USA Compression Acquires J-W Power in $860 Million Deal
USA Compression Partners, LP (USAC) has announced its acquisition of J-W Power Company in a deal valued at approximately $860 million. This strategic move will enhance USAC’s position as a key player in the natural gas compression sector.
Details of the Acquisition
The deal involves an allocation of $430 million in cash funded through debt, alongside the issuance of about 18.3 million new USAC units to the seller. The cash component is based on the 10-day volume-weighted average price recorded on November 26, with an effective price set at $23.50 per unit, falling within a collar range of $23.25 to $23.50.
Transaction Timeline
The acquisition is projected to close in the first quarter of 2026. This timeline reflects the complexities often inherent in such large-scale transactions within the energy sector.
CEO’s Vision for the Future
Clint Green, CEO of USA Compression, expressed enthusiasm about the acquisition. He highlighted that integrating J-W Power Company’s fleet would not only expand USAC’s reach in key basins but also enhance customer relationships. This growth is expected to meet the increasing demand for natural gas compression services.
- Company Involved: USA Compression Partners, LP (USAC)
- Target: J-W Power Company
- Deal Value: $860 million
- Cash Component: $430 million
- New Units Issued: Approximately 18.3 million
- Effective Price: $23.50 per unit
- Transaction Close Date: Q1 2026
This acquisition is set to deliver significant scale and enhance USAC’s capabilities in serving its clients. With the demand for natural gas compression on the rise, this merger positions USA Compression to play a pivotal role in the industry’s future.
