In a deal to acquire Nabors Industries Ltd. (NYSE: NBR), Houston-based C&J Energy Services (NYSE: CJES) projected it will become the third largest oil service provider after the pending merger is complete by the end of 2015. This should position C&J Energy Services behind the newly merged second largest oil services provider Halliburton (NYSE: HAL) and Baker Hughes (NYSE: BHI) and the largest, current market leader Schlumberger Ltd. (NYSE: SLB).
Founder and CEO of C&J Energy Services Josh Comstock states,” “We’ve been fairly clear that our goal is to get to $10 billion market cap sooner rather than later,” Comstock said. “Share price obviously moves up and down, but we think we’ll be between $5 and $7 (billion) with the Nabors deal.”
In this deal C&J Energy Services will pay $940 million in cash and 62.5 million common shares in new C&J stock. Originally in June when the deal was first announced, it was valued at $2.86 billion and according to Comstock is now costing C&J Energy Services about $2.1 billion because of stock prices that have lowered along with oil prices.
The new company will maintain its Houston offices, but move the headquarters to Bermuda for tax purposes.