Keane Group Completes Acquisition Of RockPile Energy For Up To US$296 Million

Published: May 18 2017
Deal Summary

Keane Group, Inc., a provider of integrated well completion services to oil and gas industry, completed the acquisition of RockPile Energy Services, LLC, an integrated provider of completions services, for a purchase consideration of up to US$296 million (MM), including contingent payment of up to US$20 MM. The transaction has an effective date of July 3, 2017.

Under the terms, of the total consideration, Keane Group paid US$115 MM in cash; approximately US$139 MM through the issuance of approximately 8.7 MM shares; and approximately US$22 MM for capital expenditures for 30,000 previously ordered hydraulic fracturing horsepower.

Keane Group financed the cash portion of the consideration from its additional term loans, together with cash from its balance sheet.

RockPile Energy is a provider of completions services, primarily providing hydraulic fracturing solutions with integrated wireline in the prolific Bakken and Permian basins. RockPile owns 245,000 hydraulic fracturing horsepower, 8 wireline trucks, 12 workover rigs and 10 cement units. RockPile has a total fleet of 245,000 hydraulic fracturing horsepower including 30,000 horsepower of Tier 4 units previously ordered by RockPile and scheduled for delivery in the fourth quarter of 2017.

FBR Capital Markets & Co. acted as financial advisor and Vinson & Elkins L.L.P. acted as a legal advisor to RockPile Energy in the transaction. The transaction enables Keane Group to expand its service offerings.

Deal history

Completed: On July 3, 2017, Keane Group completed the acquisition of RockPile Energy for a purchase consideration of up to US$296 MM.

Announced: On May 18, 2017, Keane Group entered into an agreement to acquire RockPile Energy for a purchase consideration of up to US$304.5 MM.

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