Nabors Industries, a provider of technology for the energy sector, has acquired Parker Wellbore, an advanced subsurface wellbore construction solution.
This strategic move is expected to enhance Nabors’ capabilities in drilling and related services, as well as expand its market reach.
Parker Wellbore’s portfolio, including Quail Tools, a rental provider of high-performance downhole tubulars in the US Lower 48 and Offshore markets, is now part of Nabors’ offerings.
Quail also delivers similar rental services in international markets, with Parker holding significant market positions in onshore and offshore tubular running services across the US, the Middle East, Latin America and Asia.
Parker’s contract drilling services encompass land and barge rigs, in addition to operations and maintenance services.
Nabors chairman, president and CEO Anthony Petrello commented: “With the successful completion of the Parker transaction, we are accelerating the growth of our Drilling Solutions business across several important markets, while bolstering our global drilling business. We are excited to welcome a strong and talented organisation to the Nabors team.
“Our customers will benefit from the best practices that both organisations employ, and we expect to create incremental value for them by combining our offerings. Our immediate priority is to ensure seamless integration, and to capture the synergies we have projected.”
Nabors anticipates significant strategic and financial gains from the acquisition, including a stronger Drilling Solutions business, expanded market reach and immediate free cash flow growth.
Nabors expects the Parker business to contribute an annualised adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of approximately $150m by 2025, before accounting for expense synergies.
These synergies are projected to reach $40m by the end of 2025, with post-closing capital expenses for the same year estimated at $70m.
Parker president and CEO Sandy Esslemont added: “I would like to thank both teams for their dedication to the integration planning process, while maintaining outstanding customer service.”
