Keane Group buys Trican’s US assets for $247 million

By Luke Geiver | January 27, 2016

For $247 million, U.S.-based well completion company Keane Group has added all of the U.S. assets from Canada’s Trican Well Services. The move triples Keane’s pressure pumping capacity and also adds proprietary technology and engineering capabilities, according to the company. For Keane, the purchase also expands its reach in the U.S.

In November last year, Trican provided an update on its U.S. operations. The largest fracking company in Canada, the firm hasn’t had a frack crew in the Bakken since March. Operations in the Eagle Ford and the Permian were also halted. During its late 2015 update, the company also said that most of its equipment was still receiving normal maintenance and that its idled equipment wasn’t being picked apart for other projects.

James Stewart, Keane Group chairman and CEO, said the acquisition strengthens the company. “With our expanded capabilities, Keane Group will have significantly greater scale that will enable us to provide all customers cost-effective completion services that will maximize the return on their assets in the current low commodity price environment,” adding that, “with a strong balance sheet and scalable platform positioned for continued growth, Keane looks forward to playing an active role in further industry consolidation.”

The purchase will expand Keane’s frack horsepower from 300,000 horsepower to more than 950,000 available for dispatch. It will also give the company the ability to perform cementing and coiled-tubing services, two popular well completion techniques used in the Bakken. And, the move will bring Keane into new Texas basins while expanding its presence in the Permian, Bakken and Marcellus plays.

Dale Dusterhoft, CEO of Trican, believes the deal was good for several reasons. As part of the deal, Trican retains a minority stake in Keane. Dusterhoft said the new entity will become one of the largest pressure pumping units in the U.S. Trican will not be able to perform pressure pumping services in the U.S. for two years through a non-complete clause.

Dusterhoft believes Keane Group will look to scale up in the main U.S. basins, including the Permian, Bakken and Marcellus. “The intent going forward is that these will be focus areas of the company,” he said.