Updike Brothers, Inc., Newcastle, Wyoming, is an oilfield workover and service rig contractor which has operated successfully in the Rocky Mountain region since 1937. The company operates 25 rigs, along with crews, which are utilized to do completions, cleanouts and workovers for existing oil and gas wells. The company was majority owned and managed by members of the Updike family. The president, Mr. David ‘Bud’ Updike, retained DAG for the sale of the company.
The company was somewhat unique, in that the ownership structure was an Employee Stock Ownership Plan (ESOP). The Updike family owners had a fiduciary obligation to the ESOP shareholders to insure that the best possible value was to be realized in a sale.
DAG negotiated the sale of Updike Brothers, Inc. to Key Energy Group, Inc. (NYSE:KEG), one of largest and most successful service contractors in the U.S. The Updike family and the ESOP shareholders were pleased with the attractive valuation delivered by The Dillard Anderson Group.