Weatherford International plc today announced it has signed a definitive agreement to sell its surface data logging business to Excellence Logging for $50 million in cash.
As part of the agreement, Weatherford will sell all of its surface data logging equipment, technology and associated contracts and will transfer the related personnel to Excellence Logging. While with this transaction Weatherford will exit the surface data logging business, it plans to continue to maintain a close and collaborative relationship with Excellence Logging to provide bundled and integrated services to its customers including surface data logging.
This transaction is designed to maximize Weatherford shareholder value by refocusing the Company’s portfolio on the businesses most closely aligned with its long-term strategy and is expected to close in the first half of 2019. The transaction is subject to customary closing conditions and the purchase price is subject to customary post-closing working capital adjustments. Upon closing, Weatherford will use the net proceeds to reduce its debt.
“We are pleased to have signed an agreement with Excellence Logging, a company who shares our mindset and commitment to providing the highest level of service to our customers,” said Mark A. McCollum, President and Chief Executive Officer of Weatherford. “The similarities in approach, culture and experience will help ensure a smooth transition for our customers and our employees who will be joining Excellence Logging.”
“With the purchase of Weatherford’s surface data logging business, Excellence Logging will become the largest independent mud logging company in the oil and gas services sector,” said Bruno Burban, President and CEO of Excellence Logging. “Our singular dedication to innovation and the strength of our people-driven organization provide the clear focus on our business that drives our performance. The scale of Weatherford’s mud logging operations, long history in this business, and experienced personnel will complement our own to give us a truly global presence.”
This transaction is one in a series of planned divestitures that will help deleverage the Company’s capital structure. During the third quarter 2018, Weatherford announced the sale of its international land rigs business for $287.5 million, of which it has received $215.5 million in cash proceeds to date. During the fourth quarter 2018, the Company also announced an agreement to sell its laboratory services business for $205 million in cash.