Allis-Chalmers Energy, Inc. (ALY)

Allis-Chalmers Energy, Inc. provides services and equipment to the oil and natural gas exploration and development companies in Texas, Louisiana, New Mexico, Colorado, Oklahoma, Wyoming, Mississippi, Utah, Arkansas, Alabama, and West Virginia; offshore in the Gulf of Mexico; and Argentina and Mexico. The company’s Rental Services segment provides specialized rental equipment, including premium drill pipe, spiral heavy weight drill pipe, tubing work strings, blow out preventors, choke manifolds, and various valves and handling tools for onshore and offshore well drilling. Its International Drilling segment offers drilling, completion, workover, and related services for oil and natural gas wells. The company’s Directional Drilling segment provides well planning and engineering services, directional drilling packages, downhole motor technology, well site directional supervision, exploratory and development re-entry drilling, downhole guidance services, and other drilling services, as well as offers logging-while-drilling and measurement-while-drilling services. Its Tubular Services segment involves in pipe handling services comprising installation of casing and tubing, changing out drill pipe and retrieving production tubing for onshore and offshore drilling, and workover operations. Allis’ Underbalanced Drilling segment provides compressed air equipment, chemicals, and other specialized products for underbalanced drilling and production applications. The Production Services segment offers various production-related rental tools and equipment and services, including wire line services, land and offshore pumping services, and coil tubing, as well as workover services with coiled tubing units. The company was founded in 1913 and is based in Houston, Texas.

For the nine months ended 30 September 2006, Allis-Chalmers Energy Inc.'s revenues totaled $193.2M, up from $71.8M. Net income totaled $25.3M, up from $4.6M. Revenues reflect higher sales from Directional Drilling Services segment due to strong demand & improved pricing and an increase in sales from Rental Tools segment. Net income also reflects increased gross margins and the absence of minority interest in income of subsidiaries.