ADNOC Drilling Company PJSC (\u201cADNOC Drilling\u201d or the \u201cCompany\u201d) (ADX symbol: ADNOCDRILL \/ ISIN: AEA007301012) and Alpha Dhabi Holding PJSC (\u2018\u2019Alpha Dhabi\u2019\u2019) (ADX: ALPHADHABI)\u00a0announced today the incorporation of its strategic investment JV at Abu Dhabi Global Market. The JV,\u00a0 will pursue global investments in energy technology and bolster tech-enabled energy services.<\/p>\n
As the inaugural investment, Alpha Dhabi has contributed its 25% equity stake in Gordon Technologies (\u201cGordon\u201d), a leading provider of measurement while drilling (\u201cMWD\u201d) technology to the oil and gas industry in the USA. The equity stake has been valued at circa $180 million.<\/i><\/p>\n
The establishment of this JV, and the contribution of Gordon\u2019s 25% share capital, is expected to bring value accretive returns to both shareholders and will be synergistic with ADNOC Drilling\u2019s business. It will also support ADNOC Drilling\u2019s long-term dividend growth profile.<\/p>\n
Founded in 2014, Gordon is one of the leading MWD technology provider in the USA.\u00a0\u00a0 With robust positions in its key operating basins and with expected revenue of more than $230 million in FY2023, Gordon supports efficient drilling operations for its customers through leading performance metrics and cost efficiencies. As one of the industry\u2019s few fully integrated MWD players, the company occupies a unique position, particularly in high temperature applications, with reliability measures significantly outperforming the industry average.<\/p>\n
Gordon has no leverage, and its acquisition is economically accretive to the JV\u2019s shareholders from a profitability, valuation multiple, cash flow generation and dividend potential standpoint, along with a FY2023 expected free cash flow yield of more than 10%.<\/p>\n
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling<\/b>, said:\u00a0\u201c Through the incorporation of our Joint Venture we are set to accelerate investment in tech-enabled energy solutions.<\/span>\u00a0<\/span>\u00a0Access to these technologies will support us in our operations, and to accelerate well delivery optimization in the development of unconventional resources as we strive to enable gas self-sufficiency for the nation.\u201d<\/span><\/p>\n Eng. Hamad Al Ameri, Managing Director and Group CEO of Alpha Dhabi<\/b>, added: \u201cSince Alpha Dhabi\u2019s minority stake acquisition of Gordon Technologies in 2022, we have\u00a0 supported its growth strategy in the US market and put the foundations in place for expansion to the Middle East region. Through this joint venture, and leveraging both Alpha Dhabi and ADNOC Drilling\u2019s complimentary capabilities, we look forward to driving further value creation for the benefit of our mutual stakeholders.\u201d<\/p>\n As disclosed on 10 November 2023, ADNOC Drilling holds a majority 51% stake in the JV, with the remaining 49% held by Alpha Dhabi, with equal Board representation for both parties. The JV\u2019s financial results will be accounted for by ADNOC Drilling through the equity method starting from the Company\u2019s 1Q 2024 financial results.<\/span><\/p>\n The JV intends to acquire and invest in companies offering tech-enabled oilfield services solutions, subject to the relevant regulatory approvals, and foster a scalable ecosystem that will enhance market value and optimize operational efficiencies. It will be a major driver of investment decisions with the ability to support the UAE\u2019s wider energy transition ambitions, net zero agenda and ongoing economic diversification efforts.<\/p>\n","protected":false},"excerpt":{"rendered":" ADNOC Drilling Company PJSC (\u201cADNOC Drilling\u201d or the \u201cCompany\u201d) (ADX symbol: ADNOCDRILL \/ ISIN: AEA007301012) and Alpha Dhabi Holding PJSC (\u2018\u2019Alpha Dhabi\u2019\u2019) (ADX: ALPHADHABI)\u00a0announced today the incorporation of its strategic investment JV at Abu Dhabi Global Market. The JV,\u00a0 will pursue global investments in energy technology and bolster tech-enabled energy services. As the inaugural investment, […]<\/p>\n","protected":false},"author":3,"featured_media":2225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[91,59,130,43,87,111,15],"tags":[3120,3122],"class_list":["post-2224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arab-countries-en","category-energy-en","category-featured-en","category-finance-investment-en","category-gcc-en","category-mou-partnerships-en","category-press-releases","tag-adnoc-drilling","tag-alpha-dhabi"],"yoast_head":"\n