A rapidly changing oil and natural gas industry over the past decade has forced companies that service the industry to adjust as well.
The companies that have adjusted quickly have gained both in market share and in profits.
Oklahoma City-based Compressco Inc. surged to No. 2 on this year's Oklahoma Inc. list as the company developed a new product to better take advantage of the new oil and gas industry.
“Compressco has always been a niche market player. This year, we expanded that niche into an adjacent area,” President Ronald Foster said.
Compressco is a spinoff of Tetra Technologies Co. that went public in 2011 as a master limited partnership. The company has more than 340 employees.
Compressco's primary product, the GasJack, is designed to increase production of older, dry natural gas wells.
Over the past five years, the industry has quickly moved toward pricier oil and away from natural gas.
The company's new SuperJack is designed to help both oil producers and the environment.
When producers recover oil, natural gas is mixed with it. Historically, producers have vented that mixed gas out of storage tanks and into the atmosphere.
New environmental regulations over the past several years have blocked the practice. Compressco's SuperJacks help companies comply with those new rules by capturing the waste natural gas and allowing producers to use it and sell it.
The new equipment also revives operations to an earlier, more profitable stage for the producers. GasJacks are used later in a well cycle to extend the life of a well. Foster compared the maintenance to buying new tires for an old car.
SuperJacks, however, are installed at the beginning of the well's life.
“It's the sexier side of the business,” Foster said. “We see it as a growing market, one that is sustainable for the future.”
Compressco has always been a niche market player. This year, we expanded that niche into an adjacent area.”