* Combination would create a diversified oilfield services co.-medium
* Superior to pay $ 7 0.945 shares and cash, a premium 61 pct
* To add to EPS and cash flow per share superior, 2012
* The new entity will retain the name Superior
* Top shares 18 pct, finishing up 36 pct
By Vaishnavi Bala
10 Oct (Reuters)-Superior Energy Services Inc is to buy smaller rival integrated production services Inc in a very cash-and-stock for about $ 2.6 billion, the largest oilfield services, such as the company looks to pressure bulk extraction business.
Helped by continuing the fracking--where sand and chemical-laden water is pumped into wells for the recovery of oil-shale oil output increased from negligible before a few years at around 700,000 barrels per day in June, according to industry estimates.
"I am very excited for the fleet complete pumping pressure has built on that ... It is a fleet exceeding 670 hp (horse power) until the end of 2012, "Superior Chief Executive David Morton, said on a conference call with analysts.
The company expects customers in North America continue to migrate is rich in oil and liquid activities.
The company is based in New Orleans said pressure would be pumping about 25 percent of North American land forma revenue for the year at the end of June.
"The deal sensible strategic for more ... (It gives Superior) increased scale in North America, which the company will have, "Stephens Inc. analyst Michael Marino said, adding that complete pressure pumping services and coil tubing services services are attractive to superior.
Integrated production, which has been buying 1.61 billion dollars, has concentrated its activities in the construction of presence around the hydraulic fracturing in some of the most active river of drilling in North America, including the Haynesville, Marcellus, Bakken, Chapel Hill, Woodford and Barnett shales.
"Superior operating scale, you will receive better customer relationship, and the ability to serve customers more effectively," Tudor Pickering and Co analyst said Joe Hill.
Shares of Superior energy trading to 18 percent, while full shares of 33 percent was on Monday on the New York Stock Exchange.
REASONABLY IN TIMES CHAMILES?
Analysts said the deal was fairly low prices as the pressure in the service line pumping is one of the largest, an oilfield services company.
After completion, superior and complete shareholders are expected to own approximately 52 per cent and 48 per cent, respectively, of the outstanding shares of superior.
Superior said it expects the deal to add to earnings and cash flow per share in 2012, with the exception of transaction costs and integration.
Superior 0.945 shares and will pay $ 7 cash for each share full--or close 32.90 $ 61 per share, for the manufacture of premium.
Greenhill and Co advises superior. JP Morgan, who was also a financial adviser must be afforded a bridge financing commitment in relation to the sharing of the cash portion.
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