Allied Equipment Inc.

Issue Winter 14


There are many companies out there that serve the oil and gas processing industry, but Allied Equipment Inc. strives to distinguish itself not only by its level of service, but also the comprehensive amount of services it provides. With nearly 30 years of experience in the industry, the company has become known as a leader in the design, manufacture and installation of modular gas-treating and gas-processing facilities.

“We do the design, engineering, manufacturing and we install it and operate it,” Vice President Jayson Feltner says. “As soon as our clients know the composition of the gas in the ground, we can take it from there and get it into the pipeline so they can generate revenue.”

Based in Odessa, Texas, Allied Equipment was formed in 1987, and after 10 years of serving the oil and gas industry, in 1994 the company expanded to also serve the alternative fuels market. It began building equipment for compressed natural gas (CNG) and hydrogen refueling stations, and its lean manufacturing process has made Allied the nation’s largest manufacturer of storage spheres for CNG refueling stations.

The company also manufactures ASME code pressure vessels and is authorized by ASME to manufacture vessels under U and U2 regulations. Allied Equipment is registered with the National Board of Boiler and Pressure Vessel Inspectors under NBBI R stamp regulations.

“We also own a midstream company and have operating assets,” Feltner says. “We know this industry, and we can help clients go from the well site to putting gas into a pipeline. We will continue to horizontally integrate so we can do more in-house. We’ve been building gas plants since the ’80s and the level of integration that we have is semi-new to us and very unique to the industry. That is the value we provide.”

The Next Step
The industry is responding well to Allied Equipment’s ongoing integration of in-house capabilities, resulting in the company’s expansion with more office space and staff. On the construction side, Feltner explains, Allied Equipment is providing construction and installation of its own and other’s equipment. It also is providing groundwork by installing piping and electrical systems, and helping clients get their facilities operational.

“We engineer much of the equipment and provide construction of the entire facility, then install the equipment and help them start operation,” he says. “Our next step is to move to building the entire facility and then integrate our products, our engineering team and our project management team.”

Allied Equipment is seeing more customers make larger investments in facilities and infrastructure because the gas market is showing long-term strength. Allied is expanding to help its customers make these investments; partnering with clients to create large-scale solutions that will last for decades. This is important, Feltner says, because clients want to work with companies they can trust on major investments such as these.

The company will continue to focus on its home base of Texas, especially in the Eagle Ford Shale. This is right in Allied’s backyard, Feltner says, so there are many local opportunities with producers with which Allied has worked for years.

“It’s our wherewithal – we’ve been here, we’ve accomplished much and we’ve been active in this industry for a long time,” he says. “We know the ups and downs of the market, and we know what our customers are looking for in each. We’ve been here for a long time – we didn’t just show up to make a quick buck. We have the knowhow to do the job right and are seen as a thought leader in the industry.”


Allied Equipment Inc.