Pioneer Natural Resources Company has signed an agreement to sell its pressure pumping assets (PPS) to US-based oilfield services company ProPetro in a $400m cash-and-stock deal.
Under the deal, Pioneer will receive $110m in cash and 16.6 million shares of ProPetro common stock.
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Following issuance of the shares, the company will have a 17% stake in ProPetro.
The agreement also requires ProPetro to provide pressure pumping and related services to Pioneer for up to ten years.
Pioneer Natural Resources president and CEO Timothy Dove said: “We are very pleased to announce our agreement with ProPetro that provides Pioneer with dedicated capacity from the leading pressure pumping service provider in the Permian Basin.
“Their robust operational track record aligns with our commitment to being the most efficient, low-cost Permian operator.”
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By GlobalDataThe pressure pumping assets being sold include eight fleets with 510,000 hydraulic horsepower (hhp) and related facilities.
Once the transaction is closed, ProPetro will have 28 fleets with 1,415,000hhp operating in the Permian Basin.
Pioneer expects the agreement to improve capital efficiency and cost competitiveness in its core operations.
ProPetro co-founder and CEO Dale Redman said: “The combination of ProPetro and Pioneer Pumping Services will result in the largest and most efficient pressure pumping provider in the Permian Basin.”
The company provides pressure pumping and other complementary services to upstream oil and gas companies.
Subject to certain closing conditions and regulatory approval, the transaction is expected to be completed during the fourth quarter of this year.
In June, Pioneer signed a deal to offload all of its assets in the Raton Basin in south-eastern Colorado, US, to Evergreen Natural Resources.
