USA Compression Partners LP (NYSE: USAC) is paying $187 million to buy compression assets from S&R Compression LLC.
The Oklahoma and Texas-based compression assets are used for crude oil production.
S&R Compression, headquartered in Tulsa, provides compression services to the gas industry. The company is majority owned and controlled by Argonaut Private Equity, which was founded by billionaire George Kaiser.
As part of the deal, Argonaut will receive a 20 percent limited partner interest in USA Compression.
USA Compression, headquartered in Austin, provides compression services to natural gas producers, processors and transporters.
Argonaut, based in Tulsa, has about $2 billion under management. Other investments have included Crown Bioscience, Yulex and Aspen Aerogels.
Companies that provide services to the oil and gas industries have been experiencing a plethora of M&A. Recent deals include Actuant Corp.’s (NYSE: ATU) purchase of Viking SeaTech, Emcor Group Inc.’s (NYSE: EME) deal for RepconStrickland Inc., and Nautic Partners LLC’s acquisition of Applied Consultants Inc.