Oct. 15–The Houston oilfield services company Nine Energy Service said Monday it is buying Magnum Oil Tools for nearly $500 million in a continuation of its recent growth spurt.
Nine, which went public earlier this year, said it’s acquiring Magnum of Corpus Christi for the high-quality equipment it manufactures for oil and gas wells. The equipment and technology advantages will help Nine compete in tight labor markets like in West Texas’ booming Permian Basin, the company said.
This is especially true with Magnum’s equipment that matches the industry’s practice of drilling and hydraulically fracturing, or fracking, longer horizontal wells with more fracking stages and more wells drilled per rig location, said Nine Chief Executive Ann Fox.
“The evolution of technology in the oil field demands a team with a demonstrated track record and ability to transform their offerings and think-forward. This particular team is exceptional,” Fox said.
The deal includes $334 million in cash and almost $160 million in stock.
Houston private equity firm SCF Partners created Nine Energy more than four years ago when it combined several of its oilfield services portfolio companies into a single entity to give Nine Energy a strong presence in Texas, North Dakota and Canada. The company has rapidly expanded and gone public since then.
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