C&J Well Services is said to be the third largest rig servicing provider in the US
Wellsite services company Basic Energy Services has purchased NexTier’s well services business for around $94m.
NexTier production operations, known as C&J Well Services, is claimed to be the third largest rig servicing provider in the US.
C&J Well Services has significant operations in California
Originally formed by Frank Pool in 1948 in San Angelo, Texas, C&J Well Services currently has significant operations in California.
The acquisition of NexTier production operations will allow Basic to expand its workover fleet, which includes 411 high spec rigs. The deal will also enable the company to have around 5,000 employees across 11 states.
C&J Well Services also expands Basic’s presence in the Permian, California and other major oil basins, by adding its blue-chip customers.
C&J Well Services current senior vice president Jack Renshaw will join Basic to manage the newly formed Western Region, which includes all California and Rocky Mountain operations.
Basic Energy Services president and CEO Keith Schilling said: “Starting with the near-complete sale of our pumping services assets, we have taken important steps to bolster our core production-focused businesses, enhance our credit profile and ultimately position the Company for future growth and leadership.
“With an expanded customer base in active basins, achievable synergies and an enhanced cash flow and credit profile, Basic will be well positioned to increase stockholder value.
“In addition, by combining these businesses, we believe we will leverage our premier assets and geographic positions to efficiently manage through market cycles.”
Morgan Stanley acted as financial advisor to Basic Energy Services, while Weil, Gotshal & Manges served as its legal advisor to the company.
The transaction was completed on 9 March, following the signing of the definitive agreement between the parties.