managing hr and culture integration during mergers and acquisitions
TRANSCRIPT
C&J Energy ServicesPresenter: Marty J. Kunz, SPHR
Vice President-Human Resources2014 Human Capital Leadership ForumCityplace Conference & Events Center
Dallas, Texas
“Managing HR and Culture Integration in an Active M&A
Environment”November 20, 2014
C&J Overview
C&J Energy Services is an independent provider of premium hydraulic fracturing, coiled tubing, wireline and other
complementary services with a focus on complex, technically-demanding well completions. We provide our services in
conjunction with both conventional and unconventional well completions, as well as workover and stimulation operations
for existing wells.
1997
1999
2002
2007
2011
2012
2013
2014
Josh Comstock Founded C&J in Robstown, TX
Introduced StandAlone Pumping
Services
Introduced Coiled Tubing ServicesRobstown, TX
Introduced Fracturing Services:
Robstown, TX
Initial Public Offering on NYSE;
Acquired Total Equipment Services;
Corporate Office moved to Houston
Introduced WirelineWith Acquisition of
CasedholeSolutions
Opening of new Corporate office and
New R&T Center; Acquired Tiger
Casedhole; Acquisition of Nabors NCPS
Acquired Tellus
Areas of Operation
We are geographically focused where there is the most opportunity, with service centers near the majority of prominent domestic shale basins.
The C&J Family
Our top-tier manufacturer of hydraulic fracturing, coiled tubing, pressure pumping and other equipment used in the energy services industry.
Our global supplier of oilfield chemicals and technology. They supply, engineer, manufacture and apply specialty chemicals.
Tellus delivers innovative Directional Drilling, MWD and LWD products and technologies to the oil and gas industry through contract engineering and in-house developments.
Oil & Gas Awards
2012 Gulf Coast Oil & Gas Awards, WinnerDrilling & Well Services Company of the Year
2013 MidCon Oil & Gas Awards, Winner Well Completion Company of the Year
2013 Gulf Coast Oil & Gas Awards, Winner The Preferred Technology Award for Excellence in Well Completion
M&A Activity at C&J• 2011- C&J acquires Total Equipment
• 2012- C&J acquires Casedhole Solutions
• 2013- C&J acquires Tellus Oilfield
• 2014- C&J acquires Tiger Casedhole
• 2014- C&J and Nabors Drilling announce C&J’s acquisition of Nabors Completion and Production Services
Total Equipment Acquisition
• Was a main supplier of Coiled Tubing and Fracturing equipment for C&J
• Vertical integration of supply chain
• Approximately 150 employees
• Stand alone operation
Casedhole Solutions Acquisition• Added a new line of business
• Strong management team
• Approximately 600 employees
• Strong company culture
• “Slow burn” on integrating• Systems• Policies• Procedures• Pay practices• Payroll
• Just “completed” in 2014
Tellus Acquisition• Very small company (less than 20 employees)
• Intellectual capital added to newly established Research & Technology group
• Tellus needed capital to implement products and ideas
• Integration effort minimal
• Owner(s) stayed with C&J
Tiger Casedhole Acquisition• Tiger also small, but STRONG culture
• Approximately 37 employees
• Owner is now manager of that division
• Strong resistance to becoming part of a “big company”
• Unlike Tellus, Tiger had a “history” and long-tenured employees
• Much softer integration approach• Lots of hand holding and reassurance• Slower burn on changes
• The magical world of “California”
Nabors and C&J• Scheduled to close in Q4-2014 or early 2015 (Fast track)
• Smaller company acquires larger one • (3,100 employees versus 7,000- 8,000 employees)
• Complicated• Inverse acquisition
• “Mother ship” remains
• Cultures are very different
• NCPS is not their “core” business
• Must remain competitors until close
• Systems (IT, HR, Accounting) work is intense