HOUSTON, September 30, 2021 / PRNewswire / – US Well Services (NASDAQ: USWS) (âUSWSâ or the âCompanyâ) today provided updates on its near-term business outlook and full electrification process.
President and CEO of US Well Services, Joel Broussard, commented: âOur vision is to be recognized as the market leader in low cost, low emission completion services and a proven adherent to best environmental, social and governance practices. In pursuit of this goal, US Well Services is committed to executing our plan to reduce our balance sheet and become the largest and only publicly traded supplier of electrical completion services. I am pleased with the progress our team has made as USWS reposition and expand its portfolio of clean completion technologies. “
Update on short term business outlook and fleet activity
At the end of August, the Company ceased operations of its last active conventional fleet, marking the exit of US Well Services from the diesel fracturing services market. The company currently operates five fully electric fleets and plans to scale to 9 electric fleets by the end of 2022.
US Well Services continues to experience strong demand for electric fleets, as evidenced by recent business momentum. In August 2021, the Company entered into an agreement extending an electric fracturing services contract with an existing customer until the end of 2022.
As previously announced, the company plans to meet customer demands for next-generation fracking solutions with four new Nyx Clean FleetsÂ® fleets. The first Nyx Clean FleetÂ® with 60,000 hydraulic horsepower is expected to be delivered at the end of the first quarter of 2022. Upon delivery, this fleet is expected to start working for a customer in the Appalachians on a contract basis. US Well Services plans to take delivery of two Nyx Clean FleetsÂ® in Q2 2022, with the last of four new builds scheduled to arrive in Q3 2022. USWS is in negotiations with multiple customers for each new fleet and s ‘waits to obtain contracts for each new fleet before delivery.
Update on strategic transformation
Since announcing its intention to exit the diesel fracking services market, US Well Services has completed the sale of over 30% of its portfolio of conventional pressure pumping and other non-essential ancillary equipment. The sale of these assets, combined with the scheduled principal repayments, reduced the balance of the Company’s senior secured term loan by $ 44.9 million, of $ 246.3 million early 2021 to $ 201.4 million today.
US Well Services plans to complete another asset sale transaction in the next few days which will result in approximately $ 9.4 million additional principal repayments, bringing the outstanding senior secured term loan balance to approximately $ 191.9 million bringing the total reduction in the capital of our term loan to $ 54.3 million.
Reverse distribution of sharing
The Company has also announced that it is proceeding with a reverse stock split, as of September 30, 2021. Holders of Class A common shares of US Well Services will receive 1 post-split share for 3.5 pre-split shares. The reverse stock split will not change any rights or preferences of the shareholders of US Well Services, nor will it change a shareholder’s percentage interest in the Company. No fractional common share will be issued as a result of the reverse stock split. Shareholders of record who would otherwise be entitled to receive a fraction of a share will receive a full share of the post-split common shares. The Company’s common shares will continue to trade on the NASDAQ Capital Market under the symbol USWS and will begin trading on a split-adjusted basis at the opening of the market on. Friday, October 1, 2021, under a new CUSIP number, 91274U 200.
The reverse stock split was approved by the shareholders of the Company at its annual meeting held on May 14, 2021, and on September 10, 2021, a reverse split ratio of 1 to 3.5 shares was approved by the Board of Directors of the Company.
About US Well Services, Inc.
US Well Services, Inc. is a leading provider of hydraulic fracturing services and a market leader in electrical fracture stimulation. The Company’s patented electric fracturing technology provides one of the first fully electric and mobile well stimulation systems powered by locally supplied natural gas, including field gas directly from the wellhead. The company’s electric fracturing technology dramatically reduces emissions, noise pollution and truck traffic while delivering exceptional operational efficiencies, including significant fuel savings for customers compared to conventional diesel fleets. For more information visit: www.uswellservices.com. Information on our website is not part of this release.
The above information includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this document are forward-looking statements. These forward-looking statements can be identified by the use of terms and expressions such as “may”, “expect”, “believe”, “intend”, “estimate”, “project”, ” plan “,” may “,” “anticipate”, “will”, “should”, “could” and similar terms and expressions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they involve certain assumptions , risks and uncertainties. These forward-looking statements represent the Company’s current expectations or beliefs regarding future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to certain risks, in particular changes in market conditions, changes in commodity prices, changes in oil and gas supply and demand, changes in demand for our services, availability of funding and capital, Company liquidity, compliance by the Company from covenants in its credit agreements, actions of customers and potential customers, geopolitical events, public health crises, such as a pandemic, including the recent COVID-19 pandemic and potentially more contagious new variants of COVID -19 such as the delta variant, and availability of equipment and personnel, as well as other risks, uncertainties and assumptions identified in this press release or as disclosed from time to time in documents filed by the Company with the Securities and Exchange Commission (the âSECâ). Factors that could cause actual results to differ from the Company’s expectations include changes in market conditions and other factors described in public disclosures and documents filed by the Company with the SEC, including those described under âRisk factorsâ in its annual report on Amendment n Â° 1 to our annual report on Form 10-K / A for the year ended December 31, 2020 filed on May 17, 2021 and in our quarterly reports on Form 10-Q. As a result of these factors, actual results may differ materially from those indicated or implied by forward-looking statements.
Any forward-looking statement is only valid as of the date on which it is made and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is impossible for us to predict all of them.
American Well Services
Vice-President, Finance and Investor Relations
Dennard Lascar Investor Relations
SOURCE US Well Services, Inc.