Patterson-UTI Energy Inc. completed the acquisition of Ulterra Drilling Technologies LP, a global provider of specialized drill bit solutions in a cash and stock deal worth about $780 million.
The deal included $370 million of cash and 34.9 million shares of Patterson-UTI common stock.
In connection with the transaction, Blackstone entered into a voting agreement for Patterson-UTI’s NexTier Oilfield Solutions Inc.’s $5.4 billion merger. Blackstone will vote the shares of Patterson-UTI issued in the transaction and held by the stockholder at the time of the Patterson-UTI special meeting to facilitate the merger with NexTier.
Patterson-UTI CEO Andy Hendricks said Ulterra’s shared culture of innovation and commitment to superior service quality “make this a truly exciting combination.”
“Ulterra's industry-leading position in the North American PDC drill bit market complements Patterson-UTI's longstanding history of operational excellence and innovation,” Hendricks said. “This strategic acquisition, along with our recent announcement to merge with NexTier Oilfield Solutions, further advances our strategy to enhance our positions in drilling and completions.”
Hendricks said the Ulterra portfolio provides key advantages to the company, including its presence in overseas markets.
“First, Ulterra's growing presence in the Middle East broadens our geographic footprint and facilitates stronger relationships with key customers in this dynamic international market,” he said. “Second, Ulterra's data-centric approach to manufacturing, operations, and marketing, reflected in their proprietary BitHub™ data platform, complements Patterson-UTI's PTEN+ data platform.”
When combined with NexTier, Hendricks said the three companies will create the most comprehensive set of data for drilling and completions in the U.S., “enhancing our analytics capabilities and allowing us to better support our customers' objectives to improve well economics."
Recommended Reading
Kissler: Mideast Tension Elevates Crude Prices—But for How Long?
2024-05-09 - Producers should be aggressive in locking in desirable crude oil prices on an abnormal market strength.
What's Affecting Oil Prices This Week? (March 18, 2024)
2024-03-18 - On average, Stratas Advisors predicts that supply will be at a deficit of 840,000 bbl/d during 2024.
What's Affecting Oil Prices This Week? (March 11, 2024)
2024-03-11 - Stratas Advisors expects oil prices to move higher in the middle of the year, but for the upcoming week, there is no impetus for prices to raise.
Oil Market Shifting Back to Supply/Demand
2024-03-08 - Stratas Advisors' John Paisie forecasts the price of Brent crude to increase during the second and third quarters of this year and move toward $90/bbl.
Commentary: Fact-checking an LNG Denier
2024-03-10 - Tampa, Florida, U.S. Rep. Kathy Castor blamed domestic natural gas producers for her constituents’ higher electricity bills in 2023. Here’s the truth, according to Hart Energy's Nissa Darbonne.