Pioneer Adds Go-Coil To Its Holdings

Acquired coiled tubing service company, gaining a fleet of 10 coiled tubing units (7 onshore, 3 offshore) and related equipment.

Pioneer Drilling Co., San Antonio, (NYSE Amex: PDC) has acquired Maurice, La.-based Go-Coil LLC, for approximately $110 million in cash.

Go-Coil provides coiled tubing services to exploration and production companies operating in the U.S. onshore and offshore oil and gas markets. Go-Coil operates a fleet of 10 coiled tubing units (seven onshore units and three offshore units) and related equipment. All ten units were placed in service from 2009 to 2011. Six of the onshore units primarily operate utilizing large-diameter 2-inch coil and the remaining four units use 1.25-inch to 1.5-inch diameter coil. Current operations are in Louisiana (offshore and onshore), South Texas, Oklahoma, and Pennsylvania.

Results from the coiled tubing business will be included in Pioneer's Production Services division. Go-Coil's seasoned management team brings more than 70 years of combined coiled tubing experience.

Pioneer funded the purchase price from cash on hand.

Pioneer chief executive William Locke says, “Go-Coil's experienced management team and the young fleet of coiled tubing units fit well with Pioneer's strategy to provide our customers with excellent service and high quality equipment. After studying coiled tubing for the past couple of years, we believe this new service offering has expansion opportunities as well as cross-selling opportunities with our existing business. We expect this acquisition to be accretive to earnings and contribute approximately $26 to $29 million of EBITDA in calendar 2012.”

Fulbright & Jaworski LLP was legal advisor to Pioneer in connection with the transaction. Morgan Keegan was financial advisor to Go-Coil. Baldwin, Haspel, Burke, and Meyer was legal advisor to Go-Coil.