Patterson-UTI To Acquire MS Energy - Quick Facts

(RTTNews) - Patterson-UTI Energy Inc. (PTEN) announced it has entered into an agreement to acquire Multi-Shot, LLC d/b/a MS Energy Services, on a debt-free basis for total consideration of approximately 8.8 million shares of Patterson-UTI common stock and $75 million of cash. Based in Conroe, Texas, MS Energy is a directional drilling services company in the United States. In connection with the transaction, Patterson-UTI expects to acquire approximately $30 million of non-cash working capital. The transaction values MS Energy at approximately $215 million.

The sellers include Denham Capital Management LP and NGP Energy Capital Management, L.L.C. and are represented by Simmons & Company International Energy Specialists of Piper Jaffray.

Pursuant to the transaction, Neel will be joining Patterson-UTI as President of MS Energy. Neel has served as the CEO of MS Energy since 2004. Also joining Patterson-UTI will be Paul Culbreth. Culbreth has served as the COO of MS Energy since he co-founded the company that purchased MS Energy from previous owners in 2004.