Alexander Drilling, Inc. is an oil and gas drilling contractor which operates eight medium depth drilling rigs in the Arkoma Basin of eastern Oklahoma and western Arkansas. Founded in 1968, the company is headquartered near Fort Smith, Arkansas. Alexander is managed by Mr. Rick Alexander, who has worked for the company since 1972. The company was owned by Mr. Alexander and his family.
The Dillard Anderson Group (“DAG”) became aware of the significant increase in drilling activity in the Arkoma Basin, particularly in the Fayetteville Shale. DAG contacted Mr. Alexander, and discussed the current market for well established contract drilling companies. Mr. Alexander talked to a number of previous DAG clients, and, based on the positive feedback from those clients, elected to engage DAG for the sale of the company.
DAG undertook an extensive search of both strategic buyers and private equity firms that we felt would have an interest. We then narrowed the list through discussion with the candidates, and held site visits with three potential buyers. Nabors Industries, LTD. (NYSE: NBR) delivered a premium valuation, paid in cash, for the assets of Alexander Drilling. In addition, Mr. Alexander accepted a position with Nabors to oversee the current 27 rig fleet in the region.