AcquisitionsJun 15, 2026, 07:01 AM
NGS Acquires Flatrock Compression for $120M; Boosts Credit Facility to $500M
AI Summary
Natural Gas Services Group (NGS) announced the acquisition of Flatrock Compression Holdings for $120 million, comprising $110 million in cash and $10 million in NGS common stock. This strategic move is expected to be immediately accretive to key financial metrics, diversify NGS's customer base, and significantly expand its large horsepower and electric motor-driven compression solutions, particularly in the Permian Basin and Eagle Ford. In conjunction with the acquisition, NGS increased its credit facility from $400 million to $500 million, maintaining a pro forma leverage ratio of approximately 3x.
Key Highlights
- NGS acquired Flatrock Compression Holdings for $120 million, consisting of $110 million cash and $10 million stock.
- Flatrock operates a rental fleet of approximately 86,000 horsepower, 95% utilized.
- The acquisition multiple is approximately 6.2x Flatrock's Q1 2026 Annualized Adjusted EBITDA.
- The acquisition is immediately accretive to key financial metrics and diversifies NGS's customer base.
- NGS's existing credit facility was increased from $400 million to $500 million, with a $100 million accordion feature.
- Pro forma leverage ratio is approximately 3x, maintaining prudent leverage.
- The acquisition deepens NGS's operational footprint in the Permian Basin and Eagle Ford.
- NGS will host a conference call on June 15, 2026, at 10:00 a.m. Eastern Time to discuss the transaction.
Price Impact
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