Select Oilfield Services M&A Transactions1,2
Kean Group to Merge with C&J Energy Services | Diversified Oilfield Services
- Keane Group and C&J Energy Services entered into a definitive agreement to combine in an all-stock merger of equals.
- Combined platform will increase diversification across geographies and services.
- Significant synergy opportunity with an estimated run-rate cost savings of ~$100 million.
- Robert Drummond of Keane will serve as President and Chief Executive Officer of the combined platform.
- Combined company’s new corporate name and ticker symbol to be announced prior to transaction closing in 4Q 2019.
Innovex Downhole Solutions Acquires Quick Connectors | Artificial Lift
- Innovex Downhole Solutions, a portfolio company of Intervale Capital, acquires Quick Connectors.
- Quick Connectors is a provider of artificial lift wellhead systems with a focus on ESP wellhead solutions, including a complete line of ESP hangers, ESP Adapters, and continuous fluid level monitoring systems & production BOP solutions.
- The acquisition of Quick Connectors further diversifies Innovex’s offering by expanding into the artificial lift market, one of the fastest growing segments within the broader energy services market.
- Adam Anderson, the current CEO of Innovex, will oversee the combined platform.
XRI acquires Fountain Quail Water Treatment | Water & Environmental Services
- XRI Holdings acquires the water treatment and recycling division of Fountain Quail Energy Services.
- Fountain Quail Water Treatment is a produced water treatment, recycling, and reuse business with operations throughout the Permian Basin, as well as other key producing basins across the U.S.
- Combined with XRI’s existing water midstream system, the acquisition will enhance XRI’s capabilities by adding comprehensive recycle and reuse capabilities for water used in advanced completion techniques in the Permian Basin.
Strategic M&A Activity1,2
Acquirers of OFS Assets by Volume
(total # of transactions)
- Strategic acquirers represented 75% of OFS M&A transaction volume in Q2 2019
- Strategic acquirers completed 9 transactions in Q2 2019, down slightly from 11 in Q2 2018 and remaining well below market peak of 34 transactions completed in Q1 2014
- Private equity buyers continue to show increased investment appetite for OFS assets, particularly for differentiated assets of scale
Note: Does not include add-on transactions or minority purchases
Annual Sub-Sector M&A Activity by Volume
(as a % of total transactions)
- The Keane and CJ Energy merger, combined with the acquisition appetites of KLX Energy and WaterBridge, support the market consolidation theme that is expected to continue to unfold in 2H2019
- Water & environmental assets continue to see significant interest from both strategic and private buyers seeking to add scale to current holdings
Note: Includes only major NAM and EUR transactions
Harris Williams (“HW”) Overview
Global Advisory Platform
- Founded in 1991
- 300+ professionals across eight offices globally
- 170+ closed transactions in the last 24 months
- 21st record year in 2018
- 10 industry groups
Energy, Power, & Infrastructure (“EPI”) Group
- 15 professionals based in Richmond, VA
- 15+ closed transactions in the last 24 months
Vertical Focus Areas
- Oilfield Services
- Energy Management
- Renewables and Distributed Energy
- Outsourced Utility Services
- Industrial and Infrastructure Services
- Engineering and Construction
- Environmental Services
- TIC & Integrity Services
Oilfield Services Focus Areas
- Artificial Lift & Production Optimization
- Completion & Production Chemicals
- Digital Oilfield
- Environmental Services
- Water Management
Provider of integrated software, data, and analytics solutions to the global energy industry
Leading provider of non-destructive testing and inspection services for oil and gas tubular products
Provider of specialized laboratory and field services to the upstream oil and gas industry
Provider of reinforced polymer tubing solutions for the upstream oil and gas industry
Independent wireline services provider with a presence in major oil and gas plays throughout the continental U.S.
Provider of comprehensive natural gas and oil production equipment and services, including, repair, testing, on-site support, and consulting
Provider of oil and gas optimization solutions for compression and vapor recovery applications
Provider of specialized plunger lift products and services that allow for uninterrupted production
Provider of cased hole wireline solutions, including logging, perforation, mechanical, plug, and abandonment services
Market leading provider of engineering and geomatics services for the oil and gas industry in Western Canada
Harris Williams has a broad range of industry expertise, which create powerful opportunities. Our clients benefit form our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries.
Industry Group Expertise
1. S&P CapIQ
The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: email@example.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.