Calgary-based STEP Energy Services Ltd. TSX-STEP says it will enter the U.S. oil and gas well-fracking market by buying Tucker Energy Services Holdings, Inc. for about $350 million in cash before closing adjustments.
It says the privately owned company operates primarily in Oklahoma, where it has three crews offering pressure pumping services to hydraulically fracture wells and is expecting to add a fourth in the second quarter of this year.
STEP plans to pay for the purchase with $30 million in cash on hand, proceeds from a new $50-million equity offering and debt.
It says Tucker’s senior leaders have agreed to join STEP and will continue to operate the business.
STEP says Tucker generated about $16.8 million of net income during the first nine months of 2017 on revenue of about $170 million.
It says Tucker’s coiled tubing and wireline divisions will complement its current U.S. coiled tubing services in Texas and Louisiana.