NexTier Oilfield falls on merger deal with Patterson-UTI Energy

Nextier Oilfield Solutions

15/06/2023 14:24

** Shares of oilfield services firm NexTier Oilfield
Solutions  NEX.N  drop 3.6% pre-market to $8.60
    ** NEX and rival Patterson-UTI Energy  PTEN.O  to merge to
form a $5.4 bln oil services firm; PTEN up 2.4% at $11.40
    ** NEX shareholders will receive 0.7520 shares of PTEN
common stock for each share of NEX common stock owned,
representing per share deal value of $8.36, a 6.3% discount to
NEX last close, according to Reuters calculation
    ** PTEN shareholders will own ~55% and NEX shareholders will
own ~45% of the combined company
    ** Deal expected to close in the fourth quarter
    ** "We believe that larger North American oilfield services
companies will be more efficient at delivering integrated well
site solutions at scale to a more consolidated E&P customer
base," says brokerage Evercore
    ** Up to Wednesday's close, PTEN down 34% YTD, while NEX
down 3.5% YTD

 (Reporting by Arshreet Singh)
 ((Twitter: https://twitter.com/Arshreets))