A Denver-based oil-field services company has bought Oklahoma City's Canary Wellhead Equipment Inc. and will rebrand the combined company with the Canary name.
Frontier Energy Group CEO Dan Eberhart said the new company, Canary LLC, will be based in Denver. It will keep its Oklahoma operations and could base its distribution in Oklahoma City.
Terms of the deal weren't disclosed.
Eberhart said the combined company will have annual revenues of more than $100 million and 300 employees. About 100 employees are in Oklahoma at a manufacturing plant in Shawnee and at a remanufacturing plant in Oklahoma City.
“These guys have a really strong reputation, and they're in a bunch of different markets,” Eberhart said of Canary. “We were primarily in the Rockies, so we thought it would be a good fit and help it be a merger of equals as opposed to an acquisition that's top-down.”
Eberhart said Canary will have 26 locations across the country and customers in every major shale play, including the Bakken in North Dakota, the Woodford in Oklahoma, the Utica in Ohio and the Niobrara in Colorado. The combined company will be the largest independent wellhead company in the country, he said.
“What you're going to see is us hiring more people locally to expand here,” Eberhart said of Oklahoma City. “We're looking to expand the manufacturing and remanufacturing, and take some of the stuff we've historically given to third-parties and do it in-house with Canary. We're also looking to piggyback on their distribution system and make Oklahoma City the distribution center for the combined company.”