7.7.7.1Vertical

ESP & Submersible Pump Services

Companies installing and servicing electric submersible pumps.

Market snapshot

These figures describe Production & Artificial Lift Services (7.7.7), the segment that ESP & Submersible Pump Services sits within. They are not figures for ESP & Submersible Pump Services on its own.

FragmentationFragmentedEstimate

Not sized separately. Oilfield support is classified as a single activity, so production and lift work cannot be separated from the drilling and completion services beside it. Commercially it is the better half of the business: lift and workover revenue recurs over a well's producing life rather than arriving once at the drill bit.

Business model & economics

Revenue model

Artificial-lift equipment, production services, and optimization

Key economics

Revenue per firm
$9,351,184
Revenue per employee
$349,868
Employees per firm
24.7
Recurring revenue
Moderate–High

recurring producing-well services

EBITDA margin
More stable than drilling/completion
Capex intensity
Moderate

Characteristics

  • Balanced cost base: payroll is 26% of revenue, leaving room to scale margin without cutting staff
  • Moderate strategic-buyer pool: 121 firms exceed 500 employees, so a scaled asset has buyers, but not many
  • Keeps the installed base of wells producing.
  • Shale-well decline drives recurring lift demand.
  • More recurring and less cyclical than drilling.

NAICS 213112. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Artificial-lift & production specialists
  • OFS majors
  • PE-backed consolidators

What’s driving deals

  • Producing-well base and decline-management demand.
  • Digital production optimization.
  • Recurring-revenue service consolidation.

Find ESP & Submersible Pump Services acquisition targets

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