Pioneer Natural Resources Co., Dallas, has agreed to sell its pressure pumping assets to ProPetro Holding Corp., Midland, Tex., in a cash and stock deal worth $400 million. With the same agreement, ProPetro will provide pressure pumping and related services to PNR in the Permian basin for as long as 10 years. Following issuance of the shares, PNR will own about 17% of ProPetro’s outstanding shares.
ProPetro’s assets include eight fleets with 510,000 hydraulic horsepower (HHP) and related facilities. Upon closing, ProPetro will have 28 fleets with 1.415 million HHP operating in the Permian basin.
The transaction—comprised of $333 million for pressure pumping assets and $67 million for real estate facilities and other assets—allows PNR to reduce well costs, Jefferies analysts said in a Nov. 13 research note.
Closing, expected during this year’s fourth quarter, is subject to customary conditions, including regulatory approval.
