#United States #Fort Worth #Service Compression #Axip Energy #Rhett Newberry

Service Compression Expands with Axip Energy Services Acquisition

In a decisive move that solidifies its foothold in the natural gas compression market, Service Compression, LLC has announced the completion of its acquisition of Axip Energy Services, LP. This significant transaction reflects Service Compression’s ambition to create a comprehensive, technology-driven compression platform designed to cater to the growing demands in the sector.

Strategic Significance of the Acquisition

The acquisition involves substantially all assets of Axip, a company known for its specialized services in energy solutions. This strategic maneuver allows Service Compression to amplify its horsepower offering and to boost its presence in vital large-horsepower categories. Notably, the merger enhances the company's operational landscape in crucial areas such as the Permian Basin, recognized as one of the most prolific oil and gas regions in the United States.

Rhett Newberry, the CEO of Service Compression, emphasized the transformational nature of the acquisition. He expressed, "Axip brings a high-quality asset base, strong customer relationships, and an experienced team that aligns perfectly with our long-term strategic objectives." Newberry believes that the newly formed platform is positioned to provide exceptional and differentiated compression solutions effectively.

Expansion of Resources and Capabilities

Upon completion of the acquisition, Service Compression has welcomed over 100 employees from Axip, thereby bringing a wealth of industry experience and technical know-how into the fold. These new team members are expected to bolster the company’s operational abilities and enhance its commitment to providing best-in-class services while maintaining a strong focus on safety culture.

The acquisition was further backed by a significant investment from Warburg Pincus, coupled with an enlargement of Service Compression's existing credit facility, under the direction of JPMorgan. Additionally, the continued support from Masked Rider Capital highlights an optimistic outlook for the future trajectory of Service Compression.

Future Prospects

The partnership with key financial allies underlines a vote of confidence in Service Compression’s growth strategy and the anticipated long-term value this acquisition is poised to create. Newberry commented on the supportive relationships, saying, "We are thankful for the ongoing support of Warburg Pincus, JPMorgan, and Masked Rider Capital. Their partnership demonstrates their belief in our disciplined growth strategy."

With the integrated capabilities and an extensive customer base arising from the acquisition, Service Compression is laying the foundation for a new chapter of growth and innovation in the compression service industry.

About Service Compression

Service Compression is a leading supplier of natural gas compression services across key production basins in the United States. The company is renowned for delivering reliable service and operational excellence through technology-enabled solutions that empower customers to optimize performance across their operations. The latest acquisition reinforces Service Compression's commitment to expand its market reach and enhance service delivery.

For inquiries or additional information regarding this acquisition, reach out to Rebecca Cole, President of SLANT Partners, at 817-454-1857 or via email at [email protected].