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Get filing alertsNGS closes $120M Flatrock Compression acquisition, adds 86,000 horsepower and cuts customer concentration
Filed June 17, 2026 · Period ending June 15, 2026 · ~1 min read
Key Changes
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high
Acquired Flatrock Compression for $120M ($110M cash, $10M stock), adding ~86,000 rented horsepower at ~95% utilization across Permian and Eagle Ford basins; deal valued at 6.2x annualized Q1 2026 EBITDA and immediately accretive.
Exhibit 99.1 view on EDGAR → -
high
Customer concentration reduced from 64% (Occidental and Devon) to 54%, with two new large publicly traded E&P customers now third and fourth largest relationships.
Exhibit 99.1 view on EDGAR → -
high
Combined fleet reaches ~661,000 rented horsepower; Flatrock's fleet is ~20% electric motor driven versus NGS's existing 7%, meaningfully expanding electric compression platform.
Exhibit 99.1 view on EDGAR → -
medium
Expanded credit facility from $400M to $500M to finance acquisition; pro forma leverage expected at ~3x adjusted EBITDA with >$130M available borrowing capacity remaining.
Exhibit 99.1 view on EDGAR → -
medium
~80% of Flatrock horsepower in Permian Basin with strong Midland Basin position, complementing NGS's existing footprint and increasing operational density in key growth areas.
Exhibit 99.1 view on EDGAR →
Summary
Natural Gas Services Group closed its acquisition of Flatrock Compression Holdings on June 15, 2026, for $120 million in a mix of cash and stock. The deal adds approximately 86,000 rented horsepower operating at roughly 95% utilization, bringing NGS's combined fleet to about 661,000 horsepower.
Management valued the transaction at 6.2 times Flatrock's annualized first quarter 2026 EBITDA and characterized it as immediately accretive to earnings, cash flow, and EBITDA. The acquisition addresses two strategic priorities for NGS.
First, it reduces customer concentration: Occidental Petroleum and Devon Energy previously represented 64% of revenue, now declining to 54% with the addition of two new large publicly traded E&P customers as the third and fourth largest relationships. Second, it strengthens NGS's basin position, with approximately 80% of Flatrock's horsepower in the Permian Basin (particularly the Midland Basin) and the remainder in the Eagle Ford, complementing NGS's existing footprint. The deal also meaningfully expands NGS's electric compression platform, as roughly 20% of Flatrock's horsepower is electric motor driven compared to 7% of NGS's existing fleet. NGS expanded its credit facility from $400 million to $500 million to finance the acquisition, with pro forma leverage expected at approximately $120 million three times adjusted EBITDA and more than $130 million of available borrowing capacity remaining after closing.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
NGS held a conference call on June 15, 2026, to announce the closing of its acquisition of Flatrock Compression Holdings LLC.
Added in current filing · verify on EDGAR →
On June 15, 2026, Natural Gas Services Group, Inc. (the “Company”) hosted a previously announced conference call to announce the closing of its acquisition of Flatrock Compression Holdings LLC.
The company announced it has completed its acquisition of Flatrock Compression Holdings LLC. The acquisition closed on June 15, 2026, and the company held a conference call that day to discuss the transaction. The filing does not disclose financial terms or other details of the acquisition.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Flatrock has assembled a highly complementary fleet that adds approximately 86,000 rented horsepower and brings our combined fleet to approximately 661,000 rented horsepower. ... The Flatrock fleet also meaningfully expands our electric compression platform as approximately 20% of Flatrock’s horsepower is electric motor driven compared to approximately 7% of NGS’s existing fleet.
The acquisition adds approximately 86,000 rented horsepower, bringing the combined fleet to approximately 661,000 rented horsepower. Flatrock's fleet is weighted toward large horsepower compression with significant overlap in unit model types (Caterpillar engines, Ariel compressors). Notably, approximately 20% of Flatrock's horsepower is electric motor driven versus approximately 7% of NGS's existing fleet, meaningfully expanding the electric compression platform.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 13, 2026 · How we verify