Pioneer Natural to Sell Pressure-Pumping Arm to ProPetro for $400 Million
November 13 2018 - 9:24AM
Dow Jones News
By Colin Kellaher
Pioneer Natural Resources Co. (PXD) on Tuesday said it agreed to
sell its pressure-pumping assets to ProPetro Holding Corp. (PUMP)
for $400 million in cash and stock.
Pioneer said it will receive $110 million cash and 16.6 million
ProPetro shares, representing a roughly 17% stake in the Midland,
Texas, oilfield-services company. ProPetro shares closed Monday at
$17.46.
ProPetro said it is acquiring eight hydraulic fracturing fleets
with 510,000 hydraulic horsepower, along with three coiled-tubing
units and associated equipment. The company said it will have 28
frac fleets with about 1.42 million hydraulic horsepower operating
in the Permian Basin upon closing, expected during the fourth
quarter.
ProPetro said it will fund the cash portion of the deal with its
revolving credit facility and cash on hand. The company will pay
$55 million at closing, with the balance due within 60 days.
Pioneer, a Dallas oil and gas exploration and production
company, said ProPetro will provide it with pressure-pumping and
related services for up to 10 years.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
November 13, 2018 09:09 ET (14:09 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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