U.S. Well Services provided updates on its near-term business outlook and process towards full-electrification.
U.S. Well Services’ President and CEO, Joel Broussard, commented, “Our vision is to be recognized as the market leader for low-cost, low-emission, completion services and a proven adherent to environmental, social and governance best practices. In pursuit of this goal, U.S. Well Services is committed to executing our plan to delever our balance sheet and becoming the largest, and only pure-play, publicly traded, provider of electric completion services. I am pleased with the progress our team has made as USWS repositions and expands its portfolio of clean completions technology.”
Update on Near-Term Business Outlook and Fleet Activity
In late August, the Company ceased operations of its last active conventional fleet, marking U.S. Well Services’ exit from the diesel frac services market. The Company is currently operating five all-electric fleets, and expects to grow to 9 electric fleets by the end of 2022.
U.S. Well Services continues to experience strong demand for electric fleets, as evidenced by recent commercial momentum. In August 2021, the Company executed an agreement extending an electric fracturing services contract with an existing customer through the end of 2022.
As previously announced, the Company plans to meet customers’ demands for next-generation fracturing solutions with four newbuild Nyx Clean Fleets®. The first 60,000 hydraulic horsepower Nyx Clean Fleet® is expected to be delivered late in the first quarter of 2022. Upon delivery, this fleet is expected to commence work for a customer in Appalachia on a contracted basis. U.S. Well Services anticipates taking delivery of two Nyx Clean Fleets® in the second quarter of 2022, with the last of the four newbuilds expected to arrive early in the third quarter of 2022. USWS is in negotiations with multiple customers for each new fleet and expects to secure contracts for each new fleet prior to delivery.
Update on Strategic Transformation
Since announcing its intention to exit the diesel frac services market, U.S. Well Services has completed the sale of over 30% of its conventional pressure pumping portfolio along with other non-core ancillary equipment. The sale of these assets, combined with scheduled principal repayments has reduced the balance of the Company’s senior secured term loan by $44.9 million, from $246.3 million at the beginning of 2021 to $201.4 million today.
U.S. Well Services expects to close an additional asset sale transaction in the coming days that will result in approximately $9.4 million of additional principal repayments, bringing the outstanding balance on the senior secured term loan to approximately $191.9 million bringing our total term loan principal reduction to $54.3 million.
Reverse Share Split
The Company also announced it is executing a reverse share split, effective September 30, 2021. Holders of U.S. Well Services’ Class A Common stock will receive 1 post-split share for every 3.5 pre-split shares. The reverse share split will not modify any rights or preferences of U.S. Well Services’ stockholders, nor will it alter any stockholder’s percentage interest in the Company. No fractional shares of common stock will be issued as a result of the reverse share split. Stockholders of record who would otherwise be entitled to receive a fractional share will receive one full share of post-split common stock. The Company’s common stock will continue to be traded on the NASDAQ Capital Market under the symbol USWS and will begin trading on a split-adjusted basis when the market opens on Friday, October 1, 2021, under a new CUSIP number, 91274U 200.
The reverse share split was approved by the Company’s stockholders at its annual meeting held on May 14, 2021, and on September 10, 2021, a reverse share split ratio of 1-for-3.5 shares was approved by the Company’s Board of Directors.
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, sound pollution and truck traffic while generating exceptional operational efficiencies, including significant customer fuel cost savings versus conventional diesel fleets. For more information visit: www.uswellservices.com.
Contacts:
U.S. Well Services
Josh Shapiro
Vice President, Finance and Investor Relations
IR@uswellservices.com
Dennard Lascar Investor Relations
Lisa Elliott
(713) 529.6600
USWS@dennardlascar.com