The Canadian Press
CALGARY - Calfrac Well Services Ltd. (TSX:CFW) says it will spend US$147 million to buy Mission Well Services LLC, a privately held hydraulic fracturing and coiled tubing services provider focused in Texas.
Calgary-based Calfrac said Friday that the purchase includes about $7 million of working capital associated with the ongoing operations of the business.
It also notes that the purchase will pre-empt a portion of its 2014 capital expenditure program, which is expected to include similar equipment.
The deal will see the Canadian oilfield services provider acquire about 157,500 of conventional pumping horsepower, along with high-rate blenders, related sand-handling and auxiliary equipment, three deep capacity coiled tubing units with related fluid and nitrogen pumping units, and a modern district facility in San Antonio, Texas.
Mission Well Services is active in the Eagle Ford shale region of Texas, giving Calfrac a foothold in the Texas market with the addition of locations in Houston, San Antonio and Fairfield.
"The acquisition of the operating assets of Mission is consistent with Calfrac's strategy of disciplined expansion through attractive acquisitions at good valuation metrics and through organic growth opportunities," CEO Doug Ramsay said in announcing the detail.
"Mission provides a platform for Calfrac to enter the Eagle Ford shale region and to assess opportunities in other basins in Texas, while adding high-quality fracturing and coiled tubing equipment to other Calfrac operating areas."
Calfrac said it will fund the purchase through existing credit facilities which provide "ample flexibility to finance the transaction."
Subsequent to the acquisition, expected to close early next month, Calfrac will have approximately 1,182,500 of conventional pumping horsepower, placing it among the world's largest and most capable fracturing companies.
The company provides specialized oilfield services to exploration and production companies throughout Western Canada, the United States, Russia, Mexico, Colombia and Argentina.