Back in October, Precision Drilling Trust's
This is an intriguing development, because Grey Wolf stood mere steps from the altar back in April, having agreed to a puzzling pairing with Basic Energy Services
This latest potential coupling frankly makes a heck of a lot more sense than Grey Wolf/Basic Energy, or the merger of Bronco Drilling
A Precision Drilling/Grey Wolf pairing would make for a formidable North American land drilling outfit. Ultimately, the resulting scale efficiencies of a merger would probably be mild, or moderate at best. Still, the combined company, with a strong balance sheet and customer base, would be well-positioned to keep building out the fleet in order to support the current boom in onshore drilling.
Related Foolishness:
- Smith International is taking energy M&A in a new direction.
- Don't count private equity shops out of the energy buyout game.
- Buck this Bronco deal, I say.