UTI Energy and REMY Partners to Acquire Assets of Fracmaster Ltd.
Business Wire - April 27, 1999 21:44
HOUSTON--(BUSINESS WIRE)--April 27, 1999--UTI Energy Corp. (AMEX: UTI) today announced that the Board of Directors of Fracmaster Ltd. (Toronto: FMA) (NYSE: FMA), an international oil and gas services company headquartered in Calgary, Alberta, has accepted the Company's bid, in partnership with its largest shareholder, REMY Capital Partners III, L.P. ("REMY"), to purchase all or substantially all of the assets of Fracmaster Ltd. UTI will be investing up to US$15 million of the purchase price with the remainder to be provided by REMY and/or others. UTI expects to have a minority interest in the joint venture acquiring the assets. The bid is subject to necessary approvals, including approval of the Court of Queen's Bench of Alberta and regulatory approvals and other customary closing conditions.
On September 16, 1998, Fracmaster announced that it was putting itself up for sale, but did not receive binding bids from the sale process. On March 18, 1999, Fracmaster sought and obtained protection under Canada's Companies' Creditors Arrangement Act, which stayed all legal proceedings against Fracmaster for an initial 30 days, and authorized Fracmaster to prepare a plan of compromise or arrangement for its outstanding liabilities. Since that time Fracmaster has received several inquiries from parties interested in making a proposal to purchase all or some of its assets, and Fracmaster's Board accepted the bid from UTI and REMY.
Commenting on the investment, Mark S. Siegel, Chairman of UTI Energy and President of REMY's General Partner, stated, "We are very pleased that the strength of our balance sheet has once again allowed us to take advantage of what we believe to be a very outstanding investment opportunity for both UTI and REMY. The assets that we are acquiring will not only provide us with an international presence, further diversifying our operations, but they also provide us with an opportunity to substantially increase the scope and magnitude of our possible pumping business."
About UTI Energy
UTI Energy Corp. is a leading provider of contract drilling and pressure pumping services in the continental United States. Upon completion of the merger with Norton Drilling Services, Inc. UTI will have a total of 120 drilling rigs that provide drilling services primarily in Texas, Oklahoma, New Mexico, and the Rocky Mountains. The Company's pressure pumping subsidiary provides stimulation and cementing services in the Northeast.
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations or predictions for the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. In addition to the factors set forth above, other important factors that could cause actual results to differ materially include, but are not limited to, the impact of recent declines in prices of oil and gas on the demand for the Company's and Fracmaster's services and the risk of any further declines in oil and gas prices that could adversely affect demand for such services, industry conditions, the Company's and REMY's ability to integrate the acquisition of Fracmaster's assets and manage the newly acquired assets, demand for oil and gas, and ability to retain management and field personnel necessary to succesfully operate Fracmaster's assets. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's report on Form 10-K for the year ended December 31, 1998. Copies of these filings may be obtained by contacting the Company or the SEC.
CONTACT: UTI Energy Corp., Houston
John Vollmer, Chief Financial Officer, 281/873-4111
or
Sitrick And Company, Los Angeles
Jeff Lloyd, Managing Director, 310/788-2850
or
REMY Partners, Los Angeles
Mark Siegel, 310/843-0050
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