Helmerich & Payne (H&P), an onshore drilling company, has announced the successful acquisition of KCA Deutag International, a drilling, engineering and technology company.

H&P signed a definitive agreement to acquire KCA Deutag for $1.97bn in July last year.

KCA Deutag has a significant presence in land drilling across the Middle East, which contributed to around two-thirds of its operating earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2023. Additionally, it oversees operations in South America, Europe and Africa.

H&P highlighted that the acquisition encompasses KCA Deutag’s asset-light offshore management contract operations in key locations, supported by a robust client base and a backlog that provides long-term earnings visibility.

The acquisition of KCA Deutag aligns with H&P's strategy to drive both near and long-term growth and value creation. It will help in accelerating its international growth strategy, particularly expanding its presence in the Middle East.

Furthermore, the acquisition will enhance the company’s scale and diversification with a strong geographic and operational mix across US and international crude oil and natural gas markets.

H&P president and CEO of John Lindsay commented: “We are excited to complete this transformative acquisition and welcome KCA Deutag’s talented employees to H&P.

“Today marks an important milestone for our company, customers and shareholders as we create an organisation with an enhanced global footprint, exceptional service capability and superior technology offering. We are focused on ensuring a seamless transition and delivering on the strategic and financial benefits of the transaction.”

The acquisition will also strengthen H&P’s cash flow by providing a more diversified and stable revenue stream.

H&P will remain headquartered in Tulsa, Oklahoma, with Lindsay continuing as president and CEO. Joseph Elkhoury, CEO of KCA Deutag, will not be continuing with H&P.