U.S. Well Services Announces Move Towards Full Electrification of Portfolio
HOUSTON, May 24, 2021 /PRNewswire/ -- U.S. Well Services (Nasdaq: USWS) ("USWS" or the "Company") today announced its commitment to becoming an all-electric hydraulic fracturing services provider and expects to have fully exited the diesel frac market by the end of Q4 2021. As a result of this strategic transition, USWS expects to become the first publicly-traded, pure-play electric completions services provider.
The Company also announced it has entered into a definitive agreement to sell certain diesel-powered hydraulic fracturing equipment to a privately-held buyer for net proceeds of $21 million, subject to certain closing conditions. Further, the Company is in active negotiations with several counterparties and anticipates 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 total, the Company believes it should generate in excess of $100 million of 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.
"We are excited to execute on our strategy and become fully-electric," commented Joel Broussard, U.S. Well Services' President and CEO. "U.S. 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."
"By exiting the diesel frac services market, USWS is expected to make great progress in reducing our financial leverage and repositioning our asset portfolio to be the most competitive and environmentally friendly in the business. This is a pivotal time for our company and our industry, and USWS is choosing to invest for the future and focus on a segment of the market that offers attractive growth and returns."
Today, the Company's portfolio includes five electric frac fleets, including the Company's original Clean Fleet® built in 2014. USWS expects to replace all diesel-powered frac equipment with new generation Clean Fleets® with the goal of reaching 11 electric fleets by the end of 2023. As previously announced, the Company is continuing to make innovations in electric fracturing technology, and believes it can deliver next-generation NYX Clean Fleets® for approximately $23 million per fleet. Importantly, USWS expects that this latest generation of Clean Fleet® will yield similar reductions in operating costs and greenhouse gas emissions to the Company's existing electric fleets while still delivering best-in-class fuel savings for our customers.
About U.S. Well Services, Inc.
U.S. Well Services, Inc. is a leading provider of hydraulic fracturing services and a market leader in electric fracture stimulation. The Company's patented electric frac technology provides one of the first fully electric, mobile well stimulation systems powered by locally-supplied natural gas, including field gas sourced directly from the wellhead. The Company's electric frac technology dramatically decreases emissions and sound pollution while generating exceptional operational efficiencies, including significant customer fuel cost savings versus diesel fleets. For more information visit: www.uswellservices.com. Information on our website is not part of this release.
Forward-Looking Statements
The information above includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their use of terms and phrases such as "may," "expect," "believe," "anticipate," "will," "should," "could," and similar terms and phrases. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks, and uncertainties. These forward-looking statements represent the Company's current expectations or beliefs concerning future events, and it is possible that the results described in this release will not be achieved. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified in this release or as disclosed from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"). Factors that could cause actual results to differ from the Company's expectations include the factors described in the Company's public disclosures and filings with the SEC, including those described under "Risk Factors" in its Amendment No. 1 to Annual Report on Form 10-K/A for the year ended December 31, 2020 filed on May 17, 2021 and in its subsequent filings with the SEC. As a result of these factors, actual results may differ materially from those indicated or implied by forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether because of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors.
Contacts:
Josh Shapiro
Vice President, Finance and Treasury
[email protected]
Dennard Lascar Investor Relations
(713) 529-6600
[email protected]
SOURCE U.S. Well Services, Inc.
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