Complete Production Services, Inc. (NYSE:CPX) today announced that it
acquired substantially all of the operating assets and certain real
estate used by Appalachian Well Services, Inc. (“AWS”),
a provider of pressure pumping and E-line services in the Appalachian
region, and certain operating assets of TSWS, Inc. (“TSWS”),
a provider of well servicing, heavy haul and other related services in
Northern Louisiana, East Texas and Southern Arkansas.
The assets acquired from AWS include four conventional Appalachian frac
spreads (approximately 17,000 horsepower), a new 20,000 horsepower
Marcellus Shale frac spread (to be deployed by year-end), 7 cement
spreads, 19 E-line units, two small coiled tubing units and support
equipment. The consideration paid for the assets of AWS was
approximately $49.3 million in cash and 588,292 shares of Complete
common stock. Complete will also pay for the completion of the Marcellus
Shale frac spread at a cost not to exceed $6.5 million. Additionally,
Complete may pay up to an additional $5.0 million in cash consideration
if certain performance targets are achieved in 2009-2010.
The assets acquired from TSWS, Inc. include 24 well servicing rigs, 3
swab units, 17 haul trucks, rental equipment and other support
equipment. The consideration paid for the assets of TSWS was
approximately $57.0 million in cash.
Commenting on the acquisitions, Chairman and CEO Joe Winkler stated, “These
acquisitions are consistent with our long-term strategy of acquiring
businesses with excellent reputations in new resource plays. As the
Marcellus and Haynesville shales continue to develop, we will be well
positioned to leverage the platforms provided by AWS and TSWS to take
advantage of the increase in demand for our services.”
Both transactions are anticipated to be immediately accretive to
earnings.
Complete Production Services, Inc. is a leading oilfield service
provider focused on the completion and production phases of oil and gas
wells. The company has established a significant presence in
unconventional oil and gas plays in North America that it believes have
the highest potential for long-term growth.
Safe Harbor Statement
The foregoing contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are those
that do not state historical facts and are, therefore, inherently
subject to risk and uncertainties. The forward-looking statements
included herein are based on current expectations and entail various
risks and uncertainties that could cause actual results to differ
materially from those forward-looking statements. Such risks and
uncertainties include, among other things, risks associated with the
general nature of the oilfield service industry. The company undertakes
no obligation to publicly update or revise any forward-looking
statements to reflect events or circumstances that may arise after the
date of this press release.
Complete Production Services, Inc.
Mike Mayer, 281-372-2311
Jose
Bayardo, 281-372-2325
