Archrock Completes Acquisition of NGCS for $299 Million
Deal News | May 01, 2025 | Globenewswire
Archrock, Inc., a prominent player in the natural gas compression sector, has finalized its acquisition of Natural Gas Compression Systems, Inc. (NGCSI) and NGCSE, Inc. (NGCSE), as announced on May 1, 2025. The acquisition, valued with a cash consideration of $299 million, was partly funded by issuing approximately 2.251 million new Archrock common shares to NGCSE, with the remaining cash amount sourced from Archrock's Credit facility. This transaction is anticipated to be immediately accretive to the company's 2025 earnings per share, further enhancing its cash available for dividends per share. Under the leadership of President and CEO Brad Childers, Archrock aims to leverage this acquisition to expand its operational scale, deepen customer relationships, and bolster its position within the midstream natural gas compression services sector in the U.S. The company, headquartered in Houston, is committed to operating in an environmentally responsible manner, underscoring its slogan, "WE POWER A CLEANER AMERICA."
Sectors
- Energy Infrastructure
- Oil & Gas Services
Geography
- United States – Both Archrock and the acquired companies operate primarily in the U.S., with the headquarters of Archrock located in Houston, Texas.
Industry
- Energy Infrastructure – The article revolves around Archrock, which is an energy infrastructure company specializing in midstream natural gas compression services.
- Oil & Gas Services – Archrock provides natural gas compression services, which are crucial for the oil and gas industry, enhancing production and transportation efficiency.
Financials
- $299 million – The cash portion of the total consideration for Archrock's acquisition of NGCS and NGCSE.
- 2.251 million – The number of new Archrock common shares issued to NGCSE as part of the acquisition deal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Archrock, Inc. | Bidding Company | Company | A U.S.-based energy infrastructure company specializing in natural gas compression services. |
| Natural Gas Compression Systems, Inc. (NGCSI) | Target Company | Company | A company providing natural gas compression services, acquired by Archrock. |
| NGCSE, Inc. | Target Company | Company | A part of the acquisition deal alongside NGCSI by Archrock. |
| Megan Repine | Investor Relations Contact | Person | VP of Investor Relations at Archrock, managing communications with investors. |
| Brad Childers | Executive | Person | President and CEO of Archrock, providing strategic direction for the company. |
| Joele Frank | Public Relations Advisory | Company | Provides media relations support for Archrock. |