Halliburton Co. announced Wednesday that it has acquired Tulsa, OK-based Summit ESP, an independent company specializing in electric submersible pump (ESP) technology and services.
Summit, which has more than 500 employees across 30 North American locations, engineers, manufactures and services a full line of ESP and surface pumping systems.
"The acquisition of Summit expands Halliburton's existing artificial lift capabilities and increases our overall leading position in North America oilfield services," Halliburton CEO Jeff Miller said. "Summit's unrivaled service quality, proven technology and U.S. market leadership make it a perfect fit for Halliburton. This accretive transaction accelerates our strategy to deliver leading returns to our shareholders and maximize asset value for our customers."
Summit CEO John Kenner said of the acquisition, "We're proud of the company we've built and thank our employees for their commitment to the company and for providing outstanding service quality to our customers. The combination of Halliburton and Summit creates exciting opportunities for both our customers and employees. We look forward to capitalizing on Halliburton's deep customer relationships and international presence to accelerate our growth."
Halliburton's acquisition of Summit is part of a recent wave of activity among leading North American oilfield service (OFS) providers looking to ramp up as exploration and production companies return to growth.
In May, Helmerich & Payne Inc. agreed to buy directional drilling technology expert Motive Drilling Technologies Inc.
In June, Houston-based Kirby Corp. and Stewart & Stevenson LLC, manufacturing and service providers in the Permian Basin, Eagle Ford Shale and Oklahoma, agreed to combine in an estimated $710 million deal.
Also last month, Schlumberger Ltd. announced a partnership with North American onshore seismic data expert Seitel to reimage and acquire geophysical data in key areas across onshore Mexico.
Meanwhile, Baker Hughes Inc.'s estimated $32 billion mega-merger with General Electric Co. moved forward in June under an agreement reached with the U.S. Department of Justice.
The Dallas branch of the Federal Reserve Bank issued its Dallas Fed Energy Survey last week showing rising activity among OFS firms in Texas, northern Louisiana and southern New Mexico during the second quarter. The survey, which includes the prolific Permian Basin, showed the activity index among the district's energy firms declining slightly overall quarter/quarter.
Crude oil futures have dropped since the first quarter, trading below $50/bbl since June after enjoying a run in the mid-$50s/bbl in 1Q2017. The drop in oil prices has raised questions about whether rising services costs could squeeze producers.