USA Compression to acquire J-W Power Co. in $860 million deal

USA Compression Partners disclosed a definitive agreement Dec. 1 to acquire J-W Power Company for around $860 million. (Image: USA Compression)

USA Compression Partners agreed to acquire J-W Power Co. for about $860 million, a move that will significantly expand its fleet, broaden its geographic footprint and accelerate its push toward lower leverage. The transaction, announced Nov. 26, is expected to close in the first quarter of 2026, pending regulatory approvals.

The deal adds more than 800,000 HP to USAC’s operating fleet, bringing the combined total to roughly 4.4 million active horsepower. J-W Power Co.’s assets extend USAC’s reach across several key regions—including the Northeast, Midcontinent, Rockies, Gulf Coast, Bakken and Permian—which management said will strengthen the company’s ability to meet rising demand for mid- to large-horsepower compression.

The acquisition also brings diversified revenue streams. J-W Power Co. provides aftermarket services, parts distribution and specialized manufacturing capabilities, business lines that USAC said expand its service offering and customer optionality. The company’s customer base spans long-standing relationships with a wide range of operators.

“This acquisition represents a milestone step for USAC,” said Clint Green, the partnership’s president and CEO. “By adding J-W Power Company’s high-quality fleet and expanding our presence in key basins, we are excited to expand our position as a leading provider of compression services. The combined entity will deliver meaningful scale, broaden customer relationships and enhance our ability to service the growing demand for natural gas compression.”

Green said J-W Power Co. brings a strong reputation for operational excellence and a diversified business model that aligns with USAC’s long-term strategy.

USAC said the deal is expected to be meaningfully accretive to distributable cash flow and values the acquisition at roughly 5.8 times estimated 2026 adjusted EBITDA before expected synergies. The partnership also expects the transaction to accelerate its path to a leverage ratio below 4.0×.

The consideration includes $430 million in cash and approximately 18.3 million newly issued USAC common units, valued using a 10-day volume-weighted average price. USAC plans to fund the cash portion through available capacity under its revolving credit facility.