Acquisition Increases Keane's Technological Capabilities and Enhances Services Offerings, Improving Productivity and Efficiency for Customers
HOUSTON – Keane Group, a privately-held U.S. based well completion services company, has agreed to acquire the majority of Canada-based Trican Well Service Ltd.'s (TSX: TCW) U.S. assets for total consideration of U.S. $247 million, comprised of U.S. $200 million in cash plus a minority interest stake in Keane Group. With the acquisition, Keane will triple its frac capacity, acquire access to proprietary technology, add applied engineering capabilities and further expand the Company's service offerings and geographic reach in the U.S.
"This acquisition will significantly strengthen Keane's position as a leader in the completion services business across all key US basins," said James Stewart, Keane Group Chairman and CEO. "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. With a strong balance sheet and scalable platform positioned for continued growth, Keane looks forward to playing an active role in further industry consolidation."
With this transaction, Keane will acquire the majority of Trican's U.S. assets, including equipment, key employees and its engineering capabilities.
With these additional resources, Keane will:
• Grow from 300,000 frac horsepower to over 950,000 available for dispatch.
• Acquire access to proprietary technology, engineering capability and new services lines including cementing, coiled-tubing, nitrogen pumping, and acidizing capabilities.
• Expand into additional basins in Texas and the Mid-con, while deepening Keane's 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 continued. "Working with the Trican team, we will ensure uninterrupted service to Trican U.S.'s and Keane Group's existing customers, and looking forward, will be able to provide them and our future customers with expanded offerings. What will not change is Keane Group's unrelenting focus on health, safety, environmentally responsible practices, and delivering operationally efficient solutions to our customers."
The transaction is expected to close before mid-March 2016, following the completion of customary approvals.
Houlihan Lokey acted as financial advisors and Schulte Roth Zabel acted as legal advisors to Keane in this transaction.
ABOUT KEANE GROUP
Headquartered in Houston, TX, Texas Keane Group provides hydraulic fracturing, wireline and top-hole air drilling services to the oil and gas industry across projects in the Marcellus/Utica, Permian and Bakken basins. With an unwavering focus on safety, operational excellence and corporate citizenship, the Company has been delivering industry-leading service to customers since 1973.
ABOUT TRICAN WELL SERVICE LTD.
Headquartered in Calgary, Alberta, Trican provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.
SOURCE Keane Group
CONTACT: Winnie Lerner/Andrew Johnson, Glover Park Group, 646-495-2700