ProPetro plans to draw on revolving facility to fund asset purchase

By Sarah Lizee

Olympia, Wash., Nov. 13 – ProPetro Holding Corp. plans to use borrowings under its revolving credit facility to help fund the cash portion of its acquisition of Pioneer Natural Resources Co.’s pressure pumping assets, according to a press release.

The $400 million transaction is comprised of $333 million for the pressure pumping assets and $67 million for real estate facilities and other assets.

The total transaction will be funded through a combination of $290 million of ProPetro shares issued to Pioneer and $110 million in cash.

ProPetro will pay $55 million of the cash portion of the purchase price to Pioneer at closing, with the balance to be paid within the following 60 days.

The transaction is expected to close during the fourth quarter, subject to customary closing conditions, including regulatory approval.

ProPetro is a growth-oriented, Midland, Texas-based oilfield services company. Pioneer is a Dallas-based oil and gas exploration and production company.

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