Crude Oil Owner Operator- Profit & Loss Statement (Full Disclosure)

LDLWells · Feb 3, 2019

Skypilotj said: ↑

Rock on ROCKDOCTOR! Good job. You give us hope in this business. LittleW has been a member since Jan 14, 2019. Not much of a positive contribution so far.
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Spell it right or learn to read

Skypilotj · Feb 3, 2019

Woo hoo! I just discovered the ignore button.

d o g · Feb 3, 2019

Let's have the discussion without the bickering and insults, please.

Skypilotj · Feb 4, 2019

I have enjoyed the encouragement I have received from the experienced drivers who have been willing to open themselves up to criticism.

RFTOwner21 · Feb 4, 2019

Trying to get a contract moving crude oil or anything else in the oil fields. I'm trying to avoid doing 3rd party. Any insights or assistance is greatly appreciated.

Skypilotj · Feb 5, 2019

I wish I had an answer to this.

Seattle206 · Feb 14, 2019

Rockdoctor said: ↑

Thanks everyone for the feedback, good and bad! I appreciated those who posted comments on the thread and also to all the people who wrote me directly. I even met a driver who had seen this post before he knew me so it is truly a small world. I'm going to post a little commentary and detail, but for those who just want to see the numbers, you can skip to the section at the very bottom.

I closed the books on 2018. As you know, I struggled thru OCT and NOV as I transitioned over to a new carrier. I still had some revenue come in for both of those months but took over $20,000 in losses. SO, lesson is, if you are going to swap carriers you better have some cash in the bank!

WHAT COULD I DO BETTER? Lots!

- I'm reconditioning an old truck. I've had to dump a lot of money into it on fixes that should last me a long time.

- I'm paying less for bobtail and health insurance in 2019

- I'm paying less in 2019 for supplies as I didn't have when I started but I will continue to use into the future

BUT WAIT, IT'S NOT ALL GOOD NEWS!

- I signed onto a new carrier. They are charging me $3000 per month to lease the trailer and all of the supplies I need to work and load oil. I'm not happy about this one. I looked for some good used 200B 407 tankers and there is a lot of junk on the market. If I continue down this path I will introduce a new expense I barely had in 2018 at a cost of $36,000 for the year. Ouch...

- My fuel bill is going up drastically. I was once doing short local work sometimes only driving 100 miles per shift but now I have signed on to run a dedicated long haul of oil from West TX to South TX. I'm now driving over 730 miles per day and spending roughly $350 per run on fuel with no fuel surcharge. If diesel prices pick up in the year as I suspect they will, the high fuel bill will surely damage my earnings.

- I can no longer split shift this truck. In 2018 I had a day driver who ran the truck 12 hours in the day and I ran it 12 hours at night. Now with this dedicated run taking between 13.5-15 HRS (running under Texas oilfield hours), it is not working out split shifting the truck and the truck is sitting daily for roughly 9 hours earning zero income.

CONSIDERING ALL OPTIONS...

At this point I'm pleased with my revenue but I do not think I will do as well in 2019 if I continue down the current path.

Option 1: Buy another truck, lease it onto the same long haul and pay $6000 per month in trailer fees plus the added expenses of owning another truck but double the revenue before expenses

Option 2: Buy a 407 tanker, return the leased tanker saving myself $36,000 per year in fees but taking on the insurance and maintenance responsibilities of owning a tanker and revenue for 2019 will fall because the truck will not be split shifted

Option 3: Change carriers once again, lose money in the transition but find an operation which will allow me to slip seat the truck I have

SO, what is your opinion? What could I do better??

------------------------------------------------------------------------------------------

REVENUE $377,087.23, $31,423.94 per month average
1479 loads of crude oil hauled

EXPENSES
Accounting $1,302.69 (payroll and accountant, tax software)
Communication $4,130.00 (cell phone, wifi, cable TV service, eFax, sat radio)
Fees $1,421.89 (Safety training, overweight bond & permit)
Fuel $60,044.92 (90 day average 6.8 MPG, 6.1 MPG all miles)
Insurance $19,055.31 (workers comp, bobtail, employee health)
Maintenance $48,221.30 (oil changes, tires, repairs)
Office $942.38 (postage, supplies, research, business PO Box)
Rent/Lease $1,500.00 (storage unit for business)
Supplies $4,054.59 (safety items, tools & items to perform work)
Tax/License $1,063.25 (base plate, 2290 tax)
Truck Lease (none- truck purchased with cash in late 2017)
Trailer Lease $3,800.00 ($3000 per month with new carrier)
Scales $70.13
Tolls/Parking $96.00
Travel $12,215.32 (business trip expenses)
Uniforms $960.00
Wages $75,710.84 (one employee, not the O/O)

TOTAL EXPENSES $234,588.62, $19,549.05 per month average 62.21%

TOTAL TAKE HOME BEFORE TAXES $142,498.61, $11,874.88 per month average, 37.79%
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Yes it is a small world buddy!

rabbiporkchop · Feb 14, 2019

Rockdoctor said: ↑

now he is KILLING IT at the new company, sometimes doing over $1500 per day gross!
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That sounds about 75% less than 2012 rates. Triaxles make more than that hauling flowback and fresh water up in the Marcellus play without needing a trailer or hazmat endorsement.

Rockdoctor · Feb 14, 2019

rabbiporkchop said: ↑

That sounds about 75% less than 2012 rates. Triaxles make more than that hauling flowback and fresh water up in the Marcellus play without needing a trailer or hazmat endorsement.
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So just to clarify you are saying that in 2012 you could make $6000 per day gross hauling water in PA?

Brettj3876 · Feb 14, 2019

rabbiporkchop said: ↑

That sounds about 75% less than 2012 rates. Triaxles make more than that hauling flowback and fresh water up in the Marcellus play without needing a trailer or hazmat endorsement.

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Were hauling fresh water in a transport doing pretty good. Doing Cabot work keeping busy.

@Rockdoctor nice looking wagon hope you make out good

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