This is a U.S. asset carve-out, not a TSX exit
Ranger Energy Services (NYSE: RNGR) said August 31 it signed an asset purchase agreement for STEP Energy Services' U.S. coiled tubing business. STEP (TSX: STEP) is the seller. Consideration is about US$27.5 million: US$22.5 million cash and US$5.0 million of Ranger Class A common stock priced on a 30-day VWAP before close. Close is expected on or about September 11, subject to third-party consents and other customary conditions.
The package is 13 full coiled tubing spreads, related equipment and inventory, and certain property and vehicle leases. Ranger expects to hire about 220 STEP coiled tubing staff. STEP's U.S. footprint runs from the Bakken through South Texas, with the largest presence in the Permian. Ranger said the deal would make it the second-largest U.S. onshore coiled tubing operator.
STEP's Canadian business, including coiled tubing, fracturing, and cementing in the Western Canadian Sedimentary Basin, is outside this agreement. Do not write STEP as leaving the TSX or abandoning Alberta pressure pumping.