Keane Group Inc. (NYSE: FRAC) will up its pressure pumping services by 25% in the Permian Basin and the Bakken with a deal to buy RockPile Energy Services LLC for $284.5 million, Keane said May 18.
With the acquisition, Houston-based Keane stands to top its fleet out at 1.2 million hydraulic horsepower (HHP) while augmenting its presence in the nation’s most active shale plays, including the Permian, Bakken, Marcellus/ Utica and Scoop/Stack.
The deal continued North American pressure pumping consolidation that included the March joint venture (JV) between Schlumberger Ltd. (NYSE: SLB) and Weatherford International Plc (NYSE: WFT) to create a 2.55 million HHP juggernaut called OneStim. Barclays valued the JV at $3.8 billion.
Keane said its deal works out to about $1,000 per horsepower for 245,000 HHP and bundled wireline units after accounting for working capital and asset values.
“The acquisition of the RockPile business bolsters FRAC’s presence in both the Rockies/Bakken region as well as the Permian Basin region,” said John Daniel, senior research analyst at Piper Jaffray & Co. “Overall, we think this is a smart deal.”