C&J Energy and Keane to Merge in $1.8B Deal
Houston-based oilfield services companies C&J Energy Services and Keane Group, Inc. plan to merge in an all-stock deal valued at about $1.8 billion, including $255 million of debt, the companies announced Monday.
Under the terms of the merger agreement, C&J shareholders will receive 1.6149 shares of Keane common stock for each share of C&J common stock owned.
Both companies focus on well completions for oil and gas companies, and upon closing, the combined company will have 2.3 million hydraulic fracturing horsepower (HHP) including 50 frac fleets, 158 wireline trucks, 81 pumpdown units, 28 coiled tubing units 139 cementing units and 364 workover rigs.
In addition, the combined entity will have an expanded footprint in active U.S. basins, such as the Permian, Marcellus/Utica, Eagle Ford, Rockies/Bakken, Mid-Continent and California.
“With two strong teams, enhanced and diversified operations, a strong balance sheet, ample liquidity, attractive free cash flow and a legacy of successful R&D, the combined company will be well positioned to further invest in technology and innovation, as well as the career development of our employees to drive sustainable growth in our dynamic industry,” Keane CEO Robert Drummond said in a company release. “In C&J, we’ve found a partner who is equally committed to our strong employee culture with a focus on safety and customers, with whom we are eager to join forces to leverage our combined resources and strengths.”
C&J CEO Don Gawick added, “This agreement to merge C&J and Keane underscores the highly complementary nature of our two platforms and cultures…we are excited by the many strategic and financial benefits of this combination, including the opportunities for our employees from the greater scale and enhanced capabilities of the combined company.”
Drummond will serve as president and CEO of the combined company while Jan Kees van Gaalen, chief financial officer of C&J, will serve as executive vice president and chief financial officer and Gregory Powell, president and chief financial officer of Keane will serve as executive vice president and chief integration officer.
The merger is expected to close in the fourth quarter of 2019.
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