Archrock to Buy HiVolt Energy in $415 Million Cash Deal

The Tip Desk · November 10, 2026 · 3 min read

The natural gas compression company will add a prime power microgrid platform and fund the $415 million upfront cash with its ABL facility.

Archrock, Inc. (AROC) agreed to acquire HiVolt Energy Holdings, LLC for a cash unit purchase price of $415 million, subject to adjustments, combining the Houston-based natural gas compression company with a prime power microgrid platform and expanding its role in energy infrastructure.

The unit purchase price is $415 million in cash at close, subject to customary adjustments. A separate employee incentive plan allows selected HiVolt employees to earn up to $35 million in aggregate for fiscal years 2027–2029, based on HiVolt’s adjusted gross margin and each employee’s bonus participation percentage. Payments are scheduled for July 2028, 2029 and 2030, respectively, subject to continued employment through the payment date, with protections for termination without cause, resignation for good reason, death or disability. Archrock intends to fund the upfront cash with available capacity under its ABL credit facility and said the deal is expected to be debt-free, leaving pro forma leverage in its stated 3.0 times to 3.5 times target range.

“Combining HiVolt’s proven prime power microgrid platform with Archrock's natural gas compression offerings will transform our company into a broader provider of energy infrastructure,” said Brad Childers, President and Chief Executive Officer of Archrock.

HiVolt, founded in 2019, develops, owns and operates behind-the-meter prime power generation, battery energy storage systems, fuel gas pipelines and private-line infrastructure. The company said it has more than 80 megawatts of contracted prime power capacity today, supported by long-term, take-or-pay style, capacity-based power purchase agreements with an initial duration of five to eight years. It also said it has secured access to more than 500 megawatts of near-term generation equipment using Caterpillar engines, exceeding forecast requirements.

The $415 million upfront price plus the portion of the employee incentive plan paid through 2028 represents Archrock’s stated transaction multiple of approximately 6.1 times the midpoint of HiVolt’s expected 2028 adjusted EBITDA range of $70 million to $75 million, about 70% of which the company said is supported by operating and contracted and awarded opportunities. Archrock said the transaction is expected to be immediately accretive to earnings per share and cash available for dividend per share.

Childers said HiVolt’s talent and use of Caterpillar equipment are a key part of the addition, and that the company looks forward to welcoming HiVolt CEO Josh Evans and the team. After close, HiVolt is expected to operate as a separate business segment within Archrock, remain led by Evans, and keep its Midland, Texas, presence while Archrock expands the footprint nationwide.

The merger was unanimously approved by Archrock’s board. Closing is expected in early 2027, subject to regulatory approval and other customary conditions, including Hart-Scott-Rodino clearance.

Archrock said the combination is meant to deepen relationships with oil and gas customers, cross-sell compression and microgrid offerings, and position the company for upside from future industrial markets.