Oilfield Services Firm Nabors Industries to Buy Parker Wellbore

Nabors Industries on Tuesday agreed to buy drilling services provider Parker Wellbore as the oilfield services company aims to expand its global drilling business.

The company would acquire Parker Wellbore for 4.8 million shares of Nabors’ common stock, subject to a share price collar, and the assumption of net debt of about $100 million. As of Nabors’ last close, the 4.8 million shares translate to $372.1 million, as per Reuters calculation.Oilfield service providers are increasingly pursuing mergers and acquisitions, as they navigate operational and pricing challenges while catering to customers who have cut spending on new wells in favor of investor returns.

A collar refers to an options strategy to protect against significant losses amid short-term volatility in the market. However, this strategy can also limit potential profits.

The acquisition is expected to close in early 2025 and is estimated to be immediately add to Nabors’ free cash flow along with savings of $35 million.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Shailesh Kuber)