Nabors Industries, a US-based oil and gas drilling contractor, has divested its subsidiary, Quail Tools, to Superior Energy Services for a total consideration of $600m.
Superior Energy Services is a provider of drilling equipment rentals to the oilfield services sector.
The consideration comprises $375m in cash and a seller note of $250m.
Quail Tools specialises in high-performance downhole tubulars for the US oil and gas drilling industry. With this acquisition, Superior Energy Services enhances its portfolio by integrating Quail Tools’ legacy and expertise with its existing rental brands including Workstrings International and HB Rentals.
This acquisition establishes a comprehensive customer service platform with increased scale, technical depth, and international reach, said Superior Energy Services.
The agreement also includes a preferred supplier agreement that designates Superior Energy Services as Nabors’ preferred supplier for rental drill pipes and related products.
Superior Energy Services aims to leverage the acquisition to strengthen its position in both US and international markets, providing advanced tubular solutions across various land and offshore operations.
Superior Energy Services chairman and CEO Dave Lesar said: “This acquisition is the first major milestone in our ongoing strategy to build a global platform of industry-leading capabilities.
“Quail’s best-in-class US facilities and inventory allow us to serve all major U.S. energy plays with greater efficiency, while also enhancing our ability to better support offshore and international operations. The combined business is positioned to deliver superior service, innovation, and responsiveness to our customers worldwide.”
The deal comes after Nabors’ previous purchase of Parker Wellbore in March 2025, which added to its portfolio of drilling services globally.
Nabors said that post-acquisition, Quail Tools’ performance exceeded expectations despite challenging market conditions. The former anticipates Quail Tools to generate an adjusted EBITDA of around $150m in 2025, excluding potential synergies from integration with Superior Energy Services.
With the completion of this sale, Nabors aims to accelerate over five years’ worth of anticipated free cash flow from its Parker businesses. The company expects its net debt to reduce by $625m upon full realisation of sale proceeds.
As of mid-2025, Nabors reported long-term debt at $2.7bn and net debt at $2.3bn.
Post-divestiture, Nabors will continue to operate the drilling rig and tubular running services acquired from Parker. Nabors had also sold idle Parker rig assets for approximately $35m in cash proceeds during Q2 2025.
Nabors chairman, president, and CEO Anthony Petrello said: “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 US land and offshore tubular rental space, and there are substantial additional synergy opportunities.”
