US Well Services Plans Full Electrification of Portfolio; Exit Diesel Frac Market by Q4 2021 End

US Well Services (USWS) has unveiled its plan to become an all-electric hydraulic fracturing services provider and is expected to fully exit the diesel frac market by the end of Q4 2021.

May 25, 2021. By Manu Tayal

US Well Services (USWS) has unveiled its plan to become an all-electric hydraulic fracturing services provider and is expected to fully exit the diesel frac market by the end of Q4 2021.

As a result of this strategic transition, USWS is likey to become the first publicly-traded, pure-play electric completions services provider.

Besides, it has also entered into a definitive agreement to sell certain diesel-powered hydraulic fracturing equipment to a privately-held buyer for net proceeds of USD 21 million, subject to certain closing conditions.

Additionally, USWS said that it is in active negotiations with several counterparties and anticipate entering into a series of additional transactions to sell the majority of its remaining diesel fracturing equipment as well as certain power generation assets.

In aggregate, it is expected to generate over USD 100 million cash from non-core asset divestitures, with the net proceeds expected to reduce outstanding indebtedness and fund general corporate purposes, including the buildout of USWS' next-generation all-electric fracturing fleets.

Commenting on the development, Joel Broussard, President and CEO of US Well Services, said “we are excited to execute on our strategy and become fully-electric. US Well Services has believed in the superiority of electric technology since our first Clean Fleet® was deployed in 2014. Today, we are beginning to realize our vision of going all-electric, reducing a significant amount of our outstanding debt and streamlining our focus to become the new market leader in our industry.”

Presently, USWS’ portfolio includes 5 electric frac fleets, with the goal of reaching 11 electric fleets by the end of 2023. The company said that it will continue to make innovations in electric fracturing technology, and believe it can deliver next-generation NYX Clean Fleets® for approx USD 23 million per fleet.

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