Archrock To Acquire Natural Gas Compression Systems Inc.

Archrock Inc. will acquire Natural Gas Compression Systems Inc. (NGCS) in a cash and stock transaction valued at approximately US$357 million. The combined companies will have over 4.5 million hp (3.3 million kW) in operation.

The acquisition bolsters Archrock’s fast growing electric motor-drive compression operations, adding 78,000 hp (58,188 kW) and increasing its total electric motor-drive compression to 815,000 hp (607,990 kW).

“We’re excited to announce our agreement to acquire NGCS, which further enhances our position as a premier provider of natural gas compression services in the United States,” said Brad Childers, president and chief executive officer of Archrock. “With the addition of NGCS’s portfolio of high-quality, large horsepower, and electric compression assets, we are increasing our scale and expanding customer relationships as demand for natural gas and compression remains robust. Additionally, by deepening our operational footprint in the premier Permian Basin and other key regions, we will continue to align our resources with profitable, high-demand market segments. We have been disciplined about transforming our portfolio by investing in attractive, high-return opportunities, and believe that this transaction will enable us to build on these efforts and drive durable, profitable growth for Archrock shareholders.”

Headquartered in Traverse City, Michigan, NGCS specializes in large horsepower compression for both gas lift and midstream applications. 71% of NGCS’s compression horsepower is operating in the Permian Basin. The acquisition is expected to increase Archrock’s Permian Basin compression capacity by 10%, to approximately 2.5 million hp (1.8 million kW).