CATEGORIZED | News

Ensco to acquire Pride International in $7.3 billion deal

Posted on 07 February 2011

Pride North Dakota jackup.

Pride North Dakota jackup.

Ensco plc will acquire Pride International for $7.3 billion. Ensco and Pride have entered into a definitive merger agreement under which Ensco will combine with Pride in a cash and stock transaction valued at $41.60 per share based on Ensco’s closing share price on 4 February 2011. The transaction will create the second largest offshore driller in the world with 74 rigs spanning all of the strategic, high-growth markets around the globe.

The combined company will have 21 ultra-deepwater and deepwater rigs, forming the second largest/youngest fleet able to drill in water depths of 4,500 ft or greater. In addition, the combined company will have more active jackup rigs than any other driller. Mid-water rigs will represent 8% of the combined fleet.

Based on the closing price of each company’s shares on 4 February 2011, the estimated enterprise value of the combined company is $16 billion. The total estimated revenue backlog for the combined company is approximately $10 billion. Under the terms of the deal, Pride stockholders will receive 0.4778 newly issued shares of Ensco and $15.60 in cash for each of their shares, valuing each Pride share at $41.60. That is 25% above the one-month volume-weighted average closing price of Pride, whose shareholders will receive a total of $2.8 billion in cash.

Dan Rabun will remain chairman, president and CEO and James W. Swent will continue as senior vice president and CFO. The remaining executive management team for the combined company will be named at a later date and is expected to be composed of executives from both Ensco and Pride.

The combined company will keep the Ensco name, and its headquarters will remain in London.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 24 October 2014

    GDF SUEZ, BP discover new Central North Sea Field

    “This is an encouraging exploration discovery in a part of the Central North Sea that needs additional volumes of hydrocarbons to open up development options…

  • 24 October 2014

    Chevron, BP discover oil in deepwater US Gulf of Mexico

    The discovery well, on Keathley Canyon Block 10, was drilled by operator Chevron on behalf of the Guadalupe co-owners. The well encountered significant oil pay…

  • 22 October 2014

    Shell discovers gas in pre-salt reservoir offshore Gabon

    Shell announced a frontier exploration discovery offshore Gabon, West Africa. The well Leopard-1 encountered a substantial gas column with around 200 m net gas pay…

  • 22 October 2014

    Statoil proves new oil resources near Grane field in North Sea

    Well 25/8-18 S, drilled by the rig Transocean Leader, proved an oil column of 25 m in the Heimdal Formation. The estimated volume of the discovery…

  • 21 October 2014

    IADC Cybersecurity Task Group to provide industry guidance to assess risks

    The oil and gas industry is not immune to cybersecurity threats, from computer viruses and malware to targeted attacks. The IADC Advanced Rig Technology (ART) Committee…

  • Read more news