Sep 8, 2024 · 47 min · 18 segments
An audio reading of the feature articles from the September 2024 issue of Gas Compression Magazine. This month's features include: Achrock Acquires TOPS (Begins At 00:32) Australia Says Yes To More…
Danny FelberHost
Artrock will acquire Total Operations and Production Services, or Topps, for $983 million.
The deal includes roughly 580,000 HP of mostly electric motor-driven gas compressor packages located in the Permian Basin.
Headquartered in Midland, Texas, with offices in Carlsbad, New Mexico, and Yukon, Oklahoma, Topps has more than 200 employees.
Its services include electric and gas-driven compression, rental and sales, compressor field services and support, remote monitoring control, and more.
that builds on the meaningful progress we've made orienting our business for the future and for long-term success, said Brad Childers, president and chief executive officer of Artrock, during an investor's call discussing the deal.
We believe this transaction will further solidify our position as the premier contract compression services company and enable us to continue serving customers' growing demand for lower-carbon solutions.
With TOPS, we're adding 580,000 horsepower of young compression assets, including approximately 500,000 operating horsepower, and a substantial and contracted backlog of new equipment, doing so in a way that reinforces our best in class capital allocation and financial strategy makes this an incredibly compelling opportunity for ArchRock and our investors.
First, the acquisition of high-quality assets with contracted cash flows adds meaningful, low-risk growth, said Childers.
Second, the acquisition enhances our scale and complements our existing premium base and compression capacity.
Third, this acquisition accelerates the growth of our electric motor-driven fleet and augments our internal electrical expertise.
And fourth, this transaction is consistent with our financial and capital allocation priorities.
The acquisition of TOPS increases our truck's Permian Basin compression capacity by 30%, bringing its operating horsepower in the region to about 2.2 million.
Archrocks assets in the Permian Basin represent approximately 52% of its total operating horsepower.
In addition, Topps' assets bolsters Archrocks' electric compression fleet to approximately 648,000 horsepower.
Since 2016, we've worked continuously to upgrade our fleet, markets, customer relationships, and technologies at Childers.
The average age of the Topps fleet is three years, making it cost-effective and efficient.
Next, Topps equipment has market-leading technology, having installed remote monitoring on its electric units.
Adding TOPS's capabilities to our fleet further advances our technological capabilities.
The acquired assets are exclusively serving customers in the Permian, where ArchRock already has a complementary presence.
Not only are these assets located in a high-growth area, but they will round out our service offering in the Permian Basin, given TOPS's focus on gas lift and such holders.
Artrock will acquire Total Operations and Production Services, or Topps, for $983 million.
The deal includes roughly 580,000 HP of mostly electric motor-driven gas compressor packages located in the Permian Basin.
Headquartered in Midland, Texas, with offices in Carlsbad, New Mexico, and Yukon, Oklahoma, Topps has more than 200 employees.
Its services include electric and gas-driven compression, rental and sales, compressor field services and support, remote monitoring control, and more.
that builds on the meaningful progress we've made orienting our business for the future and for long-term success, said Brad Childers, president and chief executive officer of Artrock, during an investor's call discussing the deal.
We believe this transaction will further solidify our position as the premier contract compression services company and enable us to continue serving customers' growing demand for lower-carbon solutions.
With TOPS, we're adding 580,000 horsepower of young compression assets, including approximately 500,000 operating horsepower, and a substantial and contracted backlog of new equipment, doing so in a way that reinforces our best in class capital allocation and financial strategy makes this an incredibly compelling opportunity for ArchRock and our investors.
First, the acquisition of high-quality assets with contracted cash flows adds meaningful, low-risk growth, said Childers.
Second, the acquisition enhances our scale and complements our existing premium base and compression capacity.
Third, this acquisition accelerates the growth of our electric motor-driven fleet and augments our internal electrical expertise.
And fourth, this transaction is consistent with our financial and capital allocation priorities.
The acquisition of TOPS increases our truck's Permian Basin compression capacity by 30%, bringing its operating horsepower in the region to about 2.2 million.
Archrocks assets in the Permian Basin represent approximately 52% of its total operating horsepower.
In addition, Topps' assets bolsters Archrocks' electric compression fleet to approximately 648,000 horsepower.
Since 2016, we've worked continuously to upgrade our fleet, markets, customer relationships, and technologies at Childers.
The average age of the Topps fleet is three years, making it cost-effective and efficient.
Next, Topps equipment has market-leading technology, having installed remote monitoring on its electric units.
Adding TOPS's capabilities to our fleet further advances our technological capabilities.
The acquired assets are exclusively serving customers in the Permian, where ArchRock already has a complementary presence.
Not only are these assets located in a high-growth area, but they will round out our service offering in the Permian Basin, given TOPS's focus on gas lift and such holders.
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