HOUSTON, May 24, 2021 /PRNewswire/ -- U.S. Well
Services (Nasdaq: USWS) ("USWS" or the "Company") today announced
its commitment to becoming an all-electric hydraulic fracturing
services provider and expects to have fully exited the diesel frac
market by the end of Q4 2021. As a result of this strategic
transition, USWS expects to become the first publicly-traded,
pure-play electric completions services provider.
The Company also announced it has entered into a definitive
agreement to sell certain diesel-powered hydraulic fracturing
equipment to a privately-held buyer for net proceeds of
$21 million, subject to certain
closing conditions. Further, the Company is in active
negotiations with several counterparties and anticipates entering
into a series of additional transactions to sell the majority of
its remaining diesel fracturing equipment as well as certain power
generation assets. In total, the Company believes it should
generate in excess of $100 million of
cash from non-core asset divestitures, with the net proceeds
expected to reduce outstanding indebtedness and fund general
corporate purposes, including the buildout of USWS' next-generation
all-electric fracturing fleets.
"We are excited to execute on our strategy and become
fully-electric," commented Joel
Broussard, U.S. Well Services' President and CEO.
"U.S. Well Services has believed in the superiority of electric
technology since our first Clean Fleet® was deployed in 2014.
Today, we are beginning to realize our vision of going
all-electric, reducing a significant amount of our outstanding debt
and streamlining our focus to become the new market leader in our
"By exiting the diesel frac services market, USWS is expected to
make great progress in reducing our financial leverage and
repositioning our asset portfolio to be the most competitive and
environmentally friendly in the business. This is a pivotal
time for our company and our industry, and USWS is choosing to
invest for the future and focus on a segment of the market that
offers attractive growth and returns."
Today, the Company's portfolio includes five electric frac
fleets, including the Company's original Clean Fleet® built in
2014. USWS expects to replace all diesel-powered frac
equipment with new generation Clean Fleets® with the goal of
reaching 11 electric fleets by the end of 2023. As previously
announced, the Company is continuing to make innovations in
electric fracturing technology, and believes it can deliver
next-generation NYX Clean Fleets® for approximately $23 million per fleet. Importantly, USWS
expects that this latest generation of Clean Fleet® will yield
similar reductions in operating costs and greenhouse gas emissions
to the Company's existing electric fleets while still delivering
best-in-class fuel savings for our customers.
About U.S. Well Services, Inc.
U.S. Well Services, Inc. is a leading provider of hydraulic
fracturing services and a market leader in electric fracture
stimulation. The Company's patented electric frac technology
provides one of the first fully electric, mobile well stimulation
systems powered by locally-supplied natural gas, including field
gas sourced directly from the wellhead. The Company's electric frac
technology dramatically decreases emissions and sound pollution
while generating exceptional operational efficiencies, including
significant customer fuel cost savings versus diesel fleets. For
more information visit: www.uswellservices.com. Information on our
website is not part of this release.
The information above includes "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements may be identified by
their use of terms and phrases such as "may," "expect," "believe,"
"anticipate," "will," "should," "could," and similar terms and
phrases. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve certain assumptions, risks, and uncertainties. These
forward-looking statements represent the Company's current
expectations or beliefs concerning future events, and it is
possible that the results described in this release will not be
achieved. These forward-looking statements are subject to certain
risks, uncertainties and assumptions identified in this release or
as disclosed from time to time in the Company's filings with the
Securities and Exchange Commission (the "SEC"). Factors that could
cause actual results to differ from the Company's expectations
include the factors described in the Company's public disclosures
and filings with the SEC, including those described under "Risk
Factors" in its Amendment No. 1 to Annual Report on Form 10-K/A for
the year ended December 31, 2020
filed on May 17, 2021 and in its
subsequent filings with the SEC. As a result of these factors,
actual results may differ materially from those indicated or
implied by forward-looking statements.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether because of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such
Vice President, Finance and Treasury
Dennard Lascar Investor
SOURCE U.S. Well Services, Inc.