$120M Flatrock Acquisition Closes for NGS, Boosting Fleet by 86k HP and Credit to $500M
NGS sits 82% above its 52-week low of $22.72.
Summary
Natural Gas Services Group has finalized its $120 million acquisition of Flatrock Compression, a significant move that adds 86,000 rented horsepower to its fleet. This follows the 8-K filed on June 15th, which initially detailed the acquisition. The company also expanded its credit facility commitments from $400 million to $500 million to finance the deal, providing substantial liquidity. The transaction is expected to be immediately accretive to EBITDA, earnings, and cash flow, materially enhancing NGS's operational scale and financial position.
At the time of this announcement, NGS was trading at $41.31 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $520.4M. The 52-week trading range was $22.72 to $44.12. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.