T-3 Energy Services Inc.: Raising the Bar - Strategies, Solutions and Best Practices for Business Leaders

For oil and gas well operators in North America, T-3 Energy Services Inc. offers ‘timely, cost-effective products and services that enhance performance while driving down operating costs,’ according to the Houston-based company. Incorporated in 2000, T-3 consists of three divisions: Pressure Control Group (PCG), Wellhead & Production Systems (WPS) and Pipeline Valve Specialty (PVS).

PCG provides well-control performance services. ‘PCG formulated its service offerings, quality management systems and engineering resources by carefully listening to our customer’s needs,’ the company says. ‘When it comes to well-control performance, T-3 Pressure Control Group can provide a full line of remanufacturing services and new manufacturer capabilities.’

WPS manufactures and supplies wellhead and production systems equipment such as casing heads, casing spools, tubing heads and adapters. ‘T3 Energy Service’s Time Saving Wellhead group of products are simplified and streamlined with many advantages to meet our client’s specific needs,’ the company says of one of WPS’ product lines.

PVS provides customer inventory management, application-specific design and engineering, and field repair and maintenance services. The division’s ‘commitment to quality and service make us the recognized valve supplier throughout the pipeline and industrial markets,’ it says, noting that it is API 6D-certified and complies with ISO 9001 standards.

2007: ‘A Milestone Year’
T-3 says its goal is to provide clients with ‘timely, innovative solutions to their needs and with a higher level of service than the industry standard.’ Surpassing an already-high industry standard and making two key acquisitions last year have rewarded T-3 with a 44 percent increase in its 2007 revenues compared to its 2006 numbers, according to Chairman, President and CEO Gus D. Halas.

‘The year 2007 was a great milestone for T-3,’ he said in a statement. ‘The acquisitions of Energy Equipment Corp. (EEC) and [HP&T Products Inc.] are providing greater opportunities for the future of T-3 Energy’s customers by expanding our product mix for both the surface and subsea sectors, improving our geographic presence and supporting a healthy product development pipeline of new innovations.’

T-3 acquired the two companies for $96.4 million in cash. EEC manufactures gated valves for both drilling and subsea applications, under-balanced drilling and flow-back manifolds and chokes. The products are predominantly manufactured in its Houston-based manufacturing center, which is supported by HP&T’s Prune, India, manufacturing facility.

T-3 intends to capitalize on this overseas manufacturing facility, Halas said. This will provide the company with ‘another means of low-cost country sourcing,’ he noted. ‘In addition to the subsea products that EEC has dispersed into the market, we continue to place more emphasis on moving toward the subsea sector by using a customer-driven demand-pull approach for our pressure- and flow-control products.’

Benefiting from a ‘Rich Legacy’
No stranger in making acquisitions as a strategy for growth, T-3 was formed by the acquisition and merger of Cor-Val Inc. and Preferred Industries Inc., both based out of Houma, La. In the eight years that followed, the company acquired a number of companies, making T-3 ‘a leader with strong products and name recognition,’ the company says.

Safety and Quality Assurance
T-3 credits its stellar reputation to its quality assurance program and stance on safety. For instance, the company’s quality management systems are based on several different industry standards that are ‘coupled with performance models to ensure continual monitoring and improvement,’ T-3 explains.

‘[We are] committed to providing the highest-quality products and services to our customers. This will be done without compromising our commitment to the environment, pollution prevention or the health and safety of our greatest asset, our employees.’

In fact, T-3 boasts an ‘unwavering commitment to employee safety,’ it states. ‘In the last several years, T-3 Energy has observed considerable success with its new behavior-based safety program, empowering stop-work authenticity program and lucrative employee incentive programs.’