U.S. Markets closed

Houston's latest energy merger arranged in scale-hungry market

Joshua Mann
Houston's latest energy merger arranged in scale-hungry market

The $1.8 billion merger agreement between Houston-based C&J Energy Services (NYSE: CJ) and Keane Group Inc. (NYSE: FRAC) was a deal born out of an environment hungry for scale. There haven’t been many oil field services mergers and acquisitions in recent years, said Joe Dunleavy, a Houston partner with London-based PricewaterhouseCoopers' deals practice. Companies in the space are under pressure to operate within cashflow, but many of them have had trouble doing so, Dunleavy said.