Helmerich & Payne (HP) To Acquire Drilling Tech Firm MOTIVE

Contract drilling services provider Helmerich & Payne Inc. (NYSE:HP) recently entered into an agreement to acquire Dallas-based drilling tech firm MOTIVE Drilling Technologies, Inc. The Oklahoma-based contracting driller will pay $75 million for the acquisition of MOTIVE along with additional payouts of up to $25 million based on future performance during the next few years. The transaction is expected to close in June.

Helmerich & Payne is known for its technological leadership and innovation in drilling activities. Owing to its industry-leading drill fleet, the company is well positioned to take advantage of an improvement in oil prices. Collaboration with MOTIVE is a prudent move by Helmerich & Payne as it will enhance the technological expertise of the company further.

MOTIVE is one of the global leaders in providing directional drilling technologies to the energy explorers and drillers. The firm has a proprietary, algorithmic drilling guiding system – Bit Guidance System – which uses cognitive computing to guide the directional drilling process. It will help to enhance well production and lower drilling costs. The acquisition will improve the directional drilling process and will enable Helmerich & Payne to drill wells more efficiently and accurately leading to better quality wellbore.

Zacks Rank & Key Picks

Helmerich & Payne is a major land and offshore drilling contractor in the western hemisphere with the youngest but the most efficient drilling fleet. The company specializes in shallow to deep drilling in oil and gas-producing U.S. basins. It also drills oil and gas at international locations. Over the last one year, stock price of Helmerich & Payne has been up 2.3% outperforming the Zacks categorized Oil-Gas Drillingindustry’s decline of 0.5%. The company currently carries a Zacks Rank #3 (Hold).

Better-ranked players within the broader energy industry include Delek US Holdings, Inc. (NYSE:DK) , Renewable Energy Group, Inc. (NASDAQ:REGI) and Canadian Natural Resources Ltd. (TO:CNQ) . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Delek US Holdings’ sales for the current year are expected to increase 73.24% year over year. The company recorded a positive average earnings surprise of 60.68% in the last four quarters.

Renewable Energy reported a positive earnings surprise of 13.39% in the trailing four quarters.

Canadian Natural Resources’ sales for the current quarter are expected to increase 24.11% year over year. The company recorded a positive earnings surprise of 30.77% in the first quarter of 2017.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time. One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>