Archrock Set To Acquire Elite Compression
By May Hyde24 June 2019
Archrock has signed a US$410 million agreement to purchase Elite Compression Services, a portfolio company of JDH Capital Co. The acquisition includes large-horsepower assets totaling 430,000 hp (320,651 kW).
Archrock will pay for the transaction with US$205 million cash and by issuing 21.7 million new company shares to the seller. Harvest Midstream Co. will acquire 80,000 active and idle compression assets from Archrock for US$30 million.
“The assets being acquired from Elite are highly utilized, predominantly large-horsepower compression units, more than 80% of which are contracted for more than three years with blue-chip customers,” said Brad Childers, Archrock’s president and CEO. “This transaction adds basin density in our core areas, with more than 70% of the units deployed in the Eagle Ford and South Texas region.”
The move also prompted Archrock to appoint Jeffery D. Hildebrand, executive chairman and founder of Hilcorp Energy Co., which is affiliated with JDH Capital and Harvest Midstream, to its board of directors.