HOUSTON & FORT WORTH, Texas–(BUSINESS WIRE)–Axip Energy Services, LP and certain of its affiliates (collectively “Axip” or the “Company”) and Service Compression, LLC (“Service Compression”) today announced that the United States Bankruptcy Court for the Southern District of Texas (the “Court”) has approved an Asset Purchase Agreement (the “Stalking Horse APA”) for the sale of substantially all of Axip’s assets and business operations to Service Compression for a purchase price of $161 million, subject to adjustment, in connection with Axip’s court-supervised Chapter 11 sale process.
Through the Stalking Horse APA, Service Compression, a leading provider of natural gas compression services, established a strong baseline offer for substantially all of Axip’s assets. The approved transaction represents a value-maximizing outcome for all stakeholders and ensures continuity of Axip’s operations for its customers and vendors under new ownership.
“Receiving Court approval is a significant milestone that brings us a step closer to securing a strong future for the business under new ownership,” said Ben Chesters, Chief Restructuring Officer. “We are working closely with Service Compression to ensure a seamless transition for our partners, and remain focused on delivering the safe, reliable compression services our customers depend on through the close of this transaction.”
“This transaction expands our capabilities and reach, further strengthening Service Compression’s position as a leading provider of natural gas compression services in the United States,” said Rhett Newberry, CEO of Service Compression. “We are committed to delivering enhanced service and expanded capabilities to our existing customers and partners as well as to Axip’s customers following the close of the transaction.”
The sale transaction is expected to close next week, subject to customary closing conditions.
Additional information about Axip’s Chapter 11 process is available through the Company’s claims agent, Epiq, at https://dm.epiq11.com/AXIP. Stakeholders with questions can contact Epiq by calling (877) 741-6428 (U.S./Canada) or +1 (503) 713-6160 (International) or emailing [email protected].
Advisors
Vinson & Elkins LLP is serving as legal advisor, Ankura Consulting Group LLC is serving as the restructuring advisor, Evercore is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to the Company. Willkie Farr & Gallagher LLP is serving as legal advisor and Moelis & Company is serving as financial advisor to Service Compression.
About Axip
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. Axip’s compression fleet of over 500,000 horsepower comprises both electric and natural gas-driven units ranging from 100 – 2,500 HP. Axip leverages its long-standing industry leadership in remote monitoring, automation, and electric drive compression to optimize compressor performance and facility throughput while minimizing the risk and carbon intensity of oil and gas production. Axip is committed to delivering the highest standards in safety, service, and reliability to its customers. More information is available at www.axip.com.
About Service Compression
Service Compression, LLC (“SC”) is a leading provider of natural gas compression services for exploration and production companies at the wellhead. Since its founding in 2004, the Company has built a reputation for reliability, innovation, and proactive partnerships. Headquartered in Fort Worth, Texas, with field offices in Texas, New Mexico, Oklahoma, and Arkansas, SC specializes in providing technology-fueled compression solutions to meet the needs of blue-chip customers in the upstream oil and gas sector. For more information, visit www.servicecompression.com.
Contacts
Media
C Street Advisory Group
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