Pioneer Natural Resources Co. agreed to extend its pressure pumping services contract with ProPetro Services Inc., Midland, Texas-based ProPetro said in a company release on April 4.
The two companies entered into a pressure pumping services agreement in 2018 in connection with the acquisition of Pioneer’s pressure pumping services assets. Since that time, ProPetro and Pioneer have worked collaboratively to improve completions performance in the Permian Basin, achieving industry-leading results, according to the ProPetro release.
“This amendment to our existing agreement with ProPetro reflects Pioneer’s desire for continuous improvement in completions performance as demonstrated through the material progress achieved since our partnership began,” Pioneer President and COO Rich Dealy commented in a company release. “We thank ProPetro for its commitment to meet and exceed the high standards Pioneer expects in our operations.”
ProPetro Services entered into the amended and restated pressure pumping services agreement with Pioneer Natural Resources USA Inc. on March 31.
The amended agreement provides for updated performance standards, operating procedures, pricing and terms. It is effective as of Jan. 1 and will terminate by year-end 2022, but could be extended through 2023, according to the release.
“As operating standards of both companies have increased over the life of our unique collaboration, this amendment memorializes those changes,” ProPetro CEO Sam Sledge said in the release. “We are thankful for a partner like Pioneer that has and continues to entrust us with a significant component of their completions operations.”
Pursuant to the amended agreement, ProPetro will deliver and dedicate hydraulic fracturing fleets to provide fracture stimulation pumping services and provide associated products in connection with such services. Pioneer will pay ProPetro certain fees, including a service fee invoiced by well or by pad and calculated based on the equipment and other services provided to Pioneer.
“We also look forward to enhancing our relationship into the future as ProPetro expands its next-generation equipment offering and continuously improves reliable completions performance that Pioneer and our other valued customers have come to expect,” Sledge added.
Recommended Reading
BP Restructures, Reduces Executive Team to 10
2024-04-18 - BP said the organizational changes will reduce duplication and reporting line complexity.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
Chord Energy Updates Executive Leadership Team
2024-03-07 - Chord Energy announced Michael Lou, Shannon Kinney and Richard Robuck have all been promoted to executive vice president, among other positions.
First Solar’s 14 GW of Operational Capacity to Support 30,000 Jobs by 2026
2024-02-26 - First Solar commissioned a study to analyze the economic impact of its vertically integrated solar manufacturing value chain.
SunPower Begins Search for New CEO
2024-02-27 - Former CEO Peter Faricy departed SunPower Corp. on Feb. 26, according to the company.