Archrock, Inc, announced that it has completed its previously announced acquisition of Total Operations and Production Services, LLC (“TOPS”).
“With this accretive transaction, we are adding a young fleet that deepens Archrock’s compression operations in the Permian Basin and establishes our leadership position in electric motor drive compression,” said Brad Childers, President and Chief Executive Officer of Archrock. “We are excited to welcome the TOPS employees to Archrock and work together to expand our exceptional service to new and existing customers and create significant shareholder value. Given our high-quality contracted fleet, technical expertise and an industry-leading balance sheet, we are confident Archrock is poised to capitalize on the attractive opportunities presented by today’s robust market for natural gas and compression, while increasing returns to our shareholders.”
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Through the TOPS transaction, Archrock acquired 580,000 horsepower, including approximately 500,000 operating horsepower and a substantial and contracted backlog of new equipment.
At closing, Archrock issued approximately 6.87 million new Archrock common shares to the sellers. In addition, Archrock funded the $826 million cash portion of the purchase price with a portion of the proceeds from its recently completed capital markets transactions.
Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment.
SOURCE: GlobeNewswire