Service Compression Announces Transformative Growth Capital Investment, Permian Basin Acquisition, and Electric Newbuild Program

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May 17, 2022, 20:00 ET

LUBBOCK, Texas, May 17, 2022 /PRNewswire/ -- Service Compression, LLC ("Service Compression" or the "Company") today announced that the Company has closed on a commitment for $215 million of first lien senior secured credit facilities with Crestline Investors, Inc. The Company plans to direct the net proceeds from the financing to the acquisition of incremental wellhead compression in the Permian Basin and the kickoff of a newbuild electric-driven wellhead compression program.

The acquisition will grow the Company's fleet to approximately 239,000 horsepower serving blue chip customers in the Permian Basin, Mid-Continent, Barnett Shale and Ark-La-Tex regions. Dusty Womble, Chairman of Service Compression, and Managing Partner at Masked Rider Capital, LLC, commented, "We are excited to announce our partnership with Crestline and believe this transaction puts us in an excellent position to realize our goal of creating meaningful value for our investors along with opportunity for our employees."

Rhett Newberry, President and CEO of Service Compression, commented, "We are pleased to announce this transformative financing with Crestline. The Company currently has 15,000 horsepower of electric-driven compression on order that, when combined with the acquisition, will solidify our position in the Permian Basin. We look forward to advancing the ESG initiatives of our customers and continuing to make strategic investments in equipment and technologies that differentiate our business."

Michael Aingorn, Managing Director at Crestline Investors, Inc., said "Crestline is impressed by Dusty and Rhett's leadership and vision for Service Compression together with their focus on delivering high levels of customer service. We are excited to back the Company's growth in its markets and expansion into electric compression—thereby de-carbonizing the oil and gas production process."

Advisors

Imperial Capital, LLC served as exclusive financial advisor to the Company in connection with the financing. Baker Botts L.L.P. served as legal counsel to the Company in connection with the financing and Bigbee & Curtis Law, LLP served as legal counsel to the Company in connection with the acquisition. Haynes and Boone, LLP served as legal counsel to Crestline in connection with the financing.

About Service Compression

Service Compression is a leading provider of natural gas compression services to exploration & production companies at the wellhead. Service Compression is focused on advancing the ESG initiatives of the upstream oil & gas sector through its differentiated service and technology offerings. The Company is headquartered in Lubbock, TX with field offices in support of its operations. For more information, please visit www.servicecompression.com.

About Crestline Investors, Inc.

Crestline Investors, Inc., founded in 1997 and based in Fort Worth, Texas, is an institutional alternative investment management firm with approximately $15.0 billion in assets under management. Crestline specializes in credit and opportunistic investments, including financing and restructuring solutions for mature private equity funds. In addition, the firm manages a multi-PM equity market-neutral hedge fund, and provides beta and hedging solutions for institutional clients. Headquartered in Fort Worth, Texas, the company maintains affiliate offices in New York City, London, Toronto and Tokyo. For more information, please visit www.crestlineinvestors.com.

About Masked Rider Capital, LLC

Masked Rider Capital, LLC ("Masked Rider Capital" or "MRC") is a multi-family office founded in 2012 that is focused on acquiring and investing in private companies. Masked Rider Capital proudly serves lower and middle market businesses in West Texas communities and the surrounding areas through innovative capital solutions. MRC provides capital in the form of control and non-control equity, debt and hybrid securities. The firm is industry agnostic and participates in real estate development opportunities. MRC is headquartered in Lubbock, TX. For more information, please visit www.maskedrider.com.

Contact

Service Compression, LLC
Rhett Newberry
President & CEO
Phone: (806) 790-8966
Email: [email protected]

SOURCE Service Compression