Natural Gas Services acquires Flatrock

Natural Gas Services Group expands Permian, Eagle Ford footprint with Flatrock acquisition. (Image: Natural Gas Services Group)

Natural Gas Services Group (NGS) has strengthened its position in two of the nation’s most active oil and gas producing regions through the acquisition of Flatrock Compression, a Texas-based provider of rental compression services with a large fleet of high-horsepower and electric motor-driven units.

The transaction brings approximately 86,000 horsepower of rental compression assets into NGS’s portfolio and expands the company’s operational presence across the Permian Basin and Eagle Ford shale plays. Flatrock’s fleet is reported to be approximately 95% utilized by horsepower, reflecting continued demand for compression equipment supporting production and midstream operations.

NGS said the acquisition is intended to enhance its ability to serve producers and midstream operators while broadening its customer base. The addition of Flatrock also increases the company’s inventory of large-horsepower compression packages and electric-drive units, segments that have seen growing interest as operators seek lower-emissions solutions and greater operational flexibility.

“This acquisition represents an important strategic step for NGS,” said Justin Jacobs, chief executive officer of NGS. He noted that Flatrock has built a reputation for field execution, operational performance and customer service while developing a fleet that complements NGS’s existing compression portfolio.

The deal is expected to deepen NGS’s operating density in West Texas and South Texas, potentially improving service responsiveness and fleet deployment efficiency. The companies also operate similar equipment configurations, including engine and compressor technologies, which should ease integration and maintenance requirements.

Founded in 2001, Flatrock provides gas engine-driven and electric motor-driven rental compression services to both upstream and midstream customers. In addition to conventional compression offerings, the company has developed patented gas lift facility technologies designed to reduce downtime and lower methane emissions.

Flatrock CEO B.J. Ellis said the combination will provide greater scale and expanded capabilities for customers while creating additional growth opportunities for employees and the combined organization.

For the compression market, the acquisition highlights continued consolidation among service providers as operators seek larger fleets, broader geographic coverage and more advanced equipment offerings. The addition of Flatrock’s large-horsepower and electric-drive assets aligns with industry trends toward higher-capacity compression systems and increased electrification of field equipment.

To support the transaction and future growth initiatives, NGS amended its existing credit facility, increasing total committed capacity to $500 million. The company said the expanded facility provides additional flexibility as it integrates the acquired business and pursues further opportunities in the compression market.

NGS rents, designs, installs, services and maintains natural gas and electric compression equipment used in production, processing and midstream applications across the United States. Flatrock has operated primarily in the Permian Basin and Eagle Ford regions, serving oil and gas producers and midstream companies for more than two decades.