Patterson-UTI, NexTier Oilfield Strike $5.4B Merger Deal

Patterson-UTI Energy and NexTier Oilfield Solutions have reached an agreement to merge through an all-stock deal, resulting in the creation of a $5.4 billion oilfield services company.

According to Reuters, the merger combines Patterson-UTI’s significant land drilling business with NexTier’s well completion operations.

According to analysts, the combined entity would have a hydraulic fracturing horsepower of 3.3 million, making it the largest pressure pumper in North America. It would be slightly bigger than Halliburton.

For each share of NexTier common stock owned, shareholders will receive 0.752 shares of Patterson-UTI common stock. Patterson-UTI shares increased by approximately 12%, and NexTier shares rose by 6%.

Oilfield services companies are consolidating due to operational and pricing challenges, while also adapting to customers who are prioritizing investor returns overspending on new wells.

Rystad Energy analysts report a nearly 5% decrease in prices for onshore U.S. drilling and completion services from the start of the year to the second quarter of 2023.