ATLANTA, June 30,
2023 /PRNewswire/ -- RPC, Inc. (NYSE: RES) announced
the acquisition, effective July 1,
2023, of Spinnaker Oilwell Services, LLC ("Spinnaker"), a
leading provider of oilfield cementing services in the Permian and
Mid-Continent basins. Spinnaker, headquartered in Oklahoma City, OK, operates two facilities
located in El Reno, OK and
Hobbs, NM and maintains 18
full-service cementing spreads.
The purchase price was $79.5
million in exchange for 100 percent of Spinnaker's equity.
The transaction consideration consisted of approximately
$77.0 million of cash, and the
$2.0 million payoff and $0.5 million assumption of capital lease
liabilities. The agreement contains a post-closing adjustment
window for an agreed-upon level of Spinnaker's working capital, as
well as other usual and customary items.
"The acquisition of Spinnaker will significantly expand RPC's
cementing business from its presence in South Texas to basins in which we currently
provide other services," stated Ben M.
Palmer, RPC's President and Chief Executive Officer. "We are
excited to add Spinnaker as it represents a valuable strategic
opportunity for our company. We are impressed with Spinnaker's
management team, talented workforce and the quality of its
operations, and plan to continue operating under the Spinnaker
name."
Certain statements and information included in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, including
all statements that look forward in time or express management's
beliefs, expectations or hopes. These statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of RPC to be materially
different from any future results, performance or achievements
expressed or implied in such forward-looking statements, including
statements regarding Spinnaker's strategic value to RPC, our
ability to expand RPC's cementing service line, and our ability to
integrate it into our company. We may be unable to integrate
successfully the operations and assets of Spinnaker with our own
business. Any inability on our part to integrate and manage the
growth of Spinnaker could have a material adverse effect on our
results of operations and financial condition. Additional
discussion of factors that could cause the actual results to differ
materially from management's projections, forecasts, estimates, and
expectations is contained in RPC's Form 10-K for the year ended
December 31, 2022.
Advisors
Arnall Golden Gregory LLP served as legal counsel to RPC. FMI
Capital Advisors, Inc. served as financial advisor to Spinnaker,
and Locke Lord LLP served as legal counsel.
About RPC
RPC provides a broad range of specialized oilfield services and
equipment primarily to independent and major oilfield companies
engaged in the exploration, production and development of oil and
gas properties throughout the United
States, including the Gulf of
Mexico, mid-continent, southwest, Appalachian and Rocky
Mountain regions, and in selected international markets. RPC's
investor website can be found on the internet at RPC.net.
For information about RPC, Inc. or this press release, please
contact:
Michael L. Schmit
Chief Financial Officer
(404) 321-2140
irdept@rpc.net
Jim Landers
Vice President Corporate Services
(404) 321-2162
jlanders@rpc.net
For information about the Seller, please contact:
Gregory D. Laake
Managing Partner
Catapult Energy Services Group LLC
catapult.finance@catapultservices.net
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content:https://www.prnewswire.com/news-releases/rpc-inc-expands-its-oilfield-cementing-service-line-through-the-acquisition-of-spinnaker-oilwell-services-llc-301868312.html
SOURCE RPC, Inc.