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Patterson buys rest of TMBR/Sharp Price, which includes 18 rigs, is $110 million in stock and cash Petroleum News Houston Staff
Patterson-UTI, the second biggest land driller in North America, has agreed to buy the remaining 80 percent of TMBR/Sharp Drilling in a cash and stock deal valued at $110 million.
The transaction would give Texas-based Patterson-UTI an additional 18 rigs to ago along with its current fleet of 340 rigs, the company said May 27.
Last year Patterson-UTI bought 20 percent of TMBR/Sharp for about $16 million.
Analysts speculated that Patterson-UTI eventually would acquire the remaining shares of TMBR/Sharp.
“This is a company for which we have always had a high regard (and) represents the logical extension of this assessment,” said Mark S. Siegel, chairman of Patterson-UTI.
“For our employees and our customers it means that we will be combining forces with a large, financially strong and highly regarded company,” added Tom Brown, chairman of TMBR/Sharp. Expected to close within four months Under terms of the deal, shareholders of TMBR/Sharp would receive 0.312166 a share of Paterson-UTI common stock and $9.09 cash for each share of TMBR/Sharp common stock for a total value of $20.20 per share, based on the closing price on May 23 of $35.59 per share of Patterson-UTI.
The deal has been approved by the boards of director of both companies but still must be approved by TMBR/Sharp shareholders. But the transaction is expected to close within four months, Patterson-UTI said.
TMBR/Sharp operates in the Permian Basin of West Texas and eastern New Mexico. The company also has an exploration and production arm in the area that contributes about 4,400 million cubic per day of natural gas equivalent.
In addition to its drilling business, Paterson-UTI also has a small exploration and production division based in Texas. The company operates rigs primarily in Texas, New Mexico, Oklahoma, Utah, Louisiana, Mississippi and western Canada.
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