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Natural Gas Services Expands Permian Footprint with $120 Million Buy

Natural Gas Services Group is deepening its reach in the Permian Basin and Eagle Ford with the $120 million acquisition of Flatrock Compression Holdings. The deal, finalized Monday, combines $110 million in cash with $10 million in stock to consolidate a larger share of the energy compression equipment market.

Natural Gas Services Expands Permian Footprint with $120 Million Buy

Southlake-based Natural Gas Services intends to use the purchase to broaden its customer base while scaling up its inventory of high-horsepower and electric motor-driven solutions. Chief Executive Justin Jacobs indicated the integration will be immediately accretive to the company’s core financial metrics, signaling a push to capture more infrastructure demand in key producing regions.

To support the expansion, the company successfully increased its committed credit facility from $400 million to $500 million. The agreement also preserves an accordion feature, allowing the firm to boost total commitments to $600 million if future growth opportunities arise.

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