KCA Deutag chief to leave after H&P acquisition

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KCA Deutag chief to leave after H&P acquisition

US oilfield services Helmerich & Payne (H&P) has completed its acquisition of Aberdeen-headquartered KCA Deutag International Ltd. Under the nearly $2-billion deal, CEO of KCA Deutag Joseph Elkhoury will not continue with the new combined company. H&P (NYSE: HP) will retain its headquarters in Tulsa, Oklahoma, and John Lindsay continues to serve as president and […]

US oilfield services Helmerich & Payne (H&P) has completed its acquisition of Aberdeen-headquartered KCA Deutag International Ltd.

Under the nearly $2-billion deal, CEO of KCA Deutag Joseph Elkhoury will not continue with the new combined company. H&P (NYSE: HP) will retain its headquarters in Tulsa, Oklahoma, and John Lindsay continues to serve as president and CEO.

Meanwhile, KDA Deutag is expected to remain at its Aberdeenshire headquarters following the acquisition.

With the acquisition of KCA Deutag, H&P expects to deliver near- and long-term growth and value creation by accelerating its international growth strategy by significantly increasing its Middle East presence.

It also aims to enhance scale and diversification, with a robust geographic and operational mix across US and international crude oil and natural gas markets; and strengthen the company’s cash flow with a more diversified and durable revenue stream.

KCA Deutag announced last year that it had secured $513 million (£418m) in land and offshore drilling contracts for projects across the Middle East, Africa, Latin America and the UK.

Lindsay said: “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.”

Lindsay continued: “Over the past several months, team members across the company have been diligently working on the planning associated with this integration and providing excellent service to our customers. I am appreciative of and impressed by the entire team across our global operations for all of their hard work and commitment. I’d also like to thank KCA Deutag CEO Joseph Elkhoury for his support throughout this integration planning process and wish him the best in his future endeavours.”

H&P expects to provide an updated outlook for fiscal year 2025 in connection with reporting fiscal first quarter 2025 results.

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