Archrock to Buy Natural Gas Compression Firm TOPS for $983 Million
(Reuters) — Energy infrastructure company Archrock said on Monday it would buy contract gas compression services provider Total Operations and Production Services (TOPS) for about $983 million in cash and stock from Apollo Global Management funds.
The acquisition will increase Archrock's Permian Basin compression capacity by 30% to nearly 2.2 million operating horsepower and its Permian-based assets will represent more than half of its total operating horsepower.
The transaction comes as dealmaking in the Permian shale basin, the largest U.S. oilfield that straddles West Texas and New Mexico, has extended to this year after a bumper 2023.
"The transaction is expected to be more than 10% accretive to earnings per share and more than 20% accretive to cash available for dividend per share in 2025," Archrock CEO Brad Childers said in a statement.
Houston, Texas-based Archrock will issue 6.87 million new shares to TOPS and will fund the $826 million cash portion with a combination of equity and debt.
Archrock's shares were down 6.9% in extended trading.
The deal is expected to close by the end of 2024.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Comments