Savanna Energy Services Corp. said Dec. 15 it had received interest from other potential bidders after fellow oilfield services provider Total Energy Services Inc. went hostile with its offer to buy the company.
Calgary, Alberta-based Savanna, whose shares rose as much as 10.5% to C$2 in morning trading, said it would explore strategic alternatives early next year.
Total Energy first made a proposal to buy Savanna in November, offering 0.1132 of its shares for each Savanna share.
Total Energy, which is also based in Calgary, raised its offer to 0.1300 of its shares earlier this month and took it directly to Savanna's shareholders. Savanna said Dec. 12 it would review the latest unsolicited bid.
Savanna Energy had a market value of about C$190 million (US$143 million) as of close on Dec. 14, while Total Energy was valued at about C$435 million.
A more than 50% fall in oil prices since mid-2014 eroded demand for services provided by oilfield companies, setting off a wave of consolidation.
U.S. driller Patterson-UTI Energy Inc. (NASDAQ: PTEN) said Dec. 12 it would buy Seventy Seven Energy Inc. in an all-stock deal worth US$1.76 billion including debt.
Up to close Dec. 14, Savanna's stock had risen 23% since Total Energy's initial bid. (US$1 = C$1.332)
Recommended Reading
Global Partners Buys Four Liquid Energy Terminals from Gulf Oil
2024-04-10 - Global Partners initially set out to buy five terminals from Gulf Oil but the purchase of a terminal in Portland was abandoned after antitrust concerns were raised by the FTC and the Maine attorney general.
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
EIG’s MidOcean Energy Acquires 20% interest in Peru LNG
2024-02-08 - On top of acquiring a 20% interest in Peru LNG, MidOcean Energy is also in the process of acquiring interests in four Australian LNG projects.
Dallas Fed Energy Survey: Permian Basin Breakeven Costs Moving Up
2024-03-28 - Breakeven costs in America’s hottest oil play continue to rise, but crude producers are still making money, according to the first-quarter Dallas Fed Energy Survey. The situation is more dire for natural gas producers.
SCF Acquires Flowchem, Val-Tex and Sealweld
2024-03-04 - Flowchem, Val-Tex and Sealweld were formerly part of Entegris Inc.