New High Ahead? US Well Services (NASDAQ:USWS)

US Well Services (NASDAQ:USWS) is one of the biggest gainers in pre-market trading.

Market Action

As of 8:12, USWS is trading at $1.19 up 23 cents or 24.26%. So far more than 2.31 million shares have exchanged hands.

USWS Released News Late Monday

US Well Services Announces Move Towards Full Electrification of Portfolio

• USWS announced its commitment to becoming an all-electric hydraulic fracturing services provider and expects to have fully exited the diesel frac market by the end of Q4 2021.  As a result of this strategic transition, USWS expects to become the first publicly-traded, pure-play electric completions services provider.
• The 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 Joel Broussard, US Well Services’ President and CEO.  “US 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.”

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