Park Energy Services, LLC (“Park”), a portfolio company of Rock Hill
Capital, announced today that it has completed the acquisition of
substantially all the assets of Midcon Compression, LLC (“Midcon”), a
division of Chesapeake Energy Corporation (NYSE: CHK) (“Chesapeake”).
The transaction includes a large facility in Hinton, Oklahoma 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.
Founded in 2014, Park 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. “Our units are capturing gas that would otherwise be
burned or vented and putting that gas on the sale line,” said Mitchell.
Moving forward, Mitchell said Park’s expanded rental and service
offerings could help companies like Chesapeake focus on developing core
assets. “By letting us provide the compression services and equipment,
these companies are saving themselves from the expense of managing and
maintaining a serviceable fleet,” said Mitchell. “That frees them up to
invest in and develop their core, profit-making assets. It’s a win-win
scenario for Park and our customers.”
Debt financing was provided by Regions Bank and BMO Harris Bank, N.A.
and legal representation services for the transaction were provided by
Winston & Strawn.
About Park Energy Services
Park Energy Services, (www.parkenergyservices.com),
headquartered in Oklahoma City, Oklahoma, operates a fleet of low
horsepower compressor units focused on wellhead compressions,
specifically gas lift and vapor recovery, throughout South and Central
Texas, Northern Colorado, and the Permian Basin.
About Rock Hill Capital
Rock Hill Capital, founded in 2007 and headquartered in Houston, Texas,
is a private equity firm that invests in small-to-lower middle market
companies located in the South and Southeast U.S. Rock Hill is currently
investing out of its third committed capital fund totaling $150MM
focusing on companies in the industrial products and services
industries. Take a deeper look at Rock Hill Capital and what makes our
investments successful by visiting www.rockhillcap.com.
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