Helmerich & Payne Buys MagVAR To Enhance Drilling Technology

Helmerich & Payne Inc. (NYSE:HP) recently acquired Colorado-based drilling tech firm Magnetic Variation Services, LLC (“MagVAR”). However, the terms of the deal have been kept under wraps.

Contract drilling services provider Helmerich and Payne remains focused on increasing directional drilling. Earlier this year, the company had acquired Dallas-based drilling tech firm MOTIVE Drilling Technologies, Inc. for around $75 million.

Established in 2010, MagVAR provides technological assistance pertaining to directional drilling to energy explorers and drillers.The technology is utilized in both onshore and offshore fields in Asia, North America, South America, Europe and Africa.

With the help of comprehensive 3-D geomagnetic reference modeling, MagVAR aims at the identification and the elimination of the anomalies in real-time, thus improving the accuracy of 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.

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 the advantage of the recovering commodity price environment. Collaboration with MagVAR is a prudent move by Helmerich & Payne as it will enhance the technological expertise of the company further.

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 six months, shares of Helmerich & Payne have moved up 6% outperforming the industry’s 0.17% decline. The company currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the energy space are Northern Oil and Gas, Inc. (NYSE:NOG) , Bill Barrett Corporation (NYSE:BBG) and Rice Midstream Partners LP (NYSE:RMP) . While Northern Oil & Gas sports a Zacks Rank #1(Strong Buy), Bill Barrett and Rice Midstream carry a Zacks Rank #2 (Buy), each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Oil and Gas delivered an average positive earnings surprise of 175% in the trailing four quarters.

Bill Barrett posted an average positive earnings surprise of 19.41% in the trailing four quarters.

Rice Midstream delivered an average positive earnings surprise of 35.25% in the trailing four quarters.

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