Edit ModuleShow Tags

Enerflex Boosts Global Compression Business

Buying Axip’s overseas assets for US$430 million


Published:

Enerflex Ltd. of Calgary is buying Axip Energy Services’ international contract compression and processing business for US$430 million in cash.

The acquisition does not include Axip’s U.S. assets. Axip is the former Valerus Compression Services business, which began operating as a stand-alone company on Jan. 3, following the sale of Valerus Field Solutions to Kentz Corp. Ltd.

Headquartered in Houston, Axip’s international business has 173 employees with operations in Mexico, South America, Southeast Asia and the Middle East. Key assets to be acquired include a 448 unit compression fleet totaling 285,000 hp (212 MW) with utilization above 90% and an average age of 5.5 years. Other assets include gas treatment facilities in Mexico, Argentina and Peru.

Axip’s international senior management team will remain with the acquired business. For the year ended Dec. 31, 2013, the business had revenues of US$128 million and earnings before interest, taxes, depreciation and amortization of US$57 million.

“This acquisition provides Enerflex with an established platform to expand into growing geographies in a business with attractive margins and recurring revenue. It accelerates our ability to deliver full cycle contract services and cross-sell fabrication product offerings into high-growth international markets,” said Enerflex President and CEO J. Blair Goertzen.

Edit ModuleShow Tags

Archive »Recent Articles

GE’s CNG In A Box Finds Home In Colorado CNG Station

Weld County, Colorado, welcomed its seventh public compressed natural gas (CNG) station, which is also the first in the area to feature GE’s CNG In A Box modular system, according to Sparq Natural Gas.

EIA: Most Locations See Nat Gas Price Drop

Natural gas spot prices dropped at most locations during the July 13 to July 20 report week, according to the U.S. Energy Information Administration (EIA).

Petrobras Looks To Scale Back

Petrobras, a Brazilian oil corporation, plans to sell or share control of its pipelines and open its liquefied natural gas (LNG) terminals to third parties as part of a plan to scale back its role in the state’s natural gas industry.

J-W Energy Exits Midstream, Upstream Markets

J-W Energy Co. has sold all of its oil and gas and midstream assets to affiliates of Aethon United LP, signaling an end to the company’s run in the upstream and midstream markets.

Siemens To Power The Missing Link

Siemens received an order from the Trans Adriatic Pipeline consortium for six, 15 MW turbo compressor trains. The equipment will be used in the Trans Adriatic Pipeline (TAP), which is part of the Southern Gas Corridor in Europe.