Patterson-UTI: Ulterra Purchase Will Augment North American Drilling and Completion Capabilities

Patterson-UTI announced intentions to acquire Ulterra Drilling Technologies in a mixed cash-stock deal with a nearly $800 million implied value, financed by $370 million cash plus 39.4 million shares issued. We don't foresee any material roadblocks to deal completion and expect it will close on schedule in the third quarter of 2023. The Ulterra deal comes less than a month after Patterson's merger announcement with NexTier, expected to close in the fourth quarter. By the end of 2023, Patterson's enterprise value will likely exceed $6 billion, and, assuming no material consolidation among competitors, Patterson will solidify its positioning as one of the largest oilfield service firms in North America.