Patterson-UTI to merge with competitor

US onshore drilling rig operator Patterson-UTI Energy announced on Monday that it would buy fellow driller Seventy Seven Energy for some USD 1.76 billion including USD 336 million of debt.

Patterson expects that the merger, subject to the approval of stockholders and regulatory authorities, would bring synergies of over USD 50 million, the company said in a statement.

It would also add some 91 rigs and equipment worth some 500,000 horsepower to Patterson-UTI’s fleet, bringing its total power to some 1.5 million hydraulic fracturing horsepower.

Seventy Seven Energy, hit by low oil and gas prices, exited bankruptcy in August after reducing its debt by some USD 1.1 billion.

“[Sevety Seven Energy’s] contributions will allow us to further capitalise on the shifting industry fundamentals in the US oil and gas market, where customers are increasingly focused on efficiency and high-quality execution,” said Patterson-UTI’s CEO Andy Hendricks in the press release. “This merger provides both strong personnel and high-quality equipment that are complementary to our existing service offerings.”