Exterran Partners LP (NYSE: EXLP) acquired assets from Exterran Holdings Inc. (NYSE: EXH) for $102.3 million, the companies jointly said April 20.
The acquisition includes customer contracts serving 60 customers together with 244 compressor units used to provide compression services under those contracts. The compressor units represent about 151,000 horsepower (hp) of compression and about 4% (by available hp) of the combined U.S. contract operations business of Exterran Holdings and Exterran Partners.
In addition, the acquisition includes 179 compressor units comprising about 66,000 hp previously leased from Exterran Holdings to Exterran Partners. The consideration paid to Exterran Holdings’ affiliates consisted entirely of Exterran Partners’ equity, composed of 3,963,138 common units and 80,341 general partner units.
“We are pleased with this transaction, which expands Exterran Partners’ fee-based business and increases its leading market position as a provider of natural gas contract compression services in the United States,” said Brad Childers, president and CEO of Exterran Holdings. “We plan for Exterran Partners to continue to be the growth vehicle for our U.S. contract services business.”
“In addition, we believe the transaction will be accretive to Exterran Partners’ distributable cash flow per limited partner unit and enhances Exterran Partners’ capital position,” said David Miller, senior vice president and CFO of Exterran Partners’ managing general partner.
The transaction was approved by the conflicts committee of the board of directors of Exterran Partners’ managing general partner. The conflicts committee, which is composed entirely of independent directors, retained independent legal and financial advisors to assist it in evaluating the transaction.
Recommended Reading
Exxon, Chevron Beat 3Q Estimates, Output Boosts Results
2024-11-01 - Oil giants Chevron and Exxon Mobil reported mixed results for the third quarter, with both companies surpassing Wall Street expectations despite facing different challenges.
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
Investor Returns Keep Aethon IPO-ready
2024-10-08 - Haynesville producer Aethon Energy is focused on investor returns, additional bolt-on acquisitions and mainly staying “IPO ready,” the company’s Senior Vice President of Finance said Oct. 3 at Hart Energy’s Energy Capital Conference (ECC) in Dallas.
BKV Prices IPO at $270MM Nearly Two Years After First Filing
2024-09-25 - BKV Corp. priced its common shares at $18 each after and will begin trading on Sept. 26, about two years after the Denver company first filed for an IPO.