I am looking to start a frac sand hauling business.
I work for a company that has made various investments in the oil and gas world and have been asked to spearhead this idea for the group.
I do not know really anything, I am looking to call/email someone to get more information. Please send me a PM with your email/phone number (as I don't enough posts to reply) and I will contact you shortly.
Thank you for your help. I'm just an intern looking to do well on a project!
Adam
Looking to start a frac sand hauling business
Discussion in 'Oilfield Trucking Forum' started by AC141, Jul 26, 2017.
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The frac hauling industry is covered up with trucks that can't get enough loads as it is, it's not a very enticing market right now.
rabbiporkchop Thanks this. -
Indeed it is....trucking is a loss leader anyway. In accounting 101 its a cost center not a profit center.
Break over points or ROI are typically very high because of the high capex to get off the ground. This is how brokers and mega carriers survive . By pennies on volume or no capex.
If I was an investor and wanted oil field returns it would be mineral rights or purchase a working SWD. The returns on both are perpetual and one can sit very comfortable with less than 5 million invested. 2nd choice would be a real estate portfolio of residential renters convertible to tote the notes. Get quality renters in with a caveat of owner financing in 24 mos. Very doable.
JMOrabbiporkchop Thanks this. -
I am responding to an old post BUT I started a frac sand business in 2014. Terrible timing but we were getting paid. I approached it differently. I did not own a truck. My research showed the trucks were 1. expensive to non CDL owners 2. repairs, repairs, repairs 3. Expensive to repair-captial needed.
I owned 2 Gardner Denver blowers ($15k each) and pneumatic trailers (leases).
I partnered with 2 Owner/Oper that wanted entry into Frac but didn't have the capital for blowers, the pneumatic trailer leases nor the contracts that paid.
CONS: Yes, this type of model could've worked if the following had happened:
a. My Owners/oper trucks didn't keep breaking down and they did not have the small capital for repairs
b. Trust. I had a $15,000 blower on a truck without a GPS tracking system. Yikes
c. Trust. I had a $60,000 pneumatic trailer on a Truck that I did not own. Possession in Texas is ?? % of the law.
PROS:
a. I was successful until the market droped. Oil dropped from $120 to $50 in months
b. The capital entry was cut due to the fact that I did not own the truck.
If I did it again I would Lease the truck, own the blower and do a month to month lease on the trailer.
I would have GPS tracking on everything...including the driver.
Currently my Friends contract in Texas is $1600 per day with a 50 mile distance. Not bad -
Zaros, Crude Truckin', Utah Ditch and 1 other person Thank this.
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I have the same question as the last person who posted. What trucking company are they hauling for ?
I have heard, some frac companies in Texas are on a day rate. Just don't know who they are. You can send me a PM with the name of the trucking company. Click on my avatar and start a conversation. Thanks -
AC141, I know this is a long shot but if you'e still around, how did things turn out?
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Best regards
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