Seeking Alpha

TETRA's gas compression unit makes $825M acquisition

TETRA Technologies (TTI +4.8%) agrees to acquire Compressor Systems, owner of the fourth-largest U.S. gas compression fleet, for $825M.

The deal could make TTI affiliate Compressco Partners (NASDAQ:GSJK), a relatively young player in the growing U.S. market for pumping gas from aging wells, a rival to Exterran Partners (EXLP, EXH) and other large U.S. compressors, in terms of energy pumping horsepower.

TTI says the deal will increase Compressco's total horsepower offering from ~187K to 1M-plus, and allow Compressco to utilize an expanded range of compressor packages (from 20 HP units to 2,370 HP units) for compression services to customers.

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Comments (1)
  • 27975573
    , contributor
    Comments (315) | Send Message
    I expect the entire group of pick & shovel players in energy to look
    to consolidate. The compressor sector with it's diversity of uses;


    Wells, pipelines, waste water removal, storage, etc.
    Is a good place to start...


    Long (NYSE:USAC) in this sector.
    21 Jul 2014, 11:03 AM Reply Like
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