USA Compression Completes $1.8 Billion Acquisition of Energy Transfer’s Compression Business
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USA Compression Partners, Energy Transfer Partners, and Energy Transfer Equity, L.P. has completed the previously reported acquisition of the CDM compression business from ETP.
In addition, ETE completed its acquisition of USAC’s general partner and approximately 12.5 million USAC common units from USA Compression Holdings, LLC in exchange for $250 million in cash.
CDM currently owns and operates approximately 1.6 million horsepower of natural gas compression and is focused primarily on large horsepower applications. The acquisition of CDM is expected to provide significant benefits for USAC unitholders as the combined business will have increased geographic coverage and will be one of the leading domestic compression providers.
The acquisition further expands USAC’s geographic presence into regions where USAC was previously underrepresented and results in USAC having broad coverage across U.S. regions. As part of its overall service offerings, CDM also provides a full range of gas treating and emissions testing services. CDM’s treating activities are complementary to USAC’s growing station services offerings, in which USAC provides turnkey gas handling solutions for customers.
With more than 70 percent of horsepower greater than 1,000 horsepower and an average unit size of approximately 700 horsepower, the CDM fleet has an average age of approximately 7 years and a current operating utilization rate of over 90 percent. On a pro forma combined basis, USAC owns and operates a compression fleet of approximately 3.4 million horsepower.
ABOUT THE PARTNERSHIPS
USA Compression Partners, LP is a growth-oriented Delaware limited partnership that is one of the nation’s largest independent providers of compression services in terms of total compression unit horsepower. USAC partners with a broad customer base composed of producers, processors, gatherers and transporters of natural gas. USAC focuses on providing compression services to infrastructure applications primarily in high volume gathering systems, processing facilities and transportation applications.
To stop by USA Compression Partners’ website, CLICK HERE
Energy Transfer Equity, L.P. is a master limited partnership that owns the general partner and 100 percent of the incentive distribution rights (IDRs) of Energy Transfer Partners, L.P. and Sunoco LP. ETE also owns Lake Charles LNG Company. On a consolidated basis, ETE’s family of companies owns and operates a diverse portfolio of natural gas, natural gas liquids, crude oil and refined products assets, as well as retail and wholesale motor fuel operations and LNG terminalling.
To stop by Energy Transfer Equity’s website, CLICK HERE
Energy Transfer Partners, L.P., is a master limited partnership that owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Strategically positioned in all of the major U.S. production basins, ETP owns and operates a geographically diverse portfolio of complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; NGL fractionation assets; and various acquisition and marketing assets. ETP’s general partner is owned by Energy Transfer Equity, L.P.
To stop by Energy Transfer Partners’ website, CLICK HERE
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