Pioneer Natural to Sell Pressure-Pumping Arm to ProPetro for $400 Million

   By Colin Kellaher 
 

Pioneer Natural Resources Co. (PXD) on Tuesday said it agreed to sell its pressure-pumping assets to ProPetro Holding Corp. (PUMP) for $400 million in cash and stock.

Pioneer said it will receive $110 million cash and 16.6 million ProPetro shares, representing a roughly 17% stake in the Midland, Texas, oilfield-services company. ProPetro shares closed Monday at $17.46.

ProPetro said it is acquiring eight hydraulic fracturing fleets with 510,000 hydraulic horsepower, along with three coiled-tubing units and associated equipment. The company said it will have 28 frac fleets with about 1.42 million hydraulic horsepower operating in the Permian Basin upon closing, expected during the fourth quarter.

ProPetro said it will fund the cash portion of the deal with its revolving credit facility and cash on hand. The company will pay $55 million at closing, with the balance due within 60 days.

Pioneer, a Dallas oil and gas exploration and production company, said ProPetro will provide it with pressure-pumping and related services for up to 10 years.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

November 13, 2018 09:09 ET (14:09 GMT)

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