“Life is Luck, Make it”: Selling to Oil & Gas Juniors in a Tough Market

March 9th, 2009 by

 By Pat Hinds

 

A while back I read a quote from Mother Teresa who said, “Life is luck, make it”– it made me reflect back on one of my early sales experiences.  As a young sales rep selling computers, I would prospect into oil & gas accounts often targeting companies that had less than 50 employees.  One of companies I was targeting was undergoing rapid growth. Starting in a recessionary period and continuing through the market recovery this company started with 10 computers; before I knew it, I had sold them 250 computers.  At that time in my career I considered my sales success as luck.

If you study oil and gas companies that have emerged from recessionary periods to prosper, you can learn how to target companies that will make you lucky.  The following is a quick case study of the company and recommendations that will help you target the lucky companies.

Luck Factors

Case Study Company

Tactic

Timing

The initial growth of this company was in the early 1990’s; this was the same time a barrel of oil cost $11.

When the going gets tough the tough get going.  Spend the time to research companies and look for companies in a position to take advantage of this market.

Strategy

This company had a strategy that was targeted and measurable.  They understood the geographic area that they wanted to target for production (low cost, low risk).   

 

Target oil and companies that have cost effective production; this would be a large base of conventional oil & gas production.  Look for companies which have reserves of un-conventional production that are shovel ready.

Cash Flow

This company had low debt and its existing production was low cost.

Look at a company’s cash flow within its balance sheet.

Cash in the Bank

This company had money in the bank from production and an earlier financing.

Cash is king; companies adding production (growth) need the cash.  Look for money in the bank.

Management

This company had an experienced management team.

Look at the management team and the board and make sure they are capable.

Topics: Business Intelligence