The Canadian company which owns the tenth largest fracing operation in the U.S. announced it was selling its American frac operations to a Houston based company. Trican Well Service is selling the assets to the Keane Group for a total consideration of $247 million. The deal means Trican will get $200 million in cash and ten percent interest stake in Keane.
Keane will get to triple its frac capacity and add applied engineering capabilities. The deal also gives the company access to proprietary technology.
“This acquisition will significantly strengthen Keane’s position as a leader in the completion services business across all key U.S. basins,” said Keane Group Chairman and Chief Executive Officer James Stewart. “With our expanded capabilities, Keane Group will have significantly greater scale that will enable us to provide all customers cost-effective completion services that will maximize the return on their assets in their current low commodity price environment. With a strong balance sheet and scalable platform positioned for continued growth, Keane looks forward to playing an active role in further industry consolidation.”
Keane’s total frac horsepower will grow from 300,000 to more than 950,000 horsepower available to dispatch. The move also brings the company to the Mid-Continent region as well as Texas.
The transaction is expected to close before the middle of March 2016.
