Connect with Michael & Bob
The Climb on LinkedIn: https://www.linkedin.com/company/the-climb-podcast/
Bob Wierema: https://www.linkedin.com/in/robert-wierema/
Michael Moore: https://www.linkedin.com/in/michaelpmoore/
Connect with Luke Reed & Quantum/Pure
Website:
https://www.getpuresanitizer.com/
Instagram:
https://www.instagram.com/pure_sani/
Twitter:
https://twitter.com/pure_hand
Facebook:
https://www.facebook.com/Pure_HandSani-101314821644885/?modal=admin_todo_tour
[00:00:00] Luke Reed: [00:00:00] The answer is humility. You gotta be humble enough to tell them right where we are. I think the worst thing about our industry is not necessarily the CEOs, but the executives mask problems, you know, Hey, you know, we're, everything's going great. Just get more jobs. I mean, my team will tell you, like, I'm very open.
[00:00:21] Like, Hey, finances are horrible. I would need to figure this out. We need more work. Does anybody have a plan? You got, be honest with them and you got to put them there and then you got to enable them to talk and you got to listen. I mean, I have to listen. And when, when a guy like Ben says, Hey, I think we need to make a pivot to the Northeast.
[00:00:41] This is the guy I literally picked up the phone. I was like, are you out of your mind? Have you checked the news? Do you really think that we should be getting into the Northeast in the middle of COVID? And he was a hundred percent. Right. And that's all you, you gotta listen. You gotta listen to your people.
[00:01:00] [00:01:00] Michael Moore: [00:01:00] Welcome to the climb crossroads in defining moments.
[00:01:04] I'm your cohost Michael Moore.
[00:01:06] Today we will go inside the mind of an entrepreneurial spirit growing up in rural Oklahoma and eventually making the OSU polo team. Luke Reed is changing the game. Is pivoted his business in the last 90 days by taking the chemical division of his own oil and gas company and transforming it into a multimillion dollar hand sanitizer manufacturer, his faith and his family guide him, listen to the client.
[00:01:47] Luke. Thanks for joining me and Bob, welcome to the climb.
[00:01:52] Luke Reed: [00:01:52] Glad to be here.
[00:01:53]Michael Moore: [00:01:53] Well,
[00:01:53] I'll start it off by saying, unlike several of our other guests, where there's a super long history for [00:02:00] us to feed off of our relationship is, is in its infancy. But several months ago, which feels like years ago in the world of COVID and.
[00:02:11] Boiling gas, negative prices and all the things that have been given us black eyes for the last 90 days, when we sat down for that initial lunch, it was just this, this feeling like I had known you for a long time. And there were just commonalities in the way that we thought. I loved hearing your story.
[00:02:27] And so as is Bob and I came up with the idea about the climb and crossroads and defining moments. I couldn't think of a better guest. So thank you for joining us. And I think after our initial meeting and we'll dive into this, I would have said you're. Probably one of the most interesting people in the oil and gas
[00:02:46] business, but, with
[00:02:47] the pivot that you've made and, and, and I can't wait to dive into it.
[00:02:50] I'd say you're probably the most interesting person in the hand sanitizer business
[00:02:53] now. So
[00:02:56] thank you for, for joining us and just start out by giving us a little [00:03:00] background on you, kind of where you've been, where you are and where you're headed.
[00:03:03] Luke Reed: [00:03:03] Yeah. So, definitely, definitely appreciate being here.
[00:03:06] Yeah. When we met, I guess it was four or five months ago, but, so my wife and I bought a company called quantum valve back in 2015, 2014. It was a valve company here in the Barnett shale specifically for XTO, you know? So for about six months, we stayed here in the Barnett. moved to Midland in January of 16, and then from January to 16 have been operating ever since an hour.
[00:03:32] We were one guy. Now we're 87 people or. All the way across the U S we've got facilities in South, Texas, Midland, the Northeast, and, yeah, we've, we've, we've got a really, really, really good core group of guys. most of us have worked together for 10 plus years and that synergy is what makes quantum, quantum, you know, we, we pride ourselves on the fact that we're super, super nimble.
[00:03:56]we're not private equity backed, so. Really the only people that we [00:04:00] have to argue with is the people we shaved with. So conversation's pretty simple, but no, we, we started in the valve, went into bop, got into horsepower, got into chemical. The deal went really well. Yeah. So we went from a one product service line company to a five product service lines and, you know, went from a.
[00:04:20] Million dollar a month, a year kind of revenue company, just small, small, small, small to North of 30. And I mean, honestly, all of that is attributed to the fact that we have. In each division, a true subject matter expert. And one of the things like our group. So between the four main executives outside of the finance, we have been together for a long time.
[00:04:44] We've done a lot of Wells. We've we've done roughly 1400 Wells in the Northeast 1600 Wells in West Texas. So we have an extensive background on downhole. And so the whole idea wasn't to like get into the service world because it's [00:05:00] sexy and you're going to make a lot of money. It wasn't that at all, it was let's bridge the gap between the bow tie in New York and the boots on the ground, in the oil field and figure out a way to make it efficient and do that at a.
[00:05:14] Cost point that doesn't kill somebody. And that truly makes a good return. I mean, it wasn't like 99% of the industry. I think whether it's ENP or OFS in the last three years, four years it's Hey, let's build something up sexy enough that we convinced some private equity that it's lipstick on a pig and they buy it with more money than you can see over.
[00:05:34] They're just not practical. I think it's fake money and it, it doesn't sustain. And so the idea was okay, let's, let's do something that's meaningful. And in the meantime, let's build an ENP company, which is our assets in the Northeast, under black friend resources and let's vertically integrate. And rather than some companies that are out there that have that vertical integration, I think they really just Rob Peter to pay Paul.
[00:05:59] And at the end of the [00:06:00] day, Peter and Paul, one of them comes knocking. And I think that's where you see a lot of downfall, especially with companies that you see there, they have a midstream component. It's a very attractive component, but you've got to treat it like it's an individual business and, and we've, we'...