Mainly focused on offering large diameter coiled tubing services, Motley Services specializes in complex, longer lateral horizontal wells.

It also offers wireline and thru-tubing services, which are expected to be complementary to KLX Energy Services’ existing service offerings.

Motley Services primarily serves customers in the southwestern US.

KLX Energy Services chairman, chief executive officer and president Amin Khoury said: “The acquisition of Motley represents an entry into the coiled tubing market for KLXE, and significantly strengthens the company’s current portfolio of well completion services.

“Motley’s business will enhance our integrated platform by adding large diameter coiled tubing services initially into the Company’s Southwest region, and then rolling it out to the rest of our geographic regions.”

Under the terms of the agreement, the total consideration to be paid by KLX Energy Services for the acquisition consists of $139m in cash and $9m of KLX Energy Services common stock.

KLX Energy Services intends to fund the cash portion of the acquisition cost with the net proceeds of a debt financing.

Khoury added: “The acquisition price of $148 million represents a multiple of approximately 3.2x the mid-point of Motley’s third quarter 2018 EBITDA guidance, on an annualized basis. The acquisition is expected to close in late October or early November 2018 and to be strongly accretive to KLX Energy Services earnings in 2018 and 2019.”

The transaction is subject to certain closing conditions, including approvals from regulatory authorities.

KLX Energy Services is a major US onshore provider of oilfield services focused on completion, intervention and production activities for technically demanding wells.

The company operates more than 35 service facilities, which are located in the major onshore oil and gas producing regions of the US.