Nabors Industries is making headlines once again for leading the geothermal industry, this time for purchasing Tesco Corporation, a manufacturer and maintenance provider of oil drilling equipment, based in Houston, Texas. Tesco will be joined together with Canrig, a fellow Nabors’ subsidiary that likewise deals with oil rig equipment. Shareholders of Tesco stock will be given stock compensation in the ratio of 100 shares of Nabors’ commons stock to every 147.05 shares of Tesco owned. These valued stakeholders are receiving a premium of 19%, already calculated in the aforementioned proportion.
This transaction is expected to close by February 14th, 2018, at the latest, as Tesco will be forced to provide Nabors $8 million for extenuating the deal. Nabors has toyed with the idea of purchasing other geothermal business operations in recent years, joining forces with Saudi Aramco and Weatherford International, for example, although talks for the Tesco deal began as early as November 2016.
Petrello joined ranks of Nabors all the way back in 1991, when the company’s annual net income was $44 million. Similarly, during the early 1990s, Nabor’s stock value was worth an average of $2.5 per share, today ranging upwards of $6.35. Petrello has helped build its revenues and net income to monumental proportions, reported as $2.22 billion and $1.02 billion, per financial statements from fiscal year 2016. Today, the group has more than 600 oil rigs, making it the largest land based drilling company in the world.
Nabors’ CEO has also turned down ultra-high salaries that many American corporations pay their executives, opting to invest such money back in the company. Despite not being on any best-paid-bosses lists in recent years, Petrello donated a $7 cash outlay to the Texas Children’s Hospital, going directly towards the Jan and Dan Duncan Neurological Research Institute. Highly interested in medical research and application, Tony Petrello is a key component of the Board of Trustees at Texas Children’s Hospital, overseeing the innovation of neurological procedures and remedies that lead the medical field. His involvement in neurology is inspired by his daughter Cerena’s fight with periventricular leukomalacia, an incurable brain disease.