Two oilfield service (OFS) companies, C&J Energy Services and Keane Group, have announced a “merger of equals” in which the two will combine into one with using an all-stock merger. Both C&J and Keane have operations in the Marcellus/Utica region. Both companies previously merged with or bought out other companies. This certainly seems to be a trend with OFS companies.
On Wednesday, C&J Energy Services, a smaller completion services company focused on the Permian and Eagle Ford Shale plays, announced they will merge into Nabors Industries, a completion and production company with operations in many on- and off-shore areas, including a major presence in the Marcellus Shale. The $2.86 billion deal will produce a new company using the C&J name but essentially owned by Nabors that will be in the top 5 fracking services companies in the U.S. They will compete with giants like Halliburton and Baker Hughes…
C&J Energy Services, an oil field services company providing hydraulic fracturing, coiled tubing and pressure pumping services to drillers, announced yesterday they have bought out another oil field services company—Casedhole Holdings—for $272.5 million in cash. Casedhole provides cased-hole wireline services including logging, perforating and pipe recovery.
C&J gets two things from the deal: A complimentary new set of services it can offer to its existing customers, and expansion into new territories where it currently does not operate, including the Marcellus and Utica Shale region.