Patterson-UTI set for East Texas entry

US services player Patterson-UTI Energy has a deal to buy pressure-pumping equipment in East Texas from a privately held company.

The buy, which is comprised of 31,500 horsepower hydraulic fracturing spread, marks Patterson-UTI's entrance into the East Texas area.

The company currently offers fracturing services in the Permian, Eagle Ford shale and Barnett shale plays in Texas, as well as the Marcellus and Utica plays in Appalachia.

Patterson-UTI did not reveal the price of the acquisition but analyst speculated the company got a deal on the gear.

"While no price was disclosed we'd be surprised if Patterson paid a big dollar value relative to replacement cost," analysts at investment bank Tudor Pickering Holt said in a note. "Otherwise they'd just build one more spread and do it at the lower organic capital expenditure price."


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