Global and Regional MarketsNews

Patterson-UTI Energy to acquire Pioneer Energy Services

Patterson-UTI Energy has entered into an agreement to acquire Pioneer Energy Services for approximately $295 million, which includes the retirement of all Pioneer Energy Services’ debt. Consideration for this acquisition consists of the issuance of up to 26,275,000 shares of Patterson-UTI common stock plus payment of $30 million of cash.  The transaction is expected to close in Q4 2021, subject to regulatory approvals, customary closing conditions and the approval of Pioneer Energy Services’ stockholders.

Transaction highlights include:

  • The addition of 16 super-spec drilling rigs to Patterson-UTI’s current fleet of 150 super-spec drilling rigs in the US;
  • An expansion of Patterson-UTI’s geographic footprint with the addition of eight pad-capable rigs in Colombia;
  • Expected annual synergies of more than $15 million; and
  • Enhancement of Patterson-UTI’s focus on reduced emissions, with additional rigs capable of using natural gas as a primary fuel source.

“As a leading provider of contract drilling services in the United States, we are proud to announce this transaction. Pioneer’s high-quality fleet of 17 drilling rigs in the United States, of which 16 are super-spec, will be a valuable addition to our business. Additionally, many of these rigs are capable of substituting cleaner-burning natural gas for diesel, a technology that is becoming increasingly important to operators for reduced emissions,” said Andy Hendricks, Patterson-UTI CEO.

In addition to the US and Colombian contract drilling businesses, Pioneer Energy Services has a well service rig business consisting of 123 service rigs with a leadership position in the US Gulf Coast region. Patterson-UTI said in a statement that it expects that business to be divested following the closing of the transaction.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button