US-based energy services company ProFrac has agreed to acquire oilfield service company US Well Services (USWS) in an all-stock transaction.
As per the terms of the deal, USWS shareholders will receive 0.0561 shares of ProFrac Class A common stock for each share held. The deal has an aggregate stock consideration of approximately $93m.
ProFrac will also purchase USWS’ intellectual property portfolio, including more than 110 patents related to electric frac technology.
USWS is engaged in providing electric pressure pumping services.
Upon the completion of the deal, ProFrac will have 44 active frac solution fleets, including 13 Tier IV dual fuel fleets, 12 electric fleets, and three Tier IV diesel fleets, by the end of 2022.
ProFrac executive chairman Matt Wilks said: “The acquisition of US Well Services solidifies ProFrac’s position as an industry leader in electric hydraulic fracturing, which we believe represents the future of the industry.
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“In today’s environment, we believe electric frac fleets provide improved efficiency, lower R&M costs, greater value, and a lower overall cost of completion to our customer.”
The acquisition is expected to be closed in the fourth quarter of 2022 and will be subject to certain customary closing conditions, including the approval of USWS stockholders.
US Well Services president and CEO Kyle O’Neill said: “ProFrac is a best-in-class operator, and we believe the combined company will be well positioned to capitalise on the growing opportunity for electric fracturing services.
“This combination provides value for US Well Services shareholders, employees, and customers, and we look forward to working with the ProFrac team to realise our shared vision for the business.”
In a separate announcement, ProFrac, through its subsidiary ProFrac Holdings II, signed a deal to acquire Signal Peak Silica’ West Texas subsidiaries for approximately $90m.
The subsidiaries include SP Silica of Monahans, and SP Silica Sales, collectively called Monahans.
ProFrac expects the acquisition to add approximately three million tonnes of annual sand production capacity of 40/70 and 100 mesh. The deal also includes nearly 25,000 tons of on-site storage.
ProFrac Holding CEO Ladd Wilks said: “Our acquisition of Signal Peak Silica’s Permian basin operations is the latest example of scaling our vertical integration strategy as we continue to consolidate supply chain components to better serve our customers, lower our costs, and improve our operating margins and profitability.”