U.S. Well Services Inc. (USWS) shares jumped 14.85% in after-hours on Wednesday, June 30, 2021, and closed the day at $1.16 per share. Earlier in the morning session, USWS’s stock gained 2.34% to close Wednesday’s normal trading session at $1.01 per share. USWS shares have risen 107.18% over the last 12 months, and they have moved up 4.12% in the past week. Over the past three months, the stock has lost 2.88%, while over the past six months, it has declined 146.34%.
Let’s have a look at its recent development.
Commitment to Purchase 120 Electric Motors
on June 30, 2021, U.S. Well Services committed to purchase 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 SecuredPIK Notes due June 2026 in a private placement to institutional investors. The Company sold $64.0 million of Notes convertible into 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.
Surge EnergyElectric Frack Fleet Field Trial
On June 25, 2021, Surge Energy US Holdings Company partnered with the U.S. Well Services on a field trial using USWS’ all-electric Clean Fleet®. This project represents Surge’s first well completions using all-electric hydraulic fracturing technology.
USWS leaving Diesel Frac Market
USWS reassured its commitment to fully exit the diesel frac market by the end of 2021 and replacing it with all-electric hydraulic fracturing.
The company can become the first publicly traded, pure-play electric completion service provider if it fulfils its commitment.
USWS electric frac technology significantly reduce emissions and sound pollutions. It also increased operating efficacies which reduced major fuel cost savings for the end customers.
Next-Generation Nyx Clean Fleet® Pump
On May 19, 2021, U.S. Well Services released the next generation of its proprietary Clean Fleet® technology with the unveiling of its newly designed Nyx Clean Fleet® frac pump. Nyx will use USWS patented PowerCube, driving two independently controlled electric motors and frac pumps to provide 6,000 hydraulic horsepower on a single trailer.
Partnership with Northeast Natural Energy for Clean Fleet® Trial
On May 18, 2021, U.S. Well Services announced that it is preparing to commence operations on a 5 well pad located in Monongalia County, W.Va. for Northeast Natural Energy LLC. This project will be NNE’s first well completion using an all-electric hydraulic fracturing fleet provided by USWS.
Conclusion
The purchasing of 120 electric motors could be the reason behind its exceptional performance on Thursday. the company is fulfilling its commitment which is providing more trust to investors and hence USWS stock price is going up.
