By the end of 2015, C&J Energy Services plans on becoming the third largest oilfield services company after its merger with Nabors Industries Ltd.
C&J’s founder, chairman, and CEO, Josh Comstock, said the merger with Nabors, coupled with the merger of Halliburton and Baker Hughes, will make C&J the direct beneficiary. Both deals are expected to quickly make C&J the third largest onshore oilfield services company in the city. C&J will fall behind Halliburton and Schlumberger. Weatherford International Ltd. falls behind C&J in fourth place.
Comstock commented on C&J out ranking Weatherford:
Weatherford, at the same time, is selling off business segments and becoming a much smaller entity. We think we’ll rapidly surpass Weatherford via our growth and their shrinking … Those paths will cross, most likely early next year, and then that would put us in No. 4. Then when Halliburton-Baker closes, which they’re targeting mid-2015, that would put us at No. 3.
In C&J’s merger with Nabors, the company will be paying $940 million in cash and offering 62.5 million common shares in new C&J stock. Originally valued at $2.86 billion in June when it was first announced, Comstock said the acquisition is now only costing the company about $2.1 billion due to stock prices lowering along with oil prices.
According to Comstock, the deal is expected to close by the end of the year, but may go into January.
To read the full article regarding C&J energy becoming the third largest oilfield services company in the industry by Jordan Blum of the Houston Business Journal, click here.