Hunting Plc, the international energy services group, has completed the acquisition of Enpro Subsea Ltd. on Feb. 21 for a total consideration of $33 million payable on completion, plus a potential maximum earn out of $3 million based on EBITDA performance in 2020.
The consideration payable is on a cash-free-debt-free basis and payable in cash and has been funded from Hunting’s existing cash resources. Enpro is being acquired from members of the Enpro management team and Energy Ventures Private Equity.
Enpro was founded in 2011 and since this time has developed leading subsea production technology that has been adopted by offshore operators within the global oil and gas industry. Enpro’s products focus on delivering production enhancing technologies and include flow access modules, flow intervention services and decommissioning. These products offer low cost, flexible field development solutions to clients including production and intervention modules to enhance recovery from oil and gas wells. The flow access module technology supports the use of standard subsea SPS hardware leading to shorter development timescales and quicker production of hydrocarbons.
Enpro’s products are protected by patents that focus on the application and methods of incorporating these products into the subsea system. To date, over 70 Enpro applications have been adopted in the North Sea, the Gulf of Mexico and West Africa.
Enpro’s business model is focused on technology and product development, with all manufacturing outsourced to third parties. It is the intention to bring much of this manufacturing in-house and utilize Hunting’s existing global manufacturing platform to commercialize further the technology across all of the group’s key regional operating hubs. In addition, Hunting’s broad customer base offers significant opportunities to extend Enpro’s current market reach.
Enpro’s head office is in Aberdeen, U.K., with subsidiaries in Ghana, Norway and the U.S. The business currently has a headcount of 40 personnel and it is anticipated that the senior management team will continue with Hunting.
Based on UK GAAP, in the year ended December 2019 Enpro generated revenue of $14.1 million and EBITDA of $3.4 million. And, Enpro had net assets of approximately $9.4 million, gross assets of $14.5 million and an order book of approximately $11 million.
Hunting PLC will be announcing its 2019 full year results, as planned, on February 27, 2020.
“The acquisition of Enpro further strengthens Hunting's subsea offering and adds a high technology product group to our portfolio. The offshore market continues to strengthen and we look forward to providing a wider technology offering to our customers who continue to seek lower cost, enhanced production and more efficient solutions to the production of oil and gas,” Jim Johnson, CEO of Hunting, said.
Recommended Reading
Alberta Offers to Work with Trudeau on Carbon Capture with Conditions
2023-02-17 - Alberta Premier Danielle Smith agreed to work with Prime Minister Justin Trudeau on carbon capture regulations on the condition that Alberta is consulted before passing legislation or policies impacting the oil and gas sector.
German Heating Can't Be Made 100% Electric, Suppliers Say
2023-03-09 - German lawmakers must be flexible on options to cut the sector's carbon footprint because banning oil and gas too soon would be technically and financially unrealistic, German heating system suppliers say.
Emissions Management: The New ‘E’ for E&P
2023-01-24 - Emissions management strategies are having a greater influence on E&P profitability, according to Enverus.
Citi Pledges to Cut Emissions for More Sectors Including Coal Mining
2023-03-02 - Citi's targets targets for cutting emissions include a pledge to cut the absolute emissions from lending to thermal coal mining by 90% from a 2021 baseline.
Top ESG Trends in Q1 2023: Data is Everything
2023-01-25 - Pickering Energy Partners predicts an increased importance placed on providing and analyzing ESG-related data in the first quarter of 2023.