ARC’s STEP Energy closes $350 mln buy of U.S. fracking company

STEP Energy Services Ltd (TSX: STEP) has wrapped up its acquisition of the issued and outstanding capital stock of Tucker Energy Services Holdings Inc, a Houston-based provider of fracturing and completion solutions to the U.S. oil and gas industry. The deal, announced in February, had a total cash consideration of about $350 million (US$275 million). STEP also closed new credit facilities and an equity financing, the proceeds of which were used to help fund the buy. STEP, a Calgary-based oilfield service company, is backed by Canadian energy private equity firm ARC Financial Corp.


STEP Energy Services Ltd. Announces Closing of Previously Announced Acquisition of Tucker Energy Services Holdings, Inc.

CALGARY, Alberta, April 02, 2018 (GLOBE NEWSWIRE) — STEP Energy Services Ltd. (TSX:STEP) (“STEP” or the “Company”) has closed its previously announced acquisition of all of the issued and outstanding capital stock of Tucker Energy Services Holdings, Inc. (the “Acquisition”).

Concurrent with the closing of the Acquisition, STEP has closed its previously announced amended and restated credit agreement with a syndicate of lenders, which includes a $330 million revolving syndicated credit facility, $10 million operating facility and US$7.5 million operating facility (the “New Credit Facilities”).

As previously announced, on March 15, 2018, STEP closed its bought-deal equity financing of 6,055,000 subscription receipts at a price of $9.30 per subscription receipt for gross proceeds of $56,311,500. In accordance with their terms, each subscription receipt was exchanged for one common share of the Company upon the closing of the Acquisition and the net proceeds from the sale of the subscription receipts were released from escrow. Holders of the subscription receipts are not required to take any action in order to receive the common shares of the Company.

STEP funded the Acquisition with a combination of cash on hand and the net proceeds from the equity financing, with the balance funded from borrowings under the New Credit Facilities.

About Step

STEP Energy Services is an oilfield service company founded in 2011 that provides fully integrated coiled tubing and fracturing solutions. STEP’s combination of modern, fit-for-purpose fracturing and coiled tubing equipment has differentiated it in plays where wells are deeper, have longer laterals, and higher pressure.

Initially operating only in Canada as a specialized, deep capacity coiled tubing provider, STEP’s service offering has expanded to include fully integrated coiled tubing and fracturing solutions in Canada and in the U.S. STEP operates in the Montney, Duvernay, and Viking in Canada, and in the Anadarko, Arkoma, Permian, Eagle Ford, and Haynesville in the U.S. STEP’s continuing track record of safety, efficiency and execution drives repeat business from its blue-chip exploration and production clients.

For more information please contact:

Regan Davis
President & Chief Executive Officer
Telephone: 403-457-1772

Photo courtesy of STEP Energy Services Ltd