRW-125 Vam Top HT R2

25CRW is the most commonly used super duplex for sea water applications. The majority of consumption in 7" 25CRW is in 32# due to its 6" drift for completion equipment.

15
Sales
60
Inquiries
7
Customers
*Sample information only

3.5" 9.20# G3-125 Vam Top R3

This item is commonly used. Quantity is sufficient to meet typical requirements.

201
Sales
391
Inquiries
63
Customers
*Sample information only
NOTE: Internal Demand
We understand that plans often change. If you think there is a likelihood of needing this material for your internal consumption, please let us know, and we can build that into our financial model.
PipeStats™
Expectations Powered by Data
PipeStats leverages global market intelligence data to understand the value of your cra OCTG assets.