US: Oil company Compression Partners plans US$1.8b acquisition

Oilfield services company USA Compression Partners plans to buy the compression business from Dallas-based Energy Transfer Partners in a US$1.8 billion deal, the companies said Tuesday, January 16.

The deal “expands USA Compression’s geographic reach into active basins, including Eagle Ford Shale, Gulf Coast, Rockies and Permian Basin,” the company said in a news release. The companies said they expect the deal to close in the first half of the year.

Founded in 1998, USA Compression Partners is one of the largest gas-compression service providers in the nation. The company’s equipment is used in key gas production areas, including the Eagle Ford and Barnett shale fields in Texas.

The deal calls for USA Compression Partners to pay Energy Transfer Partners US$1.225 billion in cash. Energy Transfer Partners will also receive 19.2 million common shares and US$6.4 million Class B shares in USA Compression Partners stock, worth an estimated $450 million of USA Compression stock.

Full Content: Financial Times

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