Archrock Acquires Elite Compression for $410 Million
HOUSTON (P&GJ) – Archrock has agreed to acquire the assets of Elite Compression Services in a $410 million cash and stock deal that adds 430,000 of predominately large-horsepower compression assets to its current 3.5 million-horsepower operations.
Houston-based Archrock said it also agreed to sell 80,000 horsepower of non-core compression assets to JDH Capital portfolio company Harvest Midstream for $30 million in cash. Archrock, an energy infrastructure company with a pure-play focus on midstream natural gas compression, said the asset sale will benefit operations by further standardizing its fleet.
Jeffery Hildebrand, executive chairman and founder of JDH-affiliated Hilcorp Energy, will join Archrock's board of directors upon expected closing of the transaction during the third quarter of this year.
“The assets being acquired from Elite are highly utilized, predominantly large-horsepower compression units, more than 80% of which are contracted for more than three years with blue-chip customers," Archrock President & CEO Brad Childers said.
"In addition, this transaction adds basin density in our core areas, with more than 70% of the units deployed in the Eagle Ford and South Texas region, and the concurrent sale of non-core equipment further standardizes our asset portfolio," Childers said.
The $410 million Elite Compression acquisition will be funded with approximately $205 million of cash and approximately 21.7 million newly issued Archrock common shares to the seller.
Citi is acting as exclusive financial advisor and Latham & Watkins is acting as legal advisor to Archrock. Intrepid Partners is acting as exclusive financial advisor and Kirkland & Ellis is acting as legal advisor to JDH Capital and Elite.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments