Archrock Completes Acquisition of Total Operations and Production Services, LLC
Archrock (NYSE: AROC) has completed its acquisition of Total Operations and Production Services, (TOPS), adding 580,000 horsepower to its fleet, including 500,000 operating horsepower and a contracted backlog of new equipment. The transaction strengthens Archrock's compression operations in the Permian Basin and establishes its leadership in electric motor drive compression. Archrock issued approximately 6.87 million new common shares to the sellers and funded the $826 million cash portion of the purchase price with proceeds from recent capital markets transactions. The acquisition is expected to be accretive and create significant shareholder value, capitalizing on the robust market for natural gas and compression while increasing returns to shareholders.
Archrock (NYSE: AROC) ha completato l'acquisizione di Total Operations and Production Services (TOPS), aggiungendo 580.000 cavalli vapore alla sua flotta, di cui 500.000 cavalli vapore operativi e un backlog contratto di nuove attrezzature. La transazione rafforza le operazioni di compressione di Archrock nel Permian Basin e stabilisce la sua leadership nella compressione con motori elettrici. Archrock ha emesso circa 6,87 milioni di nuove azioni ordinarie ai venditori e ha finanziato la parte in contante di 826 milioni di dollari del prezzo di acquisto con proventi di recenti operazioni nel mercato dei capitali. Si prevede che l'acquisizione sia accretiva e crei un valore significativo per gli azionisti, capitalizzando sul robusto mercato del gas naturale e della compressione, aumentando al contempo i ritorni per gli azionisti.
Archrock (NYSE: AROC) ha completado la adquisición de Total Operations and Production Services (TOPS), añadiendo 580,000 caballos de fuerza a su flota, incluyendo 500,000 caballos de fuerza operativos y una cartera contratada de nuevo equipo. La transacción refuerza las operaciones de compresión de Archrock en la Cuenca Permiana y establece su liderazgo en compresión con motores eléctricos. Archrock emitió aproximadamente 6.87 millones de nuevas acciones comunes a los vendedores y financió la parte en efectivo de 826 millones de dólares del precio de compra con los ingresos de transacciones recientes en los mercados de capitales. Se espera que la adquisición sea accretiva y genere un valor significativo para los accionistas, capitalizando el robusto mercado del gas natural y la compresión, al tiempo que aumenta los rendimientos para los accionistas.
Archrock(NYSE: AROC)는 Total Operations and Production Services(TOPS)의 인수를 완료했습니다. 이로써 580,000마력의 동력을 추가하여 500,000마력의 운전 마력을 확보하고 새로운 장비에 대한 계약 백로그를 형성했습니다. 이 거래는 Archrock의 퍼미안 분지에서의 압축 운영을 강화하고 전기 모터 구동 압축에서의 리더십을 확립합니다. Archrock은 판매자에게 약 687만 주의 신규 보통주를 발행했으며, 8억 2600만 달러의 현금 부분을 최근 자본 시장 거래에서 발생한 수익으로 자금을 조달했습니다. 이번 인수는 기업가치 제고는 물론, 자산의 수익을 높이는 동시에 주주에게 상당한 가치를 창출할 것으로 기대됩니다.
Archrock (NYSE: AROC) a terminé l'acquisition de Total Operations and Production Services (TOPS), ajoutant 580 000 chevaux-vapeur à sa flotte, y compris 500 000 chevaux-vapeur opérationnels et une charge de travail contractée pour de nouveaux équipements. La transaction renforce les opérations de compression d'Archrock dans le bassin permien et établit sa position de leader dans la compression par moteur électrique. Archrock a émis environ 6,87 millions de nouvelles actions ordinaires aux vendeurs et a financé la partie en espèces de 826 millions de dollars du prix d'achat grâce aux recettes de récents transactions sur les marchés des capitaux. L'acquisition devrait être accretive et créer une valeur significative pour les actionnaires, capitalisant sur le marché dynamique du gaz naturel et de la compression tout en augmentant les rendements pour les actionnaires.
Archrock (NYSE: AROC) hat die Übernahme von Total Operations and Production Services (TOPS) abgeschlossen, wodurch 580.000 PS zur Flotte hinzugefügt wurden, darunter 500.000 PS aktiver Leistung und ein beauftragter Auftragsbestand neuer Ausrüstung. Die Transaktion stärkt Archrocks Kompressionsoperationen im Permian Basin und etabliert deren Führungsposition bei der elektrischen Motorantriebskompression. Archrock hat ungefähr 6,87 Millionen neue Stammaktien an die Verkäufer ausgegeben und den barzahlenden Anteil von 826 Millionen Dollar des Kaufpreises durch Erlöse aus kürzlichen Kapitalmarkttransaktionen finanziert. Die Akquisition wird voraussichtlich ergebniswirksam sein und einen signifikanten Mehrwert für die Aktionäre schaffen, indem sie den robusten Markt für Erdgas und Kompression nutzt und gleichzeitig die Renditen für die Aktionäre erhöht.
- Acquisition of 580,000 horsepower, including 500,000 operating horsepower
- Strengthens Archrock's position in the Permian Basin
- Establishes leadership in electric motor drive compression
- Accretive transaction expected to create significant shareholder value
- Substantial and contracted backlog of new equipment acquired
- Issuance of approximately 6.87 million new Archrock common shares, potentially diluting existing shareholders
- $826 million cash portion of the purchase price funded through capital markets transactions, potentially increasing debt
Insights
The acquisition of TOPS by Archrock is a significant strategic move that strengthens the company's position in the compression industry. With the addition of 580,000 horsepower, including 500,000 operating horsepower, Archrock has substantially expanded its fleet capacity. This expansion, coupled with a contracted backlog of new equipment, positions the company for increased revenue streams and market share.
The transaction's structure, involving both stock issuance (6.87 million new shares) and a
Archrock's acquisition of TOPS is a strategic coup in the natural gas compression market. By deepening its presence in the Permian Basin, a key region for U.S. oil and gas production, Archrock is positioning itself to capitalize on the ongoing energy boom. The focus on electric motor drive compression is particularly noteworthy, as it aligns with industry trends towards more efficient and environmentally friendly operations.
The "young fleet" acquired from TOPS suggests lower maintenance costs and higher operational efficiency, which could translate to improved margins. With a "robust market for natural gas and compression" cited, this acquisition appears well-timed to meet growing demand. Investors should watch for potential synergies and market share gains as Archrock integrates TOPS' assets and customer base.
This acquisition marks a significant consolidation move in the compression services sector. By establishing a "leadership position in electric motor drive compression," Archrock is adapting to evolving industry standards and potential regulatory changes favoring cleaner technologies. This could provide a competitive edge and attract environmentally conscious clients.
The transaction's impact extends beyond mere asset acquisition. The addition of TOPS employees brings valuable human capital and expertise, potentially accelerating Archrock's growth and innovation capabilities. Investors should monitor how effectively Archrock integrates TOPS' operations and leverages its "industry-leading balance sheet" to capitalize on market opportunities. The company's confidence in creating "significant shareholder value" suggests potential for increased dividends or share buybacks in the future.
HOUSTON, Aug. 30, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today announced that it has completed its previously announced acquisition of Total Operations and Production Services, LLC (“TOPS”).
“With this accretive transaction, we are adding a young fleet that deepens Archrock’s compression operations in the Permian Basin and establishes our leadership position in electric motor drive compression,” said Brad Childers, President and Chief Executive Officer of Archrock. “We are excited to welcome the TOPS employees to Archrock and work together to expand our exceptional service to new and existing customers and create significant shareholder value. Given our high-quality contracted fleet, technical expertise and an industry-leading balance sheet, we are confident Archrock is poised to capitalize on the attractive opportunities presented by today’s robust market for natural gas and compression, while increasing returns to our shareholders.”
Through the TOPS transaction, Archrock acquired 580,000 horsepower, including approximately 500,000 operating horsepower and a substantial and contracted backlog of new equipment.
At closing, Archrock issued approximately 6.87 million new Archrock common shares to the sellers. In addition, Archrock funded the
About Archrock
Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how the Company embodies its purpose, WE POWER A CLEANER AMERICA™, visit www.archrock.com.
Forward-Looking Statements
This press release contains forward-looking statements, which include statements about the expected benefits of the acquisition of Total Operations and Production Services, LLC. These statements are not guarantees of future performance or actions. Forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Archrock expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in Archrock’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and as set forth from time to time in Archrock’s filings with the Securities and Exchange Commission. These filings are available online at www.sec.gov and www.archrock.com.
For information, contact:
| Archrock, Inc. |
| INVESTORS Megan Repine VP of Investor Relations 281-836-8360 investor.relations@archrock.com |
| MEDIA Andrew Siegel / Jed Repko Joele Frank 212-355-4449 |
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