12:46 PM EDT, 07/25/2024 (MT Newswires) -- (Updates with share price movement, adds Q3 results)

Helmerich & Payne (HP) shares were up about 10% in recent Thursday trading after the company struck a deal to acquire drilling firm KCA Deutag International and reported better-than-expected fiscal Q3 results.

Earlier, the firm said it would acquire KCA Deutag for $1.97 billion in cash to establish H&P as a global leader in onshore drilling. It also said the deal would be immediately accretive to cash flow and free cash flow per share.

The company said it will fund the acquisition with available cash and new borrowings. It expects to close the deal before the end of the current year.

Late Wednesday, the firm posted fiscal Q3 adjusted EPS of $0.92, compared with analyst estimates of $0.76 in a Capital IQ poll.

Revenue for the quarter ended June 30 was $697.7 million, down from $724.0 million a year earlier. Analysts polled by Capital IQ expected $672.7 million.

Price: 41.52, Change: +3.77, Percent Change: +9.99