Patterson-UTI buying out TMBR/Sharp

Patterson-UTI Energy Inc., Snyder, Tex., announced plans Tuesday to acquire the remaining interest in rival TMBR/Sharp Drilling, Inc., Midland, Tex., in a cash-stock deal.

May 28, 2003

By OGJ editors

HOUSTON, May 28 -- Patterson-UTI Energy Inc., Snyder, Tex., announced plans Tuesday to acquire the remaining interest in rival TMBR/Sharp Drilling, Inc., Midland, Tex., in a cash-stock deal.

Patterson-UTI declined to discuss the transaction's total value, but analysts estimated it at about $92 million.

Patterson-UTI Energy already owns 20% of TMBR/Sharp Drilling. The transaction is subject to TMBR/Sharp shareholder approval. Both companies operate land-based oil and gas drilling rigs.

Under the deal, Patterson-UTI agreed to pay TMBR/Sharp Drilling shareholders $9.09 in cash plus 0.312166 of a share of Patterson-UTI stock for each TMBR/Sharp share. That amounts to a total of $20.20/share based on Patterson-UTI's May 23 closing price of $35.59/share.

Analysts said the transaction's total value depends on some items that are hard to forecast, such as any stock options that might be exercised before closing.