Patterson-UTI Energy Completes Acquisition of Pressure Pumping and Wireline Businesses from Key Energy Services

abarrelfull wrote on 04 Oct 2010 05:54
Tags: bakken investing patterson-uti services

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PATTERSON-UTI ENERGY, INC. (Nasdaq: PTEN) today announced that two subsidiaries of the Company, Universal Pressure Pumping, Inc. and Universal Wireline, Inc. have completed the acquisition of pressure pumping and wireline assets from subsidiaries of Key Energy Services, Inc. (NYSE: KEG) for approximately $238 million in cash.

With the completion of this acquisition, Patterson-UTI's pressure pumping subsidiaries now have equipment with approximately 431,000 horsepower, including 340,000 fracturing horsepower and 91,000 horsepower used in cementing, acidizing and nitrogen stimulation. Pressure pumping services are provided throughout Texas and the Appalachian region, as well as other areas. A substantial amount of the services are provided in the Barnett, Eagle Ford and Marcellus Shales as well as the Permian Basin. The wireline subsidiary has 26 wireline units that operate in the same areas as the pressure pumping assets, as well as other regions including the Bakken Shale.

Douglas J. Wall, Patterson-UTI's Chief Executive Officer, stated, "Demand for pressure pumping services remains high and we are confident that this acquisition will further our ability to provide a high-level of customer service quality. We welcome the high caliber employees of these businesses into the Patterson-UTI family."

Commenting on the acquisition, Mark S. Siegel, Patterson-UTI's Chairman, stated, "We are pleased to complete this acquisition that significantly expands one of our core businesses. This acquisition was funded with a combination of cash on hand and a draw under our $400 million revolving line of credit."

Patterson-UTI Energy Completes Acquisition of Pressure Pumping and Wireline Businesses from Key Energy Services

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