Helmerich & Payne rises on $1.97 bln deal for KCA Deutag, profit beat

Helmerich & Payne

25/07/2024 16:03

** Shares of oilfield services firm Helmerich & Payne  HP.N 
up 9.5% at $41.32 
    ** Co to buy Britain's KCA Deutag International for $1.97
billion in cash
        ** Deal will make co one of the biggest rig providers in
the Middle East
  
    ** HP says it will increase its Middle East rig count to 88
from 12 rigs
    ** Co posts Q3 adj. profit of 92 cents/shr vs est. of 77
cents/shr - LSEG data
    ** RBC Capital Markets analysts view the deal positively,
but add the deal might also lower near-term shareholder returns
due to rise in debt levels
    ** Including session's gains, stock is up ~14% YTD

 (Reporting by Sourasis Bose in Bengaluru)
 ((Sourasis.bose@thomsonreuters.com))