Newly Merged C&J Energy, Keane To Become NexTier Oilfield Solutions
Expected to close 31 October, the deal will create one of the largest pressure pumpers in the US.
The merger of C&J Energy Services and Keane Group is expected to close 31 October, at which point the combined firm will be known as NexTier Oilfield Solutions.
Shareholders of both companies approved the deal on 22 October. The new well completion and production services company will rank just behind Halliburton and Schlumberger in terms of total US hydraulic fracturing horsepower.
Announced with the merger agreement in June, current Keane Chief Executive Officer Robert Drummond will serve in the same role at NexTier Oilfield Solutions. C&J and Keane earlier this month announced operational leaders who will report to Drummond:
Billy Driver, senior vice president, product lines, will manage the company’s hydraulic fracturing, integrated wireline, wireline and pumpdown, cementing, and coiled tubing product lines.
Ian Henkes, senior vice president, operations, will manage regional field operations for the hydraulic fracturing, integrated wireline, wireline and pumpdown, cementing, and coiled tubing product lines.
Jack Renshaw, senior vice president, well services, will manage the well services product lines.
The shareholder “approvals represent a key milestone in completing the transaction and clearly support our view that this merger of equals will provide many strategic and financial benefits, with our increased scale and density across services and geographies and a prominent presence in the most active US basins,” Drummond said in a news release.
Closing of the merger comes amid lower utilization of pressure pumping units and falling service prices across North America. Schlumberger during the third quarter wrote down $1.575 billion from its North American pressure pumping business.