Patterson-UTI Energy To Acquire Pioneer Energy Services In $295 Mln Deal

(RTTNews) - Patterson-Uti Energy Inc. (PTEN), a provider of oilfield services and products, announced Tuesday that it has entered into an agreement to acquire Pioneer Energy Services Corp. for approximately $295 million, which includes the retirement of all Pioneer Energy Services' debt.

The deal price consists of the issuance of up to 26.28 million shares of Patterson-UTI stock plus payment of $30 million of cash.

The acquisition is expected to be accretive to cash flow per share and adjusted EBITDA per share and generate annual synergies of more than $15 million.

The transaction was unanimously approved by each of Patterson-UTI's and Pioneer Energy Services' board of directors.

Additionally, Patterson-UTI has entered into an agreement with holders who collectively represent approximately 88% of the outstanding voting power of Pioneer Energy Services to vote in favor of the transaction.

The company expects to close the transaction in the fourth quarter of 2021, subject to regulatory approvals, customary closing conditions and the approval of Pioneer Energy Services' stockholders.

The acquisition will add 16 super-spec drilling rigs to Patterson-UTI's current fleet of 150 super-spec drilling rigs in the United States, and will expand its geographic footprint with the addition of eight pad-capable rigs in Colombia.