Spartan Energy to Acquire CSI Compressco Control From TETRA Technologies

Updated 7 months 2 weeks ago

Spartan has entered into a series of transactions to acquire TETRA's general partner interests, incentive distribution rights, and common units in CSI Compressco for $13.95 million or up to $17.1 million based on financial targets. Spartan will also sell 15 large compressor units to CSI Compressco for $14.2 million under a lease arrangement and settle outstanding intercompany balances for $2.5 million. TETRA is selling 674,587 general partner units and IDRs and 10.95 million of 16.19 million common units.

Spartan's management will replace current CEO Brady Murphy and CFO Elijio Serrano who will now focus on completion fluids, water management, and flowback at TETRA. Evercore served as an advisor to TETRA.

Brady Murphy, TETRA President & CEO

Following our divestment of CSI Compressco's general partner, the Company will focus on our capital efficient business model that has continued to generate positive free cash flow throughout the cycles, including one of the worst our industry has ever experienced in 2020 due to COVID-19.