Patterson UTI Scoops Up Pioneer Energy Services
The deal adds 16 super-spec land rigs to Patterson UTI’s domestic fleet and will result in the sale of Pioneer’s well service business.
Patterson UTI Energy is acquiring Pioneer Energy Services in a stock-and-cash deal valued at $295 million. According to the Houston-based land driller, consideration for the acquisition consists of the issuance of up to 26,275,000 shares of its common stock plus payment of $30 million of cash. The consideration includes the retirement of all Pioneer Energy Services’ debt.
The deal will add 16 super-spec drilling rigs to Patterson-UTI’s current fleet of 150 super-spec drilling rigs in the US as well as expand Patterson-UTI’s geographic footprint with the addition of eight pad-capable rigs in Colombia.
“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,” said Andy Hendricks, chief executive of Patterson UTI. “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.”
The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approvals, customary closing conditions, and the approval of Pioneer Energy Services’ stockholders. The transaction was unanimously approved by each of Patterson-UTI’s and Pioneer Energy Services’ board of directors.
Following the closing of the transaction, Patterson-UTI will own 166 super-spec rigs in the US, with almost half of them equipped to utilize alternative power sources for reduced emissions.
In addition to the US and Colombian contract drilling businesses, Pioneer Energy Services also has a well service rig business comprising 123 service rigs with a leadership position in the Gulf Coast region. Patterson-UTI expects that this business would be divested following the closing of the transaction.