USA Compression Partners LP to Acquire J-W Power Company in $860 Million Transaction

Manufacturing-News
Image Courtesy: USA Compression

USA Compression Partners, LP (NYSE: USAC) has announced the signing of a definitive agreement to purchase J-W Power Company, one of the largest privately held compression service providers in the United States. The transaction values J-W Power Company at approximately $860 million and represents a major strategic step in expanding USA Compression’s national footprint and service capabilities.

The acquisition significantly increases USA Compression’s operating scale, creating a combined fleet of roughly 4.4 million horsepower in active compression services. J-W Power Company brings more than 800,000 horsepower deployed across major U.S. energy-producing regions, including the Permian Basin, Bakken, Gulf Coast, Rockies, Mid-Continent and the Northeast. Beyond fleet expansion, the deal adds complementary offerings such as aftermarket support, parts distribution and specialty manufacturing services, further diversifying the business and strengthening its long-term competitive position.

Clint Green, President and Chief Executive Officer of USA Compression, described the agreement as a defining moment for the Partnership. He stated that integrating J-W Power Company’s assets and workforce will meaningfully enhance customer support, geographic reach and operational flexibility at a time when demand for natural gas infrastructure continues to grow. Green added that J-W Power Company’s decades-long track record and industry expertise make the combination highly aligned with USA Compression’s long-term strategy.

Financially, USA Compression expects the acquisition to support strong cash flow expansion and be accretive in the near term, reflecting larger operating scale, a broader customer base and attractive capital deployment across existing operations. The transaction terms include $430 million in cash funding and the issuance of approximately 18.3 million common units valued at $430 million based on recent market pricing.

USA Compression plans to use availability under its revolving credit facility for the cash portion of the purchase price. The deal is expected to support continued balance sheet improvement and strengthen the Partnership’s trajectory toward lower leverage. The transaction is expected to close during the first quarter of 2026, pending regulatory approvals and customary closing conditions.

USA Compression Partners LP is among the largest independent US providers of natural gas compression services, supplying compression solutions for producers, midstream operators and transport companies across major basins. J-W Power Company has been active in the industry for more than 60 years, manufacturing more than 8,000 compressor packages during its history and supporting over 300 customers with rental services, fabrication capabilities and aftermarket support.