KLX Energy Services Holdings announced that it has entered into a definitive agreement to acquire Motley Services, LLC, a large diameter coiled tubing service provider, serving customers primarily in the Southwestern U.S. Motley, a premier provider of well completion services, is primarily focused on providing high-quality large diameter coiled tubing services specializing in complex, longer lateral horizontal wells. Motley also provides wireline and thru-tubing services, which are complementary to KLX Energy Services' existing service offerings. Motley's third quarter 2018 revenues and EBITDA guidance, on an annualized basis based on the mid-point of the guidance, are approximately $136M and $46M, respectively. Under the terms of the agreement, KLX Energy Services will pay Motley total consideration of $148M, consisting of $139M in cash and $9M of KLX Energy Services common stock. Thecompany intends to fund the cash portion of the purchase price with the net proceeds of a debt financing. The transaction is subject to certain closing conditions, including approvals from regulatory authorities. There can be no assurance that the transaction will be completed.
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Sage Therapeutics (SAGE) initiated with an Outperform at Oppenheimer. 2. Herbalife Nutrition (HLF) initiated with a Buy at Jefferies. 3. GreenSky (GSKY) initiated with a Buy at BTIG. 4. Nightstar Therapeutics (NITE) initiated with an Overweight at Cantor Fitzgerald. 5. KLX Energy (KLXE) initiated with a Buy at Gabelli. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
KLX Energy initiated with a Buy at Gabelli. Gabelli analyst Simon Wong initiated KLX Energy with a Buy and $59 price target citing leverage to favorable industry dynamics in drilling, rising service intensity, and robust free cash flow.