Patterson-UTI Energy Adds 9% On Decision To Combine With NexTier Oilfield

(RTTNews) - Shares of Patterson-UTI Energy, Inc. (PTEN) are rising more than 9% Thursday morning at $12.19.

Patterson-UTI Energy and NexTier Oilfield Solutions Inc. (NEX) today announced their decision to merge in an all-stock transaction. The combined company, to be operated under the name Patterson-UTI Energy, Inc., will have an enterprise value of about $5.4 billion.

As per the deal, NexTier shareholders will receive 0.7520 Patterson-UTI shares for each NexTier stock owned.

The transaction is expected to be accretive to earnings per share and free cash flow per share in 2024, the company said.

PTEN has traded in the range of $9.70 - $19.81 in the last 52 weeks.