Complete Production Services Buyout Pushes Us Back Into C&J Energy Services

Early Monday morning, Superior Energy Services (SPNagreed to mergewith Complete Production Services (CPX) by paying a 61% premium over Friday's selling price. According to the press release, the combination creates a premier diversified mid-cap oilfield services company.
In essence, SPN wanted scale in order to compete successfully with the likes of Haliburton (HAL) and Schlumberger (SLB) in the fast growing hydraulic fracturing market in the US and enhanced size to grow internationally. Not to mention that the huge sell-off in CPX stock over the last few months provided an attractive entry point. CPX peaked over $42 in July and hasn't even cracked above $30 with this huge premium offered.

Read the full article at Seeking Alpha.

Disclosure: Long CJES. Please review the disclaimer page for more details. 


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