USA Compression Partners (NYSE:USAC) disclosed a definitive agreement on Monday to acquire J-W Power Company for around $860 million.
Transaction Details
USAC will pay $430 million in cash, initially funded via its revolving credit facility, and issue roughly 18.3 million new common units to the seller, valued at $430 million.
This is based on the 10-day VWAP as of November 26, 2025, with a $23.25–$23.50 collar (effective price $23.50).
The transaction is expected to close in the first quarter of 2026, subject to customary conditions and regulatory approvals.
Synergies & Benefits
The combination will significantly expand operational scale, creating a fleet of about 4.4 million active horsepower.
The acquisition will boost USAC’s presence across major U.S. energy regions, including the Permian Basin, Bakken, Gulf Coast, Northeast, Mid-Continent, and Rockies.
The company also broadens its business mix by strengthening aftermarket services, parts distribution, and specialized manufacturing capabilities, while adding a diverse, high-quality customer base with established, long-term relationships.
The deal reinforces USAC’s market leadership in mid- to large-horsepower compression and is expected to deliver immediate financial benefits through accretion to distributable cash flow.
With an attractive valuation of roughly 5.8x projected 2026 Adjusted EBITDA before synergies and a faster path toward leverage below 4.0x, the transaction enhances both strategic positioning and balance sheet strength.
Management Commentary
“By adding J-W Power Company’s high-quality fleet and expanding our presence in key basins, we are excited to expand our position as a leading provider of compression services,” said Clint Green, president and CEO of USAC. “The combined entity will deliver meaningful scale, broaden customer relationships, and enhance our ability to service the growing demand for natural gas compression.”
Price Action: USAC shares are up 1.35% at $25.51 premarket at the last check on Monday.
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