Saturday, July 17, 2021

Big Rig Deal: Patterson-UTI Acquires Pioneer Energy Services -- July 17, 2021

Overnight, this comment from a reader caught my attention:

I just heard that Patterson bought Pioneer

Wow, that caught my attention. 

This was accurate, but not THE Pioneer: it was Patterson-UTI Energy acquiring Pioneer Energy Services:

  • $295 million deal;
  • stock and cash deal;
  • expected to close 4Q21;
  • will acquire seventeen drilling rigs in the United States, of which sixteen are super-spec
  • following the acquisition, Patterson-UTI will own 166 super-spec rigs in the US with almost half of these using alternative power sources for reduced emissions (natural gas?)
  • in addition, Pioneer Energy Services included 123 service rigs with a leadership position in the Gulf Coast region -- but this "division" is likely to be divested following the closing of this transaction

The story is easily found elsewhere.

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