MIDLAND, Texas–(BUSINESS WIRE)–ProPetro Holding Corp. (NYSE: PUMP) today announced the acquisition of Aqua Prop LLC, an innovative provider of cost-effective wet sand solutions. The all cash acquisition, initially valued at $35.6 million, net of working capital, advances ProPetro’s commitment to delivering more integrated and industrial solutions while adding value for all stakeholders.
Sam Sledge, CEO of ProPetro, stated, “The acquisition of Aqua Prop aligns seamlessly with our strategy of pursuing more innovation and integration for our disciplined operating model and high-grading our capital allocations. This acquisition, while highly complementary to our core business, is also aimed squarely at industrializing our operations with the ultimate goal of bringing more value to our customers and ProPetro. As part of the transaction, ProPetro will own and provide onsite sand storage and handling, while also leveraging strategic agreements for both logistics and preferred access to wet sand supply. ProPetro is continuing to build on our reputation of delivering best-in-class integrated completions services desired by operators in the Permian Basin. We look forward to working closely with the Aqua Prop team to achieve our shared goals and drive further success for our company.”
The deal structure includes cash consideration, future earnout incentives, and potential growth capex considerations tailored to support and align with Aqua Prop and ProPetro growth targets and objectives, a construct designed to maximize value creation for ProPetro shareholders.
About Aqua Prop
Aqua Prop LLC is a leading provider of wet sand solutions, catering to the needs of the oil and natural gas industry. With their specialized offering and expertise, Aqua Prop offers cost-effective and efficient solutions that provide a compelling value proposition and contribute to the success of hydraulic fracturing operations.
About ProPetro
ProPetro Holding Corp. is a Midland, Texas-based provider of premium integrated completion services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. We help bring reliable energy to the world. For more information visit www.propetroservices.com.
Advisors
PPHB of Houston, Texas, served as financial advisor to ProPetro, and Vinson & Elkins LLP served as legal counsel. Locke Lord LLP served as legal advisor to Aqua Prop.
