AcquisitionsJun 15, 2026, 08:56 AM
Natural Gas Services Group Acquires Flatrock Compression for $120M
AI Summary
Natural Gas Services Group, Inc. (NGS) announced the acquisition of Flatrock Compression Holdings for a total purchase price of $120 million, consisting of $110 million in cash and $10 million in newly issued NGS common stock. This strategic acquisition is expected to be immediately accretive, diversify NGS's customer base, and expand its operational footprint in the Permian Basin and Eagle Ford. In conjunction with the acquisition, NGS increased its committed credit facility from $400 million to $500 million. The transaction was valued at approximately 6.2x Flatrock's first quarter 2026 annualized Adjusted EBITDA.
Key Highlights
- Natural Gas Services Group (NGS) acquired Flatrock Compression Holdings for $120 million.
- The acquisition was funded by $110 million in cash and $10 million in NGS common stock.
- The deal is expected to be immediately and materially accretive to NGS's financial metrics.
- NGS expanded its credit facility from $400 million to $500 million to support the acquisition.
- The acquisition diversifies NGS's customer mix and deepens its operational footprint in the Permian Basin and Eagle Ford.
- Flatrock's fleet of approximately 86,000 horsepower, with a significant portion of large horsepower and electric motor units, was acquired.
- The transaction was valued at approximately 6.2x Flatrock's first quarter 2026 annualized Adjusted EBITDA (pre-synergies).
Price Impact
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