Some energy service firms are investing in growth

By North American Shale magazine staff | February 09, 2018

With oil prices stable heading into a new year and E&P budget forecasts similar or better to last year, some energy service firms are making their move.

Keane Group, emboldened by supply and demand fundamentals in the well completions industry that it said are highly constructive, has put in an order for 150,000 new horsepower to add to its existing frack fleet. To end 2017, James Stewart, CEO of Keane, said “favorable conditions have continued to improve throughout the year (2017), and robust 2018 capital budgets announced by producers in recent weeks have amplified and validated the growing demand for our services,” which he added, “remain in excess of supply.”

For $115 million, Keane is paying roughly $770 per horsepower for its new fleet. In addition, the company also purchased some wireline trucks. The new equipment will be deployed to the Delaware Basin and give the company more than 26 frack fleets with roughly 800,000 hp concentrated on the Delaware.

Liberty Energy Services and Nine Energy Services are also positive on the view others have of their entities. Each company has made a move to list on the New York Stock Exchange through an initial public offering.

Four years after it united four different energy service firms in separate shale plays, Nine Energy intends to list under the ticker symbol “NINE” at a price of $20 to $23 per share. Roughly 7 million shares will be issued. The company currently consists of 8 former energy service firms and is active in every major U.S. shale play.

Liberty Energy Services, the Denver-based completion expert that previously announced—and then retracted—plans to go public, will do so again with the ticker symbol “LBRT” at an IPO price of $14 to $16 per share. The company will issue nearly 11 million shares.