Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

C&J Energy Services Goes All-In With The Nabors Deal

Small-cap energy services company C&J Energy Services (CJES) doesn't want to be small any longer. C&J has done a good job building its fracking business on the back of modern, high-spec equipment and the ability to execute well on challenging or complex jobs, but now the company is looking to be an integrated services provider that can compete more effectively with Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB), and Baker Hughes (NYSE:BHI). While I appreciate the willingness of C&J management to make such a bold move, I do wonder about the price paid and the quality of assets the company is getting in return.

The Deal

C&J Energy Services and Nabors (NYSE:NBR) announced Wednesday night...

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