Complete Production Lands Marcellus, Haynesville Platform Services Business
Complete Production Services, Inc. has 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., 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.
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.