KLX Energy Services and Quintana Energy Services Merge in All-Stock Deal

Updated 1 year 1 month ago

KLX Energy Services and Quintana Energy Services have entered into an agreement in which Quintana shareholders will receive 0.4844 shares of KLX common stock for each Quintana share. The name KLX will be retained, and current Quintana CEO Chris Baker will be President and CEO of the combined company. The company headquarters will move to Houston, and several facilities will be consolidated. The combined company will have 24 coiled tubing spreads, 130 wireline units, 36 snubbing units, and 117 measurement-while-drilling kits.

Allis-Chalmers Energy was founded in 1913 in Houston, and Quintana legacy companies began cementing in 1956, hydraulic fracturing in 1957. Gray Wireline was founded in 1983 in Fort Worth, Texas. The Directional Drilling Co. (DDC) was founded in 1998. Allis-Chalmers began directional drilling in 2001 and hydraulic fracturing in 2008. Quintana acquired DDC in 2007. Seawell acquired Gray Wireline in 2010 and Great White Energy Services in 2011. Seawell was renamed Archer in 2011 and combined these operations into Quintana Energy Services which completed a public offering in 2018. Christopher Baker replaced Rogers Herndon as CEO in 2019.

Goldman Sachs advised KLX while Tudor Pickering Holt advised Quintana. The transaction has been approved the directors of both companies and is supported by 75% of Quintana shareholders. Shareholders approved the combination, and the deal closed in July 2020.