Patterson-UTI to Buy NexTier Creating Shale-Services Giant (1)

Patterson-UTI Energy Inc. agreed to acquire NexTier Oilfield Solutions Inc., forming one of the shale sector’s biggest providers of drilling and fracking services.

The all-stock deal creates a business with an enterprise value of $5.4 billion, according to a statement on Thursday. NexTier shareholders will receive 0.752 shares of Patterson-UTI common stock for each share they own, meaning Patterson-UTI investors will hold about 55% of the combined company.

Patterson-UTI President and Chief Executive Officer Andy Hendricks will take the same role at the merged companies, with his counterpart at NexTier, Robert Drummond, becoming vice chairman of the board, according ...