A Tulsa-based oilfield equipment supplier has gained the attention of a large multinational oilfield services provider. The Oklahoma-based firm, Summit ESP, notably impressed Halliburton, as evidenced by the fact that Halliburton announced on Wednesday, July 5th, that it was purchasing Summit.
Summit ESP maintains a focus on manufacturing and servicing a comprehensive product portfolio for electrical submersible and surface pumping systems. The firm’s products help to maintain well pressure and focus on mitigating the downtime spent servicing such wells. Reuters reported that banking billionaire George Kaiser financially backed the firm. NewsOK noted that Summit was founded by a number of Baker Hughes Inc. executives and employees, including the CEO of Summit John Kenner.
“We’re proud of the company we’ve built and thank our employees for their commitment to the company and for providing outstanding service quality to our customers,” stated Summit president and CEO John Kenner in a release. “The combination of Halliburton and Summit creates exciting opportunities for both our customers and employees. We look forward to capitalizing on Halliburton’s deep customer relationships and international presence to accelerate our growth,” Kenner continued.
Halliburton is reportedly pleased with the deal as well, and the firm plans to headquarter its electric submersible pump business in Tulsa. “The acquisition of Summit expands Halliburton’s existing artificial lift capabilities and increases our overall leading position in North America oilfield services,” stated Halliburton president and CEO Jeff Miller. “Summit’s unrivaled service quality, proven technology and U.S. market leadership make it a perfect fit for Halliburton.”
Just two days prior to the Halliburton-Summit merger announcement, Baker Hughes Inc. (BHI) had announced that it had successfully combined forces with GE Oil & Gas to form a new company which would capitalize on both of the firm’s strengths. The plan to merge with GE was announced shortly after the Halliburton and BHI failed merger back in May of 2016, which left Halliburton with a termination fee of $3.5 billion payable to Baker Hughes. In the end, both BHI and Halliburton were able to find new companions who agreed to merge, turning what seemed to initially be a poor situation into a new opportunity for both firms.