Patterson-UTI Energy Inc. completed the acquisition of Ulterra Drilling Technologies LP, a global provider of specialized drill bit solutions in a cash and stock deal worth about $780 million.
The deal included $370 million of cash and 34.9 million shares of Patterson-UTI common stock.
In connection with the transaction, Blackstone entered into a voting agreement for Patterson-UTI’s NexTier Oilfield Solutions Inc.’s $5.4 billion merger. Blackstone will vote the shares of Patterson-UTI issued in the transaction and held by the stockholder at the time of the Patterson-UTI special meeting to facilitate the merger with NexTier.
Patterson-UTI CEO Andy Hendricks said Ulterra’s shared culture of innovation and commitment to superior service quality “make this a truly exciting combination.”
“Ulterra's industry-leading position in the North American PDC drill bit market complements Patterson-UTI's longstanding history of operational excellence and innovation,” Hendricks said. “This strategic acquisition, along with our recent announcement to merge with NexTier Oilfield Solutions, further advances our strategy to enhance our positions in drilling and completions.”
Hendricks said the Ulterra portfolio provides key advantages to the company, including its presence in overseas markets.
“First, Ulterra's growing presence in the Middle East broadens our geographic footprint and facilitates stronger relationships with key customers in this dynamic international market,” he said. “Second, Ulterra's data-centric approach to manufacturing, operations, and marketing, reflected in their proprietary BitHub™ data platform, complements Patterson-UTI's PTEN+ data platform.”
When combined with NexTier, Hendricks said the three companies will create the most comprehensive set of data for drilling and completions in the U.S., “enhancing our analytics capabilities and allowing us to better support our customers' objectives to improve well economics."