Quail Tools, owned by Nabors, agrees to be acquired by Superior Energy Services for a value of $600 million.
Nabors Industries (NYSE: NBR), the global oil and gas drilling company, has announced the sale of its subsidiary Quail Tools to Superior Energy Services for $600M. The deal, which includes $375M in cash and a $250M seller note, is set to provide a significant boost to Nabors' finances.
Quail Tools, the leading rental provider of high-performance downhole tubulars in the Lower 48 states, boasts significant market positions in both onshore and offshore tubular running services. The sale is expected to result in a 25%-plus reduction in Nabors' net debt.
In addition, Nabors expects at least $50M in annual interest savings from the Quail Tools transaction. Upon full realization of the net proceeds from the sale, Nabors anticipates accelerating more than five years of anticipated free cash flow from the combined Parker Wellbore businesses.
Nabors Industries will retain the balance of the portfolio acquired earlier this year from Parker Wellbore, which includes tubular running services in the U.S. and Middle East, drilling rigs, and rig operations and management contracts.
The retained portfolio will continue to be a key part of Nabors' operations, providing a solid foundation for the company's future growth. Nabors Industries is deeply undervalued after an acquisition and investments in robotic drilling, and the sale of Quail Tools could potentially provide immense upside from the SANAD IPO.
In a related development, Superior Energy Services has announced its intention to acquire Quail Tools. However, the exact date of the planned acquisition is not specified in the provided search results. Once the acquisition is complete, Superior Energy Services will become the preferred supplier of rental drill pipe and related products to Nabors.
With the sale of Quail Tools and the anticipated financial benefits, Nabors Industries could turn the corner in 2026. Wednesday's trading saw a 16.5% increase in Nabors' stock price, reflecting investor optimism about the company's future prospects. The sale of Quail Tools marks a strategic move by Nabors to focus on its core drilling operations and position itself for long-term growth.
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