HOUSTON, Aug. 3, 2022
/PRNewswire/ -- NexTier Oilfield Solutions Inc. (NYSE: NEX) (the
"Company") and NexTier Completion Solutions Inc. (a wholly-owned
subsidiary of the Company) entered into and closed a definitive
agreement to purchase substantially all assets (and assume certain
related liabilities) of the sand hauling, wellsite storage and last
mile logistics businesses of Continental Intermodal Group LP
("CIG") and its subsidiaries (the "Acquisition") from CIG,
Continental Intermodal Group – Trucking, LLC ("Trucking") and CIG
Logistics LLC (together with Trucking and CIG, "Sellers") for an
aggregate purchase price of (i) approximately $27 million in cash paid at closing to the
Sellers plus (ii) 500,000 shares of common stock, par value
$.01 per share (the "Shares") issued
to CIG. Through the Acquisition, NexTier Completion Solutions Inc.
now owns all of the rights and interests in the SANDSTORM® Wellsite
Storage Technology, and related intellectual property, as well as
in certain other assets, that were previously owned by the
Sellers.
The Company has published an Investor Presentation with an
overview of the Acquisition. The Investor Presentation is available
on the Investor Relations page of Company's website or by following
this link
https://investors.nextierofs.com/download/NEX-Last-Mile-Logistics-Expansion-08-03-22-FINAL.pdf.
The assets acquired in the Acquisition will be combined with the
Company's existing last mile logistics assets to create a leading
player in the delivery and storage of proppant at the wellsite. The
Company will rebrand the entire last mile logistics operation as
NexMile Logistics.
In a separate transaction, on August 1,
2022 the company closed on the previously announced
divestiture of the Coiled Tubing business and received
approximately $22 million in total
consideration in an all cash transaction.
"As we continue to focus on optimizing capital allocation within
our business and executing our proven strategy, we are excited to
enhance and expand our leadership position in last mile logistics
capabilities," stated Robert
Drummond, NexTier President and CEO. "I am very proud of our
team for divesting non-core assets while simultaneously reinvesting
the proceeds in assets that will help accelerate the expansion of
our integrated service offerings that immediately add value for our
customers and shareholders. We are also very pleased to welcome our
new team members joining NexTier from CIG."
About NexTier Oilfield Solutions
Headquartered in Houston,
Texas, NexTier is an industry-leading U.S. land oilfield
service company, with a diverse set of well completion and
production services across active and demanding basins. Our
integrated solutions approach delivers efficiency today, and our
ongoing commitment to innovation helps our customers better address
what is coming next. NexTier is differentiated through four points
of distinction, including safety performance, efficiency,
partnership and innovation. At NexTier, we believe in living
our core values from the basin to the boardroom, and helping
customers win by safely unlocking affordable, reliable and
plentiful sources of energy.
Investor Contact:
Kenneth Pucheu
Executive Vice President - Chief Financial Officer
Michael Sabella
Vice President - Investor Relations and Business Development
michael.sabella@nextierofs.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/nextier-asset-acquisition-expands-last-mile-logistics-capabilities-nextier-completes-coiled-tubing-sale-301599150.html
SOURCE NexTier Oilfield Solutions