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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details