Superior Energy Services Attacks Schlumberger, Halliburton and Baker Hughes
Superior Energy Services Inc (NYSE:SPN), an oil-field services provider, has reached agreement on a deal to acquire competitor Complete Production Services (NYSE:CPX) for $2.7 billion in a cash-and-stock deal.
The amount comprises a cash payment of $7 per share and 0.945 shares of Superior’s stock for each share of Complete, which translates to a 61% premium over where its stock traded Friday. About $650 million of Complete’s outstanding debt would also be assumed by Superior. The deal will create a new formidable competitor to the Big Four oil service providers (NYSE:OIH): Schlumberger (NYSE:SLB), Halliburton (NYSE:HAL), Baker Hughes (NYSE:BHI) and Weatherford (NYSE:WFT).
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The acquisition is significant, coming in a recessionary environment with falling energy (NYSE:XLE) prices.
SPN (NYSE:SPN) is trading at $22.98 today, down 16.16%. Shares are up 2.28% in one year. The stock’s trading range for the year is between $22.25 and $42.87.
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