The Middle East rig market is projected to grow, and with KCA Deutag’s ~$5.5 billion contract backlog and strong customer base, H&P will gain resilient revenues and improved earnings visibility.

Nevertheless, the KCA Deutag acquisition is expected to significantly expand the company's rig count in key Middle East markets from 11 to 65, which could boost margins in future quarters.

KCA Deutag Drilling Limited is a United Kingdom-based drilling and engineering contractor. The Company provides rig services, specialist engineering and design, and land rig manufacture for the ...