Service Compression, LLC (“Service Compression” or the “Company”) today announced that the Company has closed on a commitment for $215 million of first lien senior secured credit facilities with Crestline Investors, Inc. The Company plans to direct the net proceeds from the financing to the acquisition of incremental wellhead compression in the Permian Basin and the kickoff of a newbuild electric-driven wellhead compression program.
The acquisition will grow the Company’s fleet to approximately 239,000 horsepower serving blue chip customers in the Permian Basin, Mid-Continent, Barnett Shale and Ark-La-Tex regions. Dusty Womble, Chairman of Service Compression, and Managing Partner at Masked Rider Capital, LLC, commented, “We are excited to announce our partnership with Crestline and believe this transaction puts us in an excellent position to realize our goal of creating meaningful value for our investors along with opportunity for our employees.”
Rhett Newberry, President and CEO of Service Compression, commented, “We are pleased to announce this transformative financing with Crestline. The Company currently has 15,000 horsepower of electric-driven compression on order that, when combined with the acquisition, will solidify our position in the Permian Basin. We look forward to advancing the ESG initiatives of our customers and continuing to make strategic investments in equipment and technologies that differentiate our business.”
Michael Aingorn, Managing Director at Crestline Investors, Inc., said “Crestline is impressed by Dusty and Rhett’s leadership and vision for Service Compression together with their focus on delivering high levels of customer service. We are excited to back the Company’s growth in its markets and expansion into electric compression—thereby de-carbonizing the oil and gas production process.”