Hunting manufactures and distributes equipment that enables the world’s oil and gas companies to drill for and then extract their oil and gas hydrocarbons. The most exciting part of Hunting’s arsenal of oil related products is its H1 fracking gun. A fracking gun is the industry name for the explosives that fracture the rock formations that then enable the oil or gas to flow out.
The interesting aspect of Hunting’s prospects for greater sales are to be found in the USA’s shale formations, and in particular the Permian basin. Whilst the rig operators in the Permian basin could pump more oil and gas, they are actually restricted by their ability to evacuate the hydrocarbons as oil and gas pipes are running at full capacity.
Hunting hope that good news should be around the corner as the EPIC pipeline is due to open in February of next year. This should allow pipe capacity to better match oil and gas production and boost the number of H1 fracking guns that Hunting can sell.
Hunting have just invested in new production capacity designed to come on stream at roughly the same time that the EPIC pipe opens up. If oil prices hold up, we hope sales at Hunting will respond accordingly; provided of course that pipe capacity out of the Permian basin is delivered on time.