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Nabors (NBR) to Sell Canadian Drilling Assets to Ensign Energy

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Nabors Industries Ltd. (NBR - Free Report) recently inked a deal with Calgary-based oilfield services company Ensign Energy Services Inc. According to the terms of the agreement, Ensign will purchase Hamilton-based Nabors' fleet of 35 land-based drilling rigs in Canada along with supporting equipment and real estate. The deal is contingent on pending approvals and certain closing conditions and Ensign will finance the acquisition price using cash on hand as well as available credit facilities.

Ensign's President and COO Robert Geddes stated that, "The acquisition of Nabors' assets in Canada provides Ensign an expanded fleet of high-spec drilling rigs along with highly technically trained crews while expanding Ensign's client base and providing cost synergies.”

Furthermore, he believes that Nabors' deeper high-spec fleet in Canada is outfitted with automated drilling controls systems, similar to Ensign's high-spec fleet. Ensign will be able to expedite the adoption of more advanced drilling control systems that will continue to promote innovation, create value for its clients and reduce net emissions, courtesy of this technological alignment at the drilling rig level.

About Nabors

Incorporated in 1978, Nabors is one of the largest land-drilling contractors in the world, conducting oil, gas and geothermal land drilling operations. The American multinational company – active across 24 countries – primarily provides land-based and offshore drilling rigs that serves the oil and gas industry. The company has full ownership of a venture in Saudi Arabia called Nabors Arabia, which actively markets rigs.

Earlier this month, management announced that its newly-found special purpose acquisition company (SPAC) Nabors Energy Transition Corp. filed a registration statement with the Securities and Exchange Commission (SEC) regarding an initial public offering of its units in a bid to raise capital. Notably, Nabors Energy, a subsidiary of the company, aims to list its units on the New York Stock Exchange under the symbol NETC.

Zacks Rank & Key Picks

Nabors currently has a Zacks Rank #3 (Hold). Some better-ranked players in the  energy  space are PetroChina Company Limited (PTR - Free Report) , SilverBow Resources Inc. (SBOW - Free Report) and Oasis Petroleum Inc. (OAS - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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