USA Compression Partners announced it has entered a definitive agreement to acquire J-W Power Company for approximately $860 million, marking one of the most significant transactions in the natural gas compression sector in recent years. The move expands USA Compression’s position as one of the largest independent providers of compression services in the United States. It gives the partnership enhanced scale, geographic reach, and service flexibility across multiple basins.
Under the agreement, the company will fund about $430 million in cash and issue roughly 18.3 million new USAC common units valued at nearly $430 million based on the ten-day volume-weighted average price as of November 26, 2025. USA Compression plans to initially use capacity under its revolving credit facility to fund the cash portion. The transaction is expected to close in the first quarter of 2026 pending customary regulatory approvals.
The combined organization will operate a fleet of roughly 4.4 million active horsepower. It will add more than 0.8 million horsepower from J-W Power Company across core regions including the Northeast, Mid Continent, Rockies, Gulf Coast, Bakken, and Permian Basin. The deal also brings expanded aftermarket services, manufacturing capabilities, and a broad base of long-standing customer relationships.
USA Compression said it expects the acquisition to provide meaningful near-term accretion on a distributable cash flow basis, supported by an attractive valuation of approximately 5.8 times J-W Power Company’s estimated 2026 adjusted EBITDA before projected synergies. The company also emphasized that the deal is deleveraging and is expected to accelerate its progress toward reducing leverage to below 4x.
Support: Wells Fargo is serving as exclusive financial advisor and Sidley Austin is serving as legal advisor to USA Compression, while Jefferies and Jackson Walker advised J-W Power Company.
KEY QUOTES:
“This acquisition represents a milestone step for USAC. By adding J-W Power Company’s high quality fleet and expanding our presence in key basins, we are excited to expand our position as a leading provider of compression services. The combined entity will deliver meaningful scale, broaden customer relationships, and enhance our ability to service the growing demand for natural gas compression.”
“J-W Power Company brings a strong reputation for operational excellence and a diversified business model. We look forward to welcoming their talented team and working together to create long term value for our unitholders.”
Clint Green, President And Chief Executive Officer, USA Compression Partners
