Pioneer Sells Pressure Pumping Assets To ProPetro For $400 Million

Pioneer Natural Resources Co. (NYSE: PXD) continued to trim its portfolio as it transitions into a low-cost Permian Basin pure-play operator with an agreement on Nov. 13 to sell its pressure pumping assets for $400 million in cash and stock.

ProPetro Holding Corp. (NYSE: PUMP) will pick up Pioneer Pumping Services in exchange for $110 million cash and a stock issuance representing 17% ownership in ProPetro. As part of the agreement, ProPetro will also provide Pioneer pressure pumping and related services for up to 10 years.

The agreement is expected to improve Pioneer’s capital efficiency and long-term cost competitiveness in its core operations in the Permian Basin.