Precision Drilling Bolsters Service Offering Via Acquisition Of CWC Energy Services For C$141M
Portfolio Pulse from Lekha Gupta
Precision Drilling Corp (NYSE:PDS) has agreed to acquire CWC Energy Services Corp for approximately C$141 million. The deal includes 947,909 PDS shares valued at C$88 million, C$14 million in cash, and the assumption of CWC's outstanding debt. The acquisition is expected to add 62 service rigs in Canada and 11 in the U.S. to PDS's fleet. The transaction is expected to be completed in Q4 FY23 and is anticipated to be accretive on a 2024 cash flow per share basis.
September 07, 2023 | 12:20 pm
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POSITIVE IMPACT
Precision Drilling's acquisition of CWC Energy Services is expected to enhance its service offering and contribute to its cash flow per share in 2024. The company also plans to reduce its debt by C$150 million in 2023 and C$500 million from 2022-2025.
The acquisition of CWC Energy Services is expected to enhance Precision Drilling's service offering and add to its fleet of service rigs. This could potentially increase the company's market share and revenues. Furthermore, the deal is expected to be accretive to the company's cash flow per share in 2024, which could make the stock more attractive to investors. The company's plan to reduce its debt could also improve its financial health and potentially boost its stock price.
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