ProPetro expands Permian completions business with Par Five Energy Services acquisition
(WO) – ProPetro Holding Corp. has announced the successful acquisition of the assets and business operations of Par Five Energy Services LLC. Specializing in cementing services in the Delaware basin, Five’s business complements ProPetro's existing cementing business that operates predominantly in the Midland basin region of the Permian basin. The acquired business will be integrated within ProPetro’s existing cementing operating team and brand.
This transaction forms a comprehensive cementing business to better serve Permian oil and gas operators and is complementary to ProPetro’s industry-leading hydraulic fracturing and wireline completions businesses.
ProPetro management anticipates the acquisition of Par Five will increase ProPetro’s 2024 Adjusted EBITDA expectations by approximately $10 million, while converting approximately 80-90% of that Adjusted EBITDA into free cash flow. On this basis, Par Five will support ProPetro’s strategy of expanding the service area for its cementing operations into the Delaware basin.
Established in 2011 by Curtis Tolle and the Chase family, with its headquarters situated in Artesia, New Mexico, Par Five owned and managed more than 14 cementing spreads servicing leading oil and gas producers in southeastern New Mexico. Notably, Par Five had recently finalized a substantial expansion of its bulk plant with state-of-the-art facilities strategically designed to accommodate heightened operational demands.
ProPetro Holding Corp. is a Midland, Texas-based provider of premium completion services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources.