Permian Basin-focused oil and gas producer Pioneer Natural Resources Co. agreed to sell off its pressure pumping assets to oilfield services company ProPetro Holding Corp. for $400 million and struck a 10-year contract with ProPetro for pressure pumping services.
The total deal value is composed of $110 million in cash and $290 million, or 16.6 million shares, of ProPetro common stock, or about 17% ownership in the company. ProPetro would pay Pioneer $55 million at deal closing, with the remaining balance to be paid in the next 60 days, according to a Nov. 13 news release.
The assets to be acquired include eight frack fleets with 510,000 hydraulic horsepower and related facilities. ProPetro will have a total of 28 fleets with 1,415,000 hydraulic horsepower in the Permian upon deal closing, making it the largest pressure pumping provider in the basin.
The deal is scheduled to close in the fourth quarter. Goldman Sachs & Co. LLC served as sole financial adviser to ProPetro, while Hunton Andrews Kurth LLP served as legal counsel in this transaction.
