Patterson-UTI Energy Inc. (NASDAQ: PTEN) said Sept. 14 it will expand its portfolio with the acquisition of a Calgary, Alberta-based drilling technology company.
Houston-based Patterson-UTI said it entered an agreement to acquire Warrior Rig Ltd. and certain related entities for an undisclosed amount. The transaction is subject to customary closing conditions, and is expected to close promptly.
Warrior designs, manufactures and services high-spec rig components with a recent focus on top drive technology for improved drilling performance, the release said. The company also has operations in the U.S. with an office in Oklahoma City.
RBC Capital Markets estimates Patterson-UTI paid less than $20 million for Warrior with the "vast majority" coming in the form of stock.
"We see this as a move by PTEN to ultimately utilize Warrior's drilling systems on its own rigs to enhance drilling efficiency and ultimately to reduce repair and maintenance costs," RBC said in a Sept. 14 note.
Warrior is comparable to Canrig Drilling Technology Ltd., which is owned by Nabors Industries Ltd. (NYSE: NBR), RBC added.
"This acquisition will enhance our competitive position within the high-spec rig market and expand our technology portfolio," Andy Hendricks, Patterson-UTI's CEO, said in a statement. "We are very excited by the innovative technology that Warrior offers, and we look forward to welcoming the highly talented group of people from Warrior into the Patterson-UTI family."
Patterson-UTI operates land-based drilling rigs in the U.S. and western Canada. The company also provides pressure pumping services primarily in Texas and the Appalachian region.
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