Natural gas contract compression services provider Archrock Partners has completed the acquisition of compression assets from Archrock.
In October, an announcement was made to acquire assets from Archrock for a consideration of approximately $85m that includes customer contracts serving 63 customers with approximately 260 compressor units.
These units are used to provide compression services under the contracts and carry nearly 147,000 horsepower of compression, as well as 4% of the combined contract operations business of Archrock and Archrock Partners.
Archrock Partners funded the acquisition entirely with the issuance of 5.4 million common units and 111,040 general partner units to affiliates of Archrock.
Archrock and Archrock Partners president and CEO Brad Childers said: “This transaction expands Archrock Partners’ fee-based business and enhances its position as the leading provider of natural gas contract operations services in the US.
“Additionally, the transaction improves Archrock Partners’ leverage profile, is accretive to unitholders, and increases Archrock’s equity interest in Archrock Partners.”
Archrock is a natural gas contract compression services business providing aftermarket services to customers that own compression equipment in the US.
The company owns interests in Archrock Partners, a master limited partnership and provider of natural gas compression services to customers in the oil and natural gas industry throughout the country.
Archrock's headquarters are based in Houston, Texas, and the company operates with approximately 1,700 employees.