USA Compression to acquire J-W Power Company for $860M

USA Compression (USAC) Partners entered into a definitive agreement to acquire J-W Power Company, a large privately-held provider of compression services in the United States, for total consideration of approximately $860M. Strategic and Financial Benefits: Expanded Scale: Creates a combined fleet of approximately 4.4 million active horsepower. Enhances Geographic Diversification: Adds over 0.8 million active horsepower across key regions including the Northeast, Mid-Con, Rockies, Gulf Coast, Bakken and Permian Basin. Diversified Business Lines: Includes aftermarket services and parts distribution, as well as additional optionality associated with specialized manufacturing services. Customer Base: Highly diversified, high-quality customer base with long-term relationships. Market Leadership: Expands USAC’s position across mid-to-large horsepower compression. Financial Impact: Meaningful near-term accretion on a Distributable Cash Flow basis. Valuation: Attractive ~5.8x 2026 estimated Adjusted EBITDA multiple before expected synergies. Deleveraging: Deleveraging transaction that accelerates path to sub-4.0x leverage. Under the terms of the agreement, USAC will fund $430M in cash, with plans to initially fund through available capacity under its revolving credit facility, and issue approximately 18.3 million new USAC common units to the seller. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals.