Precision Drilling ( NYSE: PDS ) said Monday it agreed to acquire the well servicing business and associated rentals assets of High Arctic Energy Services for $38.2M in cash.
Precision ( PDS ) said the deal adds a fleet of 80 service rigs (51 marketed, 29 inactive) to its Canadian well servicing operation, raising its marketed fleet to 134 service rigs that represents ~20% of Canadian industry well service activity.
The company said the deal provides accretive earnings and significant cash generation potential supporting its debt-reduction strategy and respective short-term and long-term debt reduction targets of $75M in 2022 and $400M by 2025.
Precision Drilling ( PDS ) faces some secular headwinds which likely will return to the forefront whenever Russia's war in Ukraine ends, Aristofanis Papadatos wrote in a bearish analysis published earlier this year on Seeking Alpha .
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Precision Drilling to buy High Arctic's well servicing, rentals units in $38M deal