Page 13 - NorthAmOil Week 25

NorthAmOil
NEWS IN BRIEF
NorthAmOil
provide full-service washouts for trucks and frack tanks.
Big Spring is the third new facility announced by Milestone this year. In March, the company received permitting for a new land ll in Orla, Reeves County, Texas, and started construction on the site in May.
e Texas Railroad Commission awarded Milestone their second land ll permit in April, located 34 miles south of Midland in Upton County.
MILESTONE ENVIRONMENTAL SERVICES, June 26, 2019
M O V E S
Archrock announces
agreement to acquire Elite
Compression
Archrock today announced that it has entered into a de nitive agreement to acquire
substantially all assets of Elite Compression Services, a portfolio company of JDH
Capital, including approximately 430,000 of predominately large-horsepower compression assets for total consideration of $410mn. e transaction will be funded with approximately $205mn of cash and approximately 21.7mn newly issued Archrock common shares to the seller.
In conjunction with the transaction, Harvest Midstream will acquire approximately 80,000 active and idle compression horsepower from Archrock for $30 million
in cash. Archrock’s Board of Directors has appointed energy industry veteran Je ery D. Hildebrand, executive chairman and founder, of Hilcorp Energy, which is a liated with JDH Capital and Harvest Midstream, to Archrock’s board of directors upon closing of the transactions.
“We are excited to announce the acquisition of Elite’s excellent contract compression operations in a transaction that will immediately bene t Archrock shareholders through accretive earnings
and cash ow growth,” said Brad Childers, president and chief executive o cer of Archrock. “ e assets being acquired from Elite are highly utilized, predominantly large-horsepower compression units, more than 80% of which are contracted for more than three years with blue-chip customers. We expect the acquired assets to generate approximately $55mn of annualized adjusted EBITDA, inclusive of $5mn in annualised cost synergies. In addition, this transaction adds basin density in our core areas, with more than 70% of the units deployed in the Eagle Ford and South Texas region, and
the concurrent sale of non-core equipment further standardises our asset portfolio.
We believe these transactions support our ability to achieve our stated nancial targets, including reducing our leverage to below 4.0x in 2020, growing our dividend between 10% and 15% annually through 2020, and maintaining dividend coverage of more than 2.0x through 2020.”
ARCHROCK, June 24, 2019
Week 25 27•June•2019
w w w . N E W S B A S E . c o m
P13