Houston-based Archrock, energy infrastructure company with focus on midstream natural gas compression, said last week it is acquiring Natural Gas Compression Systems in a cash-and-stock transaction valued at $357 million ($298 million cash). NGCS is a provider of natural gas compression equipment and services used in production and transportation of natural gas.
Brad Childers, president and CEO of Archrock, said March 10, “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. 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.”
Archrock said 71 percent of NGCS’s compression horsepower is operating in Permian Basin, and the combination is expected to increase Archrock’s Permian Basin compression capacity by 10 percent to about 2.5 million horsepower. Traverse City-based NGCS has about 351,000 horsepower, including 316,000 operating horsepower and 35,000 horsepower backlog of contracted new equipment.