2023-07-05 06:43:08 ET
Patterson-UTI Energy ( NASDAQ: PTEN ) said Wednesday it agreed to acquire specialized drill bit provider Ulterra Drilling Technologies from Blackstone Energy Partners ( BX ) for $370M in cash and 34.9M common shares.
Ulterra is a leading provider of PDC drill bits, with operations across the most active basins in the U.S. and Canada.
Patterson-UTI ( PTEN ) said it expects Ulterra will generate $160M-$180M of EBITDA in FY 2023, and to begin generating revenue synergies within the first year.
"Ulterra's growing Middle East presence will broaden our geographic footprint and provide strong relationships with key customers in this international market," Patterson-UTI ( PTEN ) COO Mike Holcomb said.
Blackstone ( BX ) said it entered into a voting agreement with NexTier Oilfield Solutions ( NEX ) to vote the Patterson-UTI ( PTEN ) shares issued in the transaction and held by the stockholder at the time of the Patterson-UTI special meeting to help facilitate the consummation of the merger between Patterson-UTI and NexTier.
More on Patterson-UTI Energy:
- Financial and valuation comparison to sector peers
- Analysis: Patterson-UTI and NexTier Oilfield Merger: Which Stock's Investors Benefit More?
- Stock price return: Down 23.5% YTD, down 5% in the past 12 months
For further details see:
Patterson-UTI to buy Ulterra Drilling Technologies in cash and stock deal