Seventy Seven Energy’s Merger is Complete With Houston Company

Houston-based Patterson-UTI Energy has wrapped up its merger with Oklahoma City’s Seventy Seven Energy Inc.

The Texas company not only issued nearly 47.5 million shares pursuant to the merger, but repaid all of Seventy Seven Energy’s outstanding debt totaling $472 million. As part of the package, Patterson-UTI entered into an agreement with its lenders to increase the available commitment under its revolving credit facility to $632 million through September 2017.

Shareholders of Seventy Seven Energy were entitled to receive 1.7851 shares of newly issued Patterson-UTI common stock in exchange for each share of the Oklahoma City company.

“I would like to welcome the employees, customers and shareholders of Seventy Seven Energy to Patterson-UTI,” said Mark S. Siegel, Chairman of Patterson-UTI. “We have always held the people and equipment at Seventy Seven Energy in high regard and I am pleased for us to combine as one team.”

He said the merger gives Patterson “one of the largest and most modern pressure pumping fleets in the industry.”

Jerry Winchester, former Chief Executive Officer of Seventy Seven Energy, added, “With this merger, we bring together two strategically aligned companies into a financially well-positioned leader in U.S. land.  We are excited to align ourselves with a company that shares a similar commitment to safety and service quality.”

The deal affects Seventy Seven’s affiliates: Great Plains Oilfield Rental, Nomac Drilling and Performance Technologies.

Patterson-UTI has 99 oil and gas rigs, 97 in the U.S. and two in Canada.