Patterson-UTI To Buy Texas-Based Private Firm's Pressure Pumping Assets - Update

(RTTNews) - Patterson-UTI Energy Inc.(PTEN), which owns and operates fleets of land-based drilling rigs, announced Friday that its subsidiary has entered into an agreement to acquire the Texas-based pressure pumping assets of a privately held company. The company did not reveal the terms of the deal.

The pending transaction is expected to close within 90 days, subject to customary closing conditions and receipt of required third party consents. It is also subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Act.

The acquisition includes 143,250 horsepower of hydraulic fracturing equipment, which was manufactured in 2011 and 2012. The deal provides Patterson-UTI with two additional bases of operations and employees to support customer activity in the Eagle Ford and Haynesville shale plays.

Andy Hendricks, Patterson-UTI's Chief Executive Officer, stated, "This equipment has not been heavily operated since it was introduced to the market at a time of reduced demand for pressure pumping services. We believe the assets to be well-maintained, in very good condition and in line with our high standards."

Following the deal closure and after delivery of the previously announced new equipment currently on order, the company will have more than one million horsepower of fracturing capacity, it said.

Patterson-UTI noted that nearly 50 percent of the rigs currently drilling horizontal wells in the United States are located in Texas.

According to the firm, the acquired assets will supplement its existing Texas-based pressure pumping operations in the Permian Basin, the Eagle Ford shale of South Texas, the Barnett shale of North Texas and the Haynesville shale of East Texas and Louisiana.

Patterson-UTI shares closed Thursday's trading at $32.72, up $0.25 or 0.77 percent.