Nabors Industries Sells Quail Tools for $600M

By Philip Seaworth • Monday, August 25 10:20 • Permanent Link

Nabors Industries Ltd. has announced the sale of its subsidiary, Quail Tools, LLC, to Superior Energy Services, Inc. for a total consideration of $600 million, consisting of $375 million in cash and a seller note of $250 million. The company anticipates incurring approximately $5 million in cash taxes from the sale, after utilizing net operating loss carryforwards. The transaction closed on August 20, 2025.

Quail, a leading provider of high-performance downhole tubulars to the U.S. oil and gas drilling market, is expected to generate adjusted EBITDA of approximately $150 million in 2025, according to Nabors' estimates.

Following the sale, Nabors expects to reduce its net debt by more than 25%, resulting in an annual interest savings of over $50 million and enhancing the company's financial flexibility. The company reported long-term debt of $2.7 billion and net debt of $2.3 billion as of June 30, 2025.

The company also highlighted the performance of the retained businesses acquired from Parker Wellbore, expecting them to generate full-year 2025 adjusted EBITDA at a run rate of at least $55 million, including realized post-closing synergies.

Nabors emphasized the positive impact of the Parker acquisition and the Quail disposition on its legacy business, noting that the net effect attributes proceeds of $625 million to the 4.8 million Nabors common shares issued, resulting in a share issuance value of approximately $130 per share. Additionally, the retained businesses are expected to contribute more than $55 million in annual run-rate adjusted EBITDA, translating into additional implied equity value of $107 million.

Anthony Petrello, Chairman, President & CEO of Nabors Industries, expressed confidence in the sale, acknowledging the talented and dedicated Quail Tools team and the significant value the divestiture creates for shareholders.

The company also disclosed that it engaged Haynes Boone as legal counsel in connection with the transaction.

Today the company's shares have moved 7.61% to a price of $36.05. If you want to know more, read the company's complete 8-K report here.

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