Archrock Completes $357 Million NGCS Acquisition, Expands Permian Compression Fleet
(P&GJ) — Archrock Inc. has completed its $357 million acquisition of Natural Gas Compression Systems Inc. (NGCSI), strengthening its position in the U.S. natural gas compression market and expanding its footprint in the Permian Basin.
The deal, which includes NGCSI and NGCSE Inc., adds approximately 351,000 horsepower to Archrock’s fleet, including 316,000 operating horsepower and 35,000 horsepower in contracted new equipment. It also enhances Archrock’s electric motor drive compression capabilities, with total electric horsepower rising to approximately 815,000.
“We are pleased to complete our acquisition of NGCS and welcome its highly talented team of employees to Archrock,” said Brad Childers, Archrock President and CEO. “This accretive transaction is expected to increase our scale, expand our customer relationships, deepen our operations in key regions and strengthen our position as a premier provider of natural gas compression services in the United States."
Under the terms of the agreement, Archrock funded the $299 million cash portion of the total consideration using available capacity under its ABL credit facility and issued approximately 2.251 million new Archrock common shares. The company remains committed to maintaining a leverage ratio between 3.0 and 3.5 times.
The transaction is expected to be immediately accretive to Archrock’s 2025 earnings per share and cash available for dividend per share.
With NGCS’s assets, Archrock now operates more than 4.5 million horsepower, reflecting a 10% increase in Permian Basin compression capacity. Notably, 71% of NGCS’s horsepower is based in the Permian, aligning with Archrock’s strategic focus on high-growth shale regions and the increasing demand for lower-carbon solutions.
“We are confident Archrock is poised for continued growth and value creation as we power a cleaner America,” Childers said.
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