Quintana Energy Services LP (QES) said Nov. 23 it will combine with Archer Ltd.'s North American well services entities in an all stock transaction.
Archer Well Company Inc. (AWC), a subsidiary of Archer Ltd., will contribute all outstanding shares of Archer Pressure Pumping LLC, Archer Directional Drilling Services LLC, Archer Wireline LLC and Great White Pressure Control LLC to QES in exchange for equity in QES.
On a pro-forma basis, the combined company has 2014 revenue of more than $1.1 billion, 2014 adjusted EBITDA in excess of $178 million and currently has about 1,200 employees. The combined company will be headquartered in Houston.
Combined, the company will operate 408,000 HHP, 23 coiled tubing units, 33 snubbing units, 24 cementing units, 23 nitrogen pumping units, 25 fluid pumping units, 86 wireline units, 120 directional kits and more than 825 mud motors.
Upon the completion of the transaction, Archer will receive QES common units representing about 42% of the pro forma limited partner interest in QES.
QES, a portfolio company of Quintana Energy Partners LP, operates in the U.S. onshore oilfield services industry through its subsidiaries, Directional Drilling Co. and Consolidated Oil Well Services.
Archer is a leading provider of pressure pumping, directional drilling, wireline and pressure control, including coiled tubing and snubbing services, according to the release. With about 850 employees, the Norwegian company's subsidiary, AWC, has operations primarily focused on the U.S. onshore unconventional resource plays.
AWC's asset base includes 208,000 HHP of fracturing units, 23 coiled tubing units, 33 snubbing units, 23 nitrogen pumping units, 25 fluid pumping units, 78 wireline units, 57 directional kits and 450 mud motors.
In conjunction with the transaction, QES will amend its revolving credit facility. The transaction is expected to close by year-end 2015.
Simmons & Company International was exclusive financial adviser to QES and Quintana. QES and Quintana were advised on transaction legal matters exclusively by Vinson & Elkins LLP. Archer was advised exclusively by Bank of America Merrill Lynch on financial matters and Andrews Kurth LLP on legal matters.
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