Helmerich & Payne Announces Agreement To Acquire KCA Deutag For $1.9725B In Cash
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Helmerich & Payne (NYSE: HP) has announced an agreement to acquire KCA Deutag for $1.9725 billion in cash. This acquisition will establish H&P as a global leader in onshore drilling, enhance its scale and diversification, and increase its rig count in the Middle East from 12 to 88. The deal is expected to be immediately accretive to cash flow and free cash flow per share, and H&P aims to maintain its high-quality investment grade credit rating.
July 25, 2024 | 12:19 pm
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Helmerich & Payne (NYSE: HP) has announced an agreement to acquire KCA Deutag for $1.9725 billion in cash. This acquisition will establish H&P as a global leader in onshore drilling, enhance its scale and diversification, and increase its rig count in the Middle East from 12 to 88. The deal is expected to be immediately accretive to cash flow and free cash flow per share, and H&P aims to maintain its high-quality investment grade credit rating.
The acquisition of KCA Deutag significantly enhances H&P's market position in the onshore drilling sector, particularly in the Middle East. The deal is expected to be immediately accretive to cash flow and free cash flow per share, which is positive for investors. Additionally, maintaining a high-quality investment grade credit rating suggests financial stability post-acquisition.
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