Oilfield services company ProPetro Holding Corp. acquired Silvertip Completion Services Operating LLC to create a combined Permian-focused, completions-oriented oilfield services company, according to a press release on Nov. 1.

Midland, Texas-based Silvertip provides Permian Basin operators with wireline perforating and pumpdown services such as logging and pressure control, with 23 wireline units and an efficient pumpdown fleet.

"Combining ProPetro and Silvertip pairs the best-in-class Permian hydraulic fracturing and cementing company with one of the largest Permian wireline companies," Silvertip co-founder and president Mike Wood commented in the release.

"As part of a larger, more diversified and well-capitalized company, our wireline-focused business will have the resources and support to accelerate earnings, share best practices and benefit from ProPetro’s deep completions experience and technical capabilities," he added.

The transaction offer comprised of $30 million cash, the payoff of approximately $7 million assumed debt, 10.1 million ProPetro common stock shares and other undisclosed transaction costs for a combined value of $150 million.

With the acquisition of Silvertip, ProPetro expects its 2023 adjusted EBITDA to increase by approximately $65 million to $75 million while also significantly enhancing ProPetro's free cash flow generation.

According to the company, ProPetro will continue analyzing opportunities to grow and enhance company value while investing in its frac fleet conversion strategy and reducing capital spending through operational efficiency and enhanced maintenance capabilities.

"With our highly complementary service offerings including Silvertip’s premier wireline franchise, strong cash flow metrics, and blue-chip customer relationships, ProPetro is now well-positioned to execute on cross-selling opportunities, while accelerating our ability to achieve our financial growth targets through a more integrated and diversified service offering," ProPetro CEO Sam Sledge said in the release.