Pioneer sells pumping assets in $400 million deal

Pioneer Natural Resources Company based in Dallas announced this week a $400 million agreement to divest its pressure pumping assets to ProPetro Holding Corp.

Pioneer has exploration operations in Texas, Oklahoma, Colorado, Kansas and New Mexico. The agreement means ProPetro, based in Midland, Texas will become a strategic long-term service provider for Pioneer for up to 10 years.

The $400 million agreement includes $110 million in cash and 16.6 million shares of ProPetro. Closing is expected sometime yet this year.

Timothy L. Dove, Pioneer President and CEO, stated, “We have had a strong relationship with the ProPetro team for many years, and this contract solidifies their position as a key partner in our development program. The long-term nature of this agreement will benefit both companies.”

“I would also like to personally thank all of the dedicated employees of Pioneer Pumping Services. Their unrelenting commitment to safety, efficiency and execution has underpinned our success in the Permian Basin and we are excited to have them continue working on Pioneer locations for years to come in our partnership with ProPetro.”

Dale Redman, ProPetro co-founder and CEO, stated, “The combination of ProPetro and Pioneer Pumping Services will result in the largest and most efficient pressure pumping provider in the Permian Basin.”

PPS assets include 8 fleets with 510,000 hydraulic horsepower (HHP) and related facilities. Upon closing of the transaction, ProPetro will have 28 fleets with 1,415,000 HHP operating in the Permian Basin. This agreement is expected to increase ProPetro’s scale in the Permian Basin and expand its leading operational track record while allowing Pioneer to improve capital efficiency and long-term cost competitiveness in its core operations.