Shares of Basic Energy, which has been trying to acquire new assets, plummeted Monday when the company announced it had acquired nearly all of oil services trucking company Azurite Services Co.
The $60 million purchase comes two months after Basic called off a proposed takeover of onshore oil and gas driller Grey Wolf Inc., which would have created a combined company worth $2.9 billion.
Basic said the all-cash deal would bring $51 million in revenue in the first year after the purchase.
Azurite Services Co. is an oilfield trucking company. The deal includes 98 fluid-handling trucks, 632 frac tanks -- movable tanks for storing water, oil or other liquids -- and six disposal facilities serving eastern Texas.
Basic is an oilfield services company that contracts with oil and gas producers. Its shares fell $1.63, or 7.5 percent, to $20.24 in afternoon trading. The dive came as the broader markets fell after a proposed $700 billion economic bailout package failed to win enough votes to pass the House of Representatives.
The $60 million purchase comes two months after Basic called off a proposed takeover of onshore oil and gas driller Grey Wolf Inc., which would have created a combined company worth $2.9 billion.
Basic said the all-cash deal would bring $51 million in revenue in the first year after the purchase.
Azurite Services Co. is an oilfield trucking company. The deal includes 98 fluid-handling trucks, 632 frac tanks -- movable tanks for storing water, oil or other liquids -- and six disposal facilities serving eastern Texas.
Basic is an oilfield services company that contracts with oil and gas producers. Its shares fell $1.63, or 7.5 percent, to $20.24 in afternoon trading. The dive came as the broader markets fell after a proposed $700 billion economic bailout package failed to win enough votes to pass the House of Representatives.
0 comments:
Post a Comment