USA Compression Expands Permian, Gulf Coast Presence with $860 Million J-W Power Purchase
USA Compression will acquire J-W Power Company in an $860 million deal, expanding its compression fleet to 4.4 million horsepower and strengthening its footprint across key U.S. basins.
DALLAS (P&GJ) — USA Compression Partners LP (NYSE: USAC) has announced a definitive agreement to acquire J-W Power Company, a large privately held U.S. compression services provider, in a deal valued at approximately $860 million.
The transaction will create a combined fleet of about 4.4 million active horsepower, expanding USA Compression’s presence in key regions including the Permian Basin, Gulf Coast, Rockies, Mid-Continent, Bakken, and Northeast.
“This acquisition represents a milestone step for USAC,” said Clint Green, president and CEO of USA Compression. “By adding J-W Power Company’s high-quality fleet and expanding our presence in key basins, we are excited to expand our position as a leading provider of compression services.”
J-W Power brings more than 0.8 million horsepower, along with a diversified business model that includes aftermarket services, parts distribution, and manufacturing capabilities. The addition is expected to be immediately accretive on a distributable cash flow basis, with a projected 5.8x 2026 EBITDA multiple before synergies.
Under the terms of the deal, USA Compression will fund the acquisition through $430 million in cash and the issuance of approximately 18.3 million new common units, valued at $430 million. The company expects the transaction to close in early 2026, pending regulatory approvals.
“This combination strengthens our customer relationships and enhances our ability to meet the growing demand for natural gas compression,” Green said. “We look forward to welcoming the J-W team and driving long-term value for our unitholders.”
Following the transaction, USA Compression said it expects to accelerate deleveraging toward a sub-4.0x leverage ratio, improving balance-sheet flexibility as market demand for compression continues to grow.
Wells Fargo acted as exclusive financial advisor and Sidley Austin LLP as legal counsel to USA Compression. Jefferies LLC and Jackson Walker LLP advised J-W Power Company.