Energy Company Patterson-UTI Energy Announces Merger With NexTier Oilfield

Patterson-UTI Energy PTEN has announced a merger with NexTier Oilfield NEX that is expected to be completed in Q4 of 2023.

Under the terms of the agreement, Patterson-UTI Energy has agreed to give NexTier Oilfield $5.40 billion in in exchange for NEX stock. Currently, neither company has disclosed whether the paymentwill be in cash or in stock.

About The Companies Involved

Patterson-UTI Energy is one of the largest land rig drilling contractors in the United States and maintains moderately sized pressure-pumping operations primarily in Texas and the Appalachian region, plus some modest operations in Colombia. It also provides directional drilling services and tool rental services in most U.

NexTier Oilfield Solutions Inc is a U.S.

How A Merger Works

A merger happens when a company combines operations with another company. In practice, one company will buy the other company's stock in exchange for its own stock. In some cases, cash is used to pay for the company's stock but usually the companies agree to a stock-for-stock transaction.

Due to the exchange and acquisition of stock, a merger is similar to an acquisition. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.

Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.

This article was generated by Benzinga's automated content engine and reviewed by an editor.