Oilfield services company Calfrac Well Services has entered into an agreement to acquire all of the operating assets of US-based hydraulic fracturing and coiled tubing services provider Mission Well Services for $147m.
The acquisition pre-empts a portion of Calfrac’s 2014 capital expenditure programme, which is expected to include similar equipment. Calfrac believes that the acquisition price, which is approximately equal to the net book value of the assets, represents a discount to replacement value.
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Around 157,500 of conventional pumping horsepower, along with blenders and related sand-handling and auxiliary equipment will be acquired by the company as part of the agreement.
Calfrac will also purchase three deep-capacity coiled tubing units with related fluid and nitrogen pumping units and a modern district facility in San Antonio, Texas, US.
Calfrac is assuming certain commitments with key suppliers of Mission. It is set to gain a foothold in the Texas market with the addition of locations in Houston, San Antonio and Fairfield.
With the transfer of a portion of the assets to other active operating areas in the US, Calfrac will have the flexibility to redeploy other assets as opportunities arise.
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By GlobalDataMission Well Services chairman Charlie Leykum said: "We think the transaction is an exciting development for our team at Mission and it is the culmination of three years of hard work, from inception as a greenfield development to a thriving, multi-district pressure pumping company."
Calfrac will have around 1,182,500 of conventional pumping horsepower following the acquisition. It is expected to close in early October.
