Axip Energy Services Sells International Services Business to Enerflex

HOUSTON, June 2, 2014 /PRNewswire/ -- Today, Axip Energy Services, LP (formerly known as Valerus Compression Services, LP) announced that it will sell its international services business to EnerflexLtd.(Enerflex) for US$430million in cash, subject to standard closing adjustments.  The transaction is subject to certain regulatory and other conditions and is expected to close in late second quarter or early third quarter of this year.  All of Axip's international contract operations and its approximately 170 employees who work in that business will be transferred to Enerflex.  Axip intends to use the proceeds of the divestiture to continue reinvesting in its domestic contract services businesses and pay down debt.  This sale, in combination with the successful divestiture of the Valerus Field Solutions business earlier this year, will result in a business completely focused and aligned on continuing its rapid growth in the US shale plays with its contract services and aftermarket offerings.   

Pete Lane, CEO of Axip, noted, "We are pleased to announce this transaction as it allows us to focus on the core business of Axip in the rapidly expanding US shale plays and creates an opportunity for Enerflex to increase the size and scale of its global product and services offerings."

Axip will work with its employees, customers and vendors to make the transition as seamless as possible.

About Axip

Axip provides contract compression and production equipment, pre-engineered wellpad solutions, pipelines, and full gathering, processing and treating facilities on a fee basis for upstream and midstream oil and gas operators.  Axip's service offering ranges from single compressors and small refrigerated JT units to 200 MMSCFD gas gathering stations and comprehensive treating facilities.  Axip provides field equipment installation, maintenance and repair, and also designs, engineers, owns and operates complete facilities. Axip is committed to delivering the highest standards in safety, service and reliability to its customers. More information is available at www.axip.com.

Barclays acted as financial adviser to Axip in connection with the transaction.Axip is being represented by Vinson & Elkins LLP in connection with the sale.

For more information contact:
Chris Wailes
Pierpont Communications
713.627.2223
[email protected]

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SOURCE Axip Energy Services, LP