Service Compression Expands Credit Facility by $95 Million to $300 Million
- Editor
- Feb 4
- 1 min read
What's Happening: Service Compression, a natural gas compression services provider, has increased its asset-based loan credit facility by approximately 50% to $300 million. The expansion, led by J.P. Morgan, reflects strong market demand and growth momentum experienced by the company in 2024.
The Key Moves:
Service Compression upsized its credit facility by $95 million to a total of $300 million.
The additional capital will be used to expand the company's fleet, implement technology upgrades, and meet increasing customer demand.
The company aims to advance its electric compression technology and sustainability initiatives.
By The Numbers :
Service Compression's fleet includes more than 1,700 gas and electric compression units.
The company operates in Texas, New Mexico, Oklahoma, and Arkansas.
Warburg Pincus, a key equity partner, has over $86 billion in assets under management.
Key Quotes:
"This $95 million upsize, led by J.P. Morgan, underscores the strength of our platform and the significant opportunities we see in the market," said Rhett Newberry, CEO of Service Compression.
"Service Compression's predictive technology and proactive service ensure they're ready to meet the challenges of today while preparing for the opportunities of tomorrow," said Gaurav Seth, Managing Director at Warburg Pincus.
*KQ3*
The Bottom Line: Service Compression's credit facility expansion positions the company to capitalize on growing demand for natural gas compression services, particularly in electric compression units. The increased capital will enable the company to invest in fleet expansion, technological advancements, and sustainability initiatives, reinforcing its leadership in the upstream oil and gas sector.
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