U.S. Well Services, Inc. (NASDAQ: USWS) sprinted out of the blocks after the company reported commitment to becoming all-electric hydraulic facturing services provider.
The Houston-based company also announced it has entered into a definitive agreement to sell certain diesel-powered hydraulic fracturing equipment to a privately-held buyer for net proceeds of $21 million, subject to certain closing conditions.
Further, the Company is in active negotiations with several counterparties and anticipates entering into a series of additional transactions to sell the majority of its remaining diesel fracturing equipment as well as certain power generation assets.
In total, the Company believes it should generate in excess of $100 million of cash from non-core asset divestitures, with the net proceeds expected to reduce outstanding indebtedness and fund general corporate purposes, including the buildout of USWS' next-generation all-electric fracturing fleets.
"We are excited to execute on our strategy and become fully-electric," commented CEO Joel Broussard. "U.S. Well Services has believed in the superiority of electric technology since our first Clean Fleet® was deployed in 2014. Today, we are beginning to realize our vision of going all-electric, reducing a significant amount of our outstanding debt and streamlining our focus to become the new market leader in our industry.
"This is a pivotal time for our company and our industry, and USWS is choosing to invest for the future and focus on a segment of the market that offers attractive growth and returns."
USWS shares galloped 19 cents, or 20.1%, to $1.15.
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