Patterson-UTI Energy Announces Sale of Pioneer Well Service Rig and Wireline Businesses

Rhea-AI Summary

Patterson-UTI Energy (NASDAQ:PTEN) has completed the sale of its well service rig and wireline business to Clearwell Dynamics for $43 million in cash, finalized on December 31, 2021. The company acquired these assets through its purchase of Pioneer Energy Services Corp. CEO Andy Hendricks expressed satisfaction with the acquisition and integration of the drilling businesses, noting that the sale allows the production services business to operate more effectively as a standalone entity. The sale proceeds exceed the cash portion of the initial purchase price.

Positive

• Patterson-UTI received $43 million in cash for the sale, exceeding the cash portion of the Pioneer acquisition.
• The sale allows the well service rig and wireline business to operate as a focused standalone entity, which may enhance operational efficiency.

Negative

• None.

HOUSTON, TX / ACCESSWIRE / January 3, 2022 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today announced that it has sold to Clearwell Dynamics, LLC the well service rig business and wireline business that it acquired as part of its acquisition of Pioneer Energy Services Corp. The sale transaction was completed on December 31, 2021, and Patterson-UTI received $43 million in cash consideration, subject to customary purchase price adjustments at closing for cash and working capital.

Andy Hendricks, Patterson-UTI's Chief Executive Officer, stated, "I remain very pleased with our acquisition of Pioneer Energy Services and the integration of the U.S. and Colombian drilling businesses. As we previously announced, the Pioneer acquisition included a well-run and high-quality production services business that we believe will be better served as a focused stand-alone business. The proceeds of this sale exceed the cash portion of our purchase price for Pioneer Energy Services Corp. I would like to thank all parties involved in the execution of this sale transaction.

About Patterson-UTI

Patterson-UTI is a leading provider of oilfield services and products to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling, pressure pumping and directional drilling services. For more information, visit www.patenergy.com.

Contact:

Mike Drickamer
Vice President, Investor Relations
(281) 765-7170

SOURCE: Patterson-UTI Energy, Inc.

View source version on accesswire.com:
https://www.accesswire.com/680407/Patterson-UTI-Energy-Announces-Sale-of-Pioneer-Well-Service-Rig-and-Wireline-Businesses

FAQ

What did Patterson-UTI Energy announce on January 3, 2022?

Patterson-UTI Energy announced the sale of its well service rig and wireline business to Clearwell Dynamics for $43 million.

When was the transaction for the sale of the well service rig and wireline business completed?

The transaction was completed on December 31, 2021.

How much cash did Patterson-UTI receive from the sale of its well service rig and wireline business?

Patterson-UTI received $43 million in cash from the sale.

How does Patterson-UTI view the sale of its well service rig and wireline business?

CEO Andy Hendricks expressed that the sale allows the business to operate better as a standalone entity.

What was the context of the sale of Patterson-UTI's well service rig and wireline business?

The sale was part of the acquisition of Pioneer Energy Services Corp., which included these services.