1. Drill Rig Financing Options

    March 10, 2017 by Savannah Adkins

    There are plenty of ways to go about financing your drill rigs, but which option is going to help you best achieve your overall business goals? To answer this question, it is pertinent that you first understand the ins and outs of the various financing options offered from lenders. From there, you will be able to make an educated decision that not only fits your budget but aligns with your company’s strategic plan.

    Jake Rockafellow, Rig Source’s Controller outlines below two of the most common finance options typically offered for drill rig purchases. Take a minute to review each lease option for a better understanding of the terms, pro’s and con’s.

    Option 1: Full Payout Leases (Capital Lease)

    This lease allows buyers to finance 100% of the drill rig purchase price including freight, taxes and extended warranties. The buyer owns the drill rig at the conclusion the lease.

    • Pro’s:
      • Buyer has full ownership of the drill rig upon maturity of the lease
      • Tax advantages:
        • Monthly interest payments are tax deductible
        • Depreciation expense is tax deductible
    • Con’s:
      • Higher monthly payments compared to a fair market value lease (outlined below)
    Option 2: Fair Market Value Lease (Operating Lease)

    This lease allows the end user to finance less than 100% of the total purchase price including freight, taxes and extended warranties. The end user DOES NOT own the drill rig at the conclusion of the lease.

    • Pro’s:
      • Lower monthly payments compared to full payout leases
      • Payments are “moldable” to meet the end user needs
      • Improved profitability and cashflow
      • Monthly payment is tax deductible
    • Con’s:
      • Early termination fees could apply if the lease is terminated prior to its original maturity
      • Additional costs could apply upon return of the drill rig to the leasing company if more than normal wear and tear is present

    Still not sure which route to take? Try looking at the sample drill rig purchases to see a side by side comparison.

    Rig Source Finance Infographic

    As a final note, “keep in mind that drilling is a fairly niche industry, and not all finance companies are familiar with drill rig sales. Be sure to take your time, search and even ask your drill rig supplier for finance recommendations,” states Rockafellow. Reputable drill rig suppliers typically have excellent partnerships with lenders, who are educated in drilling equipment, and are more likely to extend a financing offer to your company. For more drill rig financing information, please give Rig Source a call at 630.365.1649. We have over a decade of experience getting new and returning customers alike into the drill rigs of their dreams.



  2. AEMA Annual Meeting & Exposition – Booth #334

    November 21, 2016 by Savannah Adkins
    AEMA Logo
    Rig Source is proud to be exhibiting at the American Exploration & Mining Association’s Annual Exposition going on December 7-9, 2016 at the Nugget Casino Resort in Sparks, Nevada.

    Just two short months after exhibiting at the world’s largest mining show- MINExpo 2016, we are back in the presence of the mining industry to continue educating members on the benefits and uses of crawler carriers. We’ve chosen to return to the AEMA exhibition because it has a history for attracting thousands of attendees from all over the world dedicated to mining technologies and developments. Rig Source has a long standing reputation for providing exploration drillers top notch drilling equipment, including track mounted drills, and we firmly believe the industry will benefit from further use of tracked vehicles. As a dealer for Terramac crawler carriers we offer exploration drillers the equipment necessary to reach remote site locations and explore problematic terrain. More recently, the rubber tracked technology of Terramac carriers has been used for dust suppression, tailings pond management, dam and dyke repair and general right of way construction projects.

    To learn more about the benefits and uses of crawler carriers, or to discuss other exploration drills and equipment available through Rig Source, please give us a call at 630.365.1649.



  3. End of Year Savings

    November 15, 2016 by Savannah Adkins
    Section 179 and Bonus Depreciation Available for 2016 Purchases

    Do not let the year slip by without taking advantage of special tax benefits on new and used equipment purchases. Both Section 179 and Bonus Depreciation have been approved for a limited time through December 31, 2016. In order to qualify for these tax breaks, you must purchase or finance your equipment by December 31, 2016.

