Park Energy Services completed the acquisition of substantially all the assets of Midcon Compression, a division of Chesapeake Energy. Regions Bank and BMO Harris Bank provided debt financing to support the transaction.
The acquisition includes a large facility in Hinton, OK and a fleet of natural gas compressors used primarily in artificial lift, wellhead compression, and gathering applications. All Midcon personnel will be joining the Park team.
The acquisition increases Park’s total compression fleet to over 150,000 horsepower while expanding on the company’s strategic position in the Midcontinent and South Texas regions. The acquired fleet consists primarily of 3-stage, high pressure gas lift compressors which will enable Park to take advantage of substantial demand for gas lift compression with new and existing customers. In connection with the transaction, Park entered into a multi-year agreement with Chesapeake to serve as a strategic local compression provider while allowing Chesapeake to unlock value by shedding ancillary assets.
“We are excited to announce the closing of our acquisition of Midcon Compression and for the opportunity to partner with Chesapeake. This acquisition expands Park’s rental and service offering with the addition of high-quality compressor assets and talented personnel strategically positioned around our existing footprint,” said Jonathan Mitchell, President and CEO of Park.
Winston & Strawn provided legal representation services on the transaction.
Founded in 2014 and headquartered in Oklahoma City, Park Energy Services specializes in compressor technology that helps oil and natural gas producers increase well-production volume while simultaneously reducing emissions and complying with environmental rules and regulations. It is a portfolio company of Rock Hill Capital, a private equity firm that invests in small-to-lower middle market companies located in the South and Southeast U.S.