New Merger to Create Third-Largest US Pressure Pumper

摘要

In an all-stock deal, US service companies Keane Energy and C&J Energy Services announced that they are merging.Upon regulatory approval, the development will result in the third-largest service company based on hydraulic fracturing horsepower(HHP).The deal will further consolidate a market segment that has been under pressure to reduce operating costs since the onset of the oil price downturn almost 5 years ago.Ownership is to be split evenly between Keane and C&J shareholders, each holding 50% of the new stock.With unanimous approval from the board of directors of both companies, the merger is expected to be completed by the end of the year.The combined entity will be worth $1.8 billion, with an annual revenue of $4.2 billion, 66% of which will come from the pressure pumping service line.While a new corporate name has not been shared, the newly merged company will own about 50 pressure pumping fleets, representing 2.3 million HHP.The combined outfit will also boast 158 wireline trucks, 28 coiled tubing units, 81 pump down units, 139 cementing units, and 364 workover rigs.