Enersol Acquires Deep Well Services

ADNOC Drilling Company and Alpha Dhabi Holding’s joint venture, Enersol, will acquire a 95% stake in Deep Well Services (DWS) for around $223 million, including performance-based payments. The deal awaits regulatory approval and customary conditions.

Founded in 2008 in the U.S., DWS specializes in advanced energy technologies, like its patented Hydraulic Completion Units (HCU) and data software, BoreSite®. It operates in several North American basins and serves over 70 E&P companies, from small private operators to large-cap national energy companies. DWS’s joint venture, AutoSep Technologies, focuses on automating flowback operations.

Through Enersol, DWS will support the UAE’s energy development, aiding ADNOC Drilling’s $1.7 billion contract to deliver 144 unconventional wells to ADNOC Group. Enersol plans to leverage DWS’s technologies for this effort.

In 2023, DWS reported revenues exceeding $205 million, a robust EBITDA margin, and anticipated free cash flow of over 10%. This acquisition aligns with Enersol’s strategy to build a scalable portfolio, enhancing market value and optimizing operational efficiencies. The move bolsters Enersol’s next-generation technology portfolio, offering growth opportunities in untapped markets.

This acquisition marks Enersol’s fourth this year. The joint venture has previously agreed to acquire, subject to regulatory approvals, EV, a downhole visual analytics company; a 51% stake in NTS Amega, a global manufacturer of advanced precision equipment; and a 67% stake in Gordon Technologies, a U.S.-based provider of measurement while drilling services.

Story via WorldOil.com