Following the massive losses recently announced by the world’s three largest oilfield suppliers—Schlumberger, Halliburton, and Baker Hughes—this year’s crushing events are just the latest blow to service providers both large and small facing challenges that originally began in 2014. For those now treading water in this no-mercy environment, few if any are hopeful for a lifeline in the form of another shale boom. Instead, these hired hands of the industry are consolidating, embracing new technologies, creating their own opportunities, and even pivoting their oil patch skills to areas they view more promising for the long term.

In Part I of our new series The Suppliers, RMR looks at consolidation within a subsect of the nation’s oil and gas industry that remains vital to upstream, midstream, and downstream operations. We’ll start with upstream because that’s where it all begins.

NexTier Oilfield Solutions

NexTier is a leading provider of integrated completions focused on US land. We deliver safe, efficient and innovative services that enable our customers to win by accelerating production while generating leading returns.

 C&J Energy Services and Keane Group  

To look forward, you have to first look back.

According to financial pundits, the combination of C&J and Keane last year marked the true genesis of consolidation in the onshore oil and gas services market, particularly among publicly traded companies. In a merger of equals, C&J and Keane—both pressure pumping big dogs—merged in a $1.8 billion, all-stock deal that saw a name change (Houston-based NextTier Oilfield Solutions), a combined well completion and production services company with 2.3 million hydraulic fracturing horsepower, and a more competitive landscape in terms of price and service offerings vs larger service players.

Since the merger, NextTier this year has made difficult but promising financial decisions to stay the course that include divesting its well support services business in March; leveraging the latest surface, subsurface and fluid system technologies, and making the ubiquitous cost, staff, and budget cuts rife among others in its league. The company will announce 2Q earnings next week.

KLX Energy

KLX Energy Services is the oilfield’s most prepared service provider: always ready to help operators get ahead no matter what the challenge. With proprietary technology, proven experts and strategic locations near you—nobody else brings you true Next Level Readiness.

KLX Energy Services and Quintana Join Forces

On a smaller scale, KLX and Quintana—two forces heralding asset-light oilfield solutions that include drilling, completion, and two of the largest fleets of coiled tubing and wireline assets—have now decided to exchange nuptials. The all-stock marriage will assume the KLX name and move headquarters to Houston. Upon completion of the merger, the company expects to see cost synergies in excess of $40 million within a year and will continue eyeballing other consolidation opportunities within the oilfield service industry.

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