U.S.-headquartered rig technologies and drilling solutions player Helmerich & Payne (H&P) has wrapped up its business combination with KCA Deutag, the UK-based drilling, engineering, and technology services company.
The acquisition , which comes with a price tag of nearly $2 billion, is seen as a way to bolster the global onshore drilling position, enable a boost in rig count, and improve the combined company’s standing in America and the Middle East, which are described as the two most prominent oil and gas-producing regions in the world.
John Lindsay , President and CEO of H&P, commented: “We are excited to complete this transformative acquisition and welcome KCA Deutag’s talented employees to H&P. Today marks an important milestone for our company, customers and shareholders as we create an organization with an enhanced global footprint, exceptional service capability and superior technology offering. We are focused on ensuring a seamless transition and delivering on the strategic and financial benefits of the transaction.
“Over the past several months, team members across the company have been diligently working on the planning associated with this integration and providing excellent service to our customers. I am appreciative of and impressed by the entire team across our global operations for all of their hard work and commitment. I’d also like to thank KCA Deutag CEO Joseph Elkhoury for his support throughout this integration planning process and wish him the best in his future endeavors.”
With the acquisition of KCA Deutag, H&P expects to deliver near- and long-term growth and value creation by accelerating its international growth strategy and significantly bolstering its Middle East presence, enhancing scale and diversification, with “a robust geographic and operational mix” across U.S. and international crude oil and natural gas markets, and strengthening the company’s cash flow with a more diversified and durable revenue stream.
Moreover, the U.S. firm has confirmed that it will remain headquartered in Tulsa, Oklahoma, for the foreseeable future, with John Lindsay continuing to serve as President and CEO. On the other hand, Joseph Elkhoury , CEO of KCA Deutag, will not continue with H&P. With double-digit free cash flow accretion anticipated in 2025, the transaction returns are expected to exceed the cost of capital by 2026.
The acquisition comes shortly after KCA Deutag won multimillion-dollar drilling assignments and extensions across the Middle East, Africa, Latin America, and the UK.