Auctioneers providing tens of millions of dollars in options for Permian Basin companies – Midland Reporter-Telegram

Companies hindered by supply chain woes are increasingly turning to auctions to obtain needed equipment.

“Companies are doing the best they can to find the right, low-mileage equipment, ” said Terry Dickerson, chief executive officer associated with Machinery Auctioneers.

Speaking with the Reporter-Telegram by telephone, he stated an auction his company held in partnership with Superior Energy Auctioneers in Odessa recently included 75 trucks, each with less than 60, 000 miles.

“It was a surprisingly good market, ” he mentioned of the particular auction, which netted over $30 million from nearly 2, 500 bidders who represented all 50 states and 17 foreign countries. Bidders, he said, gave good prices but got what they required.

He cited as an example a coiled tubing unit that sold with regard to $1. 8 million whereas a new unit would cost $2. 8 million yet take 20 months to receive. Items will be sold as is where is, Dickerson said, but customers are given ample time to examine the items for sale. Any issues with an item will be mentioned, this individual added.

The Odessa purchase included 498 lots sold and the catalog had more than 71, 000 views.

Dickerson said over the last year the organization has seen the impact of supply chain bottlenecks as well as of companies that will have merged and are liquidating unneeded equipment. For a year, he estimated the company will do $80 million in order to $85 million in online auctions or between $5 mil and $8 million the month. He said expectations for the particular recent market in Odessa were to end up being in the mid-$20 million range.  

Machinery is already preparing for its next auction, to again be held together with Superior and once again in Odessa on Oct. 25.  

Machinery is known regarding its trucks and construction equipment while Superior is known for the oilfield gear, Dickerson stated.

“We are usually working together, ” mentioned Dickerson. “We’re competitors, yet we’re friendly competitors. We decided a team up would be best for our customers. ”

A Dec. 13-14 public sale will feature trucks and construction products the first day, plus oilfield tools the second day.