Axip Asset Sale to Service Compression Approved by Court for $161 Million

A U.S. bankruptcy court has approved the $161 million sale of Axip Energy Services’ assets to Service Compression, advancing consolidation in the gas compression sector.

(P&GJ) — A U.S. bankruptcy court has approved the sale of Axip Energy Services’ assets to Service Compression for about $161 million, advancing the company’s Chapter 11 restructuring.

The transaction, structured as a stalking horse bid, covers substantially all of Axip’s assets and operations and is expected to close next week, subject to customary conditions.

Axip provides natural gas compression services used across pipeline and midstream systems. The sale is intended to maintain operations and transition the business to new ownership.

Chief Restructuring Officer Ben Chesters said court approval marks a key step in completing the transaction and maintaining service continuity for customers.

Service Compression Chief Executive Officer Rhett Newberry said the acquisition will expand the company’s footprint and capabilities in the U.S. gas compression market.