BJ Services registered an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). There were no pricing details mentioned in the filing, but the offering is valued up to $100 million. The company said that it intends to list the shares on the NYSE under the symbol BJS.
The underwriters for the offering are Goldman Sachs, Morgan Stanley, and Credit Suisse.
This is the largest North American-focused, pure-play pressure pumping services provider. Its people, equipment and leading-edge technologies provide innovative solutions for exploration and production (E&P) clients in North America. The management team and members of the board of directors have an extensive history of providing reliable, safe and efficient solutions for clients across all major North American shale plays.
In December 2016, BJ Services combined a select set of assets, including certain well-maintained, land-based hydraulic fracturing and cementing equipment, premier facilities and an extensive intellectual property portfolio licensed from Baker Hughes with the hydraulic fracturing and cementing businesses of Allied Completions Holdings to form its own company. Since this formation, BJ Services has rapidly and efficiently redeployed a significant portion of its fleets throughout North America.
The company currently owns 43 hydraulic fracturing fleets with an aggregate capacity of 2.2 million hydraulic horsepower (HHP), as well as 241 cementers, making it one of the largest hydraulic fracturing and cementing service providers in North America. As of June 30, 2017, the company had 22 hydraulic fracturing fleets and 110 cementers operating across all major North American resource plays. Management is also engaged in discussions and negotiations with clients or potential clients relating to the redeployment of an additional 9 fracturing fleets by December 2017. Based on its recent redeployment experience, ongoing contract negotiations and discussions with our existing clients, BJ Services expects to increase its operating fleet count to 31 hydraulic fracturing fleets and 140 cementers by December 2017.
BJ Services expects to use the net proceeds from this offering for expanding its fleets, improving the reliability of its fleets by performing upgrades to extend component life, investing in facility improvements to optimize its fleet refurbishment program; for performing additional research and development; and the remainder of the proceeds for other general corporate purposes.