Austin energy services firm aims to raise $150 million

May 14, 2014
Austin American Statesman

USA Compression Partners LP and two of its existing investors plan to sell 6.6 million common shares in a deal that could raise about $150 million for the company, according to a document filed Tuesday with the Securities and Exchange Commission


According to the filing, the Austin-based firm will offer 5.6 million new shares and use its proceeds to pay down existing credit obligations and for general business purposes


The company, which provides gas-compression equipment and services to oil and gas companies, said its current borrowing under the credit facility are roughly $555 million, funds it used to expand its gas-compression fleet and for other business purposes


At Tuesday’s closing stock price of $26.77, the new stock offering would raise about $150 million for the firm, before subtracting costs associated with the offer


In addition to USA Compression’s offer, two of its current investors—Argonaut Private Equity and Jason Martin—plan to sell 1 million shares between them. They collectively could sell up to 990,000 more shares if underwriters choose to purchase additional shares. USA Compression will not receive any of the proceeds from the investors’ offerings, according to the securities filing


USA Compression Partners raised $198 million in a January 2013 initial public offering. In 2013, the company had record revenue of $152.9 million, up 28.7 percent from $118.8 million in 2012. Net income more than doubled, to $11.1 million from $4.5 million


For the first quarter of this year, USA Compression Partners’ revenue rose 54 percent to $50.2 million, compared with $32.6 million in the same quarter last year. The company had net income of $3.9 million, or 10 cents per share, compared with net income of $4.4 million, or 12 cents per share, for the same period last year


Print Article opens in new window