Nabors Industries is known as one of the most successful oil drilling and energy harvesting organizations in the world. The corporation is furthering already broad scope, recently closing a deal with Tesco Corporation that will make the fellow Houston-based organization a subsidiary. Tesco is known for renting, manufacturing, servicing, and designing products and services for the energy industry. It will join forces with Canrig, a provider of oil rig equipment to parent Nabors Industries, together contributing towards an expected run-rate synergy between $30 and $35 million annually.
Anticipated to close in late 2017 or Q1 2018, Nabors will compensate Tesco shareholders with shares of its common stock. These shareholders will receive 68 shares of Nabors’ stock for every 100 shares of Tesco’s, earning sizable premium in process. Newly-mented owners of Nabors shares will make up about 10% of total outstanding stock, the value of which can be calculated from a market capitalization of $181 billion at $181.5 million, spread across its shareholders.
Nabors is no stranger to acquisitions, ventures, and partnerships in recent years, having created a partnership with Weatherford International and a venture with Saudi Aramco.
Tony Petrello came from humble beginnings, fortunate enough to enroll in Yale University, an Ivy League school, to study mathematics. Petrello earned both a bachelor’s and master’s degree at the school, a feat impressive enough in itself, at the young age of 19, to boot. He married his wife Cynthia after earning his graduate degree, shortly after modifying his career aspirations, desiring a career in law. Petrello accepted to Harvard Law School, completing a juris doctorate in three years’ time.
The successful businessman joined the ranks of Nabors Industries in 1991, just four years after the organization’s reformation, following several years of poor financial performance. He’s more than doubled the stock price since joining, as well as significantly improving its financials – in FY 2016, Nabors netted $1.02 billion from $2.22 billion in revenue. Although performing so well, Petrello chooses not to take one of the nation’s highest salaries, however still earning enough to contribute a respectable $7 million to Texas Children’s Hospital intended for neurological research.