Innovex International Inc. has agreed to sell the Dril-Quip Eldridge Campus in northwest Houston to Big Acquisitions LLC for $95 million, the company said April 25. Innovex and Dril-Quip merged in September 2024.
The property sale is expected to close in third-quarter 2025.
Following closing, the company will lease the property for $650,000 per month through Dec. 31, with a possible six-month extension, according to its Securities Exchange Commission filing.
The expected proceeds from the sale represent approximately 9% of Innovex’s current market cap, said Innovex CEO Adam Anderson.
Anderson said the exit of Eldridge is expected to reduce Innovex’s operating footprint dedicated to subsea operations in Houston by 82%, “not only driving significant cost reduction, but more importantly enabling better on-time delivery and responsiveness to our customers’ needs.”
The company has “multiple avenues to deploy this capital,” said CFO Kendal Reed. Among them are a previously announced $100 million buyback authorization and some M&A possibilities.
The onshore and offshore drilling service provider also lowered its first-quarter revenue guidance to $240 million from the previous range of $245 million to $255 million, saying revenue weakness in Mexico was far greater than expected. Innovex will release its first-quarter 2025 earnings on May 6 after the market closes.