Service Compression, a provider of natural gas compression services for exploration and production companies, upsized its asset-based loan (ABL) credit facility by approximately 50%, bringing the facility’s total commitment to $300 million. The facility is led by J.P. Morgan.
This expansion reinforces Service Compression’s ability to invest in its fleet, support customer demand and accelerate innovation in compression technology. The additional capital positions the company to enhance its ability to deliver exceptional service to its blue-chip customer base while maintaining its leadership in the upstream oil and gas sector.
“This $95 million upsize, led by J.P. Morgan, underscores the strength of our platform and the significant opportunities we see in the market,” Rhett Newberry, CEO of Service Compression, said. “In conjunction with continued backing from our equity partners, Warburg Pincus and Masked Rider Capital, this investment enables us to meet increasing demand, scale our fleet and implement key technology upgrades to maintain our competitive edge. We are incredibly excited about the momentum this creates for Service Compression and our customers.”
The additional funding will enable the company to expand its presence in key markets and invest in state-of-the-art technology that aligns with customer needs and sustainability goals.
“Service Compression’s predictive technology and proactive service ensure they’re ready to meet the challenges of today while preparing for the opportunities of tomorrow,” Gaurav Seth, managing director, head of capital solutions, America at Warburg Pincus, said. “We’re confident this investment will fuel their continued expansion as they lead the way in innovations that meet the growing demand for electric powered compression solutions.”
