ProPetro acquires Pioneer’s pressure pumping assets for $400m

Oilfield services company ProPetro has closed the $400m acquisition of the pressure pumping assets of US-based exploration and production company Pioneer Natural Resources.

The agreement was announced in November last year. According to the agreement, ProPetro offered $110m of cash and 16.6 million shares of common stock to Pioneer.

The transaction gave Pioneer a 17% ownership interest in ProPetro.

ProPetro co-founder and CEO Dale Redman said: “We are pleased to materially expand our strategic relationship with Pioneer, a highly regarded, industry-leading E&P that we have been fortunate to work closely with for several years.

“This transformative transaction creates the largest pressure pumper in the Permian Basin without adding incremental fleets to the overall market.”

ProPetro agreed to serve as a strategic long-term service provider to Pioneer as part of the deal, as well as supply pressure pumping and related services for up to ten years.

The acquisition adds eight frac fleets with 510,000 hydraulic horsepower (HHP), as well as three coiled tubing units and related equipment to ProPetro’s portfolio. The company now operates 28 frac fleets with 1,415,000HHP in the Permian Basin.

ProPetro also acquired a maintenance facility, which is situated on 111 contiguous acres and located near the company’s existing maintenance operations in Midland.

The sale will allow Pioneer to enhance capital efficiency and cost competitiveness in its core operations.

ProPetro serves exploration and production companies that are focused on exploiting North American unconventional oil and natural gas resources.

Last month, the company expanded its existing asset-based loan facility to $300m to have additional flexibility in connection with the Pioneer transaction.