Through Rocket DrillCo (“DrillCo”), a wholly-owned subsidiary, Gradient owns five customized geothermal drilling rigs. Rig ownership provides a competitive advantage by allowing the Company to minimize drilling costs and ensure rig availability – two fundamental components of steam field development. In addition, ownership of Rocket DrillCo provides an ancillary revenue opportunity for the Company in the form of third-party contract drilling.
DrillCo provides Gradient with a stable, predictable platform for drilling its many geothermal projects and insulates it from the highly volatile costs and availability of drill rigs and crews. In addition, since the same crews drill with the same rigs in areas with consistent geology, crews gain important institutional knowledge. This experience reduces costs and the time required to complete wells while also creating a safer drilling environment.