    Rig Source has a complete inventory of drill rigs and crawler carriers ready to start working on your next jobsite project. We offer sales on both new and used equipment in order to meet the needs and budget of every customer. Within our own shop, we specialize in servicing the industry leading, brand name equipment you’ve come to rely on, and even work direct with manufactures on customizations. Our dedicated sales team is knowledgeable in every type of drilling and can work with you to build a rig to suit.

    Understanding The Benefits

    2016 Deduction Limit = $500,000

    • This deduction is good on new and used drill rigs or crawler carriers, parts and other business assets.


    2016 Spending Cap on Equipment Purchases = $2,000,000

    • This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis.

    2016 Bonus Depreciation = 50%

    • Bonus Depreciation is only available on new equipment, and is generally taken after the Section 179 Spending Cap is reached.

    Section 179 and Bonus Depreciation Chart

    At a 35% tax rate, tax savings would be $206,500.00 ($590,000 x 35% tax rate)

    For more information on equipment eligible for Section 179 or Bonus Depreciation tax credits, give Rig Source a call at 630.365.1649.

    *For more information regarding the details of Section 179 and Bonus Depreciation, please contact your local government agency and tax advisers.



  4. MINExpo 2016

    September 15, 2016 by Savannah Adkins
    Minexpo LogoUncover Rubber Tracked Mining Applications

    Rig Source is scheduled to accompany crawler carrier manufacturer, Terramac, LLC to the International MINExpo tradeshow. The show takes place on September 26-28 in Las Vegas, Nevada. You will find us in the Central Hall – Booth #4639, we can easily be spotted by Terramac’s unique 360° rotating crawler carrier on display. MINExpo is considered to be the largest mining equipment and service exhibition in the world and draws in thousands of exhibitors and attendees from within the industry.

    For over a decade Rig Source has been actively serving the mining industry by providing new and used mineral exploration drill rigs as well as service and support. We pride ourselves on the ability to customize drills to meet customer needs. Track mounted mining equipment reduces the ground pressure exerted and allows equipment to access confined jobsites or problematic terrain with ease and without damaging sensitive ground. Rig Source began utilizing Terramac crawler carriers for track mounting drills due to the unique chassis design, simplistic approach to customizations and outstanding service, support and parts availability. Since, we’ve been able to expand our services to the mining industry by offering additional track mounted mining support equipment for mineral exploration, dam and levee work, settling pond construction, site maintenance, water-way and land restoration, tailings pond management and dust control.

     

    MINExpo only comes around once every four years so you won’t want to miss this opportunity! For more information on how to find us at MINExpo, give Rig Source a call at 630.365.1649 or add Booth #4639 to your exhibitor list using MINExpo’s Online Show Directory.



  5. 2016 NDA Convention

    September 8, 2016 by Savannah Adkins

    Come network with Rig Source at the National Drilling Association’s annual convention being held in Pittsburgh, Pennsylvania on September 15-16, 2016.

    Rig-Source-NDA-Convention-Reminder

    The National Drilling Association is a non-profit trade association dedicated to the geotechnical, environmental and mineral exploration drilling industries. Each year the NDA hosts their annual convention which brings contractors, manufacturers and affiliated members of the drilling industry together to network, educate and promote the use of professional drilling contractors and their methods. As a long time member and dedicated supplier of geotechnical and environmental drill rigs, we are excited to extend an invitation to this annual convention to you.  Attending doesn’t require membership so whether you are already familiar or new to the drilling industry, you’re sure to benefit.

    This year’s agenda offers a full list of influential speakers from a variety of drilling backgrounds. Topics include everything from drilling safety and best practices to educational seminars on how to drill with various tooling and equipment. Depending on the state in which you work, the NDA Convention also qualifies for Continuing Education Credits. Adding to the excitement, the NDA has announced they’ll be unveiling their new association logo during Thursday night awards presentation. Rig Source will also be available throughout the convention to discuss your drilling equipment needs. We offer a diverse selection of drill rigs for sale and rent and go above and beyond to provide drillers exceptional service and support.

    For more information on Rig Source’s drilling equipment and services, give us a call at 630.365.1649 or get registered for the 2016 NDA Convention and stop by our booth to discuss.



  6. Drill Rig Trade-In’s

    August 24, 2016 by Savannah Adkins

    Drill Rig Trade InDid you know Rig Source offers trade-in options for most used geotechnical and environmental drilling rigs?

    Here at Rig Source we understand that drilling equipment needs change over time which is why we offer flexible options and equipment solutions for every unique situation. Whether your rig quit running, you simply want an upgrade or jobsite challenges require the use of a different rig; we make getting into a new drill rig easier than ever with trade-in options.

    How It Works

    Rig Source accepts trade-in’s on drill rigs in a variety of brands such as CME, Diedrich, Geoprobe and Mobile. All rig conditions will be considered, and units can be skid, truck or track mounted. To begin, our team will thoroughly discuss your equipment goals with you, review and analyze your existing rig, and work to find a new or new-to-you drill rig that best suits your needs. We offer competitive pricing on all geotechnical and environmental drill rigs and provide fair market value for all incoming equipment. While we cannot guarantee acceptance of every drill rig for trade, we will do our very best to accommodate your needs in order to reach your specified equipment goals.

    Benefits of Trade-In’s

    Choosing to trade-in your drill rig when purchasing a new rig has a number of advantages. Trading in equipment is the ultimate hassle free way to unload your used drill because it eliminates having to hunt for a buyer and reduces the amount of time and money spent getting your older unit to a sellable condition. Similarly, trade-in equipment can be a great way to lower the cost of a new drill purchase by reducing the amount you need to finance. Many of our customers also take advantage of additional tax benefits available for trade-in equipment purchases. For specific trade-in tax benefits and laws, please consult with your tax advisor.

    Learn the value of your rig and take advantage of our trade-in options today by calling Rig Source at 630.365.1649.



  7. Protecting Our Ground Water

    March 11, 2016 by Savannah Adkins

    NGWA Ground Water Awareness

    Rig Source is a proud supporter of National Ground Water Awareness Week and is sponsored by the National Ground Water Association (NGWA). As a longtime member of the NGWA, Rig Source plays an active role in protecting the Earth’s ground water by providing superior drill rig sales, rentals, service and support to geotechnical and environmental drilling contractors responsible for installing monitoring wells and product recovery wells. Water is one of the world’s most precious resources so it is imperative we have the proper tools and resources to monitor our ground water supply, prevent contamination and clean up potential hazards.

    Monitoring Well Drill Rigs

    Rig Source provides a great selection of drill rigs used for monitoring well work which includes brands such as Diedrich and Geoprobe. Diedrich drills are full size rigs which accommodate larger drilling diameters and deeper depths, and are available in four sizes – D25, D50, D90 and D120. The full size Diedrich rigs can be truck or track mounted to reach just about any jobsite regardless of the terrain. The use of Geoprobe drills is another option for monitoring wells or product recovery wells due to their ability to fit into limited access areas with ease. The most popular models for this type of work are the 7822DT’s and 6620DT’s.

    Drilling Support

    What sets Rig Source apart from various other suppliers is their ability to work hands on with their customers. Rig Source doesn’t just make a sale to geotechnical and environmental companies, but rather they take an active lead in supporting their endeavors. They offer a large fleet of rental drill rigs with flexible rental terms so contractors have equipment readily available, and a full service shop to keep drillers up and running at all times. For more information on Rig Source or how we support geotechnical and environmental contractors with drilling equipment for ground water protection, give us a call at 630.365.1649.



  8. Understanding CME Drill Rig Model Numbers

    February 25, 2016 by Savannah Adkins

    CME Drill Rig ModelsCME drill rigs are popular brand name drills used by numerous geotechnical and environmental drillers. For those looking to get started in the industry, selecting the appropriate model for your drilling business may appear to be a daunting task due to the variety of model numbers, but it doesn’t have to be. Manufacturers strive to maintain consistency when selecting model names and their ultimate goal in doing so is to help decipher differences between drill rigs. Having been a drill rig manufacturer since 1962, CME has developed a handful of models that reflect size, power and undercarriage type. Once you learn CME’s naming structure the variances between model numbers become extremely helpful in understanding the exact type of drill rig you are purchasing.

    Original CME Drill Rig Models

    To begin to really understand the various CME drill rig models on the market today, it is imperative to start with some of the original CME model s – CME 45, CME 55 and CME 75. From there the easiest way to recognize the different drill rigs is to understand their numerical value increases in accordance with the size of the drill. Therefore, the CME 45 is the smallest drill, the CME 55 is the mid-sized drill, and the CME 75 is the larger drill in the CME family. CME also makes a CME 85 and CME 95 which are the grandiose models. Due to their size, these are not as common but still worth mentioning. Depending on buyer’s needs all of these original units are available in truck, track or skid mount.

    Rubber Tired CME ATV Drills

    CME also develops drill rigs with ATV rubber tires to accommodate customers seeking both speed and traction.  To distinguish these ATV drills from the original models, CME adds a trailing “0” to their model number. Examples include the CME 550 and CME 750. Furthermore, adding an “X” to the model indicates the unit has been updated and modernized. Modernized CME ATV drills like the CME 550X have enhanced drive systems which accommodates larger dual rear tires which reduces wearing.

    High Torque Drills from CME

    Customers in search of more rotation and power want to be on the lookout for CME drills with the two letter abbreviation “HT” which represents high torque.  High torque drills from CME have an enhanced drive line allowing operators to drill deeper and utilize larger augers. One of the most common drills to include this feature is the CME 75HT.

    Feed Systems on CME Drills Explained

    Another difference between CME drill rig model numbers is the use of “B” and “C” on CME 45 drill rigs which indicates the style of feed system. The CME 45B model features a feed system that is fixed in its vertical position. This can be viewed as a constraint since the height restricts the units overall clearance. The CME 45C was designed with a pivoting feed system allowing the entire system to decline to a horizontal position which many find beneficial for ease of transportation. One other benefit of the pivoting feed system is the capability to drill on an angle up to 45-degrees. Regardless of which feed system you choose you will have the ability to handle tools in and out, directly from the tower. Neither feed system is “better” than the other, but each has different uses and purposes to accommodate the variety of drilling obstacles encountered.

    Next time you’re browsing for a new or used CME drill rig for sale or rent you will be able to understand exactly what model, size and style drill rig you are looking for. As your trusted drill rig supplier, please give us a call at 630.365.1649 for more information on CME drill rigs. We are happy to discuss the models and help determine which drill rig is best suited for your needs.



  9. Changes to Pay Attention to in 2016

    February 5, 2016 by Savannah Adkins

    2016 Laws Expected to Affect Customers2016 marks a big year of change for laws that have potential to affect many of our drill rig and crawler carrier customers. New laws have gone into effect, and some previous laws are set to be enforced by the end of the year. As your trusted equipment supplier we analyzed these changes to determine how they could affect you. We want our customers to be fully informed so they can continue to make the best decisions and equipment purchases for their growing business.

    Section 179 – Bonus Depreciation

    First and foremost, are you aware of the latest changes to Section 179 tax deductions for equipment purchases? While Section 179 has been available in the past, the rules have changed. This year both the House and Senate passed “Protecting Americans from Tax Hikes Act of 2015” which permanently increased Section 179 tax deduction limits to $500,000, and extended 50% bonus depreciation through 2019. Prior to this law taking place, Section 179 was temporarily approved on an annual basis. The temporary re-approvals were nice, but they didn’t provide equipment buyers adequate time to complete equipment purchase transactions in time to qualify for the deduction. Therefore, the permanency of Section 179 is ideal for our drill rig and crawler carrier customers seeking to purchase equipment now and in the years to come. The new law gives buyers the time they need to plan and forecast equipment needs, shop for the right equipment, and feel confident the Section 179 tax deduction is going to be there for them.

    Oil Export Ban Lifted

    Forty years later, the US ban on oil exports has been lifted! This is exciting for our customers within the oil and gas and pipeline industries.  It is expected that this lifted ban will expedite a higher demand for the US to grow our oil transport infrastructure, and in return open up thousands of new job opportunities for industry members. Keep in mind environmental protection is still of utmost importance while we grow the US infrastructure so it is imperative for contractors to remain conscious of environmentally friendly practices while on jobsites. Taking action by utilizing heavy equipment like crawler carriers which are known for leaving behind some of the smallest environmental footprint is one way you can help protect the ecosystem.

    Tier 4 Emissions Standards

    The Environmental Protection Agency (EPA) introduced Tier 4 engine emission standards back in 2004, and has allowed a phase-in period for manufacturer compliance which is largely coming to an end in 2016. The purpose of the Tier 4 engine standards by the EPA is to reduce engine emissions in an effort to comply with stricter Clean Air Act guidelines. What you need to know as an equipment consumer is equipment already utilizing Tier 4 engines also comes with a heftier price tag. Additionally, Tier 4 engines may use different fuel which increases the amount of maintenance required to uphold the equipment. To date, many equipment manufacturers have already conformed to the new Tier 4 engine standards leaving it very difficult to come across Tier 3 equipment still in production.  However, there are some manufacturers like Terramac® who are still offer offering Tier 3 models through the remainder of 2016. Therefore, if you are looking to add to your equipment fleet, 2016 may be good year to do so in order to take advantage of Tier 3 options that will soon be no longer be available.

    *This is a brief overview of the laws that have potential to affect our customers this year. For more information regarding the details of these laws, please contact your local government agency and tax advisers.

    Sources:

    1. The Section 179 Deduction. (2016, January 1). Retrieved from http://www.section179.org/
    2. Speaker Ryan Press Office. (2015, December 15). Lifting the Oil Export Ban: By the Numbers. [Blog Post]. Retrieved from http://www.speaker.gov/general/lifting-oil-export-ban-numbers
    3. Associated Equipment Distributors. (n.d). Clean Diesel Technology For Off-Road Engines and Equipment: Tier 4 and More. Retrieved from http://www.aem.org/PDF/DTF_Tier4WP_FIN.pdf


  10. Core Drilling Rig Rental Fleet

    December 17, 2015 by Savannah Adkins

    As a leading core drill rig supplier for the mineral exploration market, we’ve seen firsthand how the market fluctuations are affecting you, and have adjusted our support to best suit your changing needs.

    Mineral exploration may be a volatile market right now, but don’t let that stop you from taking on core drilling jobs as they arise. It has been our experience that fluctuations in the core drilling market tend to run in cycles, but always find their way back to the top. There is a great deal of money to be made in the core drilling industry, but many core drillers must struggle through the industry lulls in order to experience the benefits of the markets booms.

    One of the most common grievances we’ve heard from our core drilling customers during periods when the core drilling market slows is the high cost associated with core drill rigs. To buy and adequately maintain a quality core drill rig for the varying projects won can be difficult when the frequency of incoming work is unknown. That said we’ve developed core drill rig rental options that are more cost effective for you in an unpredictable market.

    Core Drill Rigs for Rent

    With flexible rental terms available, we now offer Atlas Atlas Copco Core Drilling Rig RentalsCopco core drilling rigs for rent in two various sizes. The Atlas Copco CS1000 rig is the smaller of the two units, and is used for drilling depths up to 3,500 ft. while the larger, Atlas Copco CS14 unit will accommodate drilling depths up to 5,052 ft. Both drill rigs are equipped with PQ heads. (Various core drill rig tooling packages are also available from Rig Source.)

    *Depth capacity varies based on tooling selection.

    To find more information on our core drill rig rental units available, give Rig Source a call today at 630.365.1649.

     



Ask the Rig Source Team


Business Type:

Lead Source Detail:

CAPTCHA