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.
Public Market Observations1,2
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
Public OFS Valuation Multiples by Sector1
Select HW EPI Transactions
Harris Williams (“HW”) Overview
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