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ProPetro (PUMP) Sells Its Coiled Tubing Assets to STEP Energy

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ProPetro Holding Corp. (PUMP - Free Report) , the Midland, TX-based oilfield services company, recently announced the divestiture of its coiled tubing assets. The company declared that it sold the assets, which were used for services, including frac plug mill-out, wellbore clean-out, tubing-conveyed perforating and nitrogen pumping, to a STEP Energy Services Ltd. subsidiary.

ProPetro chose to receive consideration in the form of cash and shares of STEP for the transaction valued at around C$17.2 million, indicating PUMP’s confidence in STEP’s ability to grow the business and create value for shareholders

Sam Sledge, the Chief Executive Officer of ProPetro, mentioned that the deal was great for the company and all its stakeholders. “Our goal was to rationalize our portfolio while positioning the Coiled Tubing business’ assets and talented team for even greater success,” he said. The CEO further stated that PUMP would continue to manage its portfolio of assets to make sure that the company has the best mix to serve its customers and generate value for shareholders.

STEP Energy said that the acquisition of assets from PUMP solidifies its position as North America's top provider of deep-capacity coiled tubing services, with proficiency in the Permian Basin and other oil and gas producing areas in the southern U.S.

Founded in 2005, ProPetro Holding Corp. is an oilfield services provider operating primarily in the Permian Basin spread over west Texas and New Mexico. The company offers a wide spectrum of specialized, complementary services and equipment for the exploration and production of oil and natural gas. Approximately 99% of ProPetro's total revenues come from the Permian Basin.

ProPetro currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include NexTier Oilfield Solutions , Valero (VLO - Free Report) and Marathon Petroleum (MPC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NexTier’s 2022 earnings stands at $1.35 per share, up about 413.9% from the year-ago loss of $2.81.

NEX beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 269.5%.

Valero beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 33.5%.

The Zacks Consensus Estimate for VLO’s 2022 earnings stands at $26.69 per share, up about 849.8% from the year-ago earnings of $2.81.

The Zacks Consensus Estimate for Marathon Petroleum’s 2022 earnings stands at $20.96 per share, up approximately 755% from the year-ago earnings of $2.45.

MPC beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 56.7%.


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