Nabors To Sell Completion Unit For $2.86 Billion; Stock Up 7%

Nabors Industries NBR gained over eight percent on news the company will sell its completion and production business for $2.86 billion to C&J Energy Services CJES.

The unit consists of operations involved in the completion, maintenance and eventual plugging and abandonment of a well.

It accounted for $2.08 billion of Nabors' $6.15 billion of 2013 revenue, and the company has said volatility in oil prices has limited the unit's short-term opportunities.

C&J Chief Executive Josh Comstock said the deal offers a diversified revenue base, enhanced earnings and increased cash flow.

Nabors opened Thursday at  $29.75, up almost nine percent. Share have since settled lower at $29.24.

C&J closed up 3.7 percent Wednesday to $32.81.

Posted In: NewsM&A
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