Patterson-UTI, NexTier merge to form $5.4 billion oil-well services firm (updated)

Nextier Oilfield Solutions

15/06/2023 11:11

(Adds deal details, background in paragraphs 2-6)
       June 15 (Reuters) - Patterson-UTI Energy  PTEN.O  and
NexTier Oilfield Solutions  NEX.N  have agreed to a merger on
Thursday, creating a $5.4 billion oil services firm.
     According to the terms of the transaction, NexTier
shareholders will receive 0.7520 shares of Patterson-UTI common
stock for each share of NexTier common stock owned.
    The Wall Street Journal was the first to report that the two
companies were in talks over a possible merger.
    Oilfield services firms have been consolidating as their oil
and gas customers limited spending on new wells in recent years.
NexTier and Patterson-UTI have acquired operations from rivals
and customers to boost their competitiveness and service
offerings.
    The merger brings together Patterson-UTI's sizeable land
drilling business and NexTier's well completion operations. The
merged entity would compete with the two largest U.S. fracking
services firms — Halliburton  HAL.N  and Liberty Energy
 LBRT.N . 
        Upon closing of the transaction, expected in the fourth
quarter, Patterson-UTI shareholders will own about 55% and
NexTier shareholders will own approximately 45% of the combined
company on a fully diluted basis.
    

 (Reporting by Mrinalika Roy in Bengaluru; Editing by Shilpi
Majumdar)
 ((mrinalika.roy@thomsonreuters.com;))