Patterson-UTI Energy, Inc. (NASDAQ: PTEN) officially announced the completion of its acquisition of Pioneer Energy Services Corp., marking a significant development in the oilfield services sector. The deal, initially disclosed earlier, concluded on October 4, 2021, and involved a combination of stock and cash considerations, strategically positioning Patterson-UTI to enhance its service offerings.
The financial details of the acquisition reveal that Patterson-UTI issued approximately 26.3 million shares of its common stock and disbursed $30 million in cash. Based on Patterson-UTI’s closing stock price of $9.44 just prior to the finalization, the transaction’s value is estimated at around $278 million. This figure notably includes the settlement of all outstanding debt held by Pioneer Energy Services, streamlining Pioneer’s financial structure under Patterson-UTI’s umbrella.
As part of the closing procedure, Pioneer Energy Services’ senior notes were settled using a combination of cash and a portion of the Patterson-UTI common stock issued for the acquisition. For each share of Pioneer common stock they held, Pioneer shareholders are set to receive 1.8692 shares of Patterson-UTI common stock, ensuring a direct stake in the merged entity.
Andy Hendricks, Chief Executive Officer of Patterson-UTI, expressed his positive outlook on the acquisition. “We are thrilled to officially welcome the employees, customers, and shareholders of Pioneer Energy Services to Patterson-UTI,” Hendricks stated. He further emphasized the cultural and operational alignment between the two entities, noting, “Pioneer’s team members share our deep-seated commitment to safety and superior service quality, and we are eager to integrate their expertise into our operations.”
Patterson-UTI stands as a prominent provider in the oilfield services and products domain, catering to oil and natural gas exploration and production companies. The company’s comprehensive service portfolio includes contract drilling, pressure pumping, and directional drilling services. With this acquisition of Pioneer Energy Services Corp., Patterson-UTI is poised to expand its market presence and enhance its capabilities in delivering integrated solutions to its clientele within the energy sector. Further details about Patterson-UTI’s operations and services can be accessed on their website at www.patenergy.com.
It is important to note that this announcement contains forward-looking statements, as is standard in such corporate communications. These statements are based on Patterson-UTI’s current expectations and beliefs regarding future events and are inherently subject to risks and uncertainties. Factors such as the successful integration of Pioneer Energy Services, fluctuations in oil and natural gas prices, competitive pressures, and regulatory changes could influence the actual outcomes. Investors and stakeholders are encouraged to refer to Patterson-UTI’s filings with the Securities and Exchange Commission (SEC) for a comprehensive understanding of these risks and uncertainties, accessible through Patterson-UTI’s website or the SEC’s EDGAR system. Patterson-UTI clarifies it does not undertake any obligation to update these forward-looking statements publicly.
