ACT Energy to Acquire SB Directional Services in USD$47 Million U.S. Expansion Push

An update from Cathedral Energy Services ( (TSE:ACX) ) is now available.

ACT Energy Technologies has moved to strengthen its position in the U.S. oilfield services market by agreeing to acquire SB Directional Services’ directional drilling business for USD$47 million in cash and shares. SB, founded in 2015 and based in Oklahoma City, brings a fleet of 130 mud motors and 25 MWD kits, a steady job count in the Anadarko and Permian basins, and a management team that will remain in place under new employment and consulting agreements.

The transaction is designed to be financially accretive, with ACT expecting cost synergies from replacing SB’s rented rotary steerable tools with ACT-owned equipment and targeting a payback period of just over two and a half years. To support the deal and preserve balance sheet flexibility, ACT has also expanded its syndicated credit facility from about CAD$125 million to CAD$145 million and raised its U.S. dollar lending capacity, while projecting pro forma funded debt to EBITDA of 1.20:1.00, which is expected to decline through 2026.

The most recent analyst rating on (TSE:ACX) stock is a Buy with a C$6.50 price target. To see the full list of analyst forecasts on Cathedral Energy Services stock, see the TSE:ACX Stock Forecast page.

Spark’s Take on TSE:ACX Stock

According to Spark, TipRanks’ AI Analyst, TSE:ACX is a Outperform.

Cathedral Energy Services receives a score of 72, driven primarily by its strong valuation and positive technical indicators. Despite mixed financial performance with declining revenue and cash flow concerns, the stock’s low P/E ratio and bullish technical signals provide a favorable outlook. The absence of earnings call and corporate events data means these factors do not influence the score.

To see Spark’s full report on TSE:ACX stock, click here.

More about Cathedral Energy Services

ACT Energy Technologies is a Calgary-based oilfield services provider specializing in directional drilling technologies, including rotary steerable systems and Measurement-While-Drilling tools, with a growing focus on expanding its U.S. footprint across key shale basins. The company leverages a combination of owned drilling technology and strategic acquisitions to build scale and improve margins in high-activity regions such as the Anadarko and Permian basins.

Average Trading Volume: 51,450

Technical Sentiment Signal: Buy

Current Market Cap: C$229.8M

See more data about ACX stock on TipRanks’ Stock Analysis page.