Flowco completes acquisition of HPGL and VRU systems from Archrock

The deal further enhances Flowco’s presence in the Permian Basin and strengthens its relationships with both new and existing customers. Credit: PVRM/Shutterstock.com.

Flowco Holdings, a production optimisation, artificial lift and methane abatement solutions provider, has announced the acquisition of high-pressure gas lift (HPGL) and vapour recovery unit (VRU) systems from Archrock.

The acquisition, involving 155 HPGL and VRU systems as well as other assets, was completed for approximately $71m in cash.

This strategic move not only accelerates Flowco’s growth in these areas but also reinforces its leadership in HPGL and vapour recovery technologies.

Flowco’s fleet has been expanded with the addition of electric motor drive systems, enhancing the company’s ability to serve operators that are increasingly focused on electrification and emissions reduction.

The acquisition of these high-margin, contracted assets at an attractive valuation is expected to be accretive to Flowco’s key financial metrics including free cash flow per share and earnings per share.

Flowco president and CEO Joe Bob Edwards said: “We are pleased to announce our first M&A [mergers and acquisitions] transaction, delivering on our strategy to grow inorganically.

“This transaction underscores our disciplined approach to M&A – focusing on opportunities in production optimisation at attractive valuations. These high-quality electric systems will integrate seamlessly into our fleet, delivering the uptime and efficiency our customers expect from us.”

The deal further enhances Flowco’s presence in the Permian Basin and strengthens its relationships with both new and existing customers.

In January, Flowco announced its intention to go public with an initial public offering (IPO) aimed at raising $392m by offering 17.8 million shares priced between $21 and $23 each.

Cornerstone investors had expressed significant interest, with plans to purchase $125m worth of shares, representing 32% of the IPO.

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