USA Compression Partners has revealed a significant strategic acquisition, entering into a definitive agreement to take over J-W Power Company in a transaction valued at approximately $860 million. This move is poised to substantially boost USA Compression's operational capabilities and market reach within the energy sector.
The deal's financial structure involves a combination of cash and equity. USA Compression will pay $430 million in cash, initially financed through its existing revolving credit facility, and will issue about 18.3 million new common units to J-W Power Company, also valued at $430 million. The unit valuation is based on a 10-day volume-weighted average price as of November 26, 2025, with an effective price of $23.50. This transaction is slated for completion in the first quarter of 2026, contingent upon the fulfillment of standard closing conditions and necessary regulatory approvals.
This acquisition is expected to bring numerous benefits, including a significant expansion of operational scale, with the combined entity boasting a fleet of approximately 4.4 million active horsepower. It will bolster USA Compression's presence in crucial U.S. energy production areas such as the Permian Basin, Bakken, Gulf Coast, Northeast, Mid-Continent, and Rockies. Additionally, the company will diversify its business segments by strengthening its aftermarket services, parts distribution, and specialized manufacturing capacities, while also integrating a robust, high-quality customer base. The transaction is projected to reinforce USA Compression's leadership in the mid- to large-horsepower compression market and is expected to yield immediate financial advantages through increased distributable cash flow. With an attractive valuation of around 5.8 times the projected 2026 Adjusted EBITDA before synergies and a quicker path to reducing leverage below 4.0x, the acquisition enhances both the company's strategic position and financial stability.
This strategic integration underscores a commitment to growth and market dominance, creating a more robust and efficient energy infrastructure. The expanded fleet and diversified service offerings will enable the company to better meet the evolving demands of the natural gas compression market, driving innovation and reliability in energy solutions.