Patterson-UTI Energy Inc., which has oil and natural gas drilling operations in several states, including Utah, and TMBR/Sharp Drilling Inc. have approved a deal for Patterson-UTI to acquire the remaining outstanding shares of TMBR/Sharp.
Patterson-UTI now owns about 20 percent of the outstanding common shares.
Upon completion of the transaction, Patterson will own 358 land-based drilling rigs in Utah, Texas, New Mexico, Oklahoma, Louisiana, Mississippi and western Canada.
Both companies are based in Texas.
The agreement calls for TMBR/Sharp shareholders to receive more than 0.31 of a share of Patterson-UTI common stock and $9.09 cash for each share of TMBR/Sharp common stock, for a total value of $20.20 per share based on the closing price on Friday of $35.59 for a share of Patterson-UTI.
The transaction is subject to approval by the shareholders of TMBR/Sharp and other conditions. TMBR/Sharp is involved in contract drilling of, exploration for and development and production of oil and gas wells in west Texas and eastern New Mexico.