Patterson-UTI Energy Inc. (NASDAQ: PTEN) Enters Agreement To Acquire Pioneer Energy Services For $295 Million.

Patterson-UTI Energy Inc. (NASDAQ: PTEN) has announced an acquisition agreement to buy Pioneer Energy Services Corp for a consideration of $295 million. As part of the acquisition, the company will retire all of Pioneer Energy’s debt. 

Patterson-UTI to acquire Pioneer Energy Services  

The purchase price includes the issuing of up to 26.275 million of Patterson-UTI’s common shares as well as a cash payment of $30 million. The deal is scheduled to close in the fourth quarter of 2021, pending regulatory approvals, customary closing conditions, and Pioneer Energy Services stockholder approval. 

The transaction expands the geographic footprint of Patterson-UTI with eight additional pad-capable rigs in Columbia. Equally, Patterson-UTI will add 16 super-spec rigs to its current 150 super-spec rigs in the US. As a result, the transaction will be accretive to adjusted EBITDA and cash flow per share, creating annual synergies of over $15 million. Notably, the acquisition will complement the company’s customer base and allow it to expedite its super-spec drilling rig count growth as the market demand improves. In addition, it will help Patterson-UTI to focus on minimal emission with more rigs producing natural gas. 

Patterson-UTI to have 166 super-spec rigs in the US

Patterson-UTO CEO Andy Hendricks said, “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.”

With the acquisition, Patterson-UTI will now one 166 super-spec rigs in the US, and most of them are designed to use alternative energy to reduce emissions. 

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