Patterson-UTI Energy has completed its merger with Seventy Seven Energy in an all-stock transaction.
The definitive merger agreement was announced in December 2016.
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Stockholders of Seventy Seven Energy will receive 1.7851 shares of newly issued Patterson-UTI common stock in exchange for each share of Seventy Seven Energy.
In accordance with the merger, Patterson-UTI has issued approximately 47.5 million shares.
Coinciding with the merger, Patterson-UTI repaid all of the outstanding debt of Seventy Seven Energy totalling $472m. of which $403m is net of cash from Seventy Seven Energy.
Patterson-UTI has also signed an agreement with its lenders, as per which the available commitment under its revolving credit facility has increased to $632m through to September, and to $490m through to March 2019.
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By GlobalDataPatterson-UTI chairman Mark S Siegel said: "I would like to welcome the employees, customers, and shareholders of Seventy Seven Energy to Patterson-UTI.
"We have always held the people and equipment at Seventy Seven Energy in high regard, and I am pleased for us to combine as one team.
“For Patterson-UTI, this is the most significant transaction since the merger of Patterson and UTI, and further solidifies our position as a leading high-spec drilling company and gives us one of the largest and most modern pressure pumping fleets in the industry."
Patterson-UTI CEO Andy Hendricks said: "This merger combines two highly complementary companies and further enhances our position as a leader in both drilling and pressure pumping.
“We are beginning the merger integration process, and I am pleased with the plan that we and Seventy Seven Energy have developed.
"While implementing this plan, our focus will continue to be on the safety and quality of our field operations."
Seventy Seven Energy’s former CEO Jerry Winchester said: "With this merger, we bring together two strategically aligned companies into a financially well-positioned leader in US land. We are excited to align ourselves with a company that shares a similar commitment to safety and service quality."
Patterson-UTI is an oilfield services company that owns and operates land-based drilling rigs and pressure pumping equipment in the US.
