Precision Drilling Corporation announced that it has entered into an agreement to acquire all of the issued and outstanding common shares of CWC Energy Services Corp. for total consideration of approximately $141 million.
CWC Energy Services is a premier contract drilling and well servicing company operating in Canada and the United States.
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; and
• 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, based in Calgary, 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.
(Source and image: Precision Drilling)