Keane,C&J Energy Merger Creates Services Behemoth

摘要

PRESSURE PUMPERS C&J Energy Services Inc.and Keane Group Inc.agreed on June 17 to combine in what analysts are calling a”true merger of equals.”In the all-stock transaction,valued at roughly $745.7 million,the merger is set to create the third-largest pressure pumper in the U.S.,better positioning the Houston-based companies to endure tough market conditions faced by the oilfield service sector.Among pressure pumpers in the U.S.,the merged companies will trail Halliburton Co.and Schlumberger Ltd.in terms of size,analysts with Tudor,Pickering,Holt & Co.(TPH)said.Jim Wickland,research analyst with Stephens Inc.,noted during an industry event in Houston earlier this year that the oilfield service index was”dead flat”in February compared to its position 15 years ago,in 2004.The challenged environment for oilfield service providers has led to calls for consolidation,and the C&J-Keane merger could be an indicator of consolidation heating up for the sector's pressure pumping industry,according to TPH.