High Retention
In addition to benefits – such as a good insurance policy and 401(k) plan – Unit Drilling provides other incentives to employees. “Beyond the financial incentives, we offer a safe work place for our people,” Cromling stresses. “Working people are very aware of the importance of safety, which is why safety is a top priority for us and them. The importance of safety goes without saying.”

Training is a priority, especially because many workers may not have previous rig experience. As a result,  Unit Drilling works with several vocational schools in Oklahoma and a school in Wyoming to help prepare new workers.

Cromling says the company also has an in-house mentoring program for additional on-the-job training. “Simulation training is important, but it can only go so far,” he notes. “There are very different dynamics on a real rig, and we prepare our workers for that.”

Cromling adds that Unit Drilling’s training program is very structured. In the first three months, new employees review about 200 different topics. “We document everything and it’s very formalized,” he says.

Key Investments
One key project for Unit Drilling is the Pinedale, Wyo., drilling site. Cromling says the site is unique because there are 10 rigs concentrated in a relatively small area. “The land we are on is federal land, and there are many wildlife and pollution concerns,” he explains. “We need to be very environmentally sensitive about the work we do there, and all our operators are very aware - aware isn’t even a strong enough word for it.”

Operators signed several federal agreements with various agencies in order to have permission to drill. The agencies have placed demanding guidelines on the types of equipment and rigs that are allowed in the area, and Unit Drilling must comply.

Additionally, Pinedale is one of the coldest regions in the Rocky Mountains, so the equipment and rigs need to be designed to withstand the elements. “It’s a fairly isolated spot, so we’ve had to be creative in attracting workers to go there,” Cromling says. “It’s a very beautiful area, though, and we have enough drill sites to stay busy there for another 10 years. There’s not really any other place that we can see 10 years of reserves in, so it has been a great opportunity to make an investment there. We know there is a long life in Pinedale, and the activity continues to grow.”

Unit Drilling has invested about $500 million in new equipment, and nearly all the rigs it has built in the last five years are electric. The company has also upgraded its rigs with new engines and purchased larger mud pumps, top drives, skidding systems, mud systems and safety devices.“We have new machines that take out some of the physical labor that roughnecks do,” Cromling says. “With that equipment, the workers do more with the machine than the strength of their backs.

 “In a general sense, we invest everything we make back into the company, but that’s the nature of a drilling company,” he continues. “In particular, in the last few years, we’ve invested on a grander scale in several areas: equipment, software – everything.”

With equipment being an essential component to Unit Drilling’s work, the company maintains an in-house maintenance support group of about 100 mechanics, electricians, welders and machinists. Cromling says this allows the company to make any repairs in a timelier manner. “We can take care of the maintenance issues ourselves without having to rely on an outside party,” he notes.

Small-Company Personality
Although it offers financial incentives to employees, Cromling says the culture is the No. 1 reason employees remain loyal to the company. “We have tried to maintain a small-company personality as we have grown,” he explains. “We have separated our operations into various divisions, which operate like small companies. In total, we have nine operating divisions, and we give our managers a lot of independence and authority. They operate their division like it’s a small company of 15 or 20 rigs.”

Managers are expected to know their employees and help them feel like they are an important part of the organization. Most managers at Unit Drilling not only know their employees, but also their families, Cromling adds.

“When workers complain about their job, the No. 1 complaint is that they feel like a number,” he continues. “Employees want management to know them, which is why we’ve made that close-knit culture a priority. We’ve taken this approach all along. We didn’t just wake up with 128 rigs and say, ‘Let’s try it this way.’”

Unit Drilling also expects managers to react to problems or issues within 30 minutes. Cromling says at other large companies, layers of bureaucracy make it difficult for fast remedies. “It can take a day or two to make a decision in other organizations,” he explains. “Whether it be a maintenance or personnel issue, we want it addressed in 30 minutes. On occasion, it may take longer, but by and large, we get it done. That’s one of the keys to our success.”

Compelled to Grow
As a publicly traded company, growth is a priority for Unit Drilling. “We’re compelled to grow,” Cromling says. “If you’re not growing, you’re dying.” He says the company is looking at growth in many areas of the country, including Texas, New Mexico, Appalachia and the West Coast. “We’re always looking for opportunities and companies in new regions that are strong,” he says.

When considering an acquisition, Unit Drilling looks for independent companies with strong people already in place and a good reputation. “With our financial abilities, we can help good companies grow,” Cromling states.

Strong management has also been a core foundation for Unit Drilling. Cromling says a conservative approach and acting with integrity and honesty have been the company’s strategies.“We have always been conservative in our outlook,” he states.

“We are willing to reinvest our money on training, development and equipment, but being conservative in our growth, maintaining a community presence and acting with integrity have helped us be successful,” he adds. “We have the financial strength in place to make deals that other companies can’t do – and that’s been a huge benefit to us.” n