The U.S. Well Services Inc. (USWS) shares gained 13.66% in after-hours on Tuesday, July 27, 2021, and closed the daily trading at $1.04. Earlier in the regular trading session of Tuesday, USWS’s stock lost 4.73%. The stock volume remained 2.61 million shares, which was lower than the average daily volume of 3.59 million shares within the past 50 days. USWS shares have risen 116.31% over the last 12 months, and they have moved down 6.14% in the past week. Over the past three months, the stock has gained 21.98%, while over the past six months, it has declined 10.29.

Let’s have a look at its recent news and developments.

USWS upcoming Electric Fracturing Work

On July 27, 2021, U.S. Well Services (USWS) announced to deploy an all-electric Clean Fleet® to work for Pioneer Natural Resources Company. The electric fleet will support Pioneer’s Midland Basin completion operations for the fourth quarter of 2021.

At this announcement, the President and CEO of USWS Joel Broussard said that the U.S. Well Services is thrilled to be working with Pioneer on this field trial and Clean Fleet technology will enable Pioneer to reduce completion costs while also lowering the emissions intensity of its operations.

Investor update about USWS Business Strategy and Recent Transactions

On July 6, 2021, U.S. Well Services released a new company presentation to update investors on the Company’s business and financial strategy, as well as to provide details on recent transactions.

USWS recent strategic transactions

• USWS issued $125.5 million of 16% Convertible Senior Secured notes and received $86.5 million of gross proceeds from the sale of Notes.
• Settled outstanding litigation with Smart Sand following entry of final judgment that awarded Smart Sand approximately $52 million.

USWS Business and Financial Strategy

• USWS can build up to four new electric fleets and purchase critical components for two additional fleets, under terms of the amendment to the term loan credit agreement.
• Resolution of Smart Sand litigation allows USWS to continue selling legacy diesel frac assets and other non-core equipment.
• USWS expects to convert all outstanding Series B l Over 60% of Series A exchanged for Notes.

USWS Commitment to Purchase 120 Electric Motors 

on June 30, 2021, U.S. Well Services committed to purchasing 60 Power Cubes from AmeriMex Motor & Controls, LLC which is a subsidiary of Industrial Service Solutions. Each patented Power Cube contains two 3,000 HHP electric motors, two variable frequency drives, a power transformer and other components that combine to create a self-contained power centre. The Company expects to begin taking delivery of the Power Cubes in the third quarter of 2021.

Important updates to execute strategic plans

On June 28, 2021, U.S. Well Services issued $125.5 million of 16.0% Convertible Senior Secured PIK Notes due June 2026 in a private placement to institutional investors. The Company sold $64.0 million of Notes convertible into the U.S. Well Services Class A Common Stock and $22.5 million of Notes convertible into licenses to ProFrac Manufacturing, LLC. The above-mentioned transactions are done to execute its previously announced strategic plan to grow and become a fully electric hydraulic fracturing services provider.

Conclusion

The recent USWS announcement about upcoming electric fracturing work was the reason behind its turnaround in the after-hours on Tuesday. It can continue to surge in the coming days as well.