Nabors nets $600 million in sale of Quail Tools subsidiary

Nabors has entered into a definitive agreement to sell its Quail Tools, LLC subsidiary to Superior Energy Services, Inc. for $600 million. The transaction reduces Nabors' net debt by more than 25%. 

Quail is a leading provider of high-performance downhole tubulars to the U.S. oil and gas drilling market. Superior also provides rental tubulars, to both the U.S. and international markets. The transaction includes a Preferred Supplier Agreement under which Superior will be the preferred supplier of rental drill pipe and related products to Nabors.

Since the close of the Parker transaction, the performance of Quail has exceeded Nabors' expectations even in challenging market conditions. Nabors currently estimates that Quail will generate adjusted EBITDA of approximately $150 million in 2025, excluding any synergies that Superior may realize.

"This deal is your textbook win-win for both parties," commented Anthony Petrello, Chairman, President & CEO of Nabors. "In Superior, we believe Dave Lesar and his talented team will enable Quail to achieve even greater success. The combined company will be the premier provider in both the U.S. land and offshore tubular rental space, and there are substantial additional synergy opportunities."

"We are retaining the balance of the portfolio that we acquired from Parker Wellbore, which includes tubular running services in the U.S. and Middle East, drilling rigs, and rig operations and management contracts ("O&M")," Petrello continued. "This portfolio is already making a solid contribution to our results, and we expect further improvement as we realize targeted cost synergies."