Helmerich & Payne, Inc. HP, a global leader in drilling solutions, recently announced that it has completed the acquisition of KCA Deutag International Limited. The transformative move will solidify HP’s position as a global leader in onshore drilling. The company is excited to close the deal successfully and create a transformed organization in the future with an enhanced global footprint, exceptional service capability and superior technology offering.
Currently, the company wants to focus on a seamless transition, which will help it deliver strategic and financial benefits of the transaction. The integration process, meticulously planned by HP’s global teams over the past several months, ensured seamless service delivery and operational excellence.
The acquisition will provide HP with a robust geographic mix, which will accelerate its international growth strategy by increasing its presence in the Middle East. The acquisition will diversify HP’s portfolio across the U.S. and international crude oil and natural gas markets, providing it with an operational scale. The diversified revenue stream will further bolster the company’s cash flow.
HP had originally entered into the acquisition agreement in July 2024 for a consideration of $1.97 billion in cash. Although the agreement was approved by the board of directors of the company, it was held for regulatory approvals and some customary closing conditions. The strategic deal was expected to generate about $25 million in synergies by 2026.
HP is expected to continue its operations from its Oklahoma headquarters with John Lindsay serving as president and CEO. The company envisions near- and long-term growth driven by this acquisition and expects to offer better drilling services driven by enhanced technological solutions and a broader reach.
Oklahoma-based Helmerich & Payne is engaged in the contract drilling of oil and gas wells in the U.S. and internationally. Currently, HP has a Zacks Rank #3 (Hold).
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Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.
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