Precision Drilling Corporation to Acquire CWC Energy Services Corp. in a $141 Million Deal

Calgary-based Precision Drilling Corporation has announced a significant agreement to acquire all outstanding common shares of CWC Energy Services Corp. The total consideration for this acquisition is estimated at around $141 million. CWC Energy Services Corp. stands as a premier contract drilling and well servicing company with operations spanning across Canada and the United States. As a result of this transaction, Precision Drilling will expand its already extensive fleet. The additions include 62 marketed service rigs in Canada, along with seven marketed drilling rigs in the Canadian sector.

Furthermore, Precision will gain access to 11 marketed drilling rigs in the United States, encompassing seven AC triple rigs. Currently, three of the Canadian drilling rigs and seven of the U.S. drilling rigs are actively engaged in serving customers. Key highlights of this acquisition include Well-Positioned Assets: Precision will inherit well-maintained assets strategically located throughout Canada and the U.S., operating in complementary geographic regions. These assets are supported by highly skilled and experienced personnel, as well as robust customer relationships. Material Synergies: Precision anticipates annual operating synergies of approximately $20 million once the integration of CWC is complete. Additionally, Precision has identified approximately $20 million worth of excess CWC real estate that it plans to monetize following the conclusion of the transaction. Financial Benefits: Precision foresees that this transaction will be accretive on a 2024 cash flow per share basis. It will also support the company’s ongoing deleveraging plan, strengthening its financial position. Precision Drilling Corporation, known for its commitment to safety and environmental responsibility, offers the energy industry safe and environmentally responsible High-Performance, High-Value services. The company provides its customers access to a robust fleet of Super Series drilling rigs.