Archrock, Inc. completed the acquisition of all outstanding common units of Archrock Partners, L.P.
OREANDA-NEWS. April 27, 2018. Archrock, Inc. (“Archrock”) (NYSE:AROC) today announced that it has completed the acquisition of all outstanding common units of Archrock Partners, L.P. (“Archrock Partners”) (NASDAQ:APLP) that it did not previously own. As a result of the transaction, Archrock Partners common units will no longer be publicly traded on the Nasdaq Global Select Market after April 26, 2018.
“Archrock Partners’ unitholders and Archrock’s stockholders demonstrated strong support for the merger transaction in yesterday’s vote,” stated Brad Childers, Archrock's President and Chief Executive Officer. “The merger strengthens our platform to capture growth from increasing U.S. natural gas production, and provides stockholders with enhanced value through a higher expected dividend growth rate and improved dividend coverage.”
Merger Transaction Highlights
Under the terms of the merger agreement, Archrock has acquired all of the 41 million outstanding units of Archrock Partners that it did not already own at a fixed exchange ratio of 1.40 shares of Archrock common stock for each Archrock Partners common unit.
Archrock expects the following benefits from the merger:
- Simplified capital structure that accelerates deleveraging from increased retained cash flow and elimination of incentive distribution rights;
- Cash available for dividend coverage above 2.00x through 2020;
- 10-15 percent targeted annual dividend growth through 2020;
- Immediately accretive to Archrock’s cash available for dividend per share;
- Lower cost of capital and improved trading liquidity; and
- No cash federal income taxes through at least 2023.
Archrock, Inc. is a pure-play U.S. natural gas contract compression services business and a leading supplier of aftermarket services to customers that own compression equipment in the United States. Archrock is headquartered in Houston, Texas, operating in the major oil and gas producing regions in the United States, with approximately 1,700 employees. For more information, visit www.archrock.com.
All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of Archrock and Archrock Partners, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to: statements regarding the expected benefits of the merger transaction to Archrock and Archrock Partners and their stockholders and unitholders, respectively.