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Superior Drilling Products Inc. (NYSE American: SDPI) is an industry leader specializing in the innovative design and manufacturing of drilling tool technologies for the oil, natural gas, and mining services industry. Headquartered in Vernal, Utah, the company has been a top player in the polycrystalline diamond compact (PDC) drill bit market for over two decades.
SDPI's core business includes the development and commercialization of advanced drilling tools, such as the patented Drill-N-Ream® wellbore conditioning tool and the Strider™ oscillation system technology. These tools enhance the efficiency and effectiveness of horizontal and directional drilling operations, providing cost-saving solutions that drive production efficiencies for the oil and gas sector.
Additionally, Superior Drilling Products is known for its state-of-the-art remanufacturing capabilities. The company refurbishes PDC drill bits, extending their life and improving their performance, which is particularly valued by leading oil field service companies. The company operates a cutting-edge drill tool fabrication facility in Vernal, Utah, that supports both its proprietary product lines and custom fabrication for clients.
In recent news, Superior Drilling Products has entered into a definitive agreement to be acquired by Drilling Tools International Corp. (NASDAQ: DTI) for approximately $32.2 million. This acquisition, expected to close in the third quarter of 2024, aims to leverage the synergies between the two companies. DTI, a prominent oilfield services company, has been the exclusive North American distributor for SDPI's Drill-N-Ream® tool since 2016. The merger is set to drive manufacturing and distribution efficiencies, particularly expanding the reach of the Drill-N-Ream technology into the Middle East market.
Financially, SDPI has showcased strong performance, with the majority of its revenue derived from North America. The company is poised for growth both domestically and internationally, with a strategic focus on increasing its market presence and enhancing shareholder value through innovation and strategic partnerships.
This merger with DTI is seen as a significant milestone, promising to bolster SDPI's market position and accelerate its growth trajectory in the oilfield services industry.
Superior Drilling Products (NYSE American: SDPI) announced preliminary results for the election of merger consideration in its pending acquisition by Drilling Tools International (NASDAQ: DTI). Key points:
- SDPI shareholders approved the merger on July 29, 2024
- Shareholders could elect to receive $1.00 in cash or 0.313 DTI shares per SDPI share
- 80.5% of shares elected stock consideration, 5.3% elected cash, and 14.2% made no election
- The maximum share amount was exceeded, so stock electors will receive partial cash consideration
- Final results and allocation will be calculated before closing
The merger aims to combine SDPI's innovative drilling tool technology with DTI's oilfield services expertise.
Superior Drilling Products (NYSE American: SDPI) shareholders have approved the acquisition by Drilling Tools International (Nasdaq: DTI) at a special meeting. Over 99% of voted shares (representing 77% of total outstanding shares) were in favor of the merger agreement. The transaction is expected to close on August 1, 2024, after which SDPI's common stock will be delisted from public markets.
Troy Meier, SDP's Chairman and CEO, expressed satisfaction with this milestone and shareholder support, highlighting the opportunities ahead for the combined company. SDP, an innovative drilling tool technology company, designs, manufactures, and sells cost-saving solutions for the oil and natural gas drilling industry, including the patented Drill-N-Ream® well bore conditioning tool and Strider™ oscillation system technology.
DTI and SDPI have announced the deadline for SDPI shareholders to elect their preferred form of merger consideration in the pending acquisition. The Election Deadline is set for 5:00 p.m., New York time, on July 29, 2024. If approved, the Merger is expected to close on August 1, 2024. SDPI shareholders can choose between 0.313 shares of DTI common stock or $1.00 in cash per SDPI share. The election is subject to proration to ensure DTI issues between 4,112,752 and 4,845,240 shares. Shareholders should carefully review the Proxy Statement and Election Form before making their decision.
Superior Drilling Products (SDPI) reported Q1 2024 financial results. The company's total revenue was $4.95 million, down 21.3% year-over-year but up 15.8% sequentially. North America contributed 86% of this revenue, while international sales grew 10.1% sequentially. The decline in tool sales was attributed to a reduced U.S. rig count. Operating income was $159,000, down 88.4% year-over-year. Net loss stood at $1.82 million, largely impacted by $1.7 million in acquisition-related expenses. Adjusted EBITDA increased 91% sequentially to $839,000. A merger agreement with Drilling Tools International, valued at $32.2 million, is expected to close in Q3 2024.
Drilling Tools International Corp. (NASDAQ: DTI) reported $37 million in total consolidated revenue for Q1 2024. Tool Rental net revenue was $30 million, Product Sales net revenue was $7 million. Operating income was $5.1 million with Adjusted Net Income of $3.8 million. Adjusted EBITDA was $10.9 million, and Adjusted Free Cash Flow was $4.7 million. The company's CEO reaffirmed the 2024 outlook and highlighted recent acquisitions and financial standing.
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