ProPetro Completes Acquisition of Pioneer’s Pressure Pumping Assets
ProPetro closed its deal to purchase Pioneer’s pressure pumping fleet, boosting its services in the Permian Basin.
ProPetro Holding Corp. completed its acquisition of the pressure pumping service assets of Pioneer Natural Resources Co. on 1 January and will provide services to Pioneer for a term of up to 10 years. Under terms of the agreement previously announced on 13 November 2018, the $400-million deal comprises $110 million of cash and 16.6 million shares of ProPetro common stock, representing approximately 17% Pioneer ownership in ProPetro.
Dale Redman, ProPetro cofounder and CEO, said the transaction creates the largest pressure pumper in the Permian Basin without adding incremental fleets to the overall market. “Their robust operational track record aligns with our commitment to being the most efficient, low-cost Permian operator. We have had a strong relationship with the ProPetro team for many years, and this contract solidifies their position as a key partner in our development program. The long-term nature of this agreement will benefit both companies,” he said.
Pioneer Pumping Services (PPS) assets include eight frac fleets with 510,000 hydraulic horsepower (hhp), as well as three coiled tubing units and associated equipment. ProPetro now has 28 frac fleets with 1,415,000 HHP in the Permian Basin. In addition, PPS assets include a maintenance facility situated on 111 contiguous acres located near ProPetro’s current maintenance operations in Midland, Texas.