Patterson-UTI Energy Inc., a Texas company with drilling rigs located throughout Oklahoma, announced it has acquired Fort Worth-based Ulterra Drilling Technologies LP in a nearly $780 million deal. It is a move that will give Patterson a more global reach.
Ulterra is a global provider of specialized drill bit solutions and will be acquired from affiliates of Blackstone Energy Partners. It will be a debt-free acquisition involving $370 million of cash and 34.9 million shares of Patterson-UTI common stock.
Founded in 2005 and headquartered in Fort Worth, Texas, privately-owned Ulterra designs, manufactures, sells and rents PDC drill bits. With a global footprint, Ulterra supports customers in over 30 countries with sales, manufacturing, and repair facilities throughout North and South America, the Middle East, and Asia. In North America, Ulterra is a leading provider of PDC drill bits, with operations across the most active basins in the United States and Canada.
“Ulterra’s industry leading position in the North American PDC drill bit market will expand our operational and technology portfolio and strengthen our position as a leading drilling and completions company,” said Andy Hendricks, Chief Executive Officer of Patterson-UTI.
The deal comes on the heels of Patterson-UTI’s pending $5.4 billion merger, announced in June, with NexTier Oilfield Solutions Inc. Hendricks said the two deals will boost his firm’s positions in both drilling and completions.
Mike Holcomb, Patterson-UTI’s Chief Operating Officer, added, “Ulterra’s growing Middle East presence will broaden our geographic footprint and provide strong relationships with key customers in this international market.”
Additionally, Ulterra’s data-centric approach to manufacturing
The pending transaction, which is expected to close in the third quarter of 2023, is subject to customary closing conditions and receipt of required regulatory approvals, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act.
The Ulterra business will continue to operate under the name Ulterra, and its headquarters will remain in Fort Worth, Texas.
Source: Patterson-UTI release