USA Compression Partners (USAC) has signed an agreement with S&R Compression to acquire 983 compression units for approximately $187m.
USAC will use the acquired compression assets in crude oil production-related gas lift operations located in Oklahoma and Texas.
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The compression units are an average age of 2.2 years, and have a total horsepower of around 138,000.
USA Compression president and CEO Eric Long said that the latest deal is a first public partnership acquisition for the company, which allows the firm to provide compression services to long-lived infrastructure applications.
"The vast majority of these compression units are used in gas lift operations, which with the continued strength in crude oil prices, we identified as a new market opportunity for our services," Long added.
As part of the deal, S&R Compression will receive USAC common units, representing 20% of the pro forma limited partner interest in USAC. S&R Compression is controlled by Argonaut Private Equity, which is an affiliate of George B Kaiser.
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By GlobalDataKaiser-Francis Oil president and CEO HG Buddy Kleemeier said the company intends to become a meaningful unitholder in USAC.
USAC also plans to form a commercial relationship with the S&R Compression fabrication business, which will be operated by the Kaiser affiliate.
USAC provides compression services to infrastructure applications, which include high-volume-gathering systems, processing facilities and transportation applications.
Caption: A compressor from S&R Compression. Credit: S&R Compression.
