Superior Energy Services, Inc. and Complete Production Services, Inc. are in line for a merger that will create a new giant in the expanding field of oilfield services, notably in North America’s emerging “unconventional” natural gas sectors. Directors of both companies have approved the combination, which is based on cash and common stock and will leave Superior investors with 52% of the new entity. Complete shareholders will hold 48%, in what is calculated as a $6.2-billion deal.
New Orleans-based Superior is a global supplier of the oil-and-gas drilling and production products, including branded tool rental, well intervention services and tools, and design engineering.
Complete is a Houston-based oilfield services provider that specializes in the completion and production phases of oil and gas wells. The company is particularly focused on “unconventional oil and gas plays in North America,” e.g., shale oil, tight gas, and coal-bed methane.
Superior president and CEO David Dunlap emphasized the new company would have the products, technologies, and talent to create value for customers in those areas of the market.
"Together we will have enhanced positions in large sectors for key products and services that are high in usage intensity and deemed critical by our customers during their drilling, completion and production processes. Some of these products and services include hydraulic fracturing and other pressure pumping services, coiled tubing, well servicing, snubbing, and wireline, in addition to fluid handling and production testing,” Dunlap detailed.
He said an important advantage of the merger will be to increase the group’s range of products and services while maintaining a diversified revenue base, citing Complete’s hydraulic fracturing services and coiled tubing operations as examples.
Complete chairman and CEO Joe Winkler said the consolidated company “will possess the scale and offer the range of services necessary to compete successfully on the global stage."