Tulsa-based Helmerich & Payne Inc., (NYSE:HP), announced May 31 it has agreed to acquire Dallas-based MOTIVE Drilling Technologies Inc. for $75 million payable at closing and up to an additional $25 million in potential earnout payments based on future performance during the next few years. The transaction is pending and is expected to close in June 2017.
MOTIVE’s proprietary bit guidance system is the industry leader in the use of cognitive computing to guide the directional drilling process. MOTIVE was founded in 2011 and will remain based in Dallas.
‘Improving the directional drilling process has been an industry focus for some time given the value proposition of drilling wells more efficiently and with greater accuracy, resulting in a better quality wellbore,” said John Lindsay, president and CEO of Helmerich & Payne. “We believe MOTIVE’s directional drilling technology to be leading edge and high-potential for the industry and it has been successfully adopted by both E&P operators and directional drillers. Going forward, MOTIVE will continue to be available to all E&P operators and directional drilling service providers regardless of which drilling rig contractor is used.”
‘We are pleased to have launched MOTIVE within Hunt Energy Enterprises, and look forward to their successful expansion within the industry as a result of this transaction,’ said Hunter Hunt, co-CEO of Hunt Consolidated Inc. ‘We are also grateful for the subsequent financial and development support of our partners, Formation 8 and GE Ventures.’
Simmons & Company International, Energy Specialist of Piper Jaffray & Co., served as financial advisor to Helmerich & Payne, Inc. Skadden, Arps, Slate, Meagher & Flom LLP and Vinson & Elkins LLP served as legal advisors to Helmerich & Payne, Inc.Kastner Huggins Reddien Gravelle LLP served as legal advisors to MOTIVE.