Deal Creates a Gusher for Oilfield Water Services

The big news in the oil patch yesterday was the merger of Select Energy Services (WTTR) and privately held Rockwater Energy Solutions. I've written extensively about oilfield water services for Real Money and first mentioned WTTR (which IPO'd on April 20) positively in my column of June 9. The market obviously liked the deal, as Select shares gushed to a 20% gain in yesterday's trading. 

It's rare to see the stock price of an acquirer in a stock-for-stock deal jump that much, and investors clearly believe water services for the oilfield are ripe for consolidation. It wasn't quite Amazon (AMZN) -Whole Foods (WFM) , where the one-day jump in the acquirer's share price covered the cost of the deal, but by my calculations, the move in WTTR shares covered 34% of the net cost (including assumed debt) of the deal, so that's a nice bonus for WTTR shareholders. ...386 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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