Key Energy Services to Acquire Edge Oilfield and Summit Oilfield - Key Energy Services’ Move to Expand Service Offerings in Shale Market - Deal Analysis from GlobalData

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Key Energy Services to Acquire Edge Oilfield and Summit Oilfield - Key Energy Services’ Move to Expand Service Offerings in Shale Market - Deal Analysis from GlobalData Powered By Docstoc
					              Key Energy Services to Acquire Edge Oilfield and Summit
               Oilfield - Key Energy Services’ Move to Expand Service
              Offerings in Shale Market - Deal Analysis from GlobalData
        Reference Code: GDGE0315M&A                                                                                                             Publication Date: July 2011


        1          Table of Contents
        1 Table of Contents.................................................................1
         1.1 List of Tables .................................................................1
         1.2 List of Figures ................................................................1
        2 Key Energy Services to Acquire Edge Oilfield and Summit
          Oilfield ..................................................................................2
         2.1 Deal Overview ...............................................................2
         2.2 Deal in Brief ...................................................................2
         2.3 Key Energy Acquires Edge Oilfield and Summit Oilfield
               to Expand into Shale Drilling Products ..........................2
         2.4 Key Energy is Pursuing Inorganic Growth Strategy.......3
         2.5 Deal Financials and Valuations .....................................4
        3 Appendix ..............................................................................5
         3.1 Methodology ..................................................................5
         3.2 Contact Us.....................................................................6
         3.3 Disclaimer......................................................................6



        1.1       List of Tables
        Table 1:  Key Energy, Asset Transactions, Acquisitions and
                   Partnership Details, 2009–2011(July).......................4
        Table 2: Companies Involved ....................................................4
        Table 3: Deal Financials ............................................................4
        Table 4: Advisor Information ......................................................4
        Table 5: Target Information .......................................................4
        Table 6: Target Information .......................................................5
        Table 7: Acquirer Information ....................................................5



        1.2       List of Figures
        Figure 1: Key Energy Services, Operations Map ......................3




                                                                                                                                              GDGE0315M&A /Published JUL 2011
Key Energy Services to Acquire Edge Oilfield and Summit Oilfield - Key                                                                                                 Page 1
Energy Services’ Move to Expand Service Offerings in Shale Market
                                                                                                         © GlobalData. This report is a licensed product and is not to be photocopied
                                                                             Edge has operations in the Barnett, Haynesville, and Eagle
                                                                             Ford shales, and is primarily engaged in renting frac stack
        2       Key Energy Services to Acquire Edge                          equipment. The equipment is used to support hydraulic
                Oilfield and Summit Oilfield                                 fracturing operations and the associated flow back of frac fluids
                                                                             and proppants. Edge also provides well testing services, rental
        2.1     Deal Overview                                                equipment such as pumps and power swivels, and oilfield
        Deal Type:                   Acquisition                             fishing services.

        Deal SubType:               Majority Acquisition                     The current deal provides Key Energy with a significant growth
                                                                             opportunity, primarily in the development of unconventional
        Deal Status:                Announced                                shale plays, at a time when oil and gas companies are
        Announced Date:             July 14, 2011                            increasingly seeking to capitalize on the potential of shale gas.
                                                                             Companies are entering into mergers and acquisitions to
        2.2     Deal in Brief                                                acquire acreages in shale plays and add new reserves to their
                                                                             portfolios, as unconventional resources have enormous
        Key Energy Services, Inc. (Key Energy), an onshore rig-based         undeveloped potential which can translate into significant
        well servicing contractor, entered into a definitive agreement to    increases in oil and gas reserves for the companies. This,
        acquire Edge Oilfield Services (Edge Oilfield) and Summit            clearly, is an opportunity for Key Energy.
        Oilfield Services, LLC (Summit Oilfield), collectively known as
        Edge, both of which are onshore oilfield services and rental         Key Energy is engaged in the provision of onshore energy
        tools companies. The acquisition has been agreed for a               production services, such as workover services, fluid and
        purchase consideration of $300m.                                     logistics services, fishing and rental servi
				
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Description: Key Energy Services to Acquire Edge Oilfield and Summit Oilfield - Key Energy Services’ Move to Expand Service Offerings in Shale Market - Deal Analysis from GlobalData Summary Key Energy Services, Inc. (Key Energy), an onshore rig-based well servicing contractor, entered into a definitive agreement to acquire Edge Oilfield Services (Edge Oilfield) and Summit Oilfield Services, LLC (Summit Oilfield), collectively known as Edge, both of which are onshore oilfield services and rental tools companies. The acquisition has been agreed for a purchase consideration of $300m. Greenhill & Co., Inc. is acting as financial advisor to Key Energy whereas Tudor, Pickering, Holt & Co. Securities, Inc. is acting as financial advisor to Edge Oilfield and Summit Oilfield. The transaction is expected to be completed by September 2011, and is subject to customary conditions. Scope - Rationale behind Key Energy acquiring Edge Oilfield and Summit Oilfield - Strategic benefits for the companies involved, - Geography covered -The US Reasons to buy - Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures taking place in North American industry, - Identify the most lucrative segments to leverage on the growth oppurtunities available in the US' oil & gas market, - Get a detailed analysis of a deal to enable you to take better decisions.
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