Ranger Energy Services, Inc. was selected as the successful bidder at a recent auction to acquire certain assets of Basic Energy Services, Inc. and its subsidiaries.
The winning bid at the competitive auction conducted by Basic under section 363 of the U.S. Bankruptcy Code was for a cash purchase price of $36.65 million.
The purchase includes Basic’s business lines outside the State of California (excluding the water logistic business), specifically all assets within the well servicing service line, all assets within the fishing and rental tool service lines, all assets within the coiled tubing service line, all rolling stock assets required to support the operating assets being purchased and real property locations inclusive of, but not limited to, real property owned in New Mexico, Oklahoma and Texas. The company currently expects to pay the cash purchase price with proceeds from the private placement described below.
“We are very pleased to continue the expansion of our scale and scope with this latest acquisition," said Stuart Bodden, president and CEO of Ranger. "Combined with the Patriot and PerfX transactions earlier this year, the Basic assets strengthen our ability serve clients in our markets and to drive ongoing growth in both revenue and free cash flow.”
The closing of the transaction is subject to various conditions, including approval by the bankruptcy court. A hearing to seek court approval is scheduled and the transaction is expected to be concluded by the end of the month. The company expects to hold an investor call and provide additional information regarding the transactions in connection with the closing.
