One of the operators in the STACK and SCOOP plays of Oklahoma, Nine Energy Service has finished its acquisition of Magnum Oil Tools International, LTD.
Nine Energy bought the company in a $493 million deal including a combination of nearly $334 million in cash as well as 5 million shares of Nine common stock.
Magnum’s considered a market-leading downhole technology provider. It has an offering of completions products including dissolvable and composite frac plugs and other patented consumables.
The purchase will give Nine what it considers a strong, first-mover advantage in the dissolvable frac plug market.The addition of Magnum to Nine’s portfolio will help operators reduce risk and cycle times as completions continue to become more complex with longer laterals, more stages and mega-well pads.
“We believe this deal will continue to differentiate Nine within the industry, and Magnum’s capabilities allow us to create a more balanced profile of completion tools,” said Ann G. Fox, Nine’s President and Chief Executive Officer. “Ultimately, this acquisition delivers an oil field service platform that provides customers with even better service and aids Nine’s continued growth.”
“Magnum is excited to join Nine. This is a perfect next step, given the standards and culture that have made Nine a leader in the industry match so closely to our own,” said Lynn Frazier, Chief Executive Office and founder of Magnum. “We look forward to working together to provide customers with the best quality products and services possible while furthering the development of Nine as an industry pioneer.”