Archrock to buy natgas compression firm TOPS for $983 MM
Energy infrastructure company Archrock has confirmed it will buy contract gas compression services provider Total Operations and Production Services (TOPS) for ~$983 MM in cash and stock from Apollo Global Management funds.
The acquisition will increase Archrock's Permian Basin compression capacity by 30% to nearly 2.2 MM operating horsepower and its Permian-based assets will represent more than half of its total operating horsepower.
The transaction comes as dealmaking in the Permian shale basin, the largest U.S. oilfield that straddles West Texas and New Mexico, has extended to this year after a bumper 2023.
"The transaction is expected to be more than 10% accretive to earnings per share and more than 20% accretive to cash available for dividend per share in 2025," Archrock CEO Brad Childers said in a statement.
Houston, Texas-based Archrock will issue 6.87 MM new shares to TOPS, and will fund the $826-MM cash portion with a combination of equity and debt.
Archrock's shares were down 6.9% in extended trading. The deal is expected to close by the end of 2024.
Related News
Related News
- Australia's Woodside Energy to buy US LNG developer Tellurian for $1.2 billion
- Power Knot LLC receives continued orders from ExxonMobil PNG for food waste digester consumables, spare parts
- WhiteWater's ADCC Pipeline in South Texas begins transporting natural gas
- Gasum powers Equinor's platform supply vessel with bio-LNG
- Oman plans third LNG train, boosting domestic production to more than 15 MMtpy
- ONEOK to acquire Medallion and controlling interest in EnLink for $5.9 B
- Desert Mountain Energy Corp. initiates helium production
- WhiteWater's ADCC Pipeline in South Texas begins transporting natural gas
- Oman plans third LNG train, boosting domestic production to more than 15 MMtpy
- Brazil's fossil push undermines Lula's green ambitions
Comments