M&A
confidence high
sentiment positive
materiality 0.90
HP to acquire KCA Deutag for $1.9725B, expanding Middle East rig count from 12 to 88
Helmerich & Payne, Inc.
- Acquisition price $1.9725B cash; expected close before end of calendar 2024.
- HP's Middle East rig count jumps from 12 to 88 rigs, with 71 in Saudi Arabia, Oman, Kuwait.
- Transaction immediately accretive to cash flow; double-digit FCF accretion expected by 2025.
- HP expects ~$25M run-rate synergies by 2026 from overhead and procurement savings.
- HP to maintain base dividend; supplemental dividend paused during near-term deleveraging.