Park Energy Services Announces its Acquisition of Midcon Compression
Oklahoma City, OK (October 31, 2018) – Park Energy Services, LLC (“Park”), a portfolio company of Rock Hill Capital, announced today that it has completed the acquisition of substantially all the assets of Midcon Compression, LLC (“Midcon”), a division of Chesapeake Energy Corporation (NYSE: CHK) (“Chesapeake”).
The transaction includes a large facility in Hinton, Oklahoma and a fleet of natural gas compressors used primarily in artificial lift, wellhead compression, and gathering applications. All Midcon personnel will be joining the Park team. The acquisition increases Park’s total compression fleet to over 150,000 horsepower while expanding on the company’s strategic position in the Midcontinent and South Texas regions. The acquired fleet consists primarily of 3-stage, high pressure gas lift compressors which will enable Park to take advantage of substantial demand for gas lift compression with new and existing customers. In connection with the transaction, Park entered into a multi-year agreement with Chesapeake to serve as a strategic local compression provider while allowing Chesapeake to unlock value by shedding ancillary assets.
“We are excited to announce the closing of our acquisition of Midcon Compression and for the opportunity to partner with Chesapeake. This acquisition expands Park’s rental and service offering with the addition of high-quality compressor assets and talented personnel strategically positioned around our existing footprint,” said Jonathan Mitchell, President and CEO of Park.
Founded in 2014, Park specializes in compressor technology that helps oil and natural gas producers increase well-production volume while simultaneously reducing emissions and complying with environmental rules and regulations. “Our units are capturing gas that would otherwise be burned or vented and putting that gas on the sale line,” said Mitchell.
Moving forward, Mitchell said Park’s expanded rental and service offerings could help companies like Chesapeake focus on developing core assets. “By letting us provide the compression services and equipment, these companies are saving themselves from the expense of managing and maintaining a serviceable fleet,” said Mitchell. “That frees them up to invest in and develop their core, profit-making assets. It’s a win-win scenario for Park and our customers.”
Debt financing was provided by Regions Bank and BMO Harris Bank, N.A. and legal representation services for the transaction were provided by Winston & Strawn.
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