Hunting Sells Drilling Tools Business to Rival Downhole for Equity Interest

Updated 9 months ago

Rival has acquired the operating assets of Hunting Energy Services Drilling Tools (HESDT) in exchange for Hunting securing a 23.5% equity interest in Rival. HESDT manufactures, owns and leases downhole tools for oil and gas operations, with facilities in Conroe and Odessa, Texas; Casper, Wyoming; and Latrobe, Pennsylvania. Rival's leadership team will remain in their existing roles with HESDT's general manager joining the expanded business. Hunting will appoint a member to the Rival board of directors. The carrying value of Hunting's assets is $18.6 million, predominantly mud motors.

Neil Fletcher, Rival CEO

This transaction marks a milestone in our mission to build a market leadership position and provide a complete offering in downhole tools, in our view increasing the value of our company by over $25 million. The addition of Hunting's drilling tool business will enable us to not only serve the U.S. but also accelerate market reach and product development, leaving us ideally placed for a series of international launches in 2021 starting with the Middle East.