Pioneer Natural Resources Co. agreed to extend its pressure pumping services contract with ProPetro Services Inc., Midland, Texas-based ProPetro said in a company release on April 4.
The two companies entered into a pressure pumping services agreement in 2018 in connection with the acquisition of Pioneer’s pressure pumping services assets. Since that time, ProPetro and Pioneer have worked collaboratively to improve completions performance in the Permian Basin, achieving industry-leading results, according to the ProPetro release.
“This amendment to our existing agreement with ProPetro reflects Pioneer’s desire for continuous improvement in completions performance as demonstrated through the material progress achieved since our partnership began,” Pioneer President and COO Rich Dealy commented in a company release. “We thank ProPetro for its commitment to meet and exceed the high standards Pioneer expects in our operations.”
ProPetro Services entered into the amended and restated pressure pumping services agreement with Pioneer Natural Resources USA Inc. on March 31.
The amended agreement provides for updated performance standards, operating procedures, pricing and terms. It is effective as of Jan. 1 and will terminate by year-end 2022, but could be extended through 2023, according to the release.
“As operating standards of both companies have increased over the life of our unique collaboration, this amendment memorializes those changes,” ProPetro CEO Sam Sledge said in the release. “We are thankful for a partner like Pioneer that has and continues to entrust us with a significant component of their completions operations.”
Pursuant to the amended agreement, ProPetro will deliver and dedicate hydraulic fracturing fleets to provide fracture stimulation pumping services and provide associated products in connection with such services. Pioneer will pay ProPetro certain fees, including a service fee invoiced by well or by pad and calculated based on the equipment and other services provided to Pioneer.
“We also look forward to enhancing our relationship into the future as ProPetro expands its next-generation equipment offering and continuously improves reliable completions performance that Pioneer and our other valued customers have come to expect,” Sledge added.
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