Helmerich & Payne, Inc. has entered into an agreement to acquire MOTIVE Drilling Technologies, Inc. for $75 million payable at closing and up to an additional $25 million in potential earnout payments based on future performance during the next few years. The transaction is pending and is expected to close in June 2017.
MOTIVE’s proprietary Bit Guidance System is the industry leader in the use of cognitive computing to guide the directional drilling process. This algorithm-driven system considers the total economic consequences of directional drilling decisions and has proven to consistently reduce drilling costs through more efficient drilling and raise hydrocarbon production through smoother wellbores and more accurate well placement.
“Improving the directional drilling process has been an industry focus for some time given the value proposition of drilling wells more efficiently and with greater accuracy, resulting in a better quality wellborn,” John Lindsay, Helmerich & Payne, Inc.’s President and CEO, said. “We believe MOTIVE’s directional drilling technology to be leading edge and high-potential for the industry and it has been successfully adopted by both E&P operators and directional drillers. Going forward, MOTIVE will continue to be available to all E&P operators and directional drilling service providers regardless of which drilling rig contractor is used.”