M&A
confidence high
sentiment positive
materiality 0.80
USA Compression to acquire J-W Power for $860M cash and stock; close expected Q1 2026
USA Compression Partners, LP
- Total consideration ~$860M: $430M cash from credit facility + ~18.3M USAC common units valued at $430M.
- Implied ~5.8x 2026E Adjusted EBITDA multiple; deal expected to be accretive to DCF and deleveraging.
- Combined fleet of ~4.4M active HP; J-W adds ~847k HP across Permian, Rockies, Mid-Con, Gulf Coast, Northeast.
- J-W has over 300 customers, average tenure >16 years; ~90% of 2026E EBITDA tied to contract compression.
- Registration rights and board observer rights granted to seller; lock-up on 50% of units for 6–12 months.