(Source: Shutterstock.com)
Oilfield services provider RPC Inc. is expanding its cementing business with an acquisition of Spinnaker Oilwell Services LLC.
Atlanta-based RPC paid $79.5 million in exchange for 100% of Spinnaker’s equity. The purchase price included $77 million in cash, the assumption of $500,000 of capital lease liabilities and a $2 million payoff, the companies announced June 30.
Oklahoma City-based Spinnaker maintains 18 full-service cementing spreads spread across the Permian Basin and the Midcontinent. The company operates two facilities in El Reno, Oklahoma, and in Hobbs, New Mexico.
“The acquisition of Spinnaker will significantly expand RPC's cementing business from its presence in South Texas to basins in which we currently provide other services,” said RPC President and CEO Ben M. Palmer in a news release. “We are impressed with Spinnaker's management team, talented workforce and the quality of its operations, and plan to continue operating under the Spinnaker name.”
The majority of RPC’s business focuses on services to customers during the completion stage of a well, and more than 85% of the company’s revenues are directed toward unconventional completions, according to investor materials.
Arnall Golden Gregory LLP served as legal counsel to RPC in connection with the deal. Spinnaker was represented by FMI Capital Advisors Inc. as financial adviser, and Locke Lord LLP acted as legal counsel.
The deal between RPC and Spinnaker follows other recent consolidation in the oilfield services sector:
Earlier this month, Patterson-UTI Energy Inc. and NexTier Oilfield Solutions Inc. agreed to combine to create a $5.4 billion oilfield services giant. The combined company will have a fleet of 172 super-spec drilling rigs, 45 active frac fleets (33 NexTier, 12 Patterson-UTI) and directional drilling services.
RELATED: Exclusive Q&A: Patterson-UTI, NexTier CEOs Talk Merger, Shale Dominance
Earlier this year, Liberty Energy Inc. acquired Permian Basin-focused natural gas compression and CNG delivery company Siren Energy in a $78 million deal. And Cavitation Technologies Inc. announced plans to acquire Eagle Ford Silica Sand LLC and its assets near San Antonio, Texas, in a $20 million deal.
Recommended Reading
SM Energy Adds Petroleum Engineer Ashwin Venkatraman to Board
2024-12-04 - SM Energy Co. has appointed Ashwin Venkatraman to its board of directors as an independent director and member of the audit committee.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
NOV Appoints Former Denbury CEO Chris Kendall to Board
2024-12-16 - NOV Inc. appointed former Denbury CEO Chris Kendall to its board, which has expanded to 11 directors.
Geologist James Parr Joins Ring as EVP of Exploration, Geosciences
2024-11-26 - James Parr joins Ring Energy with over 30 years of experience as a petroleum geologist and leader in multiple energy organizations.
Utica Oil E&P Infinity Natural Resources Latest to File for IPO
2024-10-05 - Utica Shale E&P Infinity Natural Resources has not yet set a price or disclosed the number of shares it intends to offer.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.