Business
Patterson-UTI Energy and NexTier Oilfield Solutions to Combine in Merger of Equals, Creating Industry Leading Drilling and Completions Services Provider
Comprehensive U.S. Oilfield Services Franchise to Enhance Drilling and Completions Value Creation Potential and Maximize Returns for Shareholders Combined
About this update from Patterson-uti Energy, Inc.
[{"type":"text","content":"Comprehensive U.S. Oilfield Services Franchise to Enhance Drilling and Completions Value Creation Potential and Maximize Returns for Shareholders\nCombined $5.4 Billion Total Enterprise Value\nDrives Improved Free Cash Flow Generation and Strong Balance Sheet to Deliver Long Term Value to Shareholders, Including Continued Commitment to Shareholder Return Program\nExpected to be Accretive to Earnings per Share and Free Cash Flow per Share in 2024 \nExpected to Generate Approximately $200 Million of Annual Cost Savings and Operational Synergies Within 18 Months Following Close\nCurtis Huff to Serve as Chair of the Board; Robert Drummond to Serve as Vice Chair of the Board; Andy Hendricks to Serve as CEO\nCompanies to Host Conference Call Today at 7:30 a.m. CT (8:30 a.m. ET)\nHOUSTON, June 15, 2023 /PRNewswire/ -- Patterson-UTI Energy, Inc. (NASDAQ: PTEN) (\"Patterson-UTI\") and NexTier Oilfield Solutions Inc. (NYSE: NEX) (\"NexTier\") today announced that they have entered into a definitive merger agreement to combine in an all-stock merger of equals transaction. The combined company, with an enterprise value of approximately $5.4 billion, will be an industry leading drilling and completions services provider with operations in the most active major U.S. basins, and strong free cash flow to accelerate the return of capital to shareholders.\n\n \n \n \n \n \n \n\n \nUnder the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, NexTier shareholders will receive 0.7520 shares of Patterson-UTI common stock for each share of NexTier common stock owned. Upon closing of the transaction, Patterson-UTI shareholders will own approximately 55% and NexTier shareholders will own approximately 45% of the combined company on a fully diluted basis. The merger is expected to be tax-free to shareholders of both companies.\nAndy Hendricks, Chief Executive Officer of Patterson-UTI, commented, \"This merger unites two top-tier and technology-driven drilling and well completions businesses, creating a leading platform at the forefront of innovation. As one company, we will have a significantly expanded, comprehensive portfolio of oilfield services offerings across the most active producing basins in the United States, along with operations in Latin America. With our combined strong balance sheet, am...