Calgary-based STEP Energy Services Ltd. (STEP.TO) says it will enter the U.S. oil and gas well-fracking market by buying Tucker Energy Services Holdings, Inc. for about $350 million in cash before closing adjustments.
It says the privately-owned company operates primarily in Oklahoma, where it has three crews offering pressure pumping services to hydraulically fracture wells and is expecting to add a fourth in the second quarter of this year.
STEP plans to pay for the purchase with $30 million in cash on hand, proceeds from a new $50-million equity offering and debt.
It says Tucker's senior leaders have agreed to join STEP and will continue to operate the business.
STEP says Tucker generated about $16.8 million of net income during the first nine months of 2017 on revenue of about $170 million.
It says Tucker's coiled tubing and wireline divisions will complement its current U.S. coiled tubing services in Texas and Louisiana.
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