HOUSTON, April 20, 2017 /PRNewswire/
-- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) announced
today that it has closed its merger with Seventy Seven Energy
Inc. Stockholders of Seventy Seven Energy are entitled to
receive 1.7851 shares of newly issued Patterson-UTI common stock in
exchange for each share of Seventy Seven Energy.
Patterson-UTI issued approximately 47.5 million shares pursuant to
the merger.
Concurrent with the closing of the merger, Patterson-UTI repaid
all of the outstanding debt of Seventy Seven Energy totaling
$472 million ($403 million net of cash from Seventy Seven
Energy). Additionally, Patterson-UTI has entered into an
agreement with its lenders by which the available commitment under
its revolving credit facility was increased to $632 million through September 2017, and to $490 million through March
2019.
Mark S. Siegel, Chairman of
Patterson-UTI, stated, "I would like to welcome the employees,
customers, and shareholders of Seventy Seven Energy to
Patterson-UTI. We have always held the people and equipment
at Seventy Seven Energy in high regard, and I am pleased for us to
combine as one team. For Patterson-UTI, this is the most
significant transaction since the merger of Patterson and UTI, and
further solidifies our position as a leading high-spec drilling
company and gives us one of the largest and most modern pressure
pumping fleets in the industry."
Andy Hendricks, Patterson-UTI's
Chief Executive Officer, commented, "This merger combines two
highly complementary companies and further enhances our position as
a leader in both drilling and pressure pumping. We are
beginning the merger integration process, and I am pleased with the
plan that we and Seventy Seven Energy have developed. While
implementing this plan, our focus will continue to be on the safety
and quality of our field operations."
Jerry Winchester, former Chief
Executive Officer of Seventy Seven Energy, added, "With this
merger, we bring together two strategically aligned companies into
a financially well-positioned leader in U.S. land. We are
excited to align ourselves with a company that shares a similar
commitment to safety and service quality."
About Patterson-UTI
Patterson-UTI is an oilfield services company that primarily
owns and operates in the United
States one of the largest fleets of land-based drilling rigs
and a large fleet of pressure pumping equipment. Our contract
drilling business operates in the continental United States and western Canada, and our pressure pumping and oilfield
rental tools businesses operate primarily in Texas and the Mid-Continent and Appalachian
regions. We also provide drilling rig pipe handling
technology to drilling contractors in North America and other select markets.
In addition, we own and invest as a non-operating working interest
owner in oil and natural gas assets that are primarily located in
Texas and New Mexico.
Location information about the Company's drilling rigs and their
individual inventories is available through the Company's website
at www.patenergy.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements which are
protected as forward-looking statements under the Private
Securities Litigation Reform Act of 1995 that are not limited to
historical facts, but reflect Patterson-UTI's current beliefs,
expectations or intentions regarding future events. Words
such as "anticipate," "believe," "budgeted," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "predict,"
"potential," "project," "pursue," "should," "strategy," "target,"
or "will," and similar expressions are intended to identify such
forward-looking statements. The statements in this press
release that are not historical statements, including statements
regarding Patterson-UTI's future expectations, beliefs, plans,
objectives, financial conditions, assumptions or future events or
performance that are not historical facts, are forward-looking
statements within the meaning of the federal securities laws.
These statements are subject to numerous risks and uncertainties,
many of which are beyond Patterson-UTI's control, which could cause
actual results to differ materially from the results expressed or
implied by the statements. These risks and uncertainties
include, but are not limited to: volatility in customer spending
and in oil and natural gas prices, which could adversely affect
demand for Patterson-UTI's services and their associated effect on
rates, utilization, margins and planned capital expenditures;
global economic conditions; excess availability of land drilling
rigs and pressure pumping equipment, including as a result of low
commodity prices, reactivation or construction; liabilities from
operations; weather; decline in, and ability to realize, backlog;
equipment specialization and new technologies; shortages, delays in
delivery and interruptions of supply of equipment and materials;
ability to hire and retain personnel; loss of, or reduction in
business with, key customers; difficulty with growth and in
integrating acquisitions; governmental regulation; product
liability; legal proceedings; political, economic and social
instability risk; ability to effectively identify and enter new
markets; cybersecurity risk; dependence on our subsidiaries to meet
our long-term debt obligations; variable rate indebtedness risk;
and anti-takeover measures in our charter documents.
Additional information concerning factors that could cause
actual results to differ materially from those in the
forward-looking statements is contained from time to time in
Patterson-UTI's SEC filings. Patterson-UTI's filings may be
obtained by contacting Patterson-UTI or the SEC or through
Patterson-UTI's website at http://www.patenergy.com or through the
SEC's Electronic Data Gathering and Analysis Retrieval System
(EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no
obligation to publicly update or revise any forward-looking
statement.
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SOURCE PATTERSON-UTI ENERGY, INC.