ProPetro Announces Divestiture of Coiled Tubing Assets
01 September 2022 - 2:30PM
Business Wire
ProPetro Holding Corp. ("ProPetro" or the “Company") (NYSE:
PUMP) today announced that STEP Energy Services (USA) Ltd., a
subsidiary of STEP Energy Services Ltd. (“STEP”) (TSX: STEP) has
acquired ProPetro’s Coiled Tubing assets, which were used for
services including frac plug mill-out, wellbore clean-out,
tubing-conveyed perforating and nitrogen pumping. ProPetro elected
to receive consideration in the form of cash and shares in STEP,
reflecting ProPetro’s confidence in STEP’s ability to grow the
business and create value.
“This is a great transaction for ProPetro and all of our
stakeholders,” said Sam Sledge, Chief Executive Officer of
ProPetro. “Our goal was to rationalize our portfolio while
positioning the Coiled Tubing business’ assets and talented team
for even greater success. STEP is a leader in the coiled-tubing
market, with a proven track record of growth and ability to bring
new technologies to market. As part of STEP, the assets will have
the appropriate scale to effectively compete and achieve their full
potential. We are grateful for the contributions of our teammates
who supported this business over the past several years, and are
pleased that they will have the opportunity to transition to STEP,
which shares our dedication to customers, and focus on operating
safely, efficiently and effectively.”
Sledge continued, “We will continue to actively manage
ProPetro’s portfolio of assets to ensure we have the best mix to
serve our customers and create value for shareholders. At the same
time, we continue to pursue value-enhancing opportunities to drive
sustainable long-term growth, margin expansion and cash flow
generation. We are confident we are taking the right steps to
unlock the value inherent in ProPetro.”
About ProPetro
ProPetro Holding Corp. is a Midland, Texas-based oilfield
services company providing pressure pumping and other complementary
services to leading upstream oil and gas companies engaged in the
exploration and production of North American unconventional oil and
natural gas resources. For more information visit
www.propetroservices.com.
About STEP
STEP is an energy services company that provides coiled tubing,
fluid and nitrogen pumping and hydraulic fracturing solutions. Its
combination of modern equipment along with its commitment to safety
and quality execution has differentiated STEP in plays where wells
are deeper, have longer laterals and higher pressures. STEP has a
high-performance, safety-focused culture and its experienced
technical office and field professionals are committed to providing
innovative, reliable and cost-effective solutions to its clients.
Founded in 2011 as a specialized deep capacity coiled tubing
company, STEP has grown into a North American service provider
delivering completion and stimulation services to exploration and
production (“E&P”) companies in Canada and the U.S. Its
Canadian services are focused in the Western Canadian Sedimentary
Basin (“WCSB”), while in the U.S., its fracturing and coiled tubing
services are focused in the Permian and Eagle Ford in Texas, the
Uinta-Piceance and Niobrara-DJ basins in Colorado and the Bakken in
North Dakota.
Advisors
PPHB, LP acted as financial advisor to ProPetro in the
transaction. Bracewell LLP acted as legal counsel for ProPetro.
Forward-Looking Statements
Except for historical information contained herein, the
statements and information in this news release are forward-looking
statements that are made pursuant to the Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995. Statements
that are predictive in nature, that depend upon or refer to future
events or conditions or that include the words “may,” “could,”
“plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,”
“objective,” “believe,” “expect,” “anticipate,” “intend,”
“estimate,” and other expressions that are predictions of, or
indicate, future events and trends and that do not relate to
historical matters identify forward‑looking statements. Our
forward‑looking statements include, among other matters, statements
about our business strategy, industry, future profitability,
expected fleet utilization, sustainability efforts, the future
performance of newly improved technology, expected capital
expenditures and the impact of such expenditures on our performance
and capital programs, as well as STEP’s ability to grow its
business and create value. A forward‑looking statement may include
a statement of the assumptions or bases underlying the
forward‑looking statement. We believe that we have chosen these
assumptions or bases in good faith and that they are
reasonable.
Although forward‑looking statements reflect our good faith
beliefs at the time they are made, forward-looking statements are
subject to a number of risks and uncertainties that may cause
actual events and results to differ materially from the
forward-looking statements. Such risks and uncertainties include
the volatility of oil prices, the operational disruption and market
volatility resulting from the COVID-19 pandemic, the global
macroeconomic uncertainty related to the Russia-Ukraine war, and
other factors described in the Company's Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q, particularly the “Risk Factors”
sections of such filings, and other filings with the Securities and
Exchange Commission (the “SEC”). In addition, the Company may be
subject to currently unforeseen risks that may have a materially
adverse impact on it, including matters related to shareholder
litigation. Accordingly, no assurances can be given that the actual
events and results will not be materially different than the
anticipated results described in the forward-looking statements.
Readers are cautioned not to place undue reliance on such
forward-looking statements and are urged to carefully review and
consider the various disclosures made in the Company’s Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other
filings made with the SEC from time to time that disclose risks and
uncertainties that may affect the Company’s business. The
forward-looking statements in this news release are made as of the
date of this news release. ProPetro does not undertake, and
expressly disclaims, any duty to publicly update these statements,
whether as a result of new information, new developments or
otherwise, except to the extent that disclosure is required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220901005284/en/
Investor Contacts: David Schorlemer Chief Financial
Officer david.schorlemer@propetroservices.com 432-688-0012
Matt Augustine Senior Manager - Corporate Development &
Investor Relations matt.augustine@propetroservices.com
432-848-0871
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