Frontier Energy Group, LLC, Buys Rival Canary Wellhead Equipment

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Frontier Energy Group LLC, a closely held company that builds and maintains oil wells, said it acquired rival Canary Wellhead Equipment Inc. Monday in a move that underscores the ongoing consolidation in the U.S. oilfield-services sector.

Terms of the deal were not disclosed, but Frontier Energy CEO Dan Eberhart said his Denver-based company is paying less than $100 million for privately held Canary, which had headquarters in Oklahoma City, Okla. Canary offers wellhead services and manufactures parts used in oil production.

Advances in drilling methods have allowed energy companies to unlock a wealth of crude oil and natural gas from shale and other deeply buried rock formations once considered too costly to develop. The drilling boom has led to new oilfield-services companies cropping up in places where shale reserves are plentiful, such as Texas, North Dakota and the Midwest.

Denver-based Frontier Energy has been a consolidator, spending $100 million over the past three years prior to the Canary deal to acquire eight small service companies.

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