US Drilling Companies Announce Merger Agreement
Independence Contract Drilling Inc. and Sidewinder Drilling LLC have announced that they have entered into a definitive merger agreement, pursuant to which Independence will acquire all of the outstanding equity interests in Sidewinder.
“The merger will combine two highly complementary pad-optimal drilling fleets and operations focused in the Permian Basin, Haynesville region and other basins in Texas and its contiguous states,” a statement published on Independence’s website said.
The transaction, which is subject to customary regulatory approvals, is expected to close early in the fourth quarter of 2018. The merger agreement and merger have been unanimously approved by the boards of directors of both companies and have received the requisite approval of the unitholders of Sidewinder.
"The benefits to Independence Contract Drilling of this combination are significant and the industrial and geographic fit is obvious,” Byron Dunn, president and chief executive officer of Independence, said in a company statement.
“We expect to gain significant size and scale, expand growth opportunities and realize significant synergies,” he added.
Anthony Gallegos, president and chief executive officer of Sidewinder, said the company was excited to align itself with Independence Contract Drilling.
“Not only are our fleets and operations complementary, but we share a common focus and commitment to safety, operational excellence and customer service,” Gallegos said in a company statement.
“Through the combination of our operations and premier assets strategically located in North America's most active basins, I believe we have compelling opportunities for operational synergies and growth as well as career advancement for the employees of both companies,” he added.
Independence describes itself as a premium land drilling services provider. The Houston-based company was formed in 2011. Sidewinder is also Houston-based and was also formed in 2011.
Independence recorded operating revenues of $25.6 million in the first quarter of 2018. This compared to $25 million in the fourth quarter of 2017 and $20.2 million in the first quarter of 2017. The company recorded a net loss of $4.1 million in the first quarter of this year.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.