Nova Compression Announces Major Growth Strategy Backed by $325MM Capital Raise

Nova Compression Enhances Growth Strategy with $325MM Capital Raise

Nova Compression, LLC, a key player in contract compression infrastructure, has recently announced a pivotal step in its growth strategy through a significant capital buildup totaling $325 million. This robust financial backing includes a structured equity commitment of $105 million from OIC LP, alongside an asset-based loan (ABL) facility orchestrated by J.P. Morgan. Participation from other financial institutions such as Bank OZK, First Citizens Bank, and Sunflower Bank further bolsters this initiative, showcasing a strong trust from financial partners.

The CEO of Nova Compression, Jonathan Mitchell, expressed great enthusiasm about this development, marking it as a transformative phase for the company. He remarked, _"OIC’s investment equips us with the financial supplies necessary to leverage the burgeoning opportunities in the compression industry. Furthermore, the credit facility led by J.P. Morgan provides us with needed flexibility to enhance our mixed fleet strategy."_ This strategic move is expected to not only stabilize Nova's current operational base but also facilitate expansion into new markets and enhance service offerings.

Strategic Growth Plans

The funds raised will be directed towards diversifying Nova's fleet of natural gas and electric engines, essential for maintaining competitive edge in the industry. The company aims to strengthen its market presence not just in existing regions but also to penetrate new geographical markets. Additionally, the management is keen on pursuing acquisitions that align with their operating model for immediate value addition.

Mitchell further stated, _"Each of our stakeholders and customers will reap the benefits of this growth, reaffirming our pledge to foster a superior working environment for our employees while fortifying our customer relationships as we grow alongside them."_

The collaboration with OIC has been instrumental in tailoring a structured equity solution that enhances Nova's capabilities, ensuring it can grow sustainably and effectively manage its existing customer obligations. Chris Leary, an Investment Partner and Head of Infrastructure Equity at OIC, lauded this partnership, predicting significant growth for Nova Compression. He stated, _"Nova stands as a successful platform armed with a diverse asset range that delivers critical compression services to significant stakeholders in the energy sector. Our shared vision with Nova aligns perfectly with unlocking growth avenues in both established and emerging markets."_

About Nova Compression and OIC

Nova Compression specializes in offering natural gas compression services to various exploration and production firms across Texas, Oklahoma, New Mexico, Arkansas, Kansas, and Louisiana. The company’s unique mixed fleet strategy encompasses a spectrum of services from 100 to 3,000 horsepower. This flexibility has allowed Nova to cater to a broad client base, ensuring that it meets varying demand levels efficiently.

On the other hand, OIC, managing around $5 billion in assets, invests deeply into North American and select international markets. They focus on innovative strategies that promote sustainable infrastructure and growth capital, responding effectively to the needs of middle-market businesses. Their investment sectors are diverse, ranging from energy efficiency initiatives and renewable fuel projects to digital infrastructure and waste management.

This capital raise marks a significant turning point not just for Nova Compression but sets a precedent for growth strategies within the energy infrastructure sector. As the company moves forward, it aims to establish itself as a front-runner in providing dependable and innovative compression services.

For further insights, visit Nova Compression or OIC.

The unparalleled collaboration between Nova and its partners underscores a collective ambition to spearhead advancements in the compression market, presenting both companies as formidable forces in the energy landscape.