TX-based Service Compression secures a preferred equity funding from Warburg Pincus, through its Capital Solutions Founders Fund. Alongside the investment from Warburg Pincus, there will be a fresh capital raise headed by both new and existing shareholders, and a new credit facility managed by J.P. Morgan.
The net proceeds from the combined transactions will be used by the firm for working capital assistance, company growth, and the repayment of outstanding borrowings on its current credit facility, which is managed by Crestline Investors, Inc. and its affiliates.
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Under the direction of President Rhett Newberry, Service Compression offers natural gas compression services at the wellhead to exploration and production firms.
Through its unique service and technology capabilities, the company focuses on enhancing the upstream oil and gas sector’s ESG (environmental, social, and governance) activities. Service Compression has field offices throughout Texas, New Mexico, Oklahoma, and Arkansas in addition to its headquarters in Lubbock, Texas.
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In order to meet the demands of its clientele, the company collaborated closely with Warburg Pincus to devise a plan for expanding its fleet of compression units.
Service Compression specifically seeks to support clients in fulfilling their environmental, social, and governance (ESG) commitments by expediting the expansion of electric compression units, which offer enhanced efficiency and reduced greenhouse gas emissions.
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About Service Compression
In Eastern Oklahoma, Service Compression started out as a single unit in 2004. Since the beginning, as a small, locally owned business, providing excellent customer service has been our main goal; in fact, the name of their firm was created with this specific purpose in mind.
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