Transformational Acquisition Prompts Name And Ticker Changes
This is an update to my November 11 article.
Compressco Partners, L.P. (NASDAQ:CCLP) announced early yesterday that, effective December 1, 2014, it has changed its name to CSI Compressco, L.P. and has also changed its ticker symbol (to CCLP from GSJK). The changes are a result of the acquisition of Compressor Systems, Inc., which was announced in July of 2014 and closed on August 4, 2014. The partnership has stated that "No action is required by unit holders as a result of these changes."
As discussed in my prior article, the acquisition is truly transformational, as it has catapulted CCLP to a new status as the fourth largest U.S.-based provider of oil and natural gas compression services (mostly natural gas). I'm usually not a big fan of changing a company's name or ticker symbol, since I think that can cause some of the investment community to lose track of a company that is already relatively unknown, and that can affect short-term performance of the shares (technically, units, since CCLP is an MLP). However, in this case, I think the changes were necessary, since the old ticker symbol was based on the partnership's lead product suite (Gas Jack) and was disconnected from the actual name of the partnership. Perhaps the change will even draw new investor attention and interest from curiosity about what prompted the changes.
We are very excited with progress on assimilating these two great companies and believe the new name provides evidence of our progress in combining two very complimentary company cultures into one world class organization. With the acquisition of CSI, we now offer a full range of compression products and services that cover compression needs throughout the entire natural gas production and transportation cycle. Our primary business lines include service operations, after-market services and equipment sales to natural gas and oil producing clients throughout North America and many foreign countries.
Disclosure: The author is long CCLP.
The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I am long CCLP, will not buy or sell any shares in the next 48 hours, and have no plans to sell for at least several years.