Patterson-UTI Energy, NexTier to merge in $5.4bn deal

They said on Thursday that the combined company will be "an industry-leading drilling and completions services provider with operations in the most active major US basins, and strong free cash flow to accelerate the return of capital to shareholders".

Under the terms of the deal, NexTier shareholders will receive 0.7520 shares of Patterson-UTI common stock for each of their shares. Upon closing, Patterson-UTI shareholders will own around 55% of the combined entity and NexTier shareholders will own the rest.

Patterson chief executive Andy Hendricks said: "This merger unites two top-tier and technology-driven drilling and well completions businesses, creating a leading platform at the forefront of innovation. As one company, we will have a significantly expanded, comprehensive portfolio of oilfield services offerings across the most active producing basins in the United States, along with operations in Latin America.

"With our combined strong balance sheet, ample liquidity and greater free cash flow, we will be well positioned to continue to invest in technology, innovation and people, while delivering strong cash returns to shareholders."