Nabors Industries Announces Agreement To Acquire Parker Wellbore In Exchange For 4.8M Shares Of Nabors Common Stock, And The Assumption Of Net Debt Totaling ~$100M; Adjusted EBITDA For The First 6-Months Of 2024 Totaled $527M. For FY24, Parker Expects To Generate EBITDA Of $180M
Nabors Industries Ltd. ("Nabors") (NYSE:NBR) and Parker Wellbore ("Parker") today announced a definitive agreement under which Nabors will acquire all of Parker's issued and outstanding common shares in exchange for 4.8 million shares of Nabors common stock, subject to a share price collar.
Parker provides drilling services across global energy markets. Through its Quail Tools subsidiary, Parker is the leading rental provider of high-performance downhole tubulars in the U.S. market. Internationally, Parker provides tubular rentals and repair services, with state-of-the-art facilities located in key geographies. Parker offers differentiated, casing and tubular running services in the U.S., the Middle East, Latin America, and Asia. Its portfolio also includes a fleet of 17 drilling rigs in the U.S. and international markets, as well as Operations & Maintenance services primarily in Canada and Alaska.
Anthony Petrello, Chairman, President & CEO of Nabors, commented, "This transaction brings together two of the storied names in our industry. The acquisition of Parker expands our high margin, capex-light Nabors Drilling Solutions global business, while solidifying the geographical footprint of our international drilling rig business. With Parker's resilient free cash flow and healthy capital structure, this acquisition also is expected to deliver profitable growth together with improved leverage metrics.
Enhances scale and improves leverage metrics
On a combined company basis, adjusted EBITDA for the first six months of 2024 totaled $527 million. For the full year 2024, Parker expects to generate EBITDA of $180 million. With meaningful incremental EBITDA and only $100 million in additional net debt, the transaction is projected to improve Nabors' leverage metrics.
