Precision Drilling Completes $127 Million Acquisition of CWC Energy Services
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Precision Drilling Corporation has completed its acquisition of CWC Energy Services. The total consideration for CWC included 947,807 precision common shares, approximately $14 million in cash, plus the assumption of CWC’s net debt of approximately $38 million, excluding transaction costs. The total transaction value for CWC was approximately $127 million on November 7, 2023.
With the acquisition completed, Precision will begin integrating the two companies, which includes delivering approximately $20 million in expected annual operating synergies and monetizing approximately $20 million from planned excess real estate sales. Including CWC’s rigs, Precision now has 72 active service rigs in Canada, 73 active drilling rigs in Canada, and 51 active drilling rigs in the U.S.
“We are pleased to have completed this strategic acquisition, which positions Precision as the premier well service provider in Canada and enhances our drilling operations in both Canada and the U.S. With the projected synergies, we expect the transaction to be accretive on a 2024 cash flow per share basis and to support our ongoing deleveraging plan,” said Precision’s President and CEO, Kevin Neveu.
“I am excited to welcome the CWC employees to the Precision team,” added Neveu.
Precision Drilling is a leading provider of safe and environmentally responsible high performance, high value services to the energy industry, offering customers access to an extensive fleet of super series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.
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