Kilgore’s new to McClung Energy Services: the company had no facilities here to speak of when the search began for a new home.
“This is a great place going back to the foundation of oil and gas. And it’s something we take to heart,” says general manager Chad Roberts. Relocating from the longtime, Longview-based headquarters near East Texas Regional Airport, “Demand has outpaced that facility, so we needed to expand into something much larger … We officially moved in about three weeks ago.”
McClung took over the former Archrock property at 2019 State Hwy. 135 N. There’s ample room to grow, Roberts said, with plenty of space for office personnel and production employees.
“We are already moved in fully,” he confirmed Tuesday. “This Kilgore facility we purchased and then remodeled really gives us the ability to triple our output.
“We plan for Kilgore, Texas, to be the headquarters of our business for the foreseeable future.”
Initially a one- and two-person operation, founder Odis McClung established the company in 2002 on Johnny Clark Road in Longview.
Focused on gas compression manufacturing, the company builds compressors for the oil-and-gas market per customer specs and McClung engineers’ designs. The majority of the equipment is primarily used in the field for artificial gas lift – taking natural gas, pressuring it up and injecting it into a well.
“It assists in lifting the crude from the well,” Roberts said. “It’s another way to recover oil, only we’re re-injecting gas that naturally comes out of that well to begin with, most of the time, and getting underneath that crude and lifting for extraction.”
Putting down roots in Kilgore netted a five-year agreement with Kilgore Economic Development Corporation.
According to KEDC Executive Director Amanda Nobles, the expansion deal includes two local incentives, which will be paid out over the life of the Jan. 15 agreement, carrying through 2023. One is a $50,000 incentive for real and personal property improvements to the Hwy. 135 facility.
For a $33,000 incentive the relocated operation will retain 29 jobs and add 33 new positions over the course of the five-year arrangement.
That time-span was based on sustainable numbers, Roberts noted. Growing the workforce is not going to take that long at the current rate.
“Right now, we are up closer to 50 employees already. The majority of that hiring has occurred over here in Kilgore within the past six weeks,” he said. “We are still looking to add an additional 20 to 30 percent to that."