Helmerich & Payne agrees to acquire KCA Deutag

Helmerich & Payne has announced that it will acquire KCA Deutag for $1.9725 billion in cash. The transaction is expected to close prior to calendar 2024 year end, subject to customary closing conditions and regulatory approvals.

This increases H&P’s Middle East rig count from 12 rigs to 88 rigs, 71 of which are in Saudi Arabia, Oman and Kuwait.

KCA Deutag has a land drilling presence in the Middle East, additional operations in South America, Europe and Africa, and asset-light offshore management contract operations in the North Sea, Angola, Azerbaijan and Canada.

With an additional ~$5.5 billion contract backlog from KCA Deutag, H&P will have increased earnings visibility. On a combined company basis, the last-twelve months (LTM) Operating EBITDA is ~ $1.2 billion.

“Acquiring KCA Deutag gives H&P immediate scale in core Middle East markets in a way that would be challenging to replicate organically,” said President and CEO of H&P John Lindsay. “Furthermore, as there is very little geographic overlap, we view this transaction more than just acquiring assets, but rather acquiring operations with quality people.”

CEO of KCA Deutag, Joseph Elkhoury, also commented, “As a combined company, we will maintain our shared customer-centric approach and safety focus. We look forward to welcoming KCA Deutag to the H&P family and working together on a much larger scale.”