Houston-based Patterson-UTI Energy plans to acquire Seventy Seven Energy in a nearly $1.8 billion stock deal.
The proposed merger was announced Monday night.
A statement from Patterson and Oklahoma City-based Seventy Seven Energy noted that the boards of both companies unanimously approved the deal.
“We have always held Seventy Seven Energy in high regard due to their commitment to quality service in the field, their high-quality assets and facilities and the talent they have throughout their organization,” said Mark S. Siegel, chairman of Patterson-UTI. “As Seventy Seven Energy emerged from its recent financial restructuring, we saw an opportunity to engage a partner that is a great strategic fit for Patterson-UTI.”
Patterson provides contract drilling and pressure pumping services.
Seventy Seven Energy offers contract drilling, pressure pumping and oil field rentals, with a fleet of 40 rigs.
Officials say the agreement, pending regulatory and shareholder approval, is expected to close in the first quarter of 2017.
Under the terms of the transaction, Patterson-UTI will acquire all of the issued and outstanding shares of common stock of Seventy Seven Energy, in exchange for approximately 49.6 million shares of common stock of Patterson-UTI.
“We are very excited to be joining forces with Seventy Seven Energy,” said Andy Hendricks, Patterson-UTI’s chief executive officer. “Their contributions will allow us to further capitalize on the shifting industry fundamentals in the U.S. oil and gas market, where customers are increasingly focused on efficiency and high-quality execution. This merger provides both strong personnel and high quality equipment that are complementary to our existing service offerings.”
Image
Body