Nabors Industries Ltd. announced the sale of its subsidiary, Quail Tools, to Superior Energy Services for $600 million.
The transaction includes a cash consideration of $375 million and a seller note of $250 million.
The sale is expected to reduce Nabors' net debt by more than 25%.
Superior Energy Services will become the preferred supplier of rental drill pipe and related products to Nabors.
Transaction Details
Sale of Quail Tools to Superior Energy Services for $600 million with cash and seller note components.
Financial Impact
Anticipated reduction in net debt by more than 25% and annual interest savings exceeding $50 million for Nabors.
Strategic Partnership
Superior Energy Services to be the preferred supplier of rental tubulars to Nabors, enhancing market position.
- The sale of Quail Tools is expected to strengthen Nabors' balance sheet by reducing net debt by $625 million.
- The retained businesses from the Parker acquisition are projected to generate significant positive cash flow and contribute to the company's financial flexibility.
- Full realization of the sale proceeds will accelerate over five years of anticipated free cash flow for Nabors.
The strategic sale of Quail Tools to Superior Energy Services marks a significant step for Nabors Industries Ltd. in improving its financial position and focusing on core operations. The transaction is expected to enhance profitability and drive long-term value for the company.