Keane (FRAC) Inks Deal To Buy RockPile Energy For $284.5M
Zacks Investment Research | May 18, 2017 10:10PM ET
Integral well completion services provider Keane Group, Inc. (NYSE:FRAC) recently announced that it has entered into an agreement to acquire RockPile Energy Services, LLC for $284.5 million. Keane expects the deal to be closed by Jul 31, subject to regulatory approval.
Investors should know that Houston-based private equity firm White Deer Energy is the current owner of RockPile Energy.
Denver-based RockPile Energy provides high-quality completion services to various upstream companies and primarily operates in the Bakken and Permian basins.
About the Deal
Keane is expected to pay $135 million in cash and 8.7 million shares of its common stocks for the transaction. The deal also incorporates contingent consideration of up to $20 million in case Keane’s stock price falls below $19 per unit.
The company had previously ordered hydraulic fracturing machinery from RockPile Energy, for which $26.5 million will be paid to the acquiree from Keane's capital expenditures. Keane will reimburse $9 million in deposits at closing, which RockPile Energy previously paid during building the hydraulic machinery.
How will Keane Benefit?
The buyout will make Keane one of the largest and extremely advanced pressure pumping fleet owners in the country. The company's pressure pumping fleet size will increase approximately 26% after the acquisition. Keane will have around 1.2 million hydraulic fracturing horsepower fleet placed strategically across the most prolific shale basins in the U.S.
About the Company
Keane Group mainly focuses on complex and technically demanding completion solutions. The company’s primary service offerings include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions as well as other value-added service offerings. It is headquartered in Houston, TX.
Price Performance
Keane operates in the Zacks categorized Zacks Investment Research
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