Elite Compression Services will be passing down a handful of assets to Houston-based Archrock, an energy infrastructure company, after closing a $410 million cash and stock deal. Archrock’s current 3.5 million-horsepower operations should increase by 430,000 large-horsepower compression assets.
Regarding these assets, Archrock President & CEO, Brad Childers, says “more than 80%…are contracted for more than three years with blue-chip customers. In addition, this transaction adds basin density in our core areas, with more than 70% of the units deployed in the Eagle Ford and South Texas region, and the concurrent sale of non-core equipment further standardizes our asset portfolio.”
Archrock is also planning on selling $30 million of 80,000 horsepower of non-core compression assets to JDH Capital portfolio company Harvest Midstream in order to help their operations by increasing standardization.