Patterson-UTI Energy-NexTier Oilfield Make It Official, Announce Merger Of Equals
Portfolio Pulse from Lekha Gupta
Patterson-UTI Energy (PTEN) and NexTier Oilfield Solutions (NEX) have announced an all-stock merger of equals, forming a combined company with an enterprise value of approximately $5.4 billion. The merger is expected to close in Q4 2023 and be accretive to EPS and FCF per share in 2024. The combined company aims to generate high FCF conversion and distribute at least 50% of FCF to shareholders.
June 15, 2023 | 12:45 pm
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POSITIVE IMPACT
NexTier Oilfield Solutions (NEX) will merge with Patterson-UTI Energy (PTEN) in an all-stock deal, forming a combined company with a $5.4 billion enterprise value. The merger is expected to be accretive to EPS and FCF per share in 2024.
The merger will create a larger, more diversified company with a stronger financial position. The deal is expected to be accretive to EPS and FCF per share in 2024, which should be positive for NEX shareholders. The combined company also aims to generate high FCF conversion and distribute at least 50% of FCF to shareholders, which could further boost investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Patterson-UTI Energy (PTEN) will merge with NexTier Oilfield Solutions (NEX) in an all-stock deal, forming a combined company with a $5.4 billion enterprise value. The merger is expected to be accretive to EPS and FCF per share in 2024.
The merger will create a larger, more diversified company with a stronger financial position. The deal is expected to be accretive to EPS and FCF per share in 2024, which should be positive for PTEN shareholders. The combined company also aims to generate high FCF conversion and distribute at least 50% of FCF to shareholders, which could further boost investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100