Determined to do more in the spheres of oil and gas, Graco Inc. has launched a new line of chemical injection pumps and flow control equipment that will keep pipelines and wells flowing in difficult conditions.
In addition to pumps, the new product line includes high-tech controllers, durable seals and affordable remote-monitors that track fluid chemicals used to unclog wellheads and pipelines, the company said Tuesday. The new injection pumps, with names such as Wolverine and Python, were designed to be extremely rugged, last 25 times longer than existing products and to reduce emissions.
“Combined with its organically developed offerings such as the chemical injector suite of products, Graco now has a well-rounded product portfolio to serve the needs of oil and natural gas customers worldwide,” said Chuck Rescorla, Graco vice president of corporate manufacturing and corporate development for the Minneapolis-based manufacturer.
The new product launch is Graco’s third big foray into the energy sector in a year. Last year, Graco bought Alco Valves Group and High Pressure Equipment Co. for nearly $180 million. In June, Graco introduced its own line of solar-powered injection equipment for drillers that sell for $1,000 to $6,000 each.
The new product line announced Tuesday also offers solar power but is especially aimed at keeping pipelines flowing even in the most difficult environments.
Graco is expanding its presence in oil and gas equipment just as sagging oil prices around the globe largely jammed the brakes on equipment purchases and pinched recent quarterly revenue at behemoths such as Ecolab, Pentair and Fastenal.
Graco officials acknowledge the energy sector can be cyclical, but they believe the company is suited to outfit the industry long term.
Analysts have said that Graco’s reputation for making quality industrial sprayers, pumps, valves and other equipment could help it build a new reputation in the already crowded oil field.
Graco’s stock dipped $1.01 a share to close at $71.70 on Tuesday, a day in which most stock indexes sank.
Last month, the company announced quarterly earnings in which sales rose 4 percent and profits jumped 162 percent due to the divestiture of the liquid finishing paint division it bought from Illinois Tool Works in 2012. Excluding the divestiture, net earnings rose 15 percent to $63 million for the quarter. Graco now generates about $1.3 billion a year in annual revenue.