Patterson-UTI holders likely more excited over deal talks, JPMorgan says

JPMorgan analyst Arun Jayaram says the potential merger between NexTier Oilfield (NEX) and Patterson-UTI (PTEN), as reported by the Wall Street Journal, would unite two North America onshore focused oilfield service companies levered to land drilling and frac, with similar markets caps of roughly $2B each. On a year-to-date basis, frac levered stocks have meaningfully outpaced their U.S. land drilling peers as frac fundamentals have held in better than the demand for land rigs, the analyst tells investors in a research note. As such, the firm believes Patterson-UTI shareholders may be more excited about a potential transaction with NexTier than the other way around.