Contract driller Nabors Industries will acquire Houston-based Parker Wellbore in an all-stock transaction valued at around $370 million. The pair executed a definitive agreement whereby Nabors will purchase all of Parker’s issued and outstanding common shares in exchange for 4.8 million shares of Nabors common stock, subject to a share price collar.
The acquisition of Parker Wellbore will bolster Nabors Industries’ international footprint in areas like the UAE, India, and offshore Canada.
The transaction, which has been approved by the Nabors and Parker boards, also includes the assumption of net debt of $100 million. Nabors expects the transaction to close in early 2025, subject to customary closing conditions, as well as shareholder and regulatory approvals.
Through its Quail Tools subsidiary, Parker Wellbore is the leading rental provider of high-performance downhole tubulars in the US market. Internationally, Parker offers differentiated casing and tubular running services in the US, the Middle East, Latin America, and Asia. Its portfolio also includes a fleet of 17 drilling rigs in the US and international markets, as well as operations and maintenance services, primarily in Canada and Alaska.
“The acquisition of Parker expands our high margin, capex-light Nabors Drilling Solutions global business, while solidifying the geographical footprint of our international drilling rig business,” said Anthony Petrello, chairman, president, and CEO of Nabors. “With Parker’s resilient free cash flow and healthy capital structure, this acquisition also is expected to deliver profitable growth together with improved leverage metrics. Over the past five years, Parker has achieved an impressive record of increasing results, and we expect this expansion to continue.”
The deal adds a large-scale, high-performance tubular rental and repairs services operation to the Nabors portfolio. Growth in wellbore lateral lengths is a key driver to increasing demand for drillpipe, both in the US and in other important markets.
Parker’s casing running business complements Nabors’ own tubular services and affords the opportunity to migrate to Nabors’ integrated casing running model. Nabors expects this combination will establish the industry’s third-largest provider.
In 2024, roughly half of Parker’s revenue was derived from surface and tubular rentals, 13% from well construction, and 39% from drilling.
Nabors expects to realize up to $35 million of annualized expense synergies, with the majority achieved during the first 12 months post-closing. The primary savings include reductions in both duplicate overhead and operational expenses, as well as savings in procurement.
In addition, Nabors expects to combine its existing drillpipe rental operations in the US with Quail Tools, resulting in additional efficiency savings and revenue opportunities. Nabors also plans to leverage its global operations footprint to expand Parker’s international business.
