Houston’s Nine Energy Service, Inc., a firm with expansive operations in Oklahoma’s STACK and SCOOP plays is paying nearly $500 million for Magnum Oil Tools International, LTD based in Corpus Christi, Texas.
It’s officially a $493 million acquisition of a company with an offering of downhole completions products, including dissolvable and composite frac plugs and a number of other patented consumables.
The takeover consists of $334 million in cash and 5 million shares of Nine common stock valued at $159 million. Magnum is a company with no debt.
But Nine also announced it plans to offer $400 million in unsecured senior notes and use the proceeds to help finish the acquisition of Magnum Oil.
Nine Energy leaders say the partnership solidifies Nine as one of the premier providers of completion focused technology.
“We could not be more thrilled to partner with Magnum. At Nine, we constantly focus on adding differentiated technology to our portfolio of completion tools to enable operators to more reliably and effectively complete the horizontal wellbores of tomorrow,” said Ann G. Fox, Nine’s President and Chief Executive Officer.
While Nine is headquartered in Houston, it has exploration and oilfield activities in Oklahoma’s STACK and SCOOP as well as in the Permian, Eagle Ford, Niobrara, Barnett, Bakken, Marcellus, Utica and throughout Canada.
Magnum Oil, a downhole technology provider also has operations in the STACK and SCOOP along with those in the same areas where Nine Energy operates.
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