Pursuant to the terms of the agreement, Superior will acquire Diamondback’s pressure pumping, fluid logistics and completion, production and rental tools business lines for $270 million in cash, subject to certain closing adjustments.
As part of the acquisition, Superior will acquire an additional 128,000HP of stimulation, 105 fluid hauling transports and trucks, 400 frac tanks and six water disposal wells. After the transaction, Superior will operate a total of 416,000HP of stimulation, an increase of 44% percent from the quarter ended June 30, 2008.
David Wallace, CEO of Superior Well Services, said: This is an exciting transaction for Superior and we are thrilled to add such a high-quality group of employees and assets. Once the Diamondback assets are fully incorporated into Superior’s operations, we expect this acquisition to be accretive to net income and cash flow on a per-share basis in 2009.
