Precision Drilling to Acquire CWC Energy Services for $141 Million
[Click image to enlarge]
Precision Drilling Corporation has entered into an agreement to acquire all of the issued and outstanding common shares of CWC Energy Services for total consideration of approximately $141 million, comprised of 947,909 Precision shares, valued at approximately $88 million as of September 1, 2023 market close, $14 million in cash, plus the assumption of CWC’s outstanding debt.
“This acquisition supports our high performance, high value strategy as it allows us to expand our service offering in both Canada and the U.S. with high-quality rigs and field personnel. With the expected synergies and by further leveraging our scale, we believe the transaction will be accretive to earnings and provide significant cash flow to drive shareholder returns and support our debt reduction strategy,” said Precision’s President and CEO, Kevin Neveu.
“I am excited to welcome the CWC employees to the Precision team,” added Neveu.
With this transaction, Precision adds to its fleet: 62 marketed service rigs in Canada, seven marketed drilling rigs in Canada, and 11 marketed drilling rigs in the U.S., including seven AC triple rigs. Currently, three of the Canadian drilling rigs and seven of the U.S. drilling rigs are actively working for customers.
Additional transaction highlights include:
• Well Positioned, High-Quality Assets: Well-maintained assets across Canada and the U.S. in
complementary geographic regions supported by skilled and experienced personnel and strong customer
relationships.
• Material Synergies: Precision expects to realize annual operating synergies of approximately $20 million once
CWC is fully integrated, and Precision has identified approximately $20 million of excess CWC real estate that it
expects to monetize post-transaction closing.
• Financially Beneficial: Precision expects the transaction to be accretive on a 2024 cash flow per share basis
and to support its ongoing deleveraging plan.
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.
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2023 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
