C&J Energy Services Makes Accretive Deal
C&J Energy Services (CJES) remains one of the cheapest companies yet after the close the company announced an accretive $272M deal for a complementary wireline service provider named Casedhole Holdings. Not only is the deal expected to be immediately accretive, but the deal also provides exposure to new oily basins and large E&P operators not previously used by CJES. Per the press release, Casedhole is a leading multi-regional, independent provider of cased-hole wireline and other complementary services for energy producers in the United States. With 12 district locations, Casedhole provides premium services in the most complex and demanding operating environments focusing on oily and liquids-rich basins. After hours the stock jumped 1-3%, but it still remains down for the day. When the sector turns, this would be the top pick. The company remains a cash flow machine with top of the line margins. The $22OM credit line being tapped to pay for this deal will ...