Archrock Completes Acquisition of Total Operations and Production Services
Archrock, Inc. (NYSE: AROC), a prominent player in the energy infrastructure industry, has announced that it has successfully completed its acquisition of Total Operations and Production Services, LLC (TOPS). This strategic acquisition is expected to strengthen Archrock's position in the competitive natural gas compression market.
Enhancing Archrock's Fleet and Operations
Brad Childers, the President and Chief Executive Officer of Archrock, shared his excitement about the acquisition, referring to it as an accretive transaction that will significantly enhance their operations in the Permian Basin. With these new assets, Archrock aims to solidify its leadership in electric motor drive compression.
Adding Value through a Young Fleet
The acquisition brought in an impressive 580,000 horsepower, which includes around 500,000 horsepower that is currently operational. This also comes with a considerable backlog of contracted equipment, allowing Archrock to improve its service for both new and existing clients.
Strength in Financial Resources
To fund the $826 million acquisition, Archrock tapped into resources from its recent capital market transactions. As part of the deal, approximately 6.87 million new shares of Archrock common stock were issued to the former owners.
Commitment to Environmental Responsibility
Archrock is committed to promoting safe and environmentally responsible practices in the production and transportation of natural gas. The company takes pride in being a leading provider of natural gas compression services across the United States.
Looking Ahead: Strong Market Position
With a high-quality fleet and a solid financial foundation, Archrock feels well-equipped to take advantage of the favorable conditions in today’s natural gas and compression markets. The team at Archrock is dedicated to creating value for its shareholders while ensuring that customers can rely on dependable and effective service.
About Archrock
Based in Houston, Archrock focuses primarily on midstream natural gas compression. The company is recognized for its dedication to helping energy companies operate efficiently while respecting the environment. Archrock continually emphasizes its mission, WE POWER A CLEANER AMERICA™, as it works to provide exceptional solutions in the energy sector.
Frequently Asked Questions
What is the significance of the acquisition of TOPS?
The acquisition enhances Archrock's capacity in the natural gas sector, particularly in electric motor drive compression, and strengthens its market position.
How will the acquisition affect Archrock's operations?
It will add a substantial amount of operating horsepower and a backlog of contracted equipment, enabling improved service capabilities.
What are the financial implications of this deal?
Archrock financed the acquisition through capital market transactions and issued new shares to manage the purchase price effectively.
What is Archrock's commitment to the environment?
Archrock emphasizes safety and environmental responsibility in the natural gas sector, ensuring sustainable operations and practices.
Who can I contact for more information about Archrock?
For investor-related inquiries, Megan Repine, the VP of Investor Relations, can be reached at 281-836-8360 or via email at investor.relations@archrock.com.
