Keane Group, a Texas well completion services company, tripled its hydraulic fracturing capacity by agreeing to a $247 million deal with Canada-based Trican Well Service on Tuesday.
The Houston-based company acquired the majority of Trican Well Service’s assets in the United States. Keane Group purchased the assets with $200 million in cash plus a minority interest stake in Keane Group.
The acquisition boosts Keane Group’s technological capabilities and enhances service offerings. The small oil field company will more than double in size.
“The acquisition will significantly strengthen Keane’s position as a leader in the completion services business across all key U.S. basins,” Keane Group Chairman and CEO James Stewart said. “With our expanded capabilities, Keane Group will have significantly greater scale that will enable us to provide all customers cost-effective completion services that will maximize the return on their assets in the current low commodity price environment.”
- Grow from 300,000 frac horsepower to over 950,000 available for dispatch
- Acquire access to proprietary technology, engineering capability and new services lines
- Expand into additional basins in Texas and midcontinent, while deepening existing presence in the Permian, Bakken and Marcellus/Utica basins
“We are pleased to add to our company the capabilities of one of the leaders in the U.S. oil and natural gas completion services industry,” Stewart said.
Service to Trican Well Service U.S. customers and Keane Group’s existing customers will continue without interruption, according to Stewart.
The deal will close March 2016, following the completion of customary approvals.