Service Compression LLC, a provider of natural gas compression services, has acquired Axip Energy Services (Axip). The transaction marks a milestone for Service Compression and advances the company’s strategy to build a scaled, technology-enabled, full-service compression platform.
Headquartered in Houston, Axip provides natural gas compression services to upstream and midstream customers in all major producing basins in the United States and offshore Gulf of Mexico. Its fleet is comprised of over 500,000 (373,000 kW) hp of electric and natural gas-driven units ranging from 100 to 2500 hp (74 to 1865 kW).
Earlier this month, a US bankruptcy court approved the sale of Axip Energy Services’ assets and operations to Service Compression for about US$161 million. The deal is in connection with Axip’s court-supervised Chapter 11 sale process.
Through the acquisition, Service Compression expands its horsepower, enhances its presence in large-horsepower categories, and deepens its position in key operating regions, including the Permian Basin. The transaction also adds a complementary fleet, customer relationships, and additional operational capabilities that further strengthen Service Compression’s competitive position across the compression market.
“This acquisition represents a transformational step forward for Service Compression,” said Rhett Newberry, chief executive officer of Service Compression. “Axip brings a high-quality asset base, strong customer relationships, and an experienced team that aligns well with our operating model and long-term strategy. We believe the combined platform is exceptionally well positioned to deliver reliable, differentiated compression solutions to our customers while creating meaningful value for our stakeholders.”
Headquartered in Fort Worth, Texas, Service Compression serves customers across the Permian, MidCon, and Barnett regions. As part of the transaction, more than 100 Axip employees will join Service Compression.
