Business
NESR Agrees To Acquire Stake In WDVG
HOUSTON, TX / ACCESSWIRE / July 18, 2022 / National Energy Services Reunited Corp. ("NESR" or "the Company") (NASDAQ:NESR)(NASDAQ:NESRW), an international,
About this update from National Energy Services Reunited Corp
[{"type":"text","content":"HOUSTON, TX / ACCESSWIRE / July 18, 2022 / National Energy Services Reunited Corp. (\"NESR\" or \"the Company\") (NASDAQ:NESR)(NASDAQ:NESRW), an international, industry-leading provider of integrated energy services in the Middle East, North Africa (\"MENA\") and Asia Pacific regions, today announced that it has agreed to acquire a minority stake in W. D. Von Gonten Engineering LLC (\"WDVG\"), a premier Reservoir Characterization and Geological & Geophysical (\"G&G\") laboratory and consulting business formed from the merger of W. D. Von Gonten Laboratories LLC and W. D. Von Gonten & Co. Petroleum Engineering Consulting.This acquisition, valued at approximately 4 times estimated 2022 EBITDA, was funded mainly through issuing NESR shares valued at $10 per share, and a minority portion of cash. It represents a business that is both well positioned for outsized market growth in the coming years, and significantly enhances NESR's capabilities in petroleum engineering studies, core analysis, reservoir modeling & simulation, and associated consulting services in the MENA region. NESR will also have the sole option to acquire additional stake and become the majority owner of WDVG in subsequent years. Meanwhile, NESR will receive state of the art custom laboratory equipment that will ensure completing its vision of having the most advanced Research and Development center in the region focused on unconventional studies in NESR's Oilfield Research Facility (\"NORI\") in the heart of Saudi Arabia's Dhahran Techno Valley later this year.WDVG CEO and President Bill Von Gonten commented, \"I am very pleased to see this transaction close with NESR as this will allow both WDVG Consulting and WDVG Labs to expand in one of the key growth regions over the next decade. WDVG today has a very long history in North America and a commanding position for the high-end specialized core analysis and studies in Latin America. With this transaction, we will add another pillar to our global position. Over the last year, with the help of NESR's open and collaborative MENA platform, we have made significant inroads with customers in the region and are at the forefront of secular development trends beyond just conventional oil production. Our specialized lab and consulting services are highly complementary to NESR's unmatched execution capabilities, and we are e...