Archrock to Acquire HiVolt Energy Holdings for USD 450 Million
Archrock’s Acquisition of HiVolt Energy Holdings
Archrock has announced its agreement to acquire HiVolt Energy Holdings in an all-cash deal valued at up to USD 450 million. This acquisition includes an upfront payment of USD 415 million, with an additional USD 35 million contingent on commercial milestones. The transaction is expected to finalize in early 2027, pending regulatory approvals.
This acquisition marks Archrock’s expansion from its core business of natural gas compression into the microgrid power market. HiVolt’s offerings include behind-the-meter power generation, battery energy storage systems, and private-line infrastructure. Archrock anticipates that HiVolt will generate between USD 70 million and USD 75 million in adjusted EBITDA by 2028, with approximately 70% of this revenue supported by existing contracts and opportunities.
Strategic Goals and Market Positioning
Brad Childers, president and CEO of Archrock, emphasized that the integration of HiVolt’s microgrid platform with Archrock’s existing services will enhance the company’s ability to provide energy infrastructure solutions. He stated, “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.”
HiVolt, established in 2019, operates permanent microgrids under long-term power purchase agreements, primarily focused on the oil and gas sector. The company has over 80 MW of contracted power capacity and significant infrastructure in the Permian Basin, where Archrock has a strong operational presence. Childers noted the increasing demand for reliable electrical power in regions where traditional grid expansion is insufficient, highlighting that the U.S. oil and gas behind-the-meter power market is estimated at around 10 to 13 GW.
Archrock plans to prioritize oil and gas customers in its strategy to expand its microgrid offerings, aiming to meet the growing need for reliable power solutions in the industry.
