Axip Energy website
A Houston-based natural gas compression company is preparing for a sale as it files for Chapter 11 bankruptcy protection after some of its units were stranded in the Gulf.
Axip Energy Services LP has entered into a stalking horse agreement with Fort Worth-based Service Compression LLC to buy substantially all of Axip’s assets for approximately $161 million, subject to a working capital adjustment, plus the assumption of certain liabilities. Axip plans to solicit additional bids in case it can secure a higher or better offer.
Axip provides natural gas compression services in all major producing basins in the U.S., including the Gulf, with its primary focus in the Permian Basin. The company has a compression fleet of over 500,000 horsepower, according to a Feb. 22 news release, more than 25% of which is powered by electricity. According to court documents, Axip’s contracted fleet consists of 940 compression units with a total of 326,070 horsepower.
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