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.
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