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Flowco Holdings Completes First Acquisition, Acquires $71M in Gas Lift and Vapor Recovery Systems from Archrock.
ByAinvest
Wednesday, Aug 20, 2025 12:21 am ET1min read
Flowco Holdings Inc. has completed its first acquisition, buying $71 million in gas lift and vapor recovery systems from Archrock. The deal strengthens Flowco's leadership in HPGL and vapor recovery technologies and enhances its presence in the Permian Basin. The acquisition is expected to be accretive to key financial metrics.
Flowco Holdings Inc. has completed its first acquisition, purchasing $71 million in gas lift and vapor recovery systems from Archrock. This strategic move strengthens Flowco's leadership in high-pressure gas lift (HPGL) and vapor recovery technologies and enhances its presence in the Permian Basin. The acquisition is expected to be accretive to key financial metrics [1].The deal comes amidst growing concerns over wastewater disposal wells in the Permian Basin, with the Railroad Commission of Texas warning about increasing underground pressure and potential contamination of oil wells. Several operators, including Coterra Energy, Devon Energy, and ConocoPhillips, have expressed concerns over the impact of wastewater disposal on their operations and reserves [2].
Flowco's acquisition of gas lift and vapor recovery systems from Archrock is part of its strategy to address these challenges. The systems are designed to manage and reduce the pressure caused by wastewater disposal, which can help mitigate the risks of contamination and enhance overall operational efficiency. By investing in these technologies, Flowco aims to capitalize on the growing demand for solutions that address the environmental and operational challenges posed by wastewater disposal in the Permian Basin.
The acquisition is expected to have a positive impact on Flowco's financial performance, with analysts predicting that it will be accretive to earnings and cash flow. The company's focus on HPGL and vapor recovery technologies positions it well to benefit from the ongoing efforts to manage wastewater disposal and improve the sustainability of oil and gas operations in the Permian Basin.
References:
[1] https://www.okenergytoday.com/2025/08/texas-regulators-warn-of-toxic-wastewater-leaks-in-permian-basin/
[2] https://www.seekingalpha.com/news/1737764-crescent-energy-argues-aris-disposal-wells-could-leak-dirty-water-into-its-production-zone
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