By the OGJ Online Staff
HOUSTON, Apr. 25 -- Houston-based oil and gas contract driller Nabors Industries Inc. said Wednesday it would acquire integrated energy services company Enserco Energy Service Co. Inc., Calgary, in a deal worth $252 million plus $36.9 million (Can.) in assumed debt.
Nabors said it would offer $15.50 for each Enserco common share. The deal has been unanimously approved by Enserco's board and needs the approval of two thirds of the company's shareholders.
Nabors's worldwide land drilling portfolio includes 500 rigs and 740 land workover and well servicing rigs, which includes 52 in Canada. Its offshore equipment comprises 43 platform rigs, 16 jack ups, and 3 barge rigs in the Gulf of Mexico and elsewhere.
Enserco, though its Bonus Well Servicing and H&R Drilling units, operates 193 Canadian service rigs and 30 drilling rigs.
"Enserco's assets are relatively new, in excellent condition, and well suited for the increasingly important role that Canada is playing in the North American natural gas supply picture," said Gene Isenberg, Nabors chairman and CEO.
Reaction
Following the announcement, Standards & Poor's said Nabors's acquisition would not affect its credit ratings.
"The acquisition should strengthen Nabors's position in the Canadian drilling and well-servicing industries by adding 193 service rigs and 30 drilling rigs?," S&P said.
"Nabors's pro forma financial profile," S&P added, "could strengthen modestly in 2002 as the company is likely to generate $100 million to $300 million of free cash flow after capital expenditures, despite an expected severe North American industry downturn."