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Keane Group Triples Fracking Capacity

News Article by Elite Tank

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LOST HILLS, CA - MARCH 24: Pump jacks are seen at dawn in an oil field over the Monterey Shale formation where gas and oil extraction using hydraulic fracturing, or fracking, is on the verge of a boom on March 24, 2014 near Lost Hills, California. Critics of fracking in California cite concerns over water usage and possible chemical pollution of ground water sources as California farmers are forced to leave unprecedented expanses of fields fallow in one of the worst droughts in California history. Concerns also include the possibility of earthquakes triggered by the fracking process which injects water, sand and various chemicals under high pressure into the ground to break the rock to release oil and gas for extraction though a well. The 800-mile-long San Andreas Fault runs north and south on the western side of the Monterey Formation in the Central Valley and is thought to be the most dangerous fault in the nation. Proponents of the fracking boom saying that the expansion of petroleum extraction is good for the economy and security by developing more domestic energy sources and increasing gas and oil exports. (Photo by David McNew/Getty Images)

Keane Group, a Texas well completion services company, tripled its hydraulic fracturing capacity by agreeing to a $247 million deal with Canada-based Trican Well Service on Tuesday.

The Houston-based company acquired the majority of Trican Well Service’s assets in the United States. Keane Group purchased the assets with $200 million in cash plus a minority interest stake in Keane Group.

The acquisition boosts Keane Group’s technological capabilities and enhances service offerings. The small oil field company will more than double in size.

“The acquisition will significantly strengthen Keane’s position as a leader in the completion services business across all key U.S. basins,” Keane Group Chairman and CEO James Stewart said. “With our expanded capabilities, Keane Group will have significantly greater scale that will enable us to provide all customers cost-effective completion services that will maximize the return on their assets in the current low commodity price environment.”

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“We are pleased to add to our company the capabilities of one of the leaders in the U.S. oil and natural gas completion services industry,” Stewart said.

Service to Trican Well Service U.S. customers and Keane Group’s existing customers will continue without interruption, according to Stewart.

The deal will close March 2016, following the completion of customary approvals.

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