Edmonton-based Pitbull Energy Services acted quickly when Alberta’s oil and gas sector was hit by the economic downturn. Founded in 2005, the company provides a one-stop approach to oilfield clients in Alberta and northern British Columbia by combining water hauling, hydro-vac work, pipe moving, excavation and mud drying services.
Pitbull took immediate measures to reduce overall expenses, reinvest in the business and improve working capital by renegotiating existing debt. Despite these moves, the company needed capital with flexible terms to meet long-term payment patterns and continue developing its technology.
Pitbull turned to BDC after hearing of its initiative to support the oil and gas industry during the downturn. Recognizing the company’s efforts and commitment to improve its situation, BDC provided a working capital loan. The loan, which included a one-year capital postponement, helped Pitbull with long-term payments, eased pressure on receivables and is helping it manage until the market improves.
“From our first meeting with BDC, it was clear that this organization operates differently in an economic environment requiring non-traditional measures,” says President Sami Hayek. “BDC’s team approach allowed us to move quickly and efficiently.”
With BDC’s support, Pitbull was able to focus on diversifying and strengthening its integrated offering. As a result, the company obtained a significant contract from a major oil company and is now well positioned for the long term with a strong management team.
“Dealing with BDC has been by far our best banking experience,” concludes Hayek.