Houston-based Ranger Energy Services LLC agreed Wednesday to acquire privately held Bayou Workover Services LLC, a combination that would expand the customer base and its offerings in the U.S. onshore workover services market.
No financial details were disclosed.
Ranger, founded in 2014 and backed by CSL Capital Management LLC, has customers in Texas, Colorado, North Dakota and Wyoming, with a fleet of 70 high-specification workover rigs. Bayou, founded in 2009, provides workover, plug and abandonment and fluid management services in the Rockies and Williston Basin.
The combination would include Magna Energy Services LLC, which CSL recently acquired. Magna, also a plugging and abandonment operator, services customers in the Rocky Mountains and in North Dakota.
"Despite the depressed oilfield service market, the combination of Ranger, Bayou and Magna creates the strongest platform in the well servicing industry," Ranger CEO Scott Milliren said. "The new fleet, expanded geographical footprint and premium services are positioned to continue their industry-leading performance, while preparing the company to exploit the inevitable market recovery."
Once the merger is completed, Milliren would become chairman of Ranger, while Bayou CEO Brett Agee would take over as CEO. Dennis Douglas, Magna's CEO, would become COO.
"Having the opportunity to partner with CSL and Ranger to grow a base of assets and services, which can enhance our customers' efficiency and safety, is a game changing event," Agee said.
A lack of work across the OFS landscape over the past two years has reduced the size of the industry operators both large and small. Earlier this month Houston-based Frank's International NV agreed to buy crosstown well construction specialist Blackhawk Group Holdings Inc. in a transaction estimated to be worth $321 million (see Shale Daily, Oct. 7).