Patterson-UTI Energy, Inc. (NASDAQ: PTEN) has announced the formalization of a joint venture agreement with a subsidiary of ADNOC Drilling, the largest national drilling contractor in the Middle East. As part of the agreement, Patterson-UTI will hold a 15% minority equity interest in Turnwell Industries LLC OPC, a company recently formed by ADNOC Drilling. The joint venture has been awarded a contract to drill and complete 144 unconventional wells for the Abu Dhabi National Oil Company (ADNOC).
In exchange for the minority equity interest, Patterson-UTI will provide unconventional drilling and completion expertise to Turnwell, as well as a limited cash contribution to fund its portion of working capital. The CEO of Patterson-UTI, Andy Hendricks, expressed excitement about the joint venture, emphasizing the potential for significant value for the company's customers, partners, and shareholders over a long period of time.
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, offering contract drilling services, integrated well completion services, directional drilling services, and specialized drill bit solutions in various regions around the world.
The joint venture with ADNOC Drilling represents a strategic move for Patterson-UTI to expand its footprint into new markets in a capital-efficient manner. This development presents an opportunity for the company to bring its established processes and experience for drilling and completing unconventional wells to the Middle East, with the aim of achieving industry-leading efficiencies in delivering unconventional oil and gas wells within the region. Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $7.63. For more information, read the company's full 8-K submission here.
