Archrock, Inc. announced on March 10, 2025, that it has entered into definitive agreements to acquire Natural Gas Compression Systems, Inc. (NGCS) in a cash and stock transaction valued at approximately $357 million. This acquisition is expected to further enhance Archrock's position as a premier provider of natural gas compression services in the United States.
The transaction will add a portfolio of high-quality, large horsepower and electric compression assets, increasing Archrock's scale and expanding its customer relationships. It will also deepen the company's operational footprint in the Permian Basin and other key regions, aligning resources with profitable, high-demand market segments.
Archrock plans to fund the $298 million cash portion of the consideration using available capacity under its ABL credit facility and will issue up to 2.312 million new common shares to the sellers. The acquisition is expected to be immediately accretive to Archrock's earnings per share and cash available for dividend per share upon its anticipated closing in the second quarter of 2025.
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