NexTier Oilfield Solutions is to purchase Alamo Pressure Pumping for $268m to accelerate its next generation tech strategy.
Alamo, founded in 2017 and headquartered in Midland, Texas, is a Permian pressure pumper based on next generation horsepower and active fleets. Acquired assets include nine hydraulic fracturing fleets comprised of 460,000 horsepower, approximately 92% of which is Tier IV DGB capable. Alamo operates exclusively in the Permian Basin and primarily out of Midland. Alamo reported pretax earnings of $68m in 2020.
“The acquisition of Alamo accelerates and magnifies the impact of our next generation technology strategy, providing NexTier with significant opportunities for deploying gas-powered equipment and complimentary integrated solutions into a market with high and increasing demand,” said Robert Drummond, president and CEO of NexTier.
“Combined, we will operate the third largest base of active hydraulic horsepower across the US and the largest base of next generation equipment in the Permian, improving our scale with highly-utilized fleets for an efficient customer base. We are impressed with Alamo’s performance and their successful track record in the Midland basin. Therefore, other than enhancement by our last-mile logistics, NexHub and digital tools, operational integration will be minimal,” said Drummond.
Joe McKie, Alamo’s president and CEO will continue to lead the Alamo division of NexTier and report directly to Drummond.
Combined, NexTier will own 46 hydraulic fracturing fleets totaling approximately 2.5 million horsepower, with the largest deployed fleet capable of being fueled by low-emission natural gas in the market today. The addition of Alamo’s highly utilized next generation focused fleets fortifies NexTier’s leadership position in this market niche where demand continues to outpace supply.
Alamo’s focus on the Midland Basin is complements NexTier’s position in the Delaware Basin, providing intra-basin diversification and establishing NexTier as a leading completions provider in one of the most prolific basins in the world. On a combined basis, NexTier expects to operate 17 hydraulic fracturing fleets in the Permian Basin post-closing.
The transaction is expected to be completed by August 31, subject to customary closing conditions and approvals.
For more information visit: www.NexTierOFS.com