Energy investment team puts major stake in shale drill bit maker

By Luke Geiver | January 16, 2018

Intervale Capital, a specialized energy investment firm, has taken note of increased drilling intensity, longer laterals and higher stage counts throughout most of North America’s shale plays. This week the company said it has become a majority stakeholder in Oklahoma-based PDC Logic. Founded in 2007, PDC Logic manufactures highly engineered drilling and completion bits that are used in the Permian Basin, MidContintent, Eagle Ford and DJ Basin. PDC’s main offerings are its Poly Diamond Crystalline bits and Roller-cone bits, each used in D&C operations.

Tuan Tran, partner at Intervale, said PDC can benefit from the trends happening in the drilling and completion segment of the industry right now. “We see attractive opportunities to expand PDC Logic’s addressable market by introducing new bit designs and entering new markets,” Tran said.

Intervale has previously invested in Utlerra Drilling Technologies and several other downhole solutions providers for the oil and gas industry.

Tom Waitman, founder of PDC, said he believes Intervale has the experience to help the company expand into other plays and bring new bit products to market through its expertise and capital.

Although transaction terms were not disclosed, PNC Business Credit will be provided a working capital line and term loan to support PDC’s expansion efforts.