Patterson-UTI to buy Ulterra Drilling (updated)

Nextier Oilfield Solutions

05/07/2023 11:40

(Adds details on the deal and background in paragraphs 2-5)
       July 5 (Reuters) - Patterson-UTI Energy Inc  PTEN.O 
said on Wednesday it would buy privately held Ulterra Drilling
Technologies LP from the affiliates of Blackstone Energy
Partners for $370 million cash and 34.9 million shares.
    Oilfield services firms have been consolidating as they
navigate operational and pricing challenges and cater to
customers who have cut spending on new wells in favor of
investor returns.
    Last month, Patterson and NexTier Oilfield Solutions  NEX.N 
agreed to merge to form a $5.4 billion oilfield services firm.
    Patterson added on Wednesday it intends to fund the $370
million cash consideration using cash on hand and revolving line
of credit.
        The deal is expected to close in the third quarter of
2023.

 (Reporting by Arunima Kumar in Bengaluru; Editing by Dhanya Ann
Thoppil and Shilpi Majumdar)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